Ontario election contenders debate economy



With the economic benefits of all that oil, Calgary Mayor Naheed Nenshi is in an enviable position. But he came to Toronto recently seeking something Alberta lacks and Ontario has in abundance: skilled workers. His message was: Go west for opportunity.

The challenge for all parties, less than two weeks before the provincial vote, is how to create those opportunities right here at home. At the beginning of the campaign, the Star suggested voters should look to the leaders for answers to three key questions facing the province. The first: How can we build the economy of the future?

It’s long been clear that Ontario has relied too heavily on traditional manufacturing and an artificially low dollar. But what will we excel at 10 and 20 years down the road?

Despite the economic storms, Ontario has taken important steps. Our high-school graduation rate has jumped from 68 per cent in 2003 to 81 per cent and more students than ever are going on to college and university. That, combined with a long tradition of welcoming skilled immigrants, means Ontario is building the trained workforce necessary to compete in an increasingly global, knowledge-based economy.

Where we are lagging is in business innovation and investment in technology and equipment that would boost Ontario’s productivity, competitiveness and, vitally, job growth.

Jobs are so top of mind for voters that the campaign road staple of kissing babies has been replaced by hugging workers — and promising them better days ahead. The three main parties have starkly different visions of the role of government in job creation and voters will have to judge which they believe is likeliest to succeed. But politicians aren’t alone in this challenge.

With substantial corporate tax cuts (and promises of more from the Liberals and Progressive Conservatives) and the competitive edge provided by the harmonized sales tax, businesses now have that more favourable tax climate they’ve long said they needed to invest in their companies and close the productivity gap. It’s time they stepped up.

So what can and should the province do to help move our economy toward a future full of high-skill, high-pay, stable jobs?

Liberal Leader Dalton McGuinty’s answer is to jump into the global economy with both feet and “out-compete the world.” That means having the most skilled workforce by investing in education, increasing university spaces and reducing undergraduate tuition so more students can attend. His government has made a big bet that the jobs will come, in part, from fostering innovative new industries, most notably manufacturing solar and wind turbine parts for green energy projects, and through closer ties to the big emerging economies of China and India.

McGuinty’s Liberals have never had a shortage of long-term vision. But they have struggled with implementation and immediate successes, and there are big question marks over whether subsidies for renewable energy will succeed in creating a vibrant green manufacturing sector.

New Democrat Leader Andrea Horwath’s “create and protect” jobs vision means more Buy Ontario, made-in-Ontario laws. It’s a tempting idea, particularly to unemployed workers, to have our tax dollars used to create high-value jobs here and that’s why the Liberals and PCs also have some form of Buy Ontario policies.

But the NDP’s plan would go much farther and carries obvious risks of retaliation. If we seek to close our doors to others, won’t more lucrative markets shut out our companies? Voters must decide whether such policies — along with the higher corporate taxes favoured by the NDP — are the way forward or an attempt to turn back the clock.

Progressive Conservative Leader Tim Hudak’s plan for jobs involves less government, not more. Beyond matching the Liberal corporate tax reduction plans and dramatically reducing rules and regulations that amount to “job-killing red tape,” his main plank is training more apprentices. That recognizes the growing gap in the labour market for skilled trades, but his plan does not appear to set aside any new funding. That raises questions about how he will fast-track training for 200,000 skilled workers.

What Ontarians need are not job plans that will sustain a four-week campaign or even a four-year term in government. Difficult as it may be, we need to put in place the fundamental reforms that will make sure Ontario doesn’t find itself left behind a generation from now.


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