The National Post is Canada’s second largest national paper. This editorial opinion was originally published on November 17, 2010 in the Financial Post section. Livio Di Matteo is professor of economics at Lakehead University in Thunder Bay.

 “In the midst of all the economic carnage, the Ontario government is presiding over a massive hike in electricity costs — an energy source that used to be the foundation of Ontario’s economic advantage. Add to this the fiscal deficit and a net debt that is expected to reach $240-billion by 2011, and one has an economy that is on the verge of being unable to deliver the standard of living that its citizens have come to expect.” – Livio Di Matteo – National Post, November 17, 2010

Dalton McGuinty has presided over the province’s economic decline

The Ontario government will be tabling its fall economic statement in the legislature on Thursday. Premier Dalton McGuinty, who has been seemingly unaware of the impact of his energy and economic policies on the province’s economy, would do well to take heed from the danger signs provided by another update — the recent Statistics Canada update to provincial GDP numbers.

The new StatsCan numbers show that, as a result of the recession, real gross domestic product in 2009 fell in every province except Manitoba. Moreover, the declines were steepest in Newfoundland and Labrador, Saskatchewan, Alberta and Ontario.

Being in the company of so many poor performers will not be a suitable defence for Ontario’s economic record for two main reasons. First, while Ontario’s decline was smaller than that in Newfoundland, Alberta and Saskatchewan, those provinces can blame their drop primarily on the fall in natural resource commodity prices, namely oil. Ontario’s key natural resource sector — forestry — while hit hard over the last decade, is not as important a sector to Ontario as oil and gas is in these other provinces. The economy will grow in Newfoundland, Alberta and Saskatchewan as oil and gas prices recover.

Second, Ontario’s dismal performance caps a decade of dismal performance. Ontario has become a laggard in per capita GDP, as highlighted when it entered the ranks of the “have-not” provinces and began to collect equalization. Read the rest of this entry »

November 17, 2010

Vale’s Proposed Shutdown of Smelter, Refinery Operations Completely Unacceptable: Selinger

Premier Greg Selinger today called on the owners of Vale’s Thompson operations to work with the Province of Manitoba, the City of Thompson and the United Steelworkers union to immediately seek alternative solutions to closing the smelter and refinery in Thompson by 2015.
 
“This decision comes without due notice or proper consultation with our government and the City of Thompson,” said Selinger.  “Vale’s intended course of action is unacceptable and our government stands firmly with the people of Thompson in saying this job loss will have a significant impact on the community and the province.”
 
The proposed shutdown of the Thompson smelter and refinery would result in a loss of about 500 jobs or 40 per cent of the current Vale Thompson workforce.
 
“We have a long and very successful history of supporting the mining industry through initiatives such as training, taxes and geoscience,” said Innovation, Energy and Mining Minister Dave Chomiak.  Read the rest of this entry »

This article was originally published in the Thompson Citizen which was established in June 1960. The Citizen covers the City of Thompson and Nickel Belt Region of Northern Manitoba. The city has a population of about 13,500 residents while the regional population is more than 40,000.

Thompson NDP MLA Steve Ashton denounces Vale’s ‘arrogance’ in blistering words

November 17, 2010 – BY JOHN BARKER
EDITOR@THOMPSONCITIZEN.NET

Brazilian mining giant Vale said today it plans to phase out its smelting and refinery operations at Manitoba Operations by 2015, eliminating 500 jobs or a third of its local workforce, and focus on “developing new sources of ore as it transitions its operations to mining and milling….”

Vale dropped Inco from its name May 27 and its global nickel business is simply known now as Vale. It had operated around the world as Vale Inco since Companhia Vale do Rio Doce (CVRD) re-branded itself less than three years ago on Nov. 29, 2007. “Vale” is pronounced (vah-lay) and literally means “valley” in Portuguese.

In a blistering “MLA Report” weekly column filed today at noon that will appear in print in Friday’s Nickel Belt News, Steve Ashton, Thompson NDP MLA and minister of infrastructure and transportation, as well as the minister responsible for emergency measures and the minister charged with the administration of the Manitoba Lotteries Corporation Act, says “Vale’s announcement that they are eliminating the surface operation here in Thompson is unacceptable.”

Ashton is the longest serving MLA in the Manitoba legislature, first elected 29 years ago today in the Nov. 17, 1981 provincial election. He is second in order of cabinet precedence to Premier Greg Selinger. Read the rest of this entry »

In Excess of $10B Over Five Years

For immediate release

November 17, 2010 — Vale today revealed its blueprint for the future in Canada anchored by a planned five year investment program in excess of $10 billion to strengthen and expand its Canadian operations.

“The investment program we’re pursuing is an indicator of the bright future we see for Vale in Canada,” said
Tito Martins, Chief Executive Officer of Vale Canada and Executive Director, Base Metals for Vale. “These
investments represent an important building block for the future of our Canadian operations. The dollars
invested here will improve environmental performance, unlock new market opportunities, increase efficiencies and strengthen our global competitiveness for years to come.”

Large-scale investments have already commenced and will continue to ramp-up in 2011, said Mr. Martins,
noting that in addition to the direct benefits accrued to Vale’s operations, the projects promise to generate
significant economic opportunities for communities and suppliers over the next five years.

The five-year investment program combines recently started projects with projects yet to begin. It follows a
comprehensive review of Vale’s Canadian operations that addressed issues of efficiencies, aging
infrastructure, environmental performance and creating a long-term sustainable future. Key components of the investment program include:

Read the rest of this entry »