TORONTO — Ontario's Progressive Conservatives are poised to make a comeback in 2007, despite a humiliating defeat in a general election less than a year ago, according to Opposition Leader Ernie Eves.

"I believe we're in excellent shape to win the next provincial election," insisted Eves, who was hosting his last session-end news conference as leader of Ontario's official Opposition.

Eves credited the tax hikes in the Liberals' first provincial budget for boosting support for Conservatives across the country, and said he warned voters that Dalton McGuinty could not afford to keep his campaign promises.

"I think our party has been vindicated in that respect," said Eves.

"I don't believe that even with their tax increases they can begin to deliver on the 231 promises."

A relaxed and tanned Eves was in a reflective mood as he briefed reporters Friday, reminiscing about winning his first seat in 1981 by just six votes, and then only after a judicial recount.

"It's been quite a ride for me," said Eves.

"I've held just about every office that you can hold outside of Speaker, and I certainly don't aspire to being the Speaker of the legislature."

The Conservatives will pick a new leader on Sept. 18, and Eves said he would be returning for the fall session of the legislature, but on the backbenches where he started in 1981.

"I'm looking forward to sitting in the fourth row, making paper airplanes with Bill Murdoch," joked the former premier.

Murdoch is a veteran Conservative, but a maverick and a fixture on the Tory backbenches who was never invited to sit at the cabinet table by Eves or former premier Mike Harris.

Eves also said he was "unnerved" at the prospect of the Bloc Quebecois holding the balance of power in Parliament after Monday's election, and warned that minority governments can find it difficult to implement their programs.

He predicted Stephen Harper and the Conservatives would win at least 50 seats in Ontario and capture more seats nationally than the Liberals.

"The reality of the McGuinty budget, I think, has done an awful lot to harm the election prospects of the federal Liberal party," said Eves.

"There's no doubt in my mind that the McGuinty government had a huge effect on the people of Ontario, and what their feelings are in this federal election campaign."