NEWS RELEASE: HUDAK PLANS TO GET NORTHERN ONTARIO WORKING AGAIN

FOR IMMEDIATE RELEASE

January 25, 2012

TIMMINS – The North faces unique economic challenges and pressures, but this region has extraordinary and exciting potential, Ontario PC Leader Tim Hudak said today during a speech to the Timmins Chamber of Commerce.

“Today, Northern Ontario has a jobs crisis,” Hudak said. “This region’s unemployment rate is nearly twelve per cent – well above the provincial average at nearly eight per cent,” Hudak said.

“Big mills and small businesses are plagued by alarming energy costs. Some have even closed their doors permanently,” Hudak added. 

“The McGuinty Liberals won’t listen. They think they know what’s best for the North. They don’t understand that the North’s success can’t be driven from the special interests’ office in Toronto.” 

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The [Far North Act] Colouring Book Government – by Livio Di Matteo (Northern Economist Blog- January 21, 2012)

Ontario Government Far North Act Coloring Book

Livio Di Matteo is Professor of Economics at Lakehead University in Thunder Bay, Ontario. Visit his new Economics Blog “Northern Economist” at http://ldimatte.shawwebspace.ca/

Click Here for the: Far North Act Colouring Book

The Far North of Ontario and in particular, the Far North Act, has generated a contentious set of policy issues for Ontario’s government.  For the uninformed, the Far North Act is a process for community-based land use planning and development, that is also setting aside from development an interconnected area of conservation lands of at least 225,000 square kilometres — an area that is about 20 per cent of the landmass of Ontario.

To put it into context, it is an area about twice the size of southern Ontario — which represents only about 10 per cent of Ontario’s land mass.  There is concern about its impact on the long-term development prospects of Northern Ontario and the First Nations in the Region.  A response of the provincial government is that the Act has been misunderstood and needs to be better explained.

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Alberta oilsands crucial to have-not Ontario future – by Greg Van Moorsel (Sudbury Star – January 20, 2012)

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

“Alberta government figures show oilsands investment over
the last decade topped $100 billion. Ontario’s only new
auto plant built over the same period, Toyota’s Woodstock
complex, checked in at $1.1 billion.” (Greg Van Moorsel)

An early investor in the Alberta oilsands, Ontario cashed out a generation ago. That said, Canada’s most populous province still stands to lose from the setback dealt the oilsands industry and the hottest economic province by U.S. President Barack Obama’s rejection of the proposed Alberta-to-Texas Keystone XL pipeline.

After the 1970s oil crisis, Queen’s Park bought a sizeable stake in a pioneering Athabasca oilsands venture.

That was before dwindling conventional oil supplies and surging prices made the capital-intensive oilsands the boomer it is now.

But while Queen’s Park sold out in the 1990s, its books then awash in red ink like they are now, Ontario still accrues huge benefits from the oilsands: Alberta jobs for its many unemployed workers, shots at manufacturing much of the needed equipment and, like all other “have-not” provinces, equalization payments that flow to it from an Alberta government now paying many of Canada’s net bills.

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Northern Ontario is to Southern Ontario is as Canada is to the United States – Well, almost… – by Livio Di Matteo (Northern Economist Blog – January 17, 2012)

Livio Di Matteo is Professor of Economics at Lakehead University in Thunder Bay, Ontario. Visit his new Economics Blog “Northern Economist” at http://ldimatte.shawwebspace.ca/

Prime Minister Stephen Harper’s recent comment that he does not want the future of the Northern Gateway pipeline to be decided by “certain” people in the United States who would like Canada to be one giant national park was remarkable in its parallels to the economic development situation in Northern Ontario. 

In the case of the Northern Gateway, along with opposition from environmental groups and some First Nations in Alberta and British Columbia, a number of U.S. based environmental groups accompanied by some Hollywood celebrities have voiced opposition to the plan.  In Northern Ontario, there have been complaints that the Far North Act and the Endangered Species Act will hinder northern development because of the wish of environmental groups in southern Ontario to turn the north into a vast provincial park.

The parallels are intriguing.  The relationship between Northern Ontario and the south is remarkably similar to that between Canada and the United Canada.  Relative to the United States, Canada is natural resource intensive and sparsely populated. 

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[Quebec Plan Nord] Is More Talk the Right Prescription for Northern Ontario? – by Livio Di Matteo (Northern Economist Blog – January 19, 2012)

Livio Di Matteo is Professor of Economics at Lakehead University in Thunder Bay, Ontario. Visit his new Economics Blog “Northern Economist” at http://ldimatte.shawwebspace.ca/

Media reports on the visit yesterday by Quebec based consultants who worked on Quebec’s Plan Nord appear to have emphasized their prescription for more planning and discussion.  The Plan Nord is the Quebec government’s parallel to our own Northern Growth Plan and their plan to develop their own north with anticipated investments of 80 billion dollars and the creation of as many as 20,000 jobs. 

The Mayor of Greenstone was quoted as saying the time for talk had passed and some direct action was needed by the province in getting things going.  On the other hand, according to a report on TBNewswatch:

A pair of Quebec-based consultants, however, have suggested what’s needed is more talk.  It’s worked in Quebec, said Yvan Loubier, a senior consultant for National Public Relations in Quebec City, who has worked with both governments and communities in Northern Quebec to help facilitate a 25-year plan for economic salvation in an area hard hit by many of the same concerns afflicting Northern Ontario, particularly First Nations communities. It didn’t come easily, at least not at first.

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Minister points finger at McGuinty [Ontario power rates to high] – by Ron Grech (Timmins Daily Press – January 17, 2012)

The Daily Press is the city of Timmins broadsheet newspaper

Tony Clement says high energy costs in Ontario forces industry to take processing elsewhere

As the federal minister for Northern Economic Development, Tony Clement says he would like to see processing of minerals from the Ring of Fire done in Northern Ontario.

However, Clement says it is up to the provincial government to make that happen. Officials with Cliffs Natural Resources, a Cleveland-based company looking to develop a chromite mine within the James Bay lowlands, have publicly expressed interest in doing some of the processing in Asia.

“We’d like to see more of the processing here but one of the major impediments are energy costs,” Clement said during a stopover in Timmins on Monday. “That’s Mr. (Dalton) McGuinty’s bailiwick. He’s got to do his job as premier of this province to get energy costs more in line.”

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[Plan Nord] Quebec plan may be blueprint for Northwest – Special to The Thunder Bay Chronicle-Journal (January 16, 2012)

The Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario.

Northwestern Ontario is hoping to gain some perspective and insight from Quebec when it comes to economic development in Northern regions.

Members of National Public Relations are to be in Thunder Bay on Wednesday to provide information on Plan Nord, one of the largest economic, environmental and social projects in Canada.

Plan Nord, designed for Northern Quebec, will be carried out for the next 25 years. It is estimated that it will generate more than $80 billion in investments and create more than 20,000 jobs a year.

Members of the Northwestern Ontario Joint Task Force are eager to learn more about Plan Nord, and see how it might impact Northwestern Ontario and if similar strategies can be applied in the region.

“Given the $80-billion program, is it going to be more attractive for investment than Northwestern Ontario,” task force chairman Iain Angus, said Sunday.

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Why is Ontario’s Government Panicking About the Deficit? – by Livio Di Matteo (January 8, 2012)

Livio Di Matteo is Professor of Economics at Lakehead University in Thunder Bay, Ontario. Visit his new Economics Blog “Northern Economist” at http://ldimatte.shawwebspace.ca/

The Ontario government’s final approach to deficit reduction has begun with selected leaks of economist Don Drummond’s “first draft” of his review via media interviews designed to dramatically present deficit reduction.  A column by Martin Regg Cohn of the Toronto Star titled “Brace for a firestorm across Ontario” outlines cuts as high as 30 percent for some Ontario ministries with health and education being spared “somewhat”. 

Yet, the same column has Don Drummond using the language of the Wall Street protestors by talking about how just one percent of the population accounts for half of hospital spending and one third of total health expenditures.   Martin Regg Cohn’s most recent column on Don Drummond’s prescriptions titled “The grim reaper punctures Ontario’s fiscal fantasies” points out how unrealistic balancing the budget by 2017-18 was and shares the blame on fiscal forecasting by mentioning that the opposition parties embraced the same timetable during the election.

What is going on here?  All of this advance work by the Ontario government reduces what should be a serious policy problem requiring a firm and measured approach to some kind of fiscal porn reality show. 

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Playing games with [Ontario] electricity prices – by David Robinson (Northern Ontario Business – January, 2012)

Established in 1980, Northern Ontario Business  provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North.  

Dave Robinson is an economist with the Institute for Northern Ontario Research and Development at Laurentian University. drobinson@laurentian.ca 

Timmins lost 670 Xstrata jobs because Quebec has lower electricity prices than Ontario. Cliffs is making noises about refining in Manitoba because Manitoba offers cheaper electricity rates. Industries in Manitoba and Quebec pay under three cents per kilowatt hour, plus distribution costs, while in Ontario they pay a spot market rate that can be double that. Should we lower the price of electricity for industry in the North?

The price of electricity is actually a very political topic. Quebec and Manitoba offer low prices to attract businesses. Much of that business comes from Ontario. We call this a ‘beggar-thy-neighbor policy’ because it makes one province richer by making another province poorer.

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Nuclear waste-free zones promoted [in Northern Ontario] – by Carl Clutchey (Thunder Bay Chronicle Journal – January 9, 2012)

The Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario.

Two prominent Aboriginal organizations have come out against a proposal to bury nuclear waste in Northern Ontario.

The separate declarations by Nishnawbe Aski Nation (NAN) and the Union of Ontario Indians (UOI) come as a half a dozen Northwestern Ontario municipalities continue to explore the possibility of hosting an underground storage facility for spent fuel bundles from nuclear reactors.

In separate news releases, NAN and UOI trash a search by the Nuclear Waste Management Organization to find a community willing to host a disposal site. “We have a mandate from the Creator to protect our lands and waters and have been doing so for thousands of years,” NAN Grand Chief Stan Beardy said.

“Nuclear waste is a poison that will damage our homelands.”

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Northern [Ontario] MPPS say growth plan fails – The Daily Press (January 6, 2011)

The Daily Press is the city of Timmins broadsheet newspaper.

A pair of Northern MPPs say a government growth plan has missed the mark. Gilles Bisson (NDP — Timmins-James Bay) and Michael Mantha (NDP — Algoma-Manitoulin) say the Northern Growth Plan has failed to address the real needs of northern Ontario.

The plan calls for the creation of “hubs” to promote development, but Sudbury and Thunder Bay are the only cities designated as such.

“The fact is that there is no money tied to the Northern Growth Plan. We’re not even sure what these two ‘hubs’ in Sudbury and Thunder Bay are meant to do. What money is being allocated to make these projects work?” said Bisson.

“I’m not only concerned for the cities like Timmins and Sault Ste Marie that are left out but I’m also concerned for Sudbury and Thunder Bay because without a clear vision and funds attached to it these centres are not likely to succeed.”

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Injunction ‘a matter of respect’ for First Nations – by Ron Grech (Timmins Daily Press – January 6, 2012)

The Daily Press is the city of Timmins broadsheet newspaper

Wahgoshig First Nation is not out to stop development, says Chief Dave Babin. The community, he added, simply wants its values respected by industry.

Wahgoshig won an injunction this week to halt mining exploration by Solid Gold Resource Corporation on its territory. The company was drilling in an area which the First Nation had identified as sacred ground.

“It’s a long-overdue issue that First Nations are facing with the industry and these are the things the industry has to understand with First Nations,” said Babin. “I’m not going to have people coming around here and terrorize the land because they feel they are following the Mining Act.

“They have to have respect for our cultural values within our territories. We have issues out there that we want to protect. It has no value to them but it has value to us.”

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[Aboriginal] Injunction shuts down [Northern Ontario] miner – by Carl Clutchey (Thunder Bay Chronicle-Journal – January 6, 2012)

The Thunder Bay Chronicle-Journal is the daily newspaper of Northwestern Ontario.

A court ruling in favour of a Timmins-area First Nation regarding a mining dispute is further evidence that courts are backing up Aboriginal legal requirements to be consulted before drilling and staking begins.

“It proves the point that if you don’t follow the law, you’re going to end up in court and it’s going to cost your investors money,” Nishnawbe Aski Nation Grand Chief Stan Beardy said Thursday.

Beardy was reacting to Ontario Superior Court of Justice Carol Brown’s decision this week that granted a 120-day injunction to Wahgoshig First Nation to temporarily prevent junior miner Solid Gold Resources from drilling on their land.

According to the ruling, “no consultation occurred with (WFN) before Solid Gold’s drilling began in the spring of 2011.”

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ONTARIO NDP NEWS RELEASE: First Nations injunction win shows why Province must consult: Vanthof

[John Vanthof is the MPP for Timiskaming – Cochrane]

January 4, 2011

TEMISKAMING SHORES — Today, after Wahgoshig First Nation won an injunction to prevent a junior mining company, Solid Gold Resources, from continuing exploration on Wahgoshig territory without proper consultation, Timiskaming – Cochrane MPP John Vanthof strongly criticized the McGuinty government’s failure to fulfill its obligations to consult with First Nations. 

“By ignoring First Nations at the outset of the exploration process, the government is in fact slowing down mine development and hindering economic opportunities throughout the province,” added Vanthof. “It benefits all Northerners to ensure resource development is done in a way that maximises economic benefits and sustainability for local communities. That means better consultation and accommodation from the outset, not lengthy legal battles.”

“Lack of action from the government forced Wahgoshig First Nation to appeal to the courts to settle a dispute which could have been avoided altogether through proper consultation,” said Vanthof.

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Timmins faces challenging 2012 – by Ron Grech (Timmins Daily Press – December 30, 2011)

The Daily Press is the city of Timmins broadsheet newspaper.

Mayor Laughren hopes to see city’s economy diversify in 2012

There will be much emphasis on mining’s glorious past, and the legendary prospectors who helped found this city, as Timmins celebrates its centennial anniversary over the next year.

High gold prices, the startup of several mines in the area and potential spinoffs from development within the Ring of Fire has spurred a sense of confidence that these glorious days are still with us.

However, the proverbial elephant in the room will always be the fact minerals are a finite resource and some of the mines currently employing people throughout the region are not expected to still be in operation 15 to 20 years from now.

To address this, Timmins Mayor Tom Laughren said one of the key challenges in 2012 will be laying down a foundation to attract alternative industries.

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