News Release

Premier McGuinty Announces New Details In Plan For Investment And Jobs

December 03, 2004

Event photo(s) available

SUDBURY/THUNDER BAY — Ontario's Northern Prosperity Plan is a major step toward the investment, jobs and opportunities that northerners want and deserve, says Premier Dalton McGuinty.

"For Ontario to be the place to be for years to come, we must work to ensure all Ontarians have the opportunity to grow and prosper — that's what our plan for the north is all about," said Premier McGuinty.

"It's a plan to create jobs in the north by ensuring northerners, their fellow Ontarians, and people from across Canada and the world invest in the enormous potential of this region."

Premier McGuinty announced new details on the three key parts of the plan:

  • A revamped Northern Ontario Heritage Fund Corporation will once again work with northern entrepreneurs, companies and business organizations to create private-sector jobs with a focus on new enterprises, young entrepreneurs, community development, emerging technologies and energy conservation.

  • A proposed Northern Ontario Grow Bonds program would, if passed, fund loans, generally of up to $1 million, to small- and medium-sized businesses in the north by targeting provincially guaranteed bonds to northerners, with the first issue expected as early as this spring.

  • A new GO North program — designed to aggressively inform, attract and land major investors from outside Ontario — including $19 million over this year and the next three years to promote northern Ontario to the world.

Premier McGuinty, joined by Minister of Northern Development and Mines Rick Bartolucci and MPPs Michael Gravelle (Thunder Bay-Superior North) and Bill Mauro (Thunder Bay-Atikokan), said the participation and contribution of northerners and their representatives continues to be the key to the success of the plan.

"Our Northern Prosperity Plan will create real opportunities for all northerners and lay the foundation for our future," said Bartolucci.

"It is about empowering northerners and asking them to lead the way in our efforts to bring lasting prosperity to the north."

On his seventh trip to northern Ontario as Premier, McGuinty stressed the importance of northern Ontario — not just to the government, but also to the province’s future.

"Our province can’t reach its full potential until the north realizes its extraordinary potential," said Premier McGuinty.

"This plan will empower northerners so they can build a stronger north and a stronger Ontario."

Backgrounder

Building A Strong And Prosperous North: Highlights Of Key Initiatives

Through the Northern Prosperity Plan, the Ontario Government is implementing a range of targeted initiatives to stimulate growth, create jobs and promote a better quality of life for Northern Ontario.

The Ministry of Northern Development and Mines is leading efforts to build prosperity in the North by investing $520 million this fiscal year in the North and in Ontario's mineral sector, an increase of nearly $100M over our budget last year.

Key Northern Prosperity Plan initiatives include:

  • Refocusing the Northern Ontario Heritage Fund Corporation (NOHFC) to support job creation and economic development while continuing vital investments in community infrastructure. Since October 2003, almost 1000 jobs have been created from NOHFC investments.
  • Supporting the northern film and television industry: $1.5 million to the City of Sudbury to support the local animation industry (Chilly Beach) and $1 million dollar loan to support the making of the Shania Twain movie. These are jobs that attract and retain youth in the North.
  • The proposed Grow Bonds Pilot Program to help small and medium-sized businesses in the North develop and expand by increasing the amount of capital available to them.
  • Launching the GO North investor program to market Northern Ontario internationally and attract new business to the region.
  • A dialogue with northerners, including visits to the North by all cabinet Ministers. Announcing the creation of four Northern Development Councils to provide a direct link from northern communities to the Minister of Northern Development and Mines.
  • A Northern Highways Program 2004-2005 allocation of over $256 million, an increase of $33 million over last year: the first two tenders have gone out for advanced contracts on the planned 20km, four-lane Highway 69 corridor south of Sudbury, another 10 km of four-laning on Highway 11 south of North Bay was recently opened, and a contract was recently awarded to construct a new two-lane alignment of Highway 11-17 (Shabaqua Highway) in Thunder Bay. Overall, through the Northern Highways Program 32 major rehabilitation contracts will be awarded across the North, involving the reconstruction/resurfacing of almost 360 km of pavement and rehabilitation or replacement of 14 bridges.
  • Renewing the Ontario Northland Transportation Commission by protecting jobs, improving services, and helping it chart a course toward a viable future.
  • Supporting the new Northern Ontario School of Medicine. More than 2200 applications have been received, leading to more doctors, better healthcare, and youth working in the North.
  • Forging new partnerships with First Nations and Far North communities.
  • Launching the Ontario Mineral Industry Cluster Council, which is working to foster a rising standard of living from Ontario's mineral industry and win more prosperity for communities.
  • Investing $10.5 million to clean up former mining lands through Abandoned Mines Rehabilitation Program.
  • Increasing Northern Ontario's emergency access by enabling Local Services Boards to arrange for 911 emergency access services.

Backgrounder

REFOCUSED NORTHERN ONTARIO HERITAGE FUND

The McGuinty government is refocusing the mandate of the Northern Ontario Heritage Fund Corporation (NOHFC) to advance its Northern Prosperity Plan goals of fostering job creation and strengthening northern communities.

The NOHFC is a flagship government program that supports regional economic and community development and responds directly to northern challenges. An operational service agency chaired by the Minister of Northern Development and Mines, its board of directors is drawn from regions and sectors across the North.

The NOHFC was created in 1988 to stimulate small-business growth, assist single-industry communities, foster development of new technology, support long-term economic growth and encourage diversification of the northern economy. In 1996, it was redirected toward infrastructure and development opportunities. Private sector companies could no longer apply for funding.

Now, the newly refocused NOHFC will return to working with northern entrepreneurs, companies and business organizations while, at the same time, continuing to support vital infrastructure and community development projects that enhance quality of life and stimulate economic activity.

To help create jobs and foster growth in the northern economy, the NOHFC will deliver targeted programs under the following new themes:

Growing Jobs

  • Enterprises North Job Creation Program

Youth

  • Northern Ontario Young Entrepreneur Program
  • Northern Ontario Youth Internships and Co-op Program

Community Development

  • Infrastructure and Community Development Program

Emerging Technologies and Telecommunications

  • Assistance Supporting Emerging Technology Projects in Northern Ontario

Energy Conservation Opportunities

  • The Small Business Energy Conservation Program

These NOHFC programs will not duplicate or replace other initiatives but instead will complement other provincial programs and strengthen Northern Ontario's communities and economy. They will work with other government initiatives as part of the Northern Prosperity Plan to increase the number of sustainable jobs and private sector employment opportunities available in Northern Ontario.

Details of the new NOHFC programs and application booklets will be released early in the new year.

This initiative builds on other Northern Prosperity Plan initiatives underway, such as:

  • $256 million for the Northern Highways Program
  • A renewed Ontario Northland Transportation Commission (ONTC)
  • Northern Development Councils
  • The Ontario Mineral Industry Cluster Council, which is working to foster a rising standard of living from Ontario's mineral industry and win more prosperity for communities.

Backgrounder

GO NORTH INVESTOR PROGRAM

Announced in the 2004 Ontario Budget, the GO (Government of Ontario) North Investor Program is designed to market Northern Ontario's inherent strengths across the continent and around the world.

It is an integral component of the government's Northern Prosperity Plan - a targeted and co-ordinated approach to help northern communities attract and retain investment and jobs.

The GO North Investor Program will foster lasting prosperity in the North by investing $19 million over this and the next three years to attract new "anchor" investments to northern communities.

With a focus on marketing, selling and servicing investment opportunities, it will complement the proposed Northern Ontario Grow Bonds initiative by targeting larger-scale investments that promote innovation and growth in existing sectors, such as mining and forestry, as well as new sectors for the North.

The initiative includes:

  • A targeted marketing and investment attraction component aimed at major potential investors outside Ontario
  • A northern communities investment readiness component aimed at northern communities
  • A co-ordinated strategic response component to develop investment opportunities.

The GO North Investor Program will tap unique northern potential and exploit opportunities for new trade patterns, such as those in the U.S. midwest and other appropriate international markets.

Its Targeted Marketing and Investment Attraction component will target such investments as value-added resource-related industries, innovative technologies, large-scale tourism facilities and research-intensive investments that build on northern strengths.

A critical factor in the GO North initiative will be the ability of northern communities to establish a competitive position in attracting anchor investments by having the necessary tools and information available.

The Northern Communities Investment Readiness component will work with northern communities to help them identify investment opportunities and ensure that they are well equipped to respond to potential international investors.

Another component of the program, the co-ordinated strategic response, will provide a GO North team to identify, respond to and develop investment opportunities.

The co-ordinated response will offer a "one-stop window" for potential investors. Working with all levels of government, the GO North team will highlight Northern Ontario's competitive strengths and co-ordinate site visits to Northern Ontario.

This initiative builds on other Northern Prosperity Plan initiatives underway, such as:

  • $256 million for the Northern Highways Program
  • A renewed Ontario Northland Transportation Commission (ONTC)
  • Northern Development Councils
  • The Ontario Mineral Industry Cluster Council, which is working to foster a rising standard of living from Ontario's mineral industry and win more prosperity for communities.

Backgrounder

NORTHERN ONTARIO GROW BONDS

The McGuinty government is moving to implement its Northern Prosperity Plan — a range of targeted initiatives aimed at stimulating growth, job creation and a better quality of life for Northern Ontario. The plan is based on four pillars: Strengthening the North and its Communities; Listening to and Serving Northerners Better; Competing Globally; and Providing New Opportunities for All.

One of the key Northern Prosperity Plan components, announced in the 2004 Budget, is a proposed Northern Ontario Grow Bonds pilot program. The Northern Ontario Grow Bonds pilot program would foster prosperity and private-sector job creation by giving northerners an opportunity to invest in their own economic future.

The proposed program hopes to raise up to $20 million through provincially-guaranteed bonds to residents of Northern Ontario, with the proceeds being used to fund loans to small and medium-sized businesses in the North.

The necessary legislation was recently introduced, and if passed by the end of 2004, bonds could be issued in the spring of 2005.

Northern Ontario Grow Bonds

The Northern Ontario Grow Bonds pilot program would be made available to the residents of Northern Ontario, who would have the opportunity to invest in a safe and competitive savings instrument while contributing to local business growth and the economic well-being of the North.

Grow Bonds would be fully secure and would be guaranteed 100 per cent by the provincial government.

The selling period would be two-to-three weeks in duration. Northern residents would receive advance notice of the 2005 Grow Bond issue through a widespread promotional campaign in the North.

The Ontario Financing Authority (OFA) of the Ontario Ministry of Finance would oversee the Grow Bond issue. The OFA is the agency responsible for all provincial borrowing and debt management activities.

Loans

By increasing the total amount of capital available for business start-ups and expansions in the North, Grow Bond loans would attract and retain investment and create jobs in Northern Ontario. It is also hoped they would serve to demonstrate to commercial financing institutions in Northern Ontario that higher-risk small- to medium-sized companies in the North merit consideration for financing.

The government proposes that loans to eligible businesses generally be in the range of $125,000 to $1 million, complementing existing or planned government loan assistance programs available to northern businesses.

Businesses would have to be located in Northern Ontario, and eligible projects would have to result in an increase in permanent, full-time employment within the core activities of the business supported by Grow Bonds loan funds. Businesses would also be expected to repay their loans within five years.

Complete parameters for eligibility would be developed through regulations and communicated in the near future.

Both the Northern Ontario Heritage Fund and the proposed Grow Bonds pilot program are complementary elements of the Northern Prosperity Plan. Their activities would be coordinated to ensure no overlap or duplication.

This initiative builds on other Northern Prosperity Plan initiatives underway, such as:

  • $256 million for the Northern Highways Program
  • A renewed Ontario Northland Transportation Commission (ONTC)
  • Northern Development Councils
  • The Ontario Mineral Industry Cluster Council, which is working to foster a rising standard of living from Ontario's mineral industry and win more prosperity for communities.

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