TORONTO - The opposition parties say it's about time Premier Dalton McGuinty woke up to the true state of the economy, but they worry the province isn't making the right moves to get out of the red.

Progressive Conservative Leader John Tory calls McGuinty the "last leader in the free world" to recognize that high taxes and spending chase away jobs.

He wants McGuinty to show serious government restraint -- though he wouldn't go so far as to suggest public sector layoffs or pay freezes.

NDP Leader Howard Hampton says McGuinty's latest admission that the economy is in trouble will probably be followed by cuts to services but no real plan.

The premier made media rounds Thursday to say -- in the most certain terms to date -- that the province's economy is in serious trouble and will not bounce back without changes.

Those changes could include slowing investment in public services, shifting focus to more business-friendly goals, and harmonizing sales taxes.

Tory says McGuinty doesn't really believe in any Conservative measures and has set up Ontario for a needlessly high deficit.

McGuinty has been warning for months that troubles in the manufacturing sector will result in a smaller auto industry and that Ontario residents can no longer depend on a low dollar.