​Budgets are investments in priorities and the federal government is expected to release its updated priorities in coming weeks through the 2022 budget.
 
Chambers of commerce and boards of trade from across the country have worked alongside the Canadian Chamber of Commerce on recommendations for the upcoming federal budget.
 
The pre-budget submission includes a range of topics, from unlocking the potential of legal cannabis to tax reform. Here are some of the highlights:
 
Cybersecurity
In a time when our economy, public services, and population are going online and depending on digital like we’ve never seen before, the Canadian Chamber of Commerce reports that Canada spends about half as much per-capita as G7 peers like the UK and France when it comes to cyber security. Just as bridges and border crossings impact our supply chain and national security, so too does our digital infrastructure.
 
The CCC is calling on the Government of Canada to invest $1 billion in the cyber security of our infrastructure, supply chains and businesses. They would also like to see the government invest $300 million to accelerate the commercialization of cybersecurity products ands services and invest $200 million in building our cybersecurity workforce.
 
Net-Zero
Industry and government need to work together on our path toward a sustainable net-zero future. The CCC is recommending the government:
• Accelerate the wide scale deployment of carbon capture, utilization and storage
• Support transitionary measures, like extracting biofuels from waste
• De-risk critical minerals supply chains, including investments in supporting infrastructure like small modular reactors and site-specific clean water solutions
• Champion a hydrogen ecosystem
 
Innovation
Our innovation needs are wide-ranging and extend beyond the traditional tech sector. We’re looking for investment in a life-sciences strategy to improve the health of Canadians and prepare us for any future health crisis.
 
To be ahead of the curve on innovation, we need to invest in digital infrastructure. This means investing in broadband internet access for everyone and more access to 5G internet in rural and remote communities.
 
We also need to make sure our innovation is protected through updated data and privacy legislation.
 
Immigration
Immigration has long played a critical role in our communities and our economy. The CCC is asking the government to decentralize the immigration selection process and support local solutions built by communities to address community workforce needs, streamline the temporary foreign worker program process, and facilitate integration of foreign-trained workers into the labour force to maximize
their potential
 
COVID Supports
The CCC recommending the federal government provide debt relief for hard-hit small and medium-sized businesses. This includes extending repayment terms and forgiving interest for the Canada Emergency Business Account (CEBA), the Business Credit Availability Program (BCAP) and the Highly Affected Sectors Credit Availability Program (HASCAP).
 
They’re also asking the government to support domestic tourism through new tax incentives and rebates for travel and hospitality activities to encourage families to travel within Canada in 2022.
 
The full pre-budget submission is available at chamber.ca.

​War in the Ukraine is sending world economies for another roller coaster ride as we’re slowly rebuilding from the devastation of COVID-19 and years of public health restrictions.
 
Inflation has been the hot topic for the last few months and judging by the price of gas, it could have a longer and deeper impact than originally forecasted. We’ve gone from less than $1 a litre in March of 2020 to nearing $2 this week.
 
The events in the Ukraine are incredibly tragic.
 
Canada has been growing its trade with Ukraine over the last few years, especially since the signing of the Canada-Ukraine Free Trade Agreement in 2017. We export a significant amount of fish and seafood, machinery, vehicles and parts, meat, and electronics with a growing export of aerospace products and wood pulp. In return, we’ve been importing steel, electronics, and vegetables. In 2019, Ukraine supplied 26% of our apple juice and 6% of our snow skis.
 
In total, the Government of Canada values trade between our two counties at about $340 million and it’s all essentially on hold.
 
It’s significantly lower than the $1.5 billion in business we do with Russia, to whom we export aircraft, machinery, and electronics and import energy, rubber, iron, copper and fertilizer. We’ve brought in sanctions against Russian products, but it’s not so simple to find new suppliers. Fertilizer producer Nutrien Ltd. is expecting a global shortage of fertilizer, impacting crop productions around the world.
 
Both fall well short of our $700+ billion trading relationship with the US, but the implications will be felt across sectors in our economy. Russia is the second largest oil exporter in the world and sanctions and import preferences mean demand for more ethically sourced oil is driving prices throughout the roof everywhere.
 
Add to this an increase in fuel demand as many areas scale back COVID-19 health measures leading to more travel to visit friends and family, in-person work at the office and visiting clients, and the resumption of recreational travel and tourism.
 
We need fuel to farm, mine, and manufacture goods. We need fuel to transport retail goods to your local store, fresh produce to restaurants, and supplies for local makers. There’s hardly a business not dealing with the effects of high fuel prices, let alone the rest of the inflation-related issues.
 
The timing of this crisis is challenging for our economy and our local business, but it’s important to remember the human side. More than 1.5 million people have left Ukraine as refugees with more likely to come. The Government of Canada has pledged its assistance in placing people. Much like the influx of Syrian residents a few years ago, it’s likely our community will host another round of refugees.
 
While our hope is that our world leaders will successfully avert another world war, a global economic crisis is well underway. World economies are so intertwined that even products we produce and consume domestically (like gas) are subject to the whims of global markets. The resilience of our local business community is once again coming to the forefront to take on the next global crisis.

After more than a decade of healthy electricity supply, concerns are mounting that Ontario is entering a period of electricity shortfalls.
 
Demand is growing. Our population is increasing, up 5.8% over the last 5 years. Factoring the drop in immigration due to the pandemic, something that should pick up again when things return to normal, and the coming years should see even more growth. This is compounded by the growing electricity demands of everyday life as well as climate conscious decisions like more electric vehicles and a move away from natural gas heating.
 
As demand increases, the supply side is facing its own challenges. The Pickering Nuclear Generation Station is planned to be fully retired by the end of 2025. Other investments in nuclear refurbishments, renewed contracts, and resources are needed in the near future.
 
The Independent Electricity System Operator is forecasting capacity to fall short of demand by the mid-2020’s with the gap widening from there. They estimate the province will need to find 12 gigawatts of power of over the next 20 years.
 
A recent policy statement from the Ontario Chamber of Commerce called Addressing Ontario’s Growing Electricity Needs lays out how critical the situation is. Regardless of what route we go to supply that capacity, it takes years to plan and develop not only the power generation, but also the transmission and distribution infrastructure.
 
Additionally, the Province is planning to achieve zero-emission electricity generation, which will have to include phasing out natural gas-powered plants. The Province is currently looking into options to pick up capacity like biomass and hydroelectric generation, including new contracts for small hydroelectric projects.
 
The Ontario Chamber of Commerce states that given the time it takes to operationalize electricity infrastructure, it is imperative that Ontario continue taking steps today to secure reliable, affordable, and sustainable resources for future generations. Relying on importing electricity won’t be able to meet all our capacity needs and there’s volatility with other regions forecasted to need additional supply as well.
 
Having sufficient and affordable electricity is critical to the economic success of our province. Industry and have made significant investments in electrification, especially in resource extraction and manufacturing.
 
There are also opportunities for our businesses as we reinvest in electricity generation and transmission. The OCC is advocating with the Ontario Government to ensure local businesses will be an integral part of these investments. They’re calling on the Province to continue consulting with industry to ensure there is a competitive and transparent process for contracts that leverages existing assets where possible.
 
While the government has been making steps to address these issues, the timeline is getting tight. It’s time to make the investments we need to secure reliable, affordable, and sustainable electricity that both people and businesses need.

​Our region’s population grew by 9,445 people between 2016 and 2021 — an increase of 6.8%
 
That’s above the provincial population growth change of 5.8%, but it doesn’t tell the whole story.
 
What’s most surprising is the imbalance in growth between Peterborough city and county. The City of Peterborough added 2,619 people, an increase of 3.2%, while the county added 6,858 people for a staggering 12% increase — more than double the provincial average.
 
The County of Peterborough’s outgoing Official Plan worked with the projection of the population increasing to 61,000 by 2031. It’s currently at 64,000. The current draft official plan has a revised projection of 82,000 people by 2051. If growth continues at its current pace, it will hit that target by 2031. Even at the provincial average growth rate, Peterborough County will hit 82,000 people by 2041.
 
There is the possibility that at the last 5 years are an anomaly. Perhaps it was the perfect storm of ready-to-go subdivision plans, investments in municipal water and sewer capacity, and a sudden desire for people to get out of the big city and move here. Between 2011 and 2016, the county’s population increased by a respectable 4.4%.
 
Meanwhile the City of Peterborough has been consistently growing at around 3% every five years. The census indicates growth at 4.4% in 2011, 2.9% in 2016, and 3.2% in 2021. It’s on track to hit its growth target of 88,000 people by 2031 as set out in the official plan.
 
Evidently, the desire for growth is still outpacing our ability to provide it. The average house price in January jumped to $814,495. Month-after-month of record-breaking house prices should be a good indication that our region has more growth potential.
 
Growth in this range is going to bring more challenges, especially as more people flock to rural communities.
 
Transportation infrastructure is critical in managing a booming population. We need efficient ways to move people where they want to go. We’re going to find that some of our four-way stop sign intersections can’t handle the volume of traffic any more. Roads will need to be upgraded, passing lanes added, and bridges rehabilitated. There is also a growing desire for better cycling infrastructure and transit service. Facilitating growth includes expanding infrastructure like water and sewer service, recreational facilities, and high-speed internet.
 
Growth can be expensive.
 
But growth also brings opportunity for local businesses. More people living local leads to an increased need for groceries, places to eat, recreational opportunities, and entertainment. Some new residents are even bringing their businesses with them. The overall customer base is growing and that’s a community benefit.
 
The census numbers also show that growth happens with no particular concern for municipal borders, highlighting the need for us to work as a region in our approach to economic development and planning future infrastructure.
 
Regardless of the price tag, our region is in the midst of a population boom. It’s time to embrace the situation, plan and invest in the infrastructure needed to facilitate this growth, and make the most of the opportunities it presents.

People have been gambling and betting online since the 90’s. It has been consistently growing and has evolved into a multi-billion dollar industry.
 
The Government of Ontario is looking to get a piece of this lucrative sector, setting a launch date of April 4 for its new iGaming initiative.
 
The modernization of gaming revenue in Ontario is an important issue that provides new opportunities while also raising some concerns. It is anticipated that the iGaming initiative will allow the Government of Ontario to capture revenue that might otherwise go to offshore gaming providers. However, we are concerned that Ontario’s approach may come at the expense of current revenue and employment sources our communities depend on.
 
A recent study by HLT Advisory Inc. examining the impact of the iGaming initiative on Ontario’s gaming industry concluded that over the next 5 years there is a potential loss of more than 2,500 Ontario-based casino jobs, $191 million in municipal contributions and $3 billion in Ontario government revenues.
 
It’s not as simple as just regulating and taxing an existing offshore industry — it has real implications for jobs and revenue locally.
 
The Peterborough and the Kawarthas Chamber of Commerce is leading an advocacy initiative, working with eight additional chambers as well as the Ontario Chamber of Commerce, to push for a more cautious, balanced approach to the iGaming rollout.
 
Ontario is not the first jurisdiction in North America to legalize iGaming. Every U.S. state that has introduced iGaming has done so in a coordinated manner with existing land-based casinos. While we remain supportive of proposals to expand opportunities for private enterprise within Ontario’s regulated gaming space, the chamber is raising concerns regarding direct impacts to land-based casino operations as a result of the legislation as currently drafted.
 
We are urging the Government of Ontario to:
 
● Work with stakeholders, including land-based casinos, to minimize local job losses and ensure the addition of iGaming will result in the growth of Ontario-based jobs in the gaming sector;
 
● Provide casino host communities with an iGaming plan that demonstrates a negligible impact on municipal revenue sharing;
 
● Provide municipalities across Ontario with an iGaming revenue sharing agreement with a similar structure to the gas tax program; and
 
● Work with stakeholders to establish a competitive tax rate for iGaming that is fair to land-based casinos but also encourages offshore operators to join Ontario’s proposed framework.
 
Our approach is not aimed at stifling a growing sector, but making sure our foray into it is balanced and doesn’t come at the cost of existing community benefits. We have an opportunity to make iGaming a win for communities across Ontario. Let’s take our time and get it right.

​With news that 
Peterborough now leads the country with the highest unemployment rate, hitting 9.5% in December, it’s a good time to take a look at our workforce.
The Workforce Development Board has been busy 
analysing our local 
population, its employment 
situation and what it all means. A recent Labour Market Information report highlights that our region is growing modestly at only 0.5% per year. The biggest 
increases are people between 25 to 44 and 65+, with 0 to 14 staying about the same and all others decreasing.
Left alone, we would be in trouble. Comparing 2019 and 2020, deaths outpaced births by 445 people. Immigration and people relocating from other areas of Ontario account for our growth.
We’re also losing people to other provinces. Over that same time, the Workforce Development Board notes our population shrank by 234 people due to 
interprovincial migration. According to Statistics Canada, our country hasn’t seen this level of 
interprovincial migration in more than 30 years, with Ontario taking the biggest hit. In the second quarter of 2021, nearly 12,000 more people left Ontario for other provinces than moved here. Many of the people leaving are younger, first-time home buyers — the very people our labour market is 
desperately in need of.
Additionally, our region is a popular destination for seniors as is evidenced by the continued increase in the 65+ demographic. We typically rank within the top few regions across Canada for what percentage of our population is over 65. The result is that more than 2,300 people are leaving the workforce annually due to retirements. 
One of the most 
eye-opening findings in the Workforce Development Board report is that more people are currently working than before the pandemic. There were an estimated 65,100 people employed in our region in 2021, up 3,100 from 2019. Despite seniors leading our population growth, workforce 
participation is also up with 62.7% of our population participating in the 
workforce in 2021, 
compared to 60.2% in 2019.
It’s difficult to really figure out what exactly all this means without doing a deeper dive. With further study, there are a few key takeaways:
• Our region needs to be 
attractive, both to 
immigrants and people in other areas of Ontario. These are the two groups not only driving our growth, but staving off decline. We are relying on people wanting to move here. 
• We need to retain the people we have. Though well positioned within 
Ontario, we’re losing residents to other provinces. It’s no coincidence that the recent spike in 
interprovincial migration coincides with massive growth in the real estate sector, with people flocking to provinces with a more affordable cost of living. The average price of a home in Ontario jumped 47% over the last two years.
• Our workforce is vulnerable. Our demographics continue to skew heavily toward the upper end of the age 
brackets. But our seniors are continuing to use their expertise to keep working, 
at least part time, well beyond 65. Our region’s employment numbers are lagging, but a mass exodus via retirements or 
health-related issues would put a further crunch on our labour demands.
It’s frustrating to see that we have more people 
working than before the pandemic yet we’re still dealing with sky-high unemployment. Employment numbers and demographics reports are only a snapshot of a sample group. Monthly employment statistics can vary up and down from month-to-month based largely on sampling, which is why relying on trends is more accurate. The trend is that Peterborough’s 
unemployment is high and that’s not a great situation for anyone involved. 
Entering into another period of severe business 
restrictions will certainly lower demand regarding labour shortage issues, but our problems will return when we pick back up again.
There are short-term 
solutions we can work on to improve our situation, but those will only be Band-Aids if we don’t invest heavily 
in our long-term needs. Intra-provincial migration is working for us right now, but it’s risky to bet too heavily on one thing. We have some amazing assets and resources, including 
two top-notch 
post-secondary institutions. We have a 
hard-working regional 
economic development agency, what a single organization can do. It's going to take 
cooperation between regional municipalities to create more serviced employment lands. What it really comes down to is a concerted community effort to build the region into what we need to become to be competitive in the long run.