Growing Ontario’s Economy: Green and Clean
Many factors influence the economy: private enterprise and job creation; investment and trade; efficient public services, balanced budgets and the prudent management of government finances. By delivering in all these areas, Ontario has been growing at a healthy rate.
Since 2003, Ontario’s economy has created 422,000 net new jobs. Businesses have invested almost $147 billion in business expansion. Private sector forecasters predict overall growth of 1.9 per cent this year and 2.5 per cent for 2009. (1)
Challenges do exist. External forces including the state of the United States economy, the value of the Canadian dollar and the price of oil are all impacting Ontario industries. But sectors are not facing these challenges alone. The McGuinty government is front-and-centre and working closely with industry leaders to ensure Ontario businesses are able to compete, strengthen and grow.
“Our government continues to build an aggressive strategy to help our diverse sectors innovate, compete and thrive in this fast-changing global market,” says Economic Development and Trade Minister Sandra Pupatello.
Next Generation of Jobs Fund
Ontario’s Next Generation of Jobs Fund, which was launched by the McGuinty government last summer, gets top marks for its ahead-of-the-curve focus on green technologies. Research indicates that global investment in renewable power-generation, biofuels and low-carbon technologies rose from US$28 billion in 2004 to US$71 billion in 2006. This level of investment presents tremendous opportunities for economic growth and job creation.
Pupatello explains, “The entire world is looking for new ways to conserve energy and fight global warming. Individuals want to reduce their carbon footprint. Responsible industries want to conduct their operations using cleaner technologies.” She adds, “Jurisdictions that research and develop these clean, green technologies will create thousands of jobs. Our government wants that leading-edge innovation and job growth to occur right here in Ontario.”
The Next Generation of Jobs Fund makes $1.15 billion available to companies that are looking to develop environmentally-friendly products and technologies in all areas in the economy, including:
- clean automotive and other green technology,
- health and biotechnology research and development,
- creative industries, including digital media and ICT, and
- pharmaceutical research and manufacturing.
“We are looking to spur significant new investment in high-potential areas of Ontario’s economy,” says Pupatello. “We anticipate that investments made through this new fund will have a real, positive impact on our economy, communities and families.”
The Next Generation of Jobs Fund has been modeled on Ontario’s pioneering Automotive Investment Strategy (OAIS) which successfully used the multiplier effect to leverage auto industry expansion, innovation and job creation. OAIS translated about $500 million in public funds into more than $7 billion in new auto industry investment and anchored thousands of jobs. “We expect similarly impressive results from the Jobs Fund as we move forward,” says Pupatello.
Companies bidding for support must demonstrate their proposals meet requirements that include helping the environment, securing jobs for Ontario, and helping establish Ontario as a global leader in an emerging market.
Flexible arrangements will be available, and will allow for grants, loans, forgivable interest loans, and support for infrastructure building, research and training programs.
Supporting Innovation, Competitiveness
Ontario businesses are also tapping into another popular initiative by the McGuinty government, designed to strengthen and support the bedrock of our economy - the manufacturing sector.
Ontario’s $500 million Advanced Manufacturing Investment Strategy (“AMIS”) provides repayable loans, interest-free for up to five years, to help manufacturers increase productivity and competitiveness. “Investments in research and development, advanced technology and innovation are essential for Ontario manufacturers to compete and to secure the sector’s long term prosperity,” says Pupatello. “AMIS is designed to help them take that next step.”
More than one dozen AMIS projects have been announced to date, including Roxul Inc. of Milton and Flakeboard Company of Sault Ste. Marie whose proposals have an environmental focus. Together, the AMIS projects are expected to generate more than $720 million in new investments and create or retain about 3,500 jobs across the province.
The government has further supported the needs of Ontario’s businesses by providing a series of tax breaks. These include eliminating the Capital Tax as of January 2008 for corporations primarily engaged in manufacturing and resource activities; and providing a 21 per cent Capital Tax rate cut for all businesses retroactive to January 1, 2007, on the way to full elimination in 2010.
“The McGuinty government is committed to helping our industries innovate and invest in quality, environmentally-sensitive products and technologies,” says Pupatello. “We’re committed to building the next generation of highly-skilled jobs for the people of this province. And we are committed to ensuring Ontario businesses can grow and compete internationally – and move on from strength to strength."
(1) Job number from Nov 14 PO press release. Growth figures from the Dec 07 economic statement.
