A 'fairly cautious' Ontario budget includes investments for critical minerals and Northlander

New spending to develop Ontario's critical minerals sector, a commitment to bringing back the Northlander and plans to expand the Northern Energy Advantage Program for large industry are a few of the items earmarked for northern Ontario in the province's new budget.

Lakehead University economics professor Livio Di Matteo said in many ways, the province's 2023 budget, tabled on Thursday, is "fairly cautious."

The province expects to run a $1.3 billion deficit starting in the new fiscal year, before posting a small surplus of $200 million in 2024-25. The next fiscal year is forecast to have a $4.4-billion surplus.

"They've probably underestimated revenue growth again, and my guess is 2023-24 will probably see a small surplus," Di Matteo said.

However, the budget isn't completely cautious in nature, Di Matteo noted, as the budget does have a section called "Unlocking Northern Ontario's Economic Potential."

The section talks about advancing Ontario's critical minerals strategy by investing close to $1 billion to build infrastructure such as all‑season roads and broadband connectivity to the Ring of Fire region.

It also includes an additional $3 million this year and $3 million next year to support a program that helps junior mining companies finance mineral exploration and development.

To help companies in mining, forestry and steel operations the province has expanded the Northern Energy Advantage Program so more businesses can qualify. The program gives companies that qualify an electricity rebate of two cents per kilowatt-hour.

"Their strategy is that business will drive growth and then individuals will take advantage of that growth," Di Matteo said.

"So there are no tax breaks really, or income tax breaks, or things like that for individuals."

Sudbury MPP Jamie West said he was happy to see investments in mining in northern Ontario, but added the provincial government has failed to consult enough with Indigenous communities on many of those projects.

West also said the budget does not have enough to address Ontario's cost of living crisis.

"When I talk to people, they're talking about not being able to afford food, grabbing stuff off the shelf and putting it back," he said.

"They're talking about the high cost of rent, the fact that, you know, younger people are seeing themselves as never owning a house. And we have a budget that really doesn't address that, doesn't talk about it."

The budget did refer to the government's plan to get 1.5 million homes built by 2031.

Transportation in the north

The budget also included $139.5 million for three new train sets that will provide Northlander passenger rail service between Timmins and Toronto. 

While the budget mentioned several highway projects in the province, including Highway 413, which would connect the Halton, Peel and York regions, there were no new plans to finish twinning Highway 69, south of Sudbury.

No new construction on the highway has happened since the Progressive Conservatives came into power in 2018.

"I've taken that Highway 69 and I know the challenges many face when taking that highway," said Ontario Finance Minister Peter Bethlenfalvy.

"We're committed to continuing the work on that. In fact, our budget yesterday was also about expanding the infrastructure funding, so increased funding for highways by over $3 billion for next year."

A student's perspective

Simran Talpade, a political science student at Lakehead University, said overall the budget was "not that bad," but added she would have liked to have seen more for post-secondary education.

"There wasn't a whole lot specifically about post-secondary students," Talpade said.

"It seemed to be more focused toward elementary students, which is so important because, you know, their critical years got affected by the pandemic."

The budget included a $22-billion commitment to build more schools and child care spaces, including a new English elementary school in North Bay.

Talpade said more support to help post-secondary students with tuition, and investments to improve public transportation in northern Ontario, would have gone a long way to help students like her.

Talpade said she was glad to see a $25.1 million investment to support searches at residential school burial sites across Ontario.

"But still, you know, in my opinion, it's not a whole lot," she said.

"Because how can you put monetary value on the amount of lives lost?"