The Ontario Chamber of Commerce (OCC) applauds the decision by Cliffs to choose Ontario for its investment. The Ring of Fire is one of the most promising mining opportunities in a generation. Estimated to be worth $30 billion, it offers significant economic development opportunities for communities across Northern Ontario, and for Aboriginal communities in particular.

The economic spinoffs from resource development could assist the Ontario government with its $15 billion deficit and contribute to the economic revitalization of communities hard hit by the decline of manufacturing.

Part of the investment will include a $1.8 billion chromite processing facility in Capreol, near Sudbury. The development of a new all-season road to run south from the Ring of Fire through northwestern Ontario will also be considered. An estimated 450 jobs will be created during construction and facility operation, with mine and mill development and transportation infrastructure creating an additional 750 jobs.

The OCC is committed to maximizing the opportunities presented in the Ring of Fire by working with stakeholders, industry, government and First Nations to enhance economic growth and competitiveness, create jobs, and provide Aboriginal communities with sustainable educational and economic opportunities.

Elizabeth Witmer, former MPP from Kitchener-Waterloo, would take over from outgoing Chair Steve Mahoney, who announced his retirement in March. Her past portfolios include Minister of Labour, Minister of Health, Minister of Education, Minister of the Environment and Deputy Premier.

The nomination is subject to review by the Standing Committee on Government Agencies.

The announcement comes shortly before the release of the final report on the WSIB Funding Review. In September 2010, the Ontario government announced the Funding Review, led by Professor Harry Arthurs. The year-long review sought advice and input from workers, labour and employers on a range of public policy issues relating to the WSIB’s financial future including a plan on how to eliminate the WSIB’s unfunded liability.

Read the Funding Review’s final report: Funding Fairness: A Report on Ontario’s Workplace Safety and Insurance System.

In September 2010, the Ontario Government announced the WSIB Funding Review, which sought to gather input from experts and stakeholders regarding policy issues relating to the financial future of the WSIB, including a plan on how to eliminate its unfunded liability (UFL).

The Funding Review’s final report Funding Fairness: A Report on Ontario’s Workplace Safety and Insurance System recommends a new funding strategy that aims to move the WSIB beyond the “tipping point” with the goal of achieving 90% to 110% funding within 20 years.

Key recommendations include:

• A funding strategy where premium rates would include a “base charge” for current costs and a fixed “UFL component”
• A new rate setting model whereby a Chief Actuary would be responsible for setting the average premium rate no later than July for the following year
• Rate groups would be replaced with “sectoral groups” used to set premium rates and to organize accident prevention, safety education and return-to-work programs
• Investigate creating a separate small business sector, or alternatively establishing a standard rate for small businesses within each sector
• Initiate a time-limited experiment in the experience rating programs
• Designate a Health, Safety and Insurance Officer at each organization assigned with the responsibility for ensuring compliance with the Workplace Safety and Insurance Act, 1997 (WSIA) and other occupational health and safety legislation
• Re-establish a medical/scientific panel to identify occupational diseases that should be eligible for compensation under the WSIA
• Divide new occupational disease claim costs between Schedule 1 employers and the sector
• Provide full indexation for partially disabled workers, plus a one-time adjustment to the benefit base

In response to the report, the Ontario government announced that it would file a new regulation under the Workplace Safety and Insurance Act, 1997, to require the insurance fund of the Workplace Safety and Insurance Board to reach sufficiency of 60% funding in 2017, 80% funding in 2022 and a full 100% funding by 2027. Also announced were benefit increases to injured workers on partial disability by 0.5% in 2013 and another 0.5% in 2014.

 The OCC is very concerned with the potential cost implications the report’s recommendations will have on businesses. Ontario’s average employee premium rate is already the highest of any jurisdiction in Canada. We urge the government to consult with the business community on the cost implications for businesses prior to adopting the recommendations.

The goal now is for communities across Ontario to embrace this long term vision. The OCC looks to our members, as leaders in their communities, to implement this economic vision and capitalize on opportunities to take regional action on the following five priorities:

• Fostering a culture of innovation in order to become a productivity leader
• Building a 21st century workforce
• Restoring fiscal balance
• Taking advantage of new opportunities in the global economy
• Identifying, championing and investing in our competitive advantages

It requires community leaders to understand local issues and identify ways in which we can move this issues forward. To help communities facilitate this dialogue, the Ontario Economic Summit is launching a Regional Economic Leadership Series, which will focus on local action that can be taken to drive these five priorities.

As a provincial body, the OCC is able to promote Emerging Stronger at Queen’s Park and amongst business and civic leaders. And this economic vision for Ontario appears to be supported by key players in the province.

Representatives from all three political parties at the 2012 OCC AGM in St.Catharines referenced Emerging Stronger and applauded the priorities contained within. The document itself was developed out of the comments and ideas of business and civic leaders across the province polled by Leger Marketing as well as leaders who attended the 2011 Ontario Economic Summit. 

The Ontario Chamber of Commerce and its Network are proud to promote Emerging Stronger as a vision for making Ontario more productive and more globally connected.

Through the Ontario Economic Summit’s Regional Economic Leadership Series, made possible through the support of the Institute of Chartered Accountants of Ontario, we are reaching out to all businesses that have solutions that will allow local communities and Ontario to prosper.

This initiative is an opportunity for your company to demonstrate its thought leadership among 40-60 influential government and business leaders in the regions where it has a footprint. It is also your opportunity to gain the support of a province-wide Chamber movement for the solutions that will allow your company to grow.

The initiative will consist of roundtables in seven communities across the province, and culminate with the Ontario Economic Summit in November, where key commitments will be tabled. An achievable action plan will be developed through collaboration with Ontario’s key stakeholders.  Roundtables will build on initiatives underway through local chambers, and are scheduled for the following regions:

•          Peterborough – May 31
•          Kingston - June 28
•          Thunder Bay 
•          Niagara Region
•          Hamilton
•          Southwestern Ontario
•          GTA

To participate in the Regional Economic Leadership Series, please contact Gabrielle Schachter at 416-482-5222 ext 2310 or gabrielleschachter@occ..on.ca.  

The Regional Economic Leadership Series is the operational component of the Ontario Chamber of Commerce’s five-year vision for the province entitled Emerging Stronger: A Transformative Agenda for Ontario. Emerging Stronger has allowed business and political leaders to unite under a common strategy that addresses Ontario’s core economic challenges, not least of which is a public sector debt that has constrained the government’s ability to stimulate economic growth.

The debate was passionate and succinct as the policy session wrapped up in record time.

The Ontario Chamber of Commerce would like to thank all submitting organizations and all AGM delegates who participated in Saturday’s policy session for their contribution to the discussion.

Please see below for a list of the 31 new policy resolutions approved by Ontario Chamber of Commerce delegates as well as the corresponding page numbers on the 2012 AGM Approved Resolutions

COMPETITIVE TAX & REGULATORY REGIME

Page 4: Fuel Tax Rebates for Off-highway Road Transport (Timmins Chamber of Commerce)

Page 6: Addressing Challenges Facing Ontario Court Systems (Brampton Board of Trade)

Page 7: Fairness for Businesses in Customer Initiated Transactions (Brampton Board of Trade)

Page 9: Implement the Scheduled Reductions in the Corporate Income Tax Rate (Halton Hills Chamber of Commerce)

Page 11: Replacing the Retail Business Holiday Act to Drive Economic Competitiveness (Oakville Chamber of Commerce)

Page 17: Employer Health Tax (EHT) Exemption Floor (St. Thomas & District Chamber of Commerce)

Page 18: Business Regulations and Enforcement – A True ‘Open for Business’ Environment (Mississauga Board of Trade)

Page 21: Ontario Government Procurement Policy Threatens School Bus Sector (Tillsonburg Chamber of Commerce)

Page 24: Water Rates – Need for Rational, Sustainable, and Transparent Rates (Brockville & District Chamber of Commerce)

Page 26: Ensuring Competitiveness for Ontario’s Marine Transportation Industry (Greater Niagara Chamber of Commerce)

TRANSITIONING TO THE NEW ECONOMY

Page 28: Utilizing Private and Not-for-profit Sector Expertise in the Delivery of Public Services (Ajax-Pickering Board of Trade)

Page 30: Opening up Ontario and Municipal Data (London Chamber of Commerce)

Page 32: Ontario Manufacturing Strategy (Cambridge, Greater Kitchener Waterloo, and Guelph Chambers of Commerce)

Page 34: Promoting Innovation to Improve Competitiveness and Productivity (Sarnia Lambton and Guelph Chambers of Commerce)

REGIONAL ECONOMIC DEVELOPMENT

Page 38: Increasing Heads and Beds Payment to Municipalities (Greater Kingston and Greater Peterborough Chambers of Commerce)

SKILLED WORKFORCE

Page 40: Accessible Adult Post-Secondary Education – An Important Step to Restoring Sustainable Economic Prosperity in Ontario (London Chamber of Commerce)

Page 42: Skills Training (Certified General Accountants of Ontario)

Page 45: Retaining Skilled Immigrants in Ontario (Greater Oshawa Chamber of Commerce)

HEALTH

Page 48: Doctor Shortage in the Province of Ontario (Greater Oshawa Chamber of Commerce)

Page 50: Fixing the WSIB (Greater Sudbury Chamber of Commerce)

MODERNIZING ENERGY & INFRASTRUCTURE

Page 52: Moving Forward on GTA West Corridor Study (Brampton Board of Trade)

Page 54: The Ontario One-Call Act (Chatham-Kent, Windsor, and London Chambers of Commerce)

Page 57: Goods and People Movement Long-Range Transportation Plan (Hamilton Chamber of Commerce)

Page 59: Expansion of Highway 7 Between Kitchener and Guelph (Cambridge, Guelph, and Greater Kitchener Waterloo Chambers of Commerce)

Page 61: Essential Service Designation for Provincially Funded Transit Services (Newmarket Chamber of Commerce)

Page 63: Supporting Metrolinx Regional Transportation Plan (Toronto Board of Trade)

Page 65: Province of Ontario Wide Load Permit (Tillsonburg District Chamber of Commerce)

Page 67: The Future of Canadian Nuclear Research and Development (Greater Oshawa Chamber of Commerce)

ENVIRONMENT & NATURAL RESOURCES

Page 69: Reducing Uncertainty in Mining Resources Development for Ontario (Thunder Bay Chamber of Commerce)

Page 71: Permanent Protection of Industrial Fibre Supply (Thunder Bay Chamber of Commerce)

Page 73: Use of Wood in Mid-Rise Construction – Changes to Ontario Building Code (Thunder Bay Chamber of Commerce)

The OCC recognizes that the 2012 Ontario Budget made difficult choices. The budget’s main focus on reducing the deficit is certainly the top priority for Ontario businesses. But to lay the groundwork for future growth and prosperity, Ontario needs an economic vision. The OCC is calling on the government to make Ontario more productive, more competitive and more global by fostering innovation, building a 21st century workforce, achieving fiscal balance, taking advantage of global opportunities, and identifying our competitive advantages.

A significant part our global competitiveness is the provincial tax environment. While the OCC was expecting a delay in the corporate income tax (CIT) reduction, we expect the Government will meet its deficit reduction targets and implement the CIT reductions in 2017-18, or earlier.

The budget acted on some of the Ontario business community’s priorities. The budget tackles rising labour costs in the public sector. The OCC has been pressuring the government to develop a long-term public sector restraint strategy that would allow the province to regain its fiscal flexibility.

The budget also brought pension relief for employers. Budget 2012 extends temporary solvency funding relief for private-sector pension plans and will introduce regulations that would permit employers to use letters of credit to cover up to 15 percent of pension plans’ solvency liabilities. The OCC has been calling on the government to ease the short-term pension funding pressure that is hurting Ontario’s businesses.

The OCC will work continue to work cooperatively with the provincial government to make Ontario more competitive and prosperous.

The report from the first of such reviews, released Thursday, March 22, 2012, makes the following recommendations:

• Beginning in 2012, the province will conduct an annual review of FIT prices – setting and publishing prices each November, effective January 1st the following year
• The province will create a new Renewable Energy Committee to help regulatory ministries reduce duplication, improve service standards and streamline the process – shortening the application process by up to 25 per cent
• The province will reserve a minimum of 10 per cent of the remaining FIT contract capacity for projects with significant community and Aboriginal participation
• Large FIT projects will require a contract launch meeting with the municipality, proponent, project developer, government, utility and agency to facilitate early discussion, share information and define expectations
• FIT prices will be reduced by more than 20 per cent for solar and approximately 15 per cent for wind
• Prices for water, biogas, biomass and landfill gas will remain at current levels.
• The Ministry of Energy and Ministry of Economic Development and Innovation will develop a Clean Energy Economic Development Strategy that will build on Ontario’s strengths and leverage its experience as a leader in the sector

The Feed-In Tariff (FIT) program provides a guaranteed pricing structure for electricity production from renewable sources including: solar photovoltaic (PV), on-shore wind, waterpower, landfill gas, biogas, and biomass.

The Ontario Chamber of Commerce (OCC) drafted a submission for the two-year Feed-In Tariff (FIT) review. The submission stressed the need for reliable, abundant and affordable energy supplies in Ontario.

A  diversified supply mix,  new renewable technologies such as Energy from Waste (EFW) and demand management programs were suggested as effective strategies for ensuring the province maintains its competitive edge and remains a source of economic growth.

For more information, and to view the report, visit: http://www.energy.gov.on.ca/docs/en/FIT-Review-Report.pdf

The committees’ role is to:

• objectively and expertly guide the OCC’s policy development and advocacy process
• determine how OCC policy resolutions should be prioritized on an ongoing basis
• advise on how the OCC should respond to emerging issues on which it does not currently have a position

The OCC’s three policy committees are:

• Finance and Economic Competitiveness Committee, which will focus on tax policy, trade, pension sustainability, tourism, fiscal imbalance
• Productivity and Human Capital Committee, which will focus on innovation, productivity, education, skills, health care, regional economic development
• Sustainability Committee, which will focus on transportation, border issues, infrastructure, energy, environment

Please email Angie Brennand, Vice President of Policy & Government Relations atangiebrennand@occ.on.ca for any questions or comments related to the OCC’s policy committees.

The report’s recommendations seek to return the province to fiscal balance without sacrificing investment in future innovation.

Ontario’s business community has been asking the government to get the province’s fiscal house in order by:

• setting out a deficit reduction plan
• negotiating a new fiscal deal with the federal government
• finding efficiencies in service delivery
• managing public sector compensation

The Drummond Report responds to those ideas, while calling on the private sector to play a role of its own.

The OCC submission to the Drummond Commission and response to the the release of the Drummond report can be found on the OCC website.

Shortly, the OCC will be releasing a more detailed response to some of the recommendations within the Drummond Report.

Please contact Angie Brennand, Vice President of Policy & Government Relations at angiebrennand@occ.on.ca if you have any questions or comments about the OCC’s response to the Drummond Report.