You may have recently heard government ads on radio and TV reminding you how lucky we are to be receiving a 25 per cent rebate on our hydro bills. What these ads (that we paid for) neglect to mention is that since 2006 the price of electricity for the consumer has skyrocketed from 3.5 to 8.7 cents per kilowatt hour. That's an increase of 150 per cent, so …lucky us, we get a 25 per cent rebate.
Aside from being a serious burden for young families and people on fixed incomes the real long term damage is more sinister. To be clear, lets remember that it actually isn't government's responsibility to create jobs. Their mandate is to create an environment conducive for job creation. In other words they need to provide an economically competitive atmosphere for companies to locate in their cities, provinces and countries.
The reality is that Ontario is surrounded by jurisdictions that offer much more attractive energy prices. For example, in Manitoba the electricity price is 8.43¢ kWh, in Quebec its 7.23¢ per kWh, over the border in Buffalo its 6¢ per kWh and in Ontario we pay 18¢ per kWh. Any type of major manufacturing will require substantial electricity usage. Based on hydro costs alone why would a new manufacturer choose to locate in Ontario, or for that matter, stay?
Through the 60s, 70s and 80s, Barrie was known as rapidly growing industrial hub until economic conditions began to change and force companies like Tambrands, General Tire, Molson’s, General Electric to close up shop and relocate or consolidate their operations to more profitable locales. When that happens they rarely come back. Barrie has done an excellent job of reinventing itself as a modern economy that isn't reliant on traditional manufacturing anymore but the economic effect of high hydro prices can still be felt.
Small businesses employ the vast majority of citizens in Barrie. 75 per cent of all people who work in Barrie are employed by businesses with four or less employees. It is these employers that really feel the strain of growing overhead costs. Most of these businesses have to keep a close eye on every dime and a 150 per cent increase represents dollars that could be spent on growing their business employing more people and contributing to our community.
If our local and provincial economy is expected to grow it is imperative that the continuing abusive increases to electricity costs get under control. There may be no easy way to do this and it will require boldness and creativity at the provincial level; giving us a one time 25 per cent rebate wont cut it.
Locally, it is critical for our current and future city councils to be equally innovative when creating Barrie’s unique value proposition and capitalizing on our growing reputation as a high tech data and digital services hub or jobs will wither and so will our community.
