Ontario’s Fall Economic Statement includes actions to increase sector competitiveness and investment
November 15, 2022
The Chemistry Industry Association of Canada (CIAC) congratulates the Hon. Peter Bethlenfalvy, Minister of Finance on delivering the 2022 Fall Economic Statement.
CIAC commends the government on the important steps taken to reduce the cost of doing business in Ontario such as lowering payroll costs and funding a portion of the non-hydro renewable energy contracts. We urge that more work is needed to address business competitiveness and investment attraction for the chemistry and plastics sectors.
Among the initiatives contained in the 2022 Fall Economic Statement, CIAC is pleased to see the province announce:
- Plans to accelerate industrial land approvals and permitting;
- Establish consultation groups to support red tape reduction efforts;
- Continue investments to support skills training and apprenticeships;
- Extend the relief for gas and fuel taxes through to the end of 2023.
The global chemistry sector is one of the world’s fastest growing sectors. That growth is expected to continue with global chemical volumes tripling over the next two decades. Over C$300 billion in investments have started or have been announced in the current business cycle in North America, principally in the U.S. Gulf Coast and Midwest, and another $30 billion in new investments have been announced in Alberta. Ontario has an opportunity to benefit from this investment wave.
Ontario’s $29-billion chemistry industry is the third-largest manufacturing industry and second largest exporting sector in the province. The sector is a key employer in the Sarnia-Lambton, GTA/Niagara and eastern Ontario regions and directly employs 42,000 Ontarians in well-paying jobs and supports another 210,000 Ontario jobs.
Our sector provides important inputs to a range of key manufacturing sectors in the province including automotive, critical minerals, forest products, construction, and food and beverage. The chemistry sector is a key source of innovation and is an indispensable solutions provider to address the challenges of climate change, clean air and water and plastics circularity. Ontario’s chemical manufacturers must compete globally both for market share and investment funding.
CIAC is pleased to continue to work with the Ontario Government on the many priorities to create a prosperous Ontario that is once again the economic engine of the country.