Thunder Bay

Ontario budget 2015: 3 issues affecting Thunder Bay and the northwest

Reaction in Thunder Bay to the Ontario budget included speculation about what it will mean for electricity costs, the forestry sector and skills training.

Sarah Campbell, Michael Gravelle clash over privatization of 60 per cent of public utility

Ontario Finance Minister Charles Sousa and Premier Kathleen Wynne receive congratulations after delivering the provincial budget at Queen's Park in Toronto on Thursday. Some of the issues in the budget expected to affect Thunder Bay include electricity costs and skills training. (Nathan Denette/Canadian Press)

Ontario's Liberal government introduced a $131.9-billion budget on Thursday that seeks to balance the books through a combination of targeted savings and a dependence on a steady economic growth.

Here's a look at some of the reaction from in and around Thunder Bay:

Electricity costs

The provincial budget will make life less affordable for residents of northwestern Ontario, Kenora – Rainy River NDP MPP Sarah Campbell said, though a Liberal counterpart in the region disagreed.

Kenora-Rainy River MPP Sarah Campbell says she's concerned the Liberals are making live less affordable.
Campbell said she is particularly concerned about what the sale of 60 per cent of Hydro One will do to people's energy bills.

The sale of the Crown corporation is projected to raise $4 billion to go toward new infrastructure spending.

"We think that's the complete wrong thing to do," Campbell said after the budget was released Thursday. "I really believe that we're going to see higher rates for Ontario families."

Michael Gravelle, the Liberal MPP for Thunder Bay – Superior North, said fears that people's hydro bills will rise after Hydro One's privatization are "speculation."

"We want to see the rates as reasonable as possible for everyone," he said, adding that he's regularly advocating to find ways to decrease energy costs.

Forestry industry

A Thunder Bay accountant said there are good things in the provincial budget for the forest industry.

Mark Clements of Grant Thornton said the extension of the northern industrial electricity rate will allow mills to save up to 25 per cent on their power costs. 

And he said the northwest should benefit from the forestry sector's new eligibility for grants under the jobs and prosperity fund.

"This should, with any luck, allow the forestry sector to expand production, innovate on their practices and hopefully reach some new markets," he said.

Clements said the region will also benefit from the  promise of new money to improve highway 11/17 between Nipigon and Thunder Bay.

Skills training

The president of Thunder Bay's Chamber of Commerce said she's confused by the Liberal's approach to skills training in the budget.

Charla Robinson said she's happy to see funding for apprenticeship and pre-apprenticeship programs as well as money for colleges to train young workers.

But she said a tax credit for businesses that hire apprentices has been reduced.

The government is "giving more money to help the student ... but not really helping the employer to be able to afford to hire that student," she said.

Overall, Robinson said the Liberal budget lived up to her expectations given the financial situation in the province.

With files from The Canadian Press