Ontario’s debt, Canada’s woes – by Andrea Mandel-Campbell (Globe and Mail – December 22, 2011)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Andrea Mandel-Campbell is a former anchor at CTV’s Business News Network and author of Why Mexicans Don’t Drink Molson.

No one was really surprised when Ontario’s debt rating took another drubbing last week, adding Canada’s largest province to a long list of debt-swamped jurisdictions from Italy to Spain to be singled out by credit rating agencies for critical review.

Moody’s expressed displeasure with Ontario’s ballooning debt and dismal growth projections by lowering its outlook for the province’s debt rating to “negative.” It’s the latest in a cascade of downgrades beginning in 2009 after the province, having indulged in a massive uptick in government spending, was blindsided by the financial crisis.

Ontario’s Finance Minister Dwight Duncan promised to take the warning seriously – and the rest of Canada had better hope he means it. Ontario represents 40 per cent of the country’s GDP. As Janice MacKinnon, Saskatchewan’s former finance minister, recently pointed out, the rating agencies don’t look at Ontario in isolation, but at the country in its entirety. Ontario’s debt woes “hurt Canada as a whole,” she said.

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Why more than a dozen towns are considering hosting Canada’s high-level radioactive waste – by Tom Spears (Ottawa Citizen – December 16, 2011)

http://www.ottawacitizen.com/index.html

Who would want a pile of used fuel from nuclear reactors that will be radioactive for millennia? William Elliott does. Badly enough to fight for it.

The boss at the economic development corporation serving the Elliot Lake region sees the upside of something that usually provokes gut reactions of not-in-my-back-yard. “There’s the obvious economic impact of 700 to 1,000 permanent full-time jobs (and) $16 billion to $24 billion of direct investment,” he says.

“It’s going to be one of the biggest economic development projects in Canadian history.” Put that way, maybe it’s not so hard to see why Elliot Lake and its neighbours are campaigning to become the place where Canada buries all our high-level radioactive waste.

The Nuclear Waste Management Organization is looking for a site to sink thousands of tonnes of used reactor fuel forever, replacing the temporary storage that Canada has used for 60 years.

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For [Ontario’s] Dwight Duncan, grim warning is a blessing in disguise – by Adam Radwanski (Globe and Mail – December 16, 2011)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

One of the world’s leading credit-rating agencies has provided the most urgent warning to date of the perilous financial condition of Canada’s largest province. But Moody’s Investors Services has also done a big favour to the man in charge of that province’s books.

Ontario Finance Minister Dwight Duncan has been struggling to persuade both his fellow Liberals and the general public that it’s time for some blood on the floor. And now that Moody’s has changed its outlook on the province from “stable” to negative,” he should have an easier time finding a receptive audience.

While Ontario has for the time being maintained its credit rating of Aa1, the agency warned that an inability to tackle debt and deficit problems could lead to a downgrade. That could both dissuade investment in the province’s already struggling economy and add to the borrowing costs of a government currently $16-billion in the hole – conjuring images of the turmoil that has recently engulfed Europe.

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Moody’s warns Ontario its credit rating is at risk – by Karen Howlett and Tara Perkins (Globe and Mail – December 16, 2011)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

An influential credit rating agency has put Ontario on notice that it could knock down its rating if it fails to get its fiscal house in order, ratcheting up pressure for the province to take more aggressive action to rein in spending.

Moody’s Investors Service warned on Thursday that it might lower the rating if the province doesn’t take serious steps in the next budget to deal with its multibillion-dollar deficit.

Ontario’s struggles are crucial for the country because its economy is larger than that of many countries, including Sweden, Poland and Belgium, and accounts for about 40 per cent of the national economy, with a gross domestic product of $612-billion last year.

However, the province has a $16-billion deficit and a rate of growth that is slower than that of some other provinces, which is makes it difficult to find ways to balance the books.

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Temagami Mining Controversy – Letter to Hon. Michael Gravelle Ministry of Natural Resources

December 15, 2011

Hon. Michael Gravelle Ministry of Natural Resources,
Suite 6630, 6th Floor, Whitney Block
99 Wellesley Street West,
Toronto ON M7A 1W3
Fax: 416-325-5316

Re: Wolf Lake EBR Registry Number: 010-7775

Dear Hon. Michael Gravelle,

I am writing on behalf of the Association of Youth Camps on the Temagami Lakes (AYCTL) to express our strong opposition to the proposal to remove the forest reserve status from parts of the Wolf Lake Forest Reserve. Mining in this area will negatively affect our ability to run canoe trips in the region and destruction of the old growth forests permanently eliminates a landscape vital to our economic health.

Forest reserve status is intended to make the area a park-in-waiting, with existing mining claims and leases being automatically designated as parks as soon as they lapse.

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NEWS RELEASE: Temagami Area Camps speak out for full protection of Wolf Lake

$3.5 million in annual economic activity depends on areas like Wolf Lake

Sudbury – December 15, 2011 – A group of eight Temagami camps wrote to Minister Gravelle today urging him to permanently protect Wolf Lake and its ancient forests from all industry.  The camps infuse over $3.5 million in direct spending into the economy each year, while providing leadership development, healing, and educational experiences to approximately 700 youth.  

“Mining in this area will negatively affect our ability to run canoe trips in the region and destruction of the old growth forests permanently eliminates a landscape vital to our economic health,” said Eoin Wood, President of the Association of Youth Camps on the Temagami Lakes (AYCTL). 

An MNR proposal takes this unique landscape further away from regulation as a permanently protected area – a designation that is long overdue. In doing so it leaves irreplaceable ecosystems and prime canoe routes in peril from industry and badly managed recreation.

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Rivalry easily stirred among cities of [Ontario’s] north – by Brian MacLeod (Sudbury Star – December 15, 2011)

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

To many people in southern Ontario (read south of Parry Sound), northern Ontario is a giant mass of trees, lakes and rock.  Not so, and in politics, even less so.

Just one month ago, the mayors of Northern Ontario’s five major cities — Sudbury, North Bay, Sault Ste. Marie, Timmins and Thunder Bay — vowed to speak with one voice to press their issues with the province, especially on industrial hydro rates.

But that fraternity doesn’t reflect an always-simmering rivalry among the cities, which is heating up, in part, through the actions of the provincial government.

It doesn’t take much, mind you, to get people in North Bay and Sudbury — which are about 130 kilometres apart — jawing over who gets what. Last year, North Bay officials complained bitterly that 31 mental health beds, and the accompanying jobs, moved to Sudbury.

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Province must cut [Ring of Fire refinery] hydro rates, says Clement – by Carol Mulligan (Sudbury Star – December 14, 2011)

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

The federal government has a role to play to make sure the Ring of Fire is developed and that it creates jobs in the North, says FedNor Minister Tony Clement. But, if those jobs are to remain in Ontario, Liberal Premier Dalton McGuinty and his government will have to do something about electricity rates, said Clement.

Clement has struck a committee to stay up to date with developments in the massive chromite deposits, to make sure the economic potential of the area is maximized.

But Clement said Monday that while he favours processing jobs remaining in Northern Ontario, the high cost of electricity could be a problem.

“(That) is firmly in the hands of (Premier) Dalton McGuinty and the Liberal government, so they’ve got to step up,” said Clement.

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Mining wins as Ontario breaks Temagami pledge – by Moira Welsh (Toronto Star – December 12, 2011)

The Toronto Star, has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

Ontario is planning to kill its promise to protect an ecological gem — an old-growth forest near Temagami.

The Ministry of Natural Resources wants to change the “forest reserve” designation for 340 hectares around Wolf Lake to “general use,” which puts a greater focus on mining instead of forests and recreation.

The only company drilling in the region is Alberta’s Flag Resources, which has been delisted or forced to stop trading on stock exchanges across the country. It is currently not trading anywhere.

Located some 50 kilometres northeast of Sudbury, Wolf Lake lies in the area commonly called Temagami. It is beloved by hikers and canoeists for its soaring stands of 300-year-old red pines and deep blue lakes.

Ontario’s Environmental Commissioner Gord Miller said he’s “greatly disappointed” by the ministry’s plan to backtrack on a long-held agreement to protect Wolf Lake, which would have eventually turned it into parkland.

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Government Subsidies and Economic Development: Is the End Near for the Northern Ontario Heritage Fund? – by Livio Di Matteo – (November 19, 2011)

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/

In the art of politics, timing is everything.  My curiosity was certainly piqued earlier in the week when a story in the Ottawa Citizen reported that Ontario’s premier Dalton McGuinty was hinting that he was ready for a major policy reversal regarding the practice of provincial government grants and subsidies for business.  According to the story, he was listening “to all the arguments” on these grants which have been referred to as corporate welfare.

In many respects, this would be a remarkable turn around given the Ontario Liberals campaigned on the strength of their economic strategy – a strategy of government investment in green energy in particular as a job creation program.  There have been enormous subsidies to producers of wind and solar energy in the form of generous prices for the electricity generated.  As well, there is the money in the regional development funds such as the Eastern Ontario Development Fund and the Northern Ontario Heritage Fund.

Why the sudden shift?  It turns out the Ottawa Citizen has apparently been investigating stories that the Eastern Ontario Development Fund has been favouring businesses in Liberal ridings since the fund was established. 

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The Far North Act: A counterfactual – by Livio Di Matteo (Thunder Bay Chroncile-Journal – November 12, 2011)

Visit his Northern Economist Blog at http://ldimatte.shawwebspace.ca/.

One of the analytical tools used in economic history to assess the impact of an economic event is the counterfactual. How different might the world be if an event had not occurred, and instead, an alternate economic reality occurred? The comparison is between the world today and the world as it might be.

I ask this question in the context of the Far North Act because of its potential impact on the future economic development of Ontario’s North and particularly the economic opportunities for the First Nations in the Far North.

While put forward as a process for community-based land use planning and development, the Far North Act 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.

The Far North is vast and potentially rich in economic resources. Its exploitation could serve as a source of economic development for a region that has been chronically depressed over the last few decades. While one might argue that the North is so vast that 20 per cent of its land is not really a significant amount, the fact is we do not know if the most valuable or least valuable parts of the region in terms of resource potential will be sequestered.

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Mapping out a united vision for [Ontario] Northerners – by North Bay Mayor Al McDonald (September 28, 2011)

North Bay Mayor Al McDonald made this speech to Greater Sudbury City Council, Sept. 28, about mapping out a united vision for Northerners:

Bon soir. Good evening.

Your Worship and Members of Council:

On behalf of the citizens of North Bay, it is my pleasure to bring greetings and, in the spirit of friendship, thank you for this opportunity to address you this evening. I would also like to thank you for hosting the Northern Ontario Business Awards last night. Your city was a welcoming host and your community was showcased in a positive light.

On a personal note, I would like to thank all of you for your time, energy, and commitment for your dedication to public service. It is never easy and it is always tougher on our families as we have to give up a lot of family time with the demands of the job. So, I would like to thank your family members as well. It is interesting that we as elected officials get more credit than we deserve at times but get much more blame as well. I have the greatest respect for those individuals successful or not, for putting their names on a ballot. Thank you for serving.

Here in Northern Ontario, we enjoy a quality of life unparalleled to other places in the world. We have parks, green spaces, wildlife, colleges and universities, festivals, arts, culture, theatre, safe communities, and focus on families.

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[Northern Ontario history] Building Highway 11 – by Gregory Reynolds (Highgrader Magazine – Late Fall, 2011 issue)

This column was originally published in the Late Summer, 2011 issue of Highgrader Magazine which is committed to serve the interests of northerners by bringing the issues, concerns and culture of the north to the world through the writings and art of award-winning journalists as well as talented freelance artists, writers and photographers.

When northerners are not talking about the weather, they complain about the sorry state of many of the highways in Northern Ontario. They look with envy at the first-class highways and byways in the south and talk bitterly about Highway 17 being a death trap and think Highway 144 between Sudbury and Timmins should have a sign saying: “Drive at your own risk and only in daylight. Large trucks, moose and bears have the right of way.”

Still, the North does have a few highways that are no longer part way between cow paths and obstacle courses and residents do manage to get about.

It was not always so and the story of the Yonge Street extension that became today’s Highway 11 could be the history of any major traffic route in the North. While the money for highways came from the south, northerners built their own roads, prisoners, farmers and bush workers between seasons, the poor and those on the welfare rolls.

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Crisis on the [James Bay] coast – by Ron Grech (Timmins Daily Press – November 1, 2011)

The Daily Press is the city of Timmins broadsheet newspaper.

State of emergency declared

With a housing shortage forcing residents to live in tents and cold November winds beginning to blow off James Bay, communities on the coast have collectively declared a state of emergency.

“There is definitely something terribly wrong” when billions of dollars in revenue is being generated from mining while “the citizens of this rich land continue to face daily hardships with decent housing, education, health care and a high rate of suicide,” said Mushkegowuk Deputy Grand Chief Leo Friday.

“This is not right and something has to be done.” There are families, he added, living in “tent-frame structures, wooden storage sheds, hazardous and condemned homes.” Friday said he is aware of five families in Attawapiskat that have been living in a tent for more than a year now while three families in Kashechewan and another two in Fort Albany have been living in sheds.

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Huge uncertainties remain with Ontario’s new Mining Act – by Shawn Bell (Wawatay News – October 27, 2011)

Wawatay News is Northern Ontario’s First Nation Voice with offices in Sioux Lookout, Timmins and Thunder Bay.

As the minister tasked with implementing the heart of the Ontario Mining Act takes over his new portfolio, the challenges facing that goal seem to be growing by the week.

The new minority Liberal government named Sudbury’s Rick Bartolucci minister of Northern Development and Mines, Oct. 20. Bartolucci replaces Thunder Bay-Superior North’s Michael Gravelle, the minister who brought in the new Mining Act.

The Sudbury MPP’s task of bringing in phases two and three of the Mining Act looks more daunting than ever after a month that has seen a new flare up over mining exploration on Kitchenuhmaykoosib Inninuwug (KI) traditional lands, a Supreme Court decision granting Grassy Narrows First Nations the right to reject mining exploration on its territory and Nishnawbe Aski Nation Grand Chief Stan Beardy’s stance on any outside incursion onto northern Ontario First Nation land.

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