THE PROVINCE GETS IN THE GAME

On October 28, 2004, southern Ontario entered a new era. David Caplan, Minister of Public Infrastructure
Renewal, introduced Bill 136 - an Act that put in place the legal framework for the provincial government to make development plans for entire regions.

The first target for the government was the explosive development of southern Ontario. On June 16, 2006, the Ontario government released its plan for the Greater Golden Horseshoe. The plan went over the heads of the existing municipalities to provide an integrated growth strategy.

On May 17, 2007 the provincial government turned its sights on Northern Ontario. In a long overdue but very welcome move, the McGuinty government announced that it would now develop a growth plan for Northern Ontario.

Sixteen cabinet ministers will work together, ending the province’s long-standing practice of running Northern Ontario out of 16 separate closets in Queen’s Park. For the first time, the left hand will know what the right hand is doing in Northern Ontario. It is the kind of coordination that the North was promised by former Premier David Peterson.

The Places to Grow Act lets the province designate any region it wants as a growth plan area. It then requires Minister Caplan to prepare a growth plan.

The process is not under the Ministry of Northern Development and Mines. While Rick Bartolucci has been tagged to chair the ministers’ roundtable, the North’s Growth Plan will be developed by Caplan, who also directed the Greater Golden Horseshoe plan that was tabled in 2006.

The Growth Plan can deal with almost anything. The Act specifically allows for matters from community design and municipal boundaries to non-renewable resources and energy conservation. There is even an “other” category that puts virtually everything on the table. The key growth issues for the North are ones that fall under the “other” category, for example forest tenures, elimination of unorganized areas, and the creation of a regional government of some sort. Renewable resources including forestry are not mentioned in the Act.

Once the plan is prepared the Minister must provide an opportunity for the public and local governments to make written submissions. If the Minister makes revisions to the plan, he has to provide another opportunity for public comments before submitting it to the province. Cabinet will decide if the plan is accepted.

The great advantage of the Places to Grow Act is that it lets Caplan put together a plan without waiting to get all the municipalities and ministries on board. The Liberals have given themselves permission to show some real leadership. With the Greater Golden Horseshoe plan they showed that they were willing to provide this leadership.

The great disadvantage of the Places to Grow Act for Northern Ontario is that growth depends on reforming the forestry sector and creating real responsible government in the North. These issues do not fit under the Places to Grow Act.

Sixteen of the most powerful people in Ontario will sit down over the next six months to advise Caplan on his Northern Growth Plan.

No timeline has been set for the plan to be implemented, though Caplan said a 12- to 18-month start date is "doable."

Caplan has said a draft version of the plan could be finished by the end of the year. It could take another six months before a final plan is in place and can be taken to the Ministry of Finance.

An independent Algoma University, and capacity in post-secondary education, research and innovation, will be "really critical."

While the Greater Golden Horseshoe growth plan focused on keeping up with rapid growth, Caplan noted Northern Ontario faces a situation "almost the opposite."

"Northern Ontario is very much caught in the boom and bust cycle, depending upon the resource-based industries," he said.

Caplan, Bartolucci and Natural Resources Minister David Ramsay, will be consulting with Aboriginal and municipal leaders, business, industry and environmental groups, over the coming months to develop a Growth Plan for Northern Ontario that represents northern priorities.

Northerners are not being asked to make change, but they will have the chance to make suggestions. Let’s think about what the 16 ministers will see when they look at Northern Ontario.

They will see a Treasure house!

They will be amazed at the potential. The region is a treasure house of natural resources, lands and waters, provincial parks, fisheries, and natural wilderness areas that are among the most pristine and beautiful in the world.

At its peak, the Province of Ontario obtained nearly one quarter of its revenue from northern resources. Ontario’s northern forests and mines were like Alberta’s oil today.

They will see an economic shipwreck and an economic boom.

The ministers will be stunned at the failure to generate sustainable economic development in Northern Ontario. Policies designed 140 years ago are now a formula for disaster today. We had a far-sighted strategy for the beginning of the 20th century, but it is not good enough for the 21st century.

They will see an economic colony.

If they look at the history of Northern Ontario they will be surprised that the region is not a separate province.

If Northern Ontario were a province, only British Columbia and Quebec would be larger. Northern Ontario covers over 800,000 square kilometres; nearly 90 percent of the Province of Ontario’s land area. It extends across two time zones, from Quebec in the east to the Manitoba border in the west. It stretches from Georgian Bay to Hudson Bay and James Bay. It is indeed a vast and magnificent land, an empire within a province.

They will see a distinct people.

Twenty-seven percent of the province's Francophone population lives in the North. The North is home to 102 of the 134 First Nations in Ontario, 43 percent of Ontario’s Aboriginal population.

They will notice that most of the people in Northern Ontario live on “reserves.” The federal reserves are called “First Nations.” The provincial reserves are called “municipalities.” Most of the land base outside of the reserves is controlled directly by the Province.

They will see a distinct economy.

Northern Ontario's economy is dramatically different from the economy of southern Ontario. In many respects, Northern Ontario remains no more than a resource extraction colony of the south. Instead of manufacturing, we have mining and forestry. Compared to the rest of the province, only half as many Northerners work in finance, insurance, real estate and leasing, information, culture, and recreation, professions, science and technical services. These are the growing, influential professions; occupied by the people that Richard Florida calls the ``creative classes.''

The public sector in the North - healthcare, education, and public administration, is disproportionately large.

It is a “client” economy, dominated by the employees of big companies and big government. Both are based outside the region. Because of the industrial structure of the region, 40.5% of northern employees are unionized, compared to 28.5% of employees in the province.

Although there are many excellent exceptions to the rule, it is generally not an innovative economy. If the Ministers are smart they will ask what it is about provincial policy that stops a population of pioneers and adventurers drawn from allover the world from creating a dynamic and exciting economy.

They will see an administrative tangle.

With fewer than 800,000 people, Northern Ontario is divided into 10 territorial districts, 145 municipalities, two Local Health Integration Networks, 102 First Nations, and over 150 unincorporated communities, including 46 Local Services Boards, and 42 of Ontario 47 Sustainable Forest Licenses.

Areas with citizen government comprise perhaps 10% of the region. Why so many overlapping jurisdictions with so little real power? The structure keeps Northerners divided and dependent.

“Northern Ontario’s economic development landscape is a patchwork of organizations that lack coordination”

Blais & Associates
Economic Development Consulting

Industrial policy in Northern Ontario is controlled by multiple ministries. Neither the Ministry of Natural Resources nor the Ministry of Northern Development and Mines focuses exclusively on northern development. They each control one of the North’s major industrial sectors. They each dilute their northern portfolio by mixing in responsibility for southern producers. The job of promoting secondary industry, value added and innovation is in a third ministry controlled by the Premier.

They will be introduced to Piñata politics.

A Piñata is a decorated container of sweets or small gifts that is hung from the ceiling and is hit and broken by blindfolded people with sticks, traditionally during Latin American festivals. Of course if you have a young child you know all about Piñata’s at birthday parties.

In short, that is how economic development process is managed in Northern Ontario. The Piñata’s are FedNor (a federal government agency) and the Northern Ontario Heritage Fund Corporation sponsored by the Province. Economic development “assistance” is particularly advanced in the Maritimes where the federal offering is called ACOA (Atlantic Canada Opportunities Agency)

In any event, although the intentions are laudable and many worthwhile initiatives have received funding, the effect is an inefficient welfare patchwork that funnels almost all economic development strategies through these two agencies. Funding and priorities are subject to the whims and priorities of succeeding federal and provincial governments that are not always in sync.

The effect on municipalities is that their first thoughts when they assess an economic project is not its inherent value, but what will FedNor or Heritage think of it. It reshapes thinking, slows progress, transfers responsibility and creates a culture of dependency.

The question is not a matter of, “Is the money needed?” Of course it is. The question is how is it made available and who decides what gets funded. The ministers will see there needs to be a realignment of responsibility and accountability.

THEY WILL SEE THAT THE BASE IS IN PLACE.

The cities have developed into attractive and comfortable regional service centers. They have many of the amenities of southern communities combined with the beauty of a still wild and beautiful landscape. The North has its own universities and it is swimming in talented people.

This maturity is hard won and developed by communities that are constantly fighting to improve their lot in life with volunteer groups signing up to get the job done.

THEY WILL SEE THAT PART OF THE PROBLEM IS GOVERNANCE.

Local control of resources is the key to growth. Ontario is committed to a policy of handing resources over to large resource companies. It is not what the USA does, it is not what the Fins do and it is not what the UN recommends.

A resource economy WILL NOT prosper unless it evolves into a knowledge economy based on value-added thinking in forestry and innovation in the mining sector.
This evolution cannot be managed from Toronto. Northern Ontario lives in a different world, with different priorities and problems than southern Ontario.

In passing the Stronger City of Toronto for a Stronger Ontario Act on June 12, 2006, the Province recognized the CRITICAL need to devolve authority to a region with distinct needs. The same approach is required for Northern Ontario. We need a Region of Northern Ontario Act.

A POSITIVE START

Bringing together 16 ministries to consider the economy of Northern Ontario is critically important. It is the first time in living memory the Province of Ontario has moved from benign neglect and crisis management (i.e. saving mills, steel plants etc. after they get into trouble) to a proactive strategy of planning and thinking.

We look forward with great anticipation on where this might take us.

Let us begin with open minds.

Next Month

Money, taxes and Accountability.