Provincial budget offers status quo for Northern Ontario

The Ontario government has a “plan in place” to guide investment in the Ring of Fire, but is keeping the purse strings tight for now on any mining-related infrastructure spending.

A four-paragraph mention in the McGuinty government's 'austerity' budget of the massive mineral deposits in the James Bay lowlands provided no clarity on the government's plans to invest in any mining, transportation or community-related infrastructure.

The government acknowledged that Northern Ontario's economy will benefit from the more than 1,500 jobs created by the Ring of Fire, with plenty more being created in the service and supply sector.

Budget documents say money will be set aside for transportation networks, hospital and post-secondary institution projects that will “maximize returns on investments.”

In a March visit to Thunder Bay, Premier Dalton McGuinty told local media that the province will spend $35 billion over three years on Ontario infrastructure. The Ring of Fire will get a sizeable share.

The government already made a pre-budget strike last week with its divestment announcement of the North Bay-headquartered Ontario Northland Transportation Commission. Government train service between Cochrane and Moosonee will be maintained, but the savings from the divestment of passenger rail, freight, rail car refurbishment and telecommunications will save $250 million over three years.

The Ministry of Natural Resources is in for some changes.

The government is giving Minister Michael Gravelle the authority to make loans to local forest management corporations with the approval of the Ministry of Finance. There will also be more “flexibility” in forest management planning under the Crown Forest Sustainability Act.

Resource management is taking a “stronger regional focus” with fewer field offices.

The government will maintain funding for its successful Second Career program, which has helped 55,000 laid-off workers retrain for new jobs. Funding of $251 million will be maintained to assist 13,000 participants.