Together - Building Prosperity for Ontario

Rev. Dr. John S. Niles, Rector, St. Andrews United Church, Markham and 2nd Vice-President, The Empire Club of Canada; Carly Yoshida-Betryn, Grade 12 Student, North Toronto Collegiate Institute; Grant Kerr, Pastoral Staff, St. Paul's United Church, Brampton; John Howard, President, Howard Equities Inc.; Anne Faucett, Partner, The Caldwell Partners, International; Don Drummond, Senior Vice-President and Chief Economist, TD Bank Financial Group; William F. White, President, IBK Capital Corp. and Director, The Empire Club of Canada; Dr. Claude Lajeunesse, President and Vice-Chancellor, Ryerson University; Kelly McDougald, Senior Vice-President, Enterprise Sales Ontario, Bell Canada; and Carolyn McGill-Davidson, Senior Vice-President, Marketing and Product Management, Canada NewsWire Ltd.

Introduction by Bart Mindszenthy

Distinguished head table guests, members of the Empire Club of Canada, ladies and gentlemen, it's been 13 years since an Ontario Chamber of Commerce president has addressed the Empire Club.

In that speech, then Chamber President Thomas Corcoran spoke about the provincial NDP government, shortly after its first budget. He spoke about the need to get past rhetoric, and for the business community, labour and government to fight together to overcome the recession.

He said, in part, that: "…quotable quotes and pithy zingers are a great way to make the papers or crack the airways. But this approach, it seems to me, isn't very constructive.

"More to the point, it delays the process of two- or three-way discussion that is so desperately needed if business, government and labour are ever to come to some sort of understanding about the nature and magnitude of the competitive problems currently facing this province.

"…The path is still open for co-operation between business and the government, but what's urgently needed to make this a reality is a new consultative process that replaces confrontation with consensus."

Today's speaker is the current Ontario Chamber of Commerce President and Chief Executive Officer, Len Crispino.

He is here today to address us on much the same theme--the challenge of bringing together government, labour, academia and business for the benefit of all Ontarians. To define a common ground that will allow us to build a better future. Which just proves history does repeat itself, and perhaps, that we tend not to learn as much as we should from the past in order to benefit in the future.

Between 1990 and 1993, Mr. Crispino served as the province's chief trade representative to Italy, promoting Ontario's trade and investment interests.

For his work, he was awarded the Order of Merit from the Italian government for fostering business ties between Canada and Italy.

A former Assistant Deputy Minister of the Ministry of Economic Development and Trade, Mr. Crispino also served as President and Chief Executive Officer of Ontario Exports from 1993 to 2001.

As President and CEO of the Ontario Chamber of Commerce since early 2002, Mr. Crispino speaks for more than 57,000 businesses across Ontario--businesses that are affiliated through 160 local Chambers of Commerce and Boards of Trade. In fact, the Ontario Chamber of Commerce, founded as a business advocate in 1911, is just eight years younger than our club.

Ladies and gentlemen, please welcome to the podium of the Empire Club of Canada--Mr. Len Crispino.

Len Crispino

Thank you. Mr. President, distinguished head table guests and friends, thank you all for coming this afternoon.

Too often we forget that public policy doesn't happen by accident; it is forums like the Empire Club that are on the leading edge of policy debate.

And that is why I'm here today to tell you about a new, exciting initiative called the Ontario Economic Summit. It will be a gathering of leaders from labour, business, academia and government seeking real solutions for today's challenges.

Before I get to that though, I'd like to provide you with some context on where we've been as a province, where we are and, most importantly, where we need to get to.

Ontario has always been a great place to do business, to earn a living and to raise a family. Certainly there have been ups and downs. That is only natural in an open market.

While we've faced a number of challenges in recent years, the outlook for our future is strong. In preparing background information for the summit, Don Drummond and the TD Bank Financial Group provided us with a white paper on the state of the provincial economy.

In that, the researchers noted Ontario has several key economic advantages working in our favour.

o We are close to lucrative U.S. markets.

o We have abundant supplies of natural resources.

o We have a strong and diverse labour pool.

o We have a strong track record of economic performance-ranking sixth among all of North America's 63 states, provinces and territories in real output.

So we would argue that for the most part, our foundations are strong. At issue is whether we are making full use of those advantages in building our economy. We know that too many highly qualified immigrants are stuck in entry-level jobs. We know that our colleges and universities are coming up with brilliant and innovative ideas, but those concepts aren't being commercialized to their potential.

One of the challenges we face is that we as Ontarians--as Canadians--don't trumpet our successes as much, or as often as we should. Our province has a great history of doing business, and doing it well. Our history in trade and commerce pre-dates our existence as a province.

From fur trappers and loggers, to the agrarian tradition that lives on in our towns and villages, to the wealth mined from the north, to today's welcome reliance on the automotive sector, to tomorrow's leadership in biotechnology, Ontarians should be proud of the traditions of innovation and the entrepreneurial spirit that has built this province and this nation. And each of you in this room is part of that long tradition. Which means that you understand the challenges we face as leaders and innovators.

As Ontario's business advocate since 1911, the Ontario Chamber of Commerce (OCC) is aware of today's challenges and we are actively working to find solutions.

As an example, you're well aware of this province's troubled border crossings into the United States. While the events of September 11 highlighted the problem, delays of up to four hours have been common since the free trade agreement began over a decade ago.

In June the OCC released a study that put a price tag on those delays. The results were staggering. Every year Canada is losing $8.3 billion. Of that, Ontario alone is losing $5.25 billion because of those delays.

Broken down, that amounts to over $1,000 per person living in Ontario each and every year. That is money that could fund hospitals--but isn't. It is money that could be used to create more jobs--but isn't. It is money that could be put away in a college fund--but isn't.

Borders are the choke points of our economy and delays, any delays, act like a hidden tax, sucking money out of the pockets of each individual, each business and robbing us of jobs, investments and prosperity.

I must tell you, this is upsetting because the solutions are so clear.

The first step is for governments at all three levels to begin to work together. We need a short, medium and long-term plan to start addressing this problem. Our plans must include investments in our infrastructure, but we also know that roads, bridges and tunnels aren't enough to solve this problem. We also need investments in technology, so that drivers, shippers and manufacturers know the best way to cross the border. Finally, the government needs to appreciate that it's not alone in finding and implementing solutions. That is what the business community does best.

And while politicians are talking about the problem we need action. It takes about 11 years to build a bridge in this province--two for construction; the rest is politics and paperwork. To me, and to Ontarians, that is simply unacceptable.

Another unacceptable political habit in this country is the inability of politicians to openly discuss truly innovative health-care reforms without persecution. Out-of-the-box thinking is banned and it's an awfully small box we're in.

A study came out in late July that said the Ontario government will have to triple the new health tax by 2008 just to keep pace with its current spending on health care. Within a few years spending on health-care programs will take up a full 50 per cent or more of total government program spending.

And nothing that the politicians have been "debating" for the past couple of weeks will improve sustainability. The agreement has turned the federal government into an ATM machine, funding the status quo. Shifting responsibility from one government to the other is not the answer; there is only one taxpayer.

Now, I'm not suggesting that the federal government shouldn't have come to the table with their offer of $41 billion for health. But given the history of health-care demand there is no guarantee that this will be enough over the long term.

We need a serious debate in Canada on the future of this incredibly expensive system. We need to find leaders who aren't afraid of talking about the elephant in the room. I believe it is our duty to make sure affordable and reliable health care is maintained.

At the same time, the OCC knows that we have to find better, less expensive ways to deliver services. Because, right now, we're sure of one thing: if we keep on this track the system is doomed to complete breakdown.

Now is the time to talk about options. Now is the time to talk about reforms. Now is the time that we begin to carefully craft pilot projects to see how we can maintain this system. It is time that we took the blinders off and started to look for real, long-term options to sustain this system.

One other topic that I'd like to touch on briefly is taxes. It is a long-held belief that the business community is solely interested in wringing tax cut after tax cut out of the government. Luckily for our members we have a broader view of the world.

It is our intent this fall, prior to the provincial economic statement, to present the Ontario Minister of Finance with a plan for significant, and frankly, over-due tax reform. Because while across-the-board tax cuts are nice, our members believe that there are better ways of achieving the same results.

First we need the government to consider harmonizing the GST and provincial sales tax. It makes no sense for two levels of government to collect and administer two separate consumption taxes. Efficiencies must be found in the collection of these taxes.

Second, and on a similar note, we know that it is a waste of time and taxpayers' dollars to file tax forms and paperwork with both levels of government. We believe there are better ways to manage the tax system. If there ever was a time for reform, it is now, given that governments at both the federal and provincial levels are of the same party.

And we know that both government and business will benefit from cutting the red tape.

Finally we are going to speak with the minister about one specific and targeted tax cut. We believe the government should eliminate the job-killing capital tax quicker. Currently the provincial government has plans to phase it out by 2012. We think that they can do better and we'll present our case this fall for the capital tax elimination by 2008 as the federal government has pledged to do.

So these are some of the ways that the OCC is serving you. In a very real sense, dealing with these types of issues is the way that chambers have always served their members. But we as a chamber must and will do more.

Ontario, today, is at a crossroad.

While we know that there is much more that can be done to improve the province, we do have solid fundamentals in place. The future lies open before us and choices must be made; priorities must be set. It is now our turn to cause greatness--not to sit quietly by and hope for the best.

Leadership is needed to make Ontario the most competitive and most successful jurisdiction in the world. And it's our intent to provide that leadership.

On October 6, a group of business, labour, government and academic leaders will meet in Niagara-on-the-Lake to begin the work of the Ontario Economic Summit. We will be coming together as equal partners, with a responsibility of building future prosperity for this great province.

Three distinguished Ontarians have taken up the cause as their own, and have lent their support, their wisdom and their energy to this endeavour as event co-chairs: Bob Rae, the former premier of Ontario; Linda Hasenfratz, President and CEO of Linamar Corporation; and Michael Sabia, President and CEO of Bell Canada Enterprises.

They agreed to this task because:

o They know Ontario's strengths.

o They understand that the global economy is not a static place.

o They recognize that other jurisdictions are fighting hard to capture the elusive competitive edge that we have enjoyed.

Now, we in Ontario must work together to take that next step.

I want to be absolutely clear. This summit of leaders is not being created merely to give government another "to-do" list. We have seen examples of this type of co-operation before.

Right now, it has been reported that General Motors is in discussion with the federal and provincial governments on a significant new investment in Ontario. If this multi-billion dollar project goes ahead, it would be a major milestone, not just for investment, but also for innovation in Ontario. It would create over 150 new research and development positions and train more than 6,000 new Canadian engineering students.

This is a positive step forward, forming partnerships that benefit everyone in this province.

Like the GM project, the Ontario Economic Summit will not be about looking at what others should be doing, but rather what all members can and will do to build a stronger, more prosperous province. That is the key measure that sets this summit apart--participants taking ownership for their ideas and their initiatives.

We must and we will come together as a cohesive group, united by a common purpose for a common goal--to build prosperity for all Ontarians.

Now, the summit is only the first step. This idea, this concept, is about creating and sustaining partnerships beyond a two-day event in Niagara. We have to begin somewhere and I believe we are off to a strong start.

In broad strokes the summit will focus on three areas--Ontario's economy, Ontario-U.S. relations and Ontario-global relations. Members have already begun the work of shaping and sharpening the agenda to focus on their priorities.

Led by researchers at Deloitte, members identified issues in two ways--the first by how important it is to businesses and second by the ability to act on and improve the issue.

The results?

The majority of respondents felt the summit should address issues like innovation, the next generation work force, our investment climate, new and external markets, infrastructure and education. It is an ambitious mandate, and given the attendee list, I believe real, tangible solutions can be found to build on our past successes.

Of course, it would be difficult to pre-judge what results or outcomes we might see from the summit, though I believe it is safe to assume that the answers don't have to be complex.

For example, if we consider for a moment the issue of developing new foreign markets--something I'm familiar with from my time as a sort-of trade ambassador for Ontario in Italy. It was my job to promote this province to potential investors. While that was a formal position, paid for by the government, there is no reason that business leaders couldn't do much of the same work.

It can be as simple as talking about the strong economic climate while having dinner with colleagues in Japan, or Germany, or France. We already know that travelling business leaders like to brag; all we'll be asking is that they brag a bit about Ontario.

It has often occurred to me that the OCC is like a tent, providing protection and creating a better environment for chambers and their members.

And while the OCC is quite good at providing that shelter, being that tent, it has always seemed to me that to do more, to secure our future, it can't just be the business community in the tent.

The business community, as much as we would like to believe otherwise, is only one piece, one part, of the solution. As an isolated community there is only so much we can do, only so high we can reach. And the same is true of labour, of government, of academia.

Our friend Buzz Hargrove, CAW President, and other labour leaders are taking part in the summit. Buzz realizes that labour alone cannot build the kind of future he wants for his membership. Premier Dalton McGuinty will also be at the summit because he knows that government alone cannot fix all that ails society; government is only one part of the solution. Last--but not least--are our colleagues from Ontario's colleges and universities. They understand that their innovative ideas and ground-breaking research alone isn't enough. They need people to take up that data and create a better place in which to live, study and teach.

It's clear: no one group has all the answers.

And that, very simply, is why we must stand together, to plot our course and build a stronger, more prosperous province. Now, this is not a new concept; over 100 years ago this concept was supported by organized labour.

Samuel Gompers was one of the founders of the American Federation of Labor in 1886. He was elected as their president and held that position for 37 years. Under his leadership, the organization grew from a handful of struggling labour unions to become the dominant organization in the United States and Canada.

But this "pro-worker" pioneer understood better than most today the role the corporation could play in society. In 1908, Samuel Gompers said: "The worst crime against working people is a company which fails to operate at a profit." Samuel wanted companies to be profitable. He wanted them to continue to create jobs, pay employees and pay taxes to the government, because that's the best way to improve society as a whole.

Like Samuel, the OCC and I understand that everyone has a role to play in maintaining a dynamic economy for the benefit of all. And that is what this summit is all about.

The future lies open before us. With co-operation, with innovative thinking, this summit can be the first step towards this province's golden age. We need strong businesses driving growth, creating jobs, and investing in our province.

Beyond that, we know that business must partner with labour, academia and government. That is the solution that will benefit all Ontarians. That is why the Ontario Chamber of Commerce has taken this leadership position.

It is about creating a better, more prosperous province. It is a powerful, yet attainable vision.

This is my hope for our future. Thank you.

The appreciation of the meeting was expressed by Rev. Dr. John S. Niles, Rector, St. Andrews United Church, Markham and 2nd Vice-President, The Empire Club of Canada.