EDITORIAL PAGE (November 11, 1991)

It’s easy to forget just how much mining contributes to the general economy because so much of mining’s benefits are felt in remote areas. The money individual mines pump into their local communities is less visible than factories or offices in large urban centres.

That’s why specific examples can help get a true fix on what mining means in dollars and cents. The Hemlo gold camp in northern Ontario is a prime example.

The three Hemlo mines — Williams, Golden Giant and David Bell — together employ almost 1,200 people. The annual wages and benefits paid out come to $86 million and the annual bill for services and supplies comes to $138 million.

The mines pay that in order to produce 1.35 million oz. gold a year worth more than half a billion dollars. And in the process, the mines’ safety record is better than average in the industry which is itself better than that for construction, forest products, transportation, farming and industrial operations.

When you consider that a decade ago Hemlo was nothing more than a whistle stop on the CPR railway line, it’s a good example of how mining actually creates wealth rather than just recirculating it like so many other industries.

Backing industries that have a solid track record is a wise policy for government. The difficulty lies in backing them in a constructive way, not simply spending money for the sake of improving public relations.

That is why we have some reservations about welcoming Ontario’s initiative to consult with people in the province’s vast northern area while developing strategies for promoting regional diversification and economic renewal. Perhaps the Strategic Consultation and Action Now (SCAN) program is a step in that direction, but whether the results will be any more than damage control for a government that has already alienated most of the mining industry remains to be seen.

What the north really needs is a climate that welcomes investment. Actions by the current government, however, are making Ontario a less desirable place in which to invest and those actions will be hard to reverse. The province’s extraordinary budget deficit prediction, $9.7 billion for the current fiscal year alone, is probably the greatest single cause of a disastrous drop in investor confidence. That deficit will eventually have to be paid off through higher taxes.

The so-called Fair Tax Commission and the government’s proposals to increase trade unions’ powers are other examples of initiatives taken by the New Democratic Party that seem to totally disregard the concerns of those who do business in Ontario.

The tax commission is simply a first step to instituting a minimum tax on corporations, as promised by the NDP during the election campaign. Proposed reforms to the province’s labor laws will also make it difficult to do business in Ontario and remain competitive.

The Canadian Federation of Independent Business, based on a survey conducted in late summer, says the government’s actions will cost 500,000 jobs and has led 36% of Ontario’s small businesses to consider moving all or part of their businesses out of Ontario.

Premier Bob Rae says federal government policies are to blame. Certainly, high interest rates and a high dollar have done a lot to increase costs of doing business in Canada, but that is just one more reason why Ontario should be making extra efforts to maintain a good investment climate, not trying to add to the province’s woes.

The SCAN program is aimed at helping the minerals sector, and we hope it succeeds. Somehow, though, it all looks like little more than an exercise in public relations.