Orazietti 'shocked' by proposed NDP anti-job legislation

NES RELEASE

DAVID ORAZIETTI, MPP

**************************** NDP put Essar Steel Algoma jobs at risk

McGuinty government blocks NDP’s short-sighted anti-jobs legislation

QUEEN'S PARK - The McGuinty government has successfully blocked a private members' bill introduced by the New Democratic Party (NDP) member Gilles Bisson, MPP for Timmins-James Bay, who introduced legislation today that put Ontario industries that rely on natural resources at risk.

Bisson neglected to recognize that if Ontario adopted his protectionist legislation, our trade partners would retaliate.

Ontario’s mines, mills and other industries would not be able to get materials that are essential to their operations, which would have endangered thousands of high-quality jobs in Northern Ontario, at businesses such as Essar Steel Algoma, David Orazietti, MPP announced today.

“If the NDP had their way and passed this short-sighted legislation, companies in other jurisdictions would retaliate by blocking access to essential products, such as iron ore, coal and limestone. Companies like Essar Steel rely on these resources to produce their products,” said Orazietti. “Our government voted against the NDP’s legislation because we understand that if companies anywhere in Ontario lose access to these and other important materials it would inevitably result in job losses.”

Over 50 percent of Essar Steel’s coal comes from West Virginia and none of its coal originates in Ontario.

The limestone Essar Steel uses comes from Michigan, while its iron ore supply comes from various places outside Ontario, such as Minnesota.

No Canadian jurisdiction has implemented this type of restrictive legislation that creates trade barriers.

In Ontario, the $12 billion steel industry directly employs 24,000 people who depend entirely on out-of-province iron ore supplies to produce their products.

In Timmins for instance, 25 percent of the iron ore going to the copper and zinc smelter at Kidd Creek is currently coming from out of province.

This legislation, if passed, could have significantly impacted 3400 jobs at Essar Steel, 6400 jobs at Arcelor Mittal Dofasco in Hamilton, as well as numerous other businesses.

“It is shocking that members of the NDP would support legislation that could put thousands of people out of work across Ontario, as well as workers in Sault Ste. Marie,” said Orazietti. “It would be helpful to everyone in Northern Ontario if the NDP started to support initiatives that are legitimately good for the North, such as the province’s 2010 budget, which includes a number of important energy initiatives and investments in our community.”

The provincial government’s 2010 budget proposes the following initiatives to enhance job creation and economic growth in the North, however the NDP voted against it on second reading and are expected to oppose it on third reading:

- A Northern Industrial Electricity Rate Program worth $150 million annually, for qualifying large industrial facilities to reduce their electricity prices by an average of 25 percent.

- $15 million to upgrade the Huron Central Rail line from Sault Ste. Marie to Sudbury.

- A new, permanent Northern Ontario Energy Credit of up to $130 for single people and up to $200 for families (including single parents) annually. This credit worth $35 million will help low and middle income northern Ontario residents with their energy costs.

- $10 million to increase the Northern Ontario Heritage Fund Corporation (NOHFC) from $80 million to $90 million to create new jobs and support economic development. The government is also making significant infrastructure investments of nearly $1.2 billion to strengthen northern communities by improving highways, hospitals, water and wastewater systems, and other infrastructure, supporting 10,000 jobs in 2010-11.

- $45 million over the next three years to support a new project-based skills training program to help Aboriginal Peoples and northern Ontarians participate in and benefit from emerging economic development opportunities.

Additionally, other key provincial budget investments include:

- $2.6 billion in additional funding for health care - an increase of 57 percent since 2003

- $700 million in additional funding for education - an increase of 50 percent since 2003

- $310 million to add 20,000 new spaces to colleges and universities this September

- $63 million increase to Ontario childcare to maintain 8500 child care spaces and protect 100 jobs following the federal government’s decision to cut their funding

- Creating 30,000 new second career training spaces bring the total in Ontario under the program to 60,000

****************************