Nipissing MPP Vic Fedeli says talk of interest rates rising in the near future, means bad news for the Ontario government on two fronts.

Fedeli says the first problem involves the amount of interest we pay on our current debt of more than $300 billion.

He says the Financial Accountability Officer is very aware of this and the revenue problem it could create.

Fedeli says the more interest we pay on our debt, the less money we have for other services like health and education.

The second problem is a collapse in the housing market because of rising rates.

Fedeli says the province collects an extra billion dollars a year in land transfer taxes from the sale of homes.

But he cautions that money could dry up if a housing bust causes a severe slowdown in sales.

(Written By: Rocco Frangione)