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Northern business, industry taking the "brunt" of energy prices

Northern chambers of commerce voice concerns, recommendations for province's long-term energy plan
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Michael Macnamara worked on the submission with the Sudbury chamber

Energy prices in Ontario are facing a review, and Northern Ontario wants special consideration for their unique economic and environmental climate.

As the Ontario government looks at completing the Long-Term Energy Plan 2017 (LTEP), Northern chambers of commerce have made a submission voicing their concerns and recommendations.

The chambers in Sudbury,  North Bay, Sault Ste. Marie, Timmins, and Thunder Bay grouped together to make the submission in December.

Michael Macnamara is a lawyer at Conroy Trebb Scott Hurtubise and vice-chair of the Greater Sudbury Chamber of Commerce board, and worked on the submission.

“Whether you're a single person or a large corporation, you've felt the impact of energy prices,” said Macnamara. “We felt Northern Ontario in particular had specific needs or different needs than Ontario as a whole. There's an increase in costs as simple as heating.”

The submission pointed to factors besides the cold, like the increased cost associated with getting gas and electricity to remote areas, the increased distance and cost of transporting goods to the North, and the importance of energy intensive resource extraction to the local economies.

Macnamara said they are asking for three main things: economic development, transparency, and predictability.

While the submission commended existing government initiatives for economic development, it outlined the need for further policy adjustments to encourage industry to stay in the North. Macnamara said concerns include businesses going south, or even across the border, finding ways to reduce costs and staying competitive on a global market.

“Local businesses associated with mining, sheet metal fabricators... and the like... they're feeling the brunt of the shift,” said Macnamara. “There's a fear of hampering global economic development.” 

On the transparency front, the chambers are asking for more details on upcoming changes. 

“The government has ambitious greenhouse gas (GHG) reduction targets... but it's not clear how to reach them,” said Macnamara. 

The chambers would like more details on the cap-and-trade system, specifically on where the money generated will go.

With transparency, Macnamara hopes there will be more predictability so businesses can plan ahead. He said upcoming changes including the introduction of a cap-and trade-system in January mean there's “not much time for businesses to plan.”

Macnamara said they are optimistic their submission will make an impact down south.

“All Northern Ontario chambers signed on, instead of one or two signing on... it's the North as a united voice of business” said Macnamara. He said the Ontario government has been responsive to past submissions.

“With change in government... there's been significant change in policy, with impacts making their way through the system,” said Macnamara.