HANDBOOK ISSUES THAT MATTER TO SARNIA-LAMBTON BUSINESS

Jason McMichael Marilyn Gladu Dave McPhail Peter Smith 2015 Federal Election HANDBOOK ISSUES THAT MATTER TO SARNIA-LAMBTON BUSINESS

OUR POSITION Sarnia-Lambton voters go to the polls October 19 to decide who will best represent our interests in Ottawa. Like many others in Lambton County s business community, the Chamber wants to see our economy grow and our businesses succeed. The outcome of this election will affect our region s ability to generate the wealth we need to grow our economy, and to sustain our social programs, strong environmental standards rich cultural diversity and to mantain our high standard of living. Affordable Energy Entrepreneurship Fiscal Responsibility Access to Markets Skilled Workforce Challenges Sarnia-Lambton faces, such, as global competition, climate change, the loss of manufacturing jobs, currency devaluation, rising electricity costs, declining oil prices, lagging innovation and an increasingly difficult business environment impact our ability to grow and prosper. How do we face these challenges and become more competitive in the regional, national and global economy? For over 100 years, Chambers of Commerce across the nation have been helping to inform our voting public by identifying the top political issues affecting business. This year, The Canadian Chamber lists four areas critical to Canada s economy in its report: A Canada that Wins: The National Election Platform of the Canadian Chamber of Commerce. These include: access to a powerful workforce, access to capital, access to technology and innovation and access to markets. The Ontario Chamber identifies five priorities for the Ontario economy: fixing the fiscal framework, cooperation with the provinces, making Ontario a global destination of choice for foreign investment, championing Ontario s competitive advantages and fiscal responsibility. The Sarnia-Lambton Chamber has identified five issues critical to the competitiveness of our local business communities. Ther positions the Chamber has taken on these local issues were developed over the year through consultations with the Chamber network: our members, volunteers, community partners and the Ontario and Canadian Chambers of Commerce. On behalf of our 850+ members, the Sarnia-Lambton Chamber of Commerce calls on political parties to engage with businesses and commit to practical solutions and actions in these five areas of local priority: 1. Affordable Energy 2. Entrepreneurship 3. Fiscal Responsibility 4. Access to Markets 5. Skilled Workforce

1. Affordable Energy Sarnia-Lambton s competitiveness depends on affordable and reliable energy. Since 2013 electricity prices in Ontario have risen by 16 percent and are forecasted to increase another 13 percent over the next five years. Businesses are feeling the pinch despite every effort to conserve energy. Forced to spending more on energy, they are less able to hire, train, increase wages and provide employee benefits. A national energy strategy would help stabilize supply and costs. The cumulative burden on business is increased even further as provinces like Ontario, Quebec, Alberta and British Columbia are putting a price on carbon emissions. Federal leadership is urgently needed to ensure provincial and territorial climate change regulations meet national environmental goals without impacting economic growth. National and even international coordination in this sphere will ensure that Canada s industrial businesses can remain globally competitive. Meanwhile, Canada s oil resources are being shipped abroad to be upgraded and refined before being sold on the global market. By adding value to these resources in Canada, we could supply national markets and create thousands of jobs and other economic spinoffs. Sarnia-Lambton, with its energy expertise, infrastructure, skilled labour and environmental and safety performance, is an ideal location for refining Canada s oil resources. The Bowman Centre s SABER project, for example, proposes building a new $10 billion refinery in Sarnia. It would not only supply national markets, but also increase Canadian exports by 1.5% and create 5,000 construction and 500 direct jobs with a combined payroll of $735 million in the first year. The Sarnia-Lambton Chamber of Commerce calls on all parties to commit to: Establishing a national electricity strategy to enable the passage of power across provinces and territories, the increase in power productivity, a reduc tion of greenhouse gas emissions and the stabilization of costs. Encourage our nation s energy resource industries to add value to their products in Canada in order to supply national markets and allow Canadians to benefit from the economic spinoffs. Working with provinces and territories to establish a broad-based price on carbon that is revenue neutral and uniform across the country.

2. Entrepeneurship New technologies and processes are changing the nature of manufacturing around the world. Advances in biotechnology are leading companies like BioAmber to create plant-based chemicals that can be used in a wide range of products, from running shoes and cosmetics to food. Local efforts by Bioindustrial Innovation Canada (BIC), Western Sarnia-Lambton Research Park and Lambton College s Department of Applied Research and Innovation are turning Sarnia-Lambton into a globally recognized bio-hybrid chemistry cluster that complements our traditional industries: agriculture and petrochemicals. However, Canada s bioeconomy continues to lag behind the US and Europe. A national bioeconomy strategy that is fueled by strong research, development and commercialization programs would drive competitiveness and productivity at a global scale. Federal support for business incubators like BIC would provide start-up companies in the bioindustry with the money to grow, create more jobs and export to new markets. According to BIC, the centre has turned $14 million in investments into 243 direct jobs, 630 construction jobs and $143 million in additional funding in Ontario. BIC is now planning to establish a $34 million centre to support the growth of companies in the biomass to cellulosic sugar supply chain. With federal and provincial support, the centre would attract $500 million in new investment, generate $100 million in government benefits and create 3,000 jobs. The Sarnia-Lambton Chamber of Commerce calls on all parties to commit developing a national bioeconomy strategy that: Builds on existing best in class models with appropriate support federally and provincially Recognizes that universities, colleges and federal laboratories play a vital role in building a long term bioeconomy and provide them support for discovery research Provides appropriate support to business accelerators and commercialization agencies like BIC to attract new businesses in the bioeconomy to Canada Supports the development of bioeconomy clusters throughout rural Canada

3. Fiscal Responsibility The Sarnia-Lambton Chamber believes that the federal government should strive to make Canada an attractive place to do business. This can be done by remaining aware of and preventing the cumulative burden that tax increases, new user fees, red tape and uncertain public policies can have on business. This can be done by forming an impartial panel of experts to review the tax system and recommend measures to simplify it. In the meantime, a simple adjustment to the tax code could be used to incent small businesses to continue growing and therefore, hire new employees or invest in technologies and innovation. Currently, small businesses earning $500,000 or less can claim the Small Business Tax rate of 11%. This effectively discourages businesses earning the threshold amount from increasing their revenue at the risk of losing their tax incentive. Fiscal responsibility also means finding the right balance between helping Canadians achieve financial security during retirement and placing additional financial burdens on employers. The Chamber believes the federal government should allow voluntary enhancement of the Canadian Pension Plan so that employers who have the means can contribute and so that provinces and territories are not pressured to create and administer their own costly pension plans. While the Chamber is generally supportive of balanced budgets and believes that a responsible government spends as much as it receives in taxes, we also understand that at times it may be worthwhile to accumulate debt for the sake of big projects like new roads & bridges, transit systems, skills training and job creation. Other times user fees, competitive tax regimes and government grants can generate the funds needed for economic development. Infrastructure debt must be managed responsibly without burdening future generations. The Federal Gas Tax is often cited as one of the most effective means of providing predictable, equitable and permanent funding to municipalities for infrastructure development. It allows for municipalities to plan ahead and consequently link infrastructure spending to economic development. However, it is not nearly enough to cover the significant infrastructure deficits facing Canadian municipalities. Here at home, the City of Sarnia s roads, bridges, sewers and other properties have a net book value of $800 million. They require about $40 million/year to maintain, yet the City spends on average only $19 million/ year in maintenance. This means the City may need to find an additional $300 million to catch up on delayed repair work. The County of Lambton, meanwhile, is behind by an estimated $212 million. By investing in the repair and maintenance of aged and outdated infrastructure, communities can provide an environment that is attractive to business and increase economic development and growth.

The Sarnia-Lambton Chamber of Commerce calls on all parties to commit to: Supporting a comprehensive review of the tax system to reduce red tape, streamline the tax code and eliminate many tax credits and exemptions so that rates could be lowered. Allowing voluntary enhancement of the Canadian Pension Plan. Increasing the threshold for the 11% small business tax rate from $500,000 to $1 million. Helping municipalities repair, maintain and build infrastructure by increasing the support provided by existing federal-municipal funding programs like the Federal Gas Tax, the Building Canada Fund and the Small Communities Fund. 4. Access to Markets The sustainability and growth of Sarnia-Lambton s manufacturing industry, which employs approximately 8,000 workers locally, according to Manifold Data Mining, is increasingly dependent on its export and import capabilities. To build global competiveness and leverage their expertise in the energy, oil and gas, bioindustry sectors and other sectors, local fabricators must look to external markets. Fortunately, Sarnia-Lambton is located along an international gateway with transportation networks by water, road and rail. Unfortunately, local fabricators that construct large industrial equipment find it challenging to compete, because the cost of shipping large freight is prohibitive. It is often cheaper for Alberta to import modules from South Korea and the U.S. than Sarnia-Lambton. The solution is a designated transportation route for over dimensional freight within Sarnia-Lambton and to the markets we supply. The Sarnia Lambton Industrial Alliance estimates that such a route could save about $100,000 per shipment, depending on the size of the unit shipped. The proposed oversized load corridor could create thousands of highly skilled jobs and generate numerous economic spin offs. The Sarnia-Lambton Chamber of Commerce calls on all parties to commit to working with all levels of government to: Easing interprovincial trade barriers by designating a national over dimensional freight corridor eliminates choke points, increases size and weight limits to a national standard. In doing so, consult manufacturers, resource companies and shipping source jurisdictions in the planning phase to promote designs that can be tailored to the safe transportation of their products. Providing appropriate funding, within existing infrastructure programs and mechanisms, to eliminate over dimensional freight barriers within Sarnia-Lambton.

5. Skilled Workforce Sarnia-Lambton boasts a highly skilled workforce yet our aging population could be one of the most significant barriers to regional economic stability over the next decade, if it leads to significant skills shortages. By attracting youth, minorities and disabled persons to locate and remain working in our community, Sarnia-Lambton could maintain a healthy, sustainable workforce that is productive and drives economic growth. First, communities need to be able to identify labour shortages before they happen. This requires access to timely, high quality labour market data. By reinstating the long form census, employers and educational institutions could identify when increased training is necessary in targeted fields or when recruitment from other jurisdictions will be necessary. Furthermore, accessing skilled labour from untapped markets will require new thinking. For instance, the Conference Board of Canada reports that 50% of people with disabilities in Canada have a post-secondary degree compared to 58% reported by people without disabilities, yet they are three times more likely to be unemployed than people without disabilities. By making business environments and practices more accessible to people with disabilities, they can lead independent, productive lives as business owners, workers and consumers. Furthermore, access to rail, bus and air transportation within Sarnia-Lambton and from neighbouring areas will be essential to attracting students, newcomers and workers from other areas. Already, VIA Rail has committed to quadrupling service between Sarnia and London and improving the VIA Rail station. Further investments are greatly encouraged. The Sarnia Lambton Chamber of Commerce calls on all parties to commit to: Reinstating the long form census. Provide incentives that encourage businesses to make their workplaces more accessible to persons with disabilities. Continuing to increase VIA Rail service in the region by working with CN Rail to approve new schedule times and consulting with Southwestern Ontario communities and businesses on the feasibility of a dedicated passenger rail line.

Questions from our members AFFORDABLE ENERGY Sarnia-Lambton is a community with a large industrial base that requires significant electrical power. We face skyrocketing electricity rates, strong opposition to the expansion of wind power projects, and an aging population living on fixed and reduced incomes. In this environment, rising electricity costs are making it difficult to do business. If elected, would you support a federal role in stabilizing electricity prices by advocating for a national energy strategy and if so, how? Q This year the Government of Canada announced plans to reduce greenhouse gas emissions by 30% below 2005 levels by 2030 and the Government of Ontario announced plans to join Quebec, Alberta and British Columbia in putting a price on carbon emissions. Do you believe a price on carbon should be set by the federal government and if so, how can it be accomplished? Will your plan target businesses exclusively, or all users/producers including the end customer? Canada s energy resource industries could help create thousands of skilled jobs, generate significant economic spinoffs and provide a stable supply of energy by upgrading and refining oil in Canada. Does your party support refining and upgrading our oil resources in Sarnia-Lambton and if so, what would you do to encourage it? ENTREPRENEURSHIP Considering our two largest industries are chemicals and agriculture, the recent opening of BioAmber in Sarnia and the great work done by Bioindustrial Innovation Canada, Sarnia-Lambton is poised to lead in the development of Canada s bioeconomy. Despite our success, Canada has no national bioeconomy strategy to support us in competing with other areas like the U.S. and Europe. What will you do to support the work of BIC, attract more start-up businesses and increase our ability to compete globally in the bioeconomy? What measures would your party adopt to encourage businesses especially small companies to invest in new technologies? Canada is a global leader on innovation spending, yet lags on the global innovation index. Failure to commercialize ideas is often identified as a key contributing factor for this lag. What would your party do to narrow the gap between our high investments in innovation and our relatively low success rate in commercialization innovation? FISCAL RESPONSIBILITY Taxes have become extraordinarily complicated and cost Canadian business billions to comply with. Would you support a comprehensive review of tax legislation to reduce red tape, streamline the tax code

Questions from our members and eliminate many tax credits and exemptions so that rates could be lowered? Many small businesses are discouraged from growing because they face a higher tax rate. Do you support increasing the threshold for the (11%) small business tax rate from $500,000 to $1 million? After failing to convince the federal government to enhance the Canadian Pension Plan (CPP), the Ontario Government decided to go it alone and start their own Ontario Retirement Pension Plan, which will have its own costly administrative body and add additional costs to doing business. What is your position on the proposed enhancement of the CPP and how would your party help Canadians save for retirement while minimizing the burden on business? Q Our members are highly supportive of balanced budgets, but also see the need for big investment in roads & bridges, skills training and competitive tax regimes. Name three of your top spending priorities and three areas where you would cut spending. Infrastructure projects like the oversized load corridor, rural broadband and regional transit have the potential to jump start our local and regional economy. Yet Sarnia-Lambton s roads, bridges, sewers and other crucial assets are in need of hundreds of millions of dollars in repair following years of underspending. Do you support an increase in federal spending to help Canadian municipalities repair, maintain and build new roads, sewers, high speed broadband, etc.? If yes, what are your priorities? ACCESS TO MARKETS It is estimated that oil and gas, energy, mining and ship building projects in Canada, the U.S. and South America will require millions of tonnes of large equipment like pressure vessels, heat exchanges, pumps and valves. Our local fabricators have the expertise to build these; however red tape and exorbitant transportation costs prevent them from competing in this market. A designated transportation corridor to and from Sarnia s port would greatly reduce costs, as would a national corridor with standardized increased width, height and weight limits. Do you support the construction of an oversized load corridor in Sarnia-Lambton and if so, what would you do to help get this project funded? If elected, will you call on your party to make it a priority to ease interprovincial trade barriers by working with provinces and territories to designate a national over dimensional freight corridor?

Questions from our members SKILLED WORKFORCE Access to timely, high quality labour market data can help communities prevent labour shortages before they happen. Will you press your party to reinstitute the long form census? Sarnia-Lambton s aging population will mean that business owners will experience skills and labour shortages as experienced workers retire. What will you do to help ensure that Sarnia-Lambton s work force is positioned for the jobs of tomorrow and to better engage under-skilled workers in the labour force? Residents of Sarnia-Lambton enjoy a relatively high standard of living, yet the total population of Lambton County is decreasing. What will your party do to help small, rural communities like Sarnia-Lambton to increase its population? As a community that appreciates the needs and celebrates the contributions of those with disabilities, what will your party do to meet the growing need for increased accessibility and employment opportunities for this sector of our population in Sarnia-Lambton? VIA Rail recently announced that it will quadruple passenger rail service between Sarnia and London starting in 2016. This will make Sarnia-Lambton a more attractive and accessible community for residents, newcomers, students and tourists. If elected, will you support the call for a designated passenger Qrail line connecting Sarnia-Lambton with Southwestern Ontario?