Economic News Around the North, October 24th Edition

It is quite the blustery day here in Thunder Bay today so what better way to hunker down and enjoy the day than taking a look at the major economic news items over the last little while.

Ontario's GDP boosted billions per year by Lakehead University Thunder Bay, Orillia campuses. CBC Thunder Bay, October 24th, 2017.

Well, it turns out that according to a study authored by faculty at Lakehead's business school that Lakehead University's economic impact on Ontario is 1.4 billion dollars.  To my way of thinking, the faculty are the core of the university - indeed all the expenditures a university makes are to allow faculty to generate research, teaching outcomes and human capital value added for graduates so given that there are about 300 full-time faculty at Lakehead, I would estimate my personal economic impact on Ontario's economy at 4.7 million dollars (1.4 billion dollars divided by 300).  Based on my current salary, I am obviously grossly undervalued.  That is a pretty good return to any investment.  Come to think of it, hiring more full time university faculty is obviously a cheap and effective way to boost Ontario GDP.  Let the hiring boom begin.

Business ties with India explored. Chronicle Journal, October 24, 2017.

Well, a few weeks ago it was a delegation from China.  This week a delegation from India is passing through Thunder Bay.  Given the precarious state of our NAFTA negotiations, I would imagine it is a good idea to try and build as many ties as possible with the Asia Pacific region.

Northern business owners in 'defensive mode' about proposed tax changes. CBC Sudbury, October 24th, 2017.

This is the northern Ontario take on the tax changes being shepherded by Bill Morneau.  However, as we know there are going to be revisions.  Moreover, there may be other goodies coming down the pipeline in the wake of today's fiscal and economic update in Ottawa.

And in other Sudbury economic and business news....

2 former chairs quit Sudbury Chamber of Commerce over casino, arena position. CBC Sudbury, October 19th, 2017.

No comment there.  Sounds like a pretty strong difference of opinions.

While Thunder Bay is focusing on India and China for its economic enhancement efforts, it would appear that Timmins Economic Development Corporation has targeted Bolivia.

Exchange will see Bolivian delegates visit Timmins. TimminsPress.com. October 4th, 2017.

If you are interested in the Elliot Lake model of economic development, there is this...

Sault's becoming a popular retirement destination, credit analyst says. SOOTODAY.com, October 6th, 2017.

On the other hand, what if Amazon builds its new headquarters in the Sault?  The Sault is sending in a proposal. Check here.  Quite frankly, I have not come across other northern Ontario cities doing the same.

As well, there is television production activity underway in the Sault.

Producer returns with big projects for Northern Ontario. SaultOnline. October 15th, 2017.

And all the way in North Bay, there is this item referring to a recent Fraser Institute Report by Ross McKitrick and Elmira Aliakbari:

Ontario's green energy policies killed jobs.Nugget.ca, October 19th, 2017.

Even North Bay is apparently getting into the film business...

Film industry applauds local cinematography program. BAYTODAY.com, October 14th,017.

Have a great week!

Economic News Around the North: June 9th Edition

Here are the stories over the last little while that I feel are of economic importance to northern Ontario.  Summer is on the way and there is a definite slowdown in defining economic news as everyone starts heading out to camp for the summer. Tourism is going to be a sector of continuing importance to northern Ontario and camp development should be part of tourism development and infrastructure.  Making more camp/cottage lots available for development would certainly be one way of adding to tourism in northern Ontario.
 
Here is another piece of tourism infrastructure along the north shore of Lake Superior.

Lake Superior Water Trail connects explorers to northern Ontario. CBC News. Sudbury, June 9, 2017.

Of course, tourism development does not always have positive benefits for everyone as this historical example of northern Ontario tourism exploitation illustrates.

Speaking of infrastructure, there is a glitch in the US Soo locks rebuild.  See here.

It was mining day in Thunder Bay recently and there was another mining show in Timmins.  These events are good showcases for the sector.  The Timmins mining exposition was a 3 day event with 400 exhibitors.

Mining Day in Thunder Bay.  Northern Ontario Business. June 1, 2017.

Miners, investors flock to The Big Show. Northern Ontario Business, June 7, 2017.

In terms of developing the northern Ontario economy, another call for some type of tax incentive program from City Council in Sault Ste. Marie.  There was also a harkening back to the Peterson government of the late 1980s with a call more more government office relocation.  I suppose it would not be too tongue-in-cheek to suggest that the Ontario government simply sell all of its land in Toronto - at current sky high prices - use the proceeds to pay off its debt and then relocate the entire Ontario legislature and civil service somewhere in northern Ontario.  Of course the competition among the big 5 northern Ontario cities would be cutthroat so Wawa might have to be the compromise location.  Perhaps they could make the decision as part of a lottery or gaming experience run by OLG.

Of course, if all else fails there is the inevitable fallback to better marketing.  North Bay seems to be going in this direction with its municipal government handing a million dollars to its arms-length municipal economic development agency. 

In northern Ontario institutional news, there is a commission studying provincial ridings and representation in the far part of northern Ontario.  Some think the commission is thinking of splitting the Timmins-James Bay riding in two to provide better representation to indigenous communities. Will be interesting to see what the commission reports back.

Well, that is it for now. Have a great weekend. 

Economic News Around Northern Ontario: April 2nd Edition

Well it has been a busy end of term not just on campus but across northern Ontario. Here are the items that caught my interest over this last week in terms of general economic significance for the region.  The first two stories deal with the MPAC assessments this week.

Commercial, industrial property reassessments 'absolutely devastating' says Thunder Bay council, CBC.ca. March 29^th, 2017.

 

Economists weigh in on municipalities' spat over property reassessments, CBC.ca. March 30^th, 2017.

This is a municipal public finance story that has been many years in the making.  Essentially, as a result of appeals and a ruling by MPAC, the City of Thunder Bay will have to refund $2 million to several retailers and grain elevator companies.  While this refund has been planned for, it does mean a reduction in revenues from these properties in the future.  This is part of a long-term trend away from business/industrial properties towards residential ratepayers and over the course of 25 years in Ontario has meant a shift in the share of property taxes away from the business/industrial sector and onto residential ratepayers.  While one might argue that in the past, the business/industrial sector was bearing too large a share, the situation has certainly gone the other way.  Of course, the real question is what should the optimal division be between the share of property taxes paid by residential ratepayers and business/industrial one.  In Thunder Bay, the situation has been aggravated by the industrial decline of the last 25 years which has seen several pulp and sawmills as well as grain elevators shut down,  For my  take on property taxation in Thunder Bay, see my January 24th 2017 post.  While there is certainly an economic case to be made about the division between residential and business property taxation, in the end the balance will be a political decision.

In other news:

 

Sudbury loses in 3rd bid for Canada Summer Games, CBC.ca. March 30^th, 2017.

The Niagara Region will be hosting the 2021 games beating out bids from Kitchener-Waterloo, Ottawa and Sudbury.  The Games are an opportunity to showcase your community and acquire some new infrastructure but at the same time they do come with some expenses.  Getting them can be a mixed blessing but they are fun.  I remember participating in the opening ceremonies of the 1981 games that were held in Thunder Bay.  I was much more agile as a dancer then.

Budget could transform FedNor: MP, Chronicle Journal, March 31^st, 2017.

A lot is being made about the $25 million boost to FedNor as some type of trans-formative change to the agency.  A similar spin in a story in North Bay.

Feds ‘rebuilding’ FedNor, nugget.ca. March 26^th, 2017. 

The fact remains that FedNor's budget a decade ago was $76 million and last year it was $31 million and the $25 million is being spread out over 5 years.  I guess I really would need to be sold on what FedNor actually is other than a fund to sprinkle some politically motivated funding  on assorted projects to give some semblance to the idea that the federal government cares about northern Ontario's economic development.  The minor increase in funding without some kind of vision of what FedNor is transforming to suggests treading water in a palliative care setting rather than trans-formative change.

In other news of concern to long-term regional infrastructure and the north's transportation role:

Soo Locks economic necessity; future worries USACE, Saultthisweek.com. March 28^th, 2017.

 The Chamber of Commerce did a big presentation in Timmins last week (They are coming to Thunder Bay April 21st).

 

Report cites challenges for Northern economy, TimminsPress.com. March 29^th, 2017.

 

 Other items:

North Bay commercial real estate: Leasing and sales to level off in 2017, North Bay Business Journal. March 21, 2017.

Facts ‘n’ Figures: Canadian mining by the numbers, The Northern Miner. March 28^th, 2017.

 This last item presents some numbers for the provinces but since all of the mining in Ontario is a northern Ontario economic activity, it provides an interesting snapshot.  Have a great week!