Thank you for the opportunity. And not to be outdone by the Mayor of Perth, bonjour, this afternoon, to everyone.
I think I can cover my comments in five minutes. I want to touch on four areas: job loss, tourism, cross-border shopping, and suggestions for consideration. I'll just proceed with my comments.
In terms of job loss, the town of Smiths Falls, not unlike many municipalities throughout Ontario and Canada, has experienced significant manufacturing job losses in the past few years. At the present time the town of Smiths Falls, with a population of just under 9,000, is faced with job loss totalling 1,500. The planned closure of the Hershey plant in Smiths Falls accounts for well over 500 of these jobs, with most of the balance attributable to the planned closure of the Rideau Regional Centre, a care facility operated by the Province of Ontario. There are some other manufacturing jobs that are part of that number as well. The 1,500 jobs in question represent good-paying jobs with good benefits that have provided reliable employment for the past 40 to 50 years in the Smiths Falls area.
There are a number of other factors that have contributed to the serious loss of manufacturing jobs in the province of Ontario, which according to many reports amounts to 175,000 jobs since 2005 that have been lost. The factors leading to the job loss include, of course, the rise in the value of the Canadian dollar, global competition, productivity in Canadian plants, the present economic slowdown in the United States, tax policies at all levels of government in Canada, and various other relevant factors.
The town of Smiths Falls, located in eastern Ontario, is faced with the most serious economic challenge in the town's history due to the loss of 1,500 jobs, and this does not include recent downsizing at some of our other local industries in Smiths Falls, which would be added to that number.
This impact is being directly experienced by the affected employees and indirectly impacting on those who supply goods and services to the organizations that are closing in our community. Furthermore, the elimination of 1,500 jobs creates a significant reduction in the spending patterns for the local economy in terms of reduced retail sales of goods and services, in addition to the laid off employees' financial ability to look after household expenses such as insurance, taxes, heating costs, etc. As a result of the local job loss situation in Smiths Falls, we are also discovering that new retail business opportunities are deciding not to locate in our town because of the current situation.
Moving on to tourism, given the recent and present value of the Canadian dollar, the local tourism activity in the Smiths Falls area, particularly from United States visitors, has declined. This is evidenced in Smiths Falls by fewer boaters and campers, reduced overnight stays, and a general decline in out-of-country visitors deciding not to visit our town. In addition, the closure of the Hershey plant in Smiths Falls will have a tremendous negative impact on tourism in our town, in that well over 400,000 visitors a year visit the Hershey plant in Smiths Falls. The visitors to the Hershey plant alone provide significant economic stimulation for the business sector in Smiths Falls.
Other factors that we believe have contributed to this decline are the high cost of gasoline; the prospect of needing a passport or different documentation to cross the border; the slowdown in the U.S. economy; as well as the high value of the Canadian dollar. This has resulted in fewer U.S. citizens travelling to Canada for tourism and other purposes.
In terms of cross-border shopping, the town of Smiths Falls is less than one hour away from three Canadian border crossings to the United States--Prescott, Ivy Lea, and Kingston. Given the recent high value of the Canadian dollar, there has been a noticeable impact on the retail economy in Smiths Falls and other areas within close proximity to the United States. It has made it attractive for many Canadian citizens to travel, in our case to northern New York State, for retail shopping and other tourism purposes. The result is reduced retail sales results in Canada, in Smiths Falls, and increased retail spending in U.S. markets.
Finally, I have some suggestions for consideration. The study data material provided by this standing committee, in particular the list of 22 recommendations, which I have read, will provide measures and strategies to address the serious and significant economic challenges that many Canadians face. In this regard I was hoping to find a recommendation that specifically addressed tax policy in the way that will enable Canadian businesses to compete more favourably with countries. The example I have is Ireland--which has been brought to my attention by local industry--and other jurisdictions that have found ways to become economically successful in the global economy. Furthermore, it is important to introduce and/or revise without delay federal measures that will improve Canada's competitiveness in world markets and hopefully mitigate the serious job losses that have occurred to date throughout Canada.
I also wish to commend the witnesses who have appeared previously before this standing committee and who have offered insightful comment and useful suggestions that will assist in creating a more effective industrial strategy for Canada.
In my view, and in the view of many other Canadians and people in my own community, this is a matter of utmost urgency and importance, based on the economic challenges and job-loss impacts that have occurred and continue to take place throughout Canada.
On January 10, 2008, the Prime Minister announced a $1-billion program to assist vulnerable communities and one-industry towns facing major downturns. In this regard, we anxiously await further details on this important program announcement, and hopefully much-needed assistance for the town of Smiths Falls and the many other communities throughout Canada facing serious economic challenge.
Finally, I wish to suggest that it is imperative that the three orders of government in Canada—federal, provincial, and municipal—work together not only on these important economic challenges and initiatives, but also on the many other important matters facing the citizens of this great country of Canada.
Thank you for this opportunity.