Evidence of meeting #15 for Industry, Science and Technology in the 39th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was dollar.
A recording is available from Parliament.
Liberal
Dan McTeague Liberal Pickering—Scarborough East, ON
That's very helpful.
Mr. Staples, when Wills Transfer is making its way around Poonmalie Line in your community, what kind of help do you think a gas tax abatement could have to a company like that? The federal government charges 4¢ on diesel as opposed to 10¢ for anyone else, and for the province it's 14.7¢ right across the board. There is no difference. How do you think this will help?
Mayor, Town of Smiths Falls
I think any assistance that would enable businesses to operate in a more cost-effective manner that doesn't jeopardize any programs the federal, provincial, or municipal governments have to deal with would be advantageous.
I have to make a quick comment on infrastructure. We're talking about infrastructure in our community of Smiths Falls. It's not fancy. We're talking about rebuilding a water plant. We currently have a shortfall of $6 million based on an engineer's estimate. We have to find $6 million locally. We have an arena that is 60 years old that my colleagues use. It's that old struggle of cost-sharing arrangements.
And I would like to add one more comment. It has been suggested to me that we need to raise municipal taxes in Smiths Falls. That's a huge problem. By way of example, I have a house in Smiths Falls that is assessed at $250,000. When I ask federal or provincial politicians what they think my municipal taxes are, no one ever gets this right. They usually say they're probably around $2,200. They're almost $4,500. That's what we're dealing with.
Liberal
Conservative
The Chair Conservative James Rajotte
Okay, but I did have Mr. Struthers.
Mr. Simard, do you want to put your question, then?
Liberal
Raymond Simard Liberal Saint Boniface, MB
I'll address it to Mr. Struthers, if I could.
We've spoken almost uniquely about the manufacturing sector. I'd like to know how healthy your service sector is. Is it dependent on a strong manufacturing sector? If you're losing all these jobs, do the lawyers and doctors and everyone else go? I would like you to touch on that.
The obvious question is about diversification. When you lose 1,500 jobs in a town of 9,000 people, obviously you want to try to lessen the blow by diversifying. How can we help you there?
Mayor, Village of Merrickville-Wolford
First of all, it's a collaborative effort, and today is a good start on that. But it's also understanding that in all of the communities, whether they're looking at manufacturing, agriculture, or tourism, the economies are intertwined. So losing manufacturing jobs is a hit, and as Mayor Staples has indicated, it hurts the retailers and so on.
I think there needs to be a global look at the community, but you need to focus on what you are good at and on what is appropriate for that community. Indeed, we have a mayors group that is looking at some opportunities at the Rideau Regional Centre. The investment of dollars can be very strategic, in terms of gas. When you look at the population in eastern Ontario, there are 17 persons per square kilometre. That's a lot of roads, not just for people who travel to and from work, because they don't necessarily all live in Merrickville if they're working in Merrickville, or conversely in the town of Smiths Falls, etc. So we need to be strategic and understanding with regard to the components that make an economy run well.
If I may comment a little bit in terms of taxes and the value of gas tax dollars, eastern Ontario has $1 million of assessment per square kilometre. Western Ontario has $2.5 million. Ninety percent of the total assessment in eastern Ontario is residential. With a limited assessment growth of less than 2%--this is at the county level, and there are 13 counties in eastern Ontario--the average levy increase for the last five years is 8.1% per year. So the federal gas tax dollars are of significant value, and we appreciate the fact that there's a commitment, I believe, until 2013. We're working with the provincial government because their provincial gas tax dollars are for communities with transit systems only. With respect, rural Ontario has a transit system of roads and bridges. There is a significant part of the equation that we haven't touched on today and probably won't--
Conservative
The Chair Conservative James Rajotte
I'm sorry, but the bells are going so we won't have enough time.
I'm sorry, Mr. Struthers, but members do have to get to the House.
I want to thank you all for being with us here today. If you have anything further to submit, please do so through the clerk. We will ensure all committee members get it.
Thank you.
The meeting is adjourned.