| |
|
October 12, 2005
Thank you for having me here today.
I want to talk to you today about the relationship between the private sector and the public realm - between the spirit of entrepreneurialism, and the spirit of city building. I believe that these endeavours share many common goals, and that one cannot exist without the other.
Toronto is in an unusual economic position: On one hand, it has a mature, diversified economy. Over decades it has established itself as a North American leader in a broad range of clusters, from financial services to biotechnology to information and communications technology.
On the other hand, this city is going through a rebirth that has created opportunities that are more typical of a younger, still growing city. There is a simple reason for this rebirth: our waterfront.
We are finally taking action on the waterfront. Yesterday, we broke ground on a new watercourse that will bring international racing events to Toronto. A few weeks before that, we announced the creation of a huge new film studio in the portlands that will draw major Hollywood productions here. The City, the Province and the federal government also recently agreed to a ten-year plan for financing the revitalization of the waterfront.
With the last bits of red tape removed, we can at last move away from jurisdictional arguments and governance issues and get down to the business of revitalizing the waterfront.
This revitalization opens the door to a huge growth spurt for our economy. The waterfront represents the greatest business opportunity you will see in Toronto for the next 30 years.
As Toronto grows, we expect tens of thousands of people to move into new neighbourhoods along Toronto's waterfront. A continuous waterfront trail, connecting parks and public spaces will line the shore. Infrastructure like rapid transit lines, bike lanes and pedestrian-friendly streetscapes will ensure a vibrant street life in these neighbourhoods.
Eventually, 40,000 additional residences will spring up along Lake Ontario. About a quarter of these homes are planned as affordable housing, which will ensure a broad range of incomes. And the City will offer incentives to attract new knowledge-based, creative jobs to the area.
We are currently preparing a comprehensive strategy to attract jobs to the waterfront. We will be strategic in the types of jobs we pursue, focusing on particular business and industry clusters that will be mutually beneficial to one another.
Realistically, Toronto's waterfront is the right size for about three primary business clusters. Naturally, we will be building and reinforcing the film industry, which already had a major presence on the waterfront even before the new megastudio. It makes sense that other clusters in the waterfront be such things as media, animation, communications and so on.
As you likely know, these kinds of creative jobs drive urban economies. We are serious about bringing innovative, knowledge-based jobs to the waterfront through a combination of financial incentives, an appropriate infrastructure of facilities and services, and one more thing: We want companies to feel confident about investing in the waterfront. So we will streamline the process to make it simple and easy to establish a business in any of the new developments along the water.
I'd now like to talk in broader terms about other efforts we are making to attract and build business - not just along our 46 kilometres of shoreline, but in all the 642 square kilometres within our city limits.
Torontonians are justifiably proud that their city is the economic engine of this province and of this country. Our economy is diversified, integrated and robust. Every year, this city exports 11 billion dollars in sales and income tax to other parts of the country. When our economy suffers, as it did during the SARS crisis, the effects are felt from Saint John's to Victoria.
But we can never be complacent about our position as Canada's business leader. We have to work constantly to remain competitive. This has never been more true than it is today. Companies and workers are both more willing than ever to relocate to places with a more favorable business climate and a better quality of life.
Toronto competes in two major ways. First, we compete within the Golden Horseshoe - Toronto has to continue to offer benefits that make it competitive with the 905, to ensure that we remain the foremost business destination in the country.
Second, we compete with cities like London, New York and Tokyo for leadership in fields like mining finance, financial services and information and communications technology.
When you look at the factors that go into deciding where to locate your business, it's clear why Toronto is a North American leader.
- The cost of doing business here, in terms of office space and labour expenses is lower than in many comparable cities around the world.
- Our public transit system keeps the commuters moving dependably and safely.
- We have easier, quicker access to the North American markets than any American city.
- We have an internationally recognized reputation for entrepreneurialism - when you locate your company in Toronto, people know you're serious about doing business.
- We have a highly educated workforce. Also, because we are a city of immigrants, we have direct cultural and business connections to every part of the world. That means even small businesses here can have a major international presence.
Despite all these strengths, we know that we cannot remain complacent. You might have heard of a report from the Canadian Urban Institute that suggested Toronto is in danger of becoming a bedroom community to the 905. You might also have read a Canadian Business Magazine report that suggested Toronto was the least desirable place to start a business in Canada.
I take some comfort from the fact that both of these organizations are headquartered here in Toronto and show no sign of departing.
While I find these kinds of reports exaggerated and alarmist in tone, they do serve as a reminder that we can't just count on our history and reputation to maintain our leadership position. That's why the City recently created a strategic plan, entitled "Enhancing Toronto's Business Climate." This document, which will come forward at our next council meeting, includes a broad range of new strategies to build on our existing strengths.
Part of this strategy is a multi-year plan to redress the inappropriate ratio between residential taxes and business taxes. Currently, business property tax rates are about four times those of residential. We are proposing to reduce that to two and a half times - a much fairer ratio.
We willingly take our responsibility to make business taxes more competitive. But I would be remiss if I were to talk about Toronto property taxes without mentioning the true impediment to tax competitiveness in our city - the Province's business education tax. For no justifiable reason, they charge a much higher education tax rate within Toronto than they do anywhere else in the province. That means Toronto businesses pay an extra $120 million every year.
We continue to work with our provincial counterparts to see to it that this imbalance is corrected. We want the provincial business education tax in Toronto reduced to the GTA average so as to give Toronto businesses a level playing field.
Some tax changes need to be phased in, but others can happen more quickly.
Another way we can draw in new business is to streamline development and building approvals processes, to make it easy to invest here.
One area where we've already had success with this is in the film industry. Earlier this year we created a film board to help Toronto's movie and television businesses get out of a slump. Part of the film board's mandate is to make sure that the City eases the way for production companies to do everything from getting permits, to getting access to City-owned buildings for shoots.
We need a similar, but broader advisory group to foster economic development in every sector, in every part of the city. That's why part of our proposed business competitive strategy is to create a Mayor's Economic Competitiveness Advisory Committee.
My office has been meeting regularly with the Toronto Board of Trade, the Toronto Association of Business Improvement Areas, the Toronto Region Research Alliance and other business leaders. Their input has been invaluable in establishing a clear mandate for such a committee. The mayor's committee would do a combination of fostering job creation incentives and creating tools that allow entrepreneurs to invest with confidence and ease in Toronto. This proposal is also going to the October meeting of City Council.
Toronto is a global business leader, and frankly, we like the view from the top. I want businesses to know that they can invest with confidence in our city - they can be sure that Toronto's government is as serious about business as they are.
That is not the only thing the City is serious about though. The other important role of Toronto's government is to build the social infrastructure of this city. I want this city to succeed economically, but I want to be sure that all Torontonians benefit from the results.
And I hope that Toronto's business leaders are as serious about city building as we are.
Here's what I mean by that: I believe firmly that it is the responsibility of governments to invest in the public realm. That means everything from public transit, to parks, to community facilities, to programmes like TO Live with Culture and the Clean and Beautiful City initiative. Investment in the public realm is what makes the city work for all its residents, not just those that can afford it. Investment in the public realm makes the city safer, and enriches it both culturally and economically.
But while government must lead city building initiatives, they cannot be the only city builders. The private sector has both responsibilities and opportunities in the public realm as well.
A good example of what I'm talking about has to do with community safety.
The City's Community Safety Plan is a comprehensive group of initiatives aimed at balancing enforcement with prevention. We know that the greatest deterrent to committing a crime is the fear that you will be caught. Police Chief Blair and the Toronto Police Service send that message loud and clear with every new arrest and with every charge laid.
Recently, we have taken advantage of a Provincial program that has allowed us to hire 150 new police officers. Adding to the force on its own, though, isn't enough. We're also changing the role of officers in our community.
The police have increased their focus on community policing and developing a partnership with the community. This both helps turn young people away from crime, and emboldens witnesses to come forward when a crime has been committed.
With the leadership of Chief Justice Roy McMurtry, who is Chair of the City's Community Safety Panel, the City has been focused on prevention. We have been working with the school boards, other governments, businesses and community groups to invest in young people's futures and to give them an opportunity.
In the two years since the program has been in place, the City has worked with many partners to make a difference in the lives of hundreds of young Torontonians. Through the plan:
- The Provincial government funded summer jobs for youth from vulnerable communities this year and last.
- Centennial, Seneca, and Humber colleges have provided training to give young people the skills they need to find meaningful work.
- Companies like Heenan Blaikie, Goodwill, and IBM have agreed to employ young people, and also to train them, so they get the most out of their employment opportunities.
- Carpenters Union Local 27 enabled eleven young people to participate in a 9-week pre-apprenticeship training program, opening the door for them to future skilled employment.
Together, we have helped hundreds of young Torontonians, but we need to help thousands.
Recently, I challenged businesses to make a point of hiring young people who come from the seven communities targeted by the community safety plan. I would like to reiterate that challenge here today.
This is an opportunity to attract young employees who have the potential to contribute to the growth of your business. These are kids who are bursting with energy and ideas, who only need the opportunity to show what they can do.
The kids we are helping through the Community Safety Plan - and the people I'm asking business to invest in - often face barriers because of race or poverty. Sometimes they face subtle racism, simply by being passed over for a job or an apprenticeship. Sometimes the prejudice is more overt - there are still far too many people who believe that if your skin is the wrong colour, or you come from the wrong part of town, that you must be a criminal.
This kind of prejudice offends me deeply. It also damages our city. That's why it means so much to me that these young people get the chance they deserve.
We know how to steer young people away from crime. When you invest in hiring youths from these vulnerable communities, you're not only doing the right thing, you're also following a proven method for making our streets safer. There is no question that safer streets mean a better quality of life, which is very good for business.
I mentioned earlier that our waterfront represents a tremendous business opportunity. Our young people represent another. That's why the Community Safety Panel is meeting with business leaders on October 24, to find ways to connect them with young, employable people from these vulnerable communities.
Community safety is just one area where the interests of business and city builders overlap. I would like Toronto business leaders to see themselves as city builders on many other fronts. Another good example is our Clean and Beautiful City initiative.
Recently, we announced the results of this year's litter audit - an annual measure of how much cleaner our streets are becoming. The study demonstrated that there is less litter than ever on Toronto's streets and sidewalks, but that we still have work to do. Here is another place where businesses can help.
Cigarette butts and chewing gum are two of the worst offenders that dirty our public spaces. So the City has been working with the Yonge Downtown Business Improvement area on a pilot project for new ashtrays outside buildings in central Toronto. These receptacles make it easier for people not to drop their cigarettes gum on the street.
Again, this kind of pilot should be duplicated all over the city. Littering is filthy and selfish, and people shouldn't do it as a matter of principle. But the reality is that we need to work with businesses to make it easy for people not to litter.
Again, it's a matter of enlightened self-interest for businesses to invest in a clean city. It helps build pride and a sense of ownership among residents, which in turn improves the quality of life.
I can give other examples, but the big picture is that the private sector has an important role to play in investing in the public realm. As Torontonians and as entrepreneurs, the benefits of this kind of investment are clear.
I am a city builder who is committed to making Toronto a global business leader. In order for that success to come, though, our business leaders have to see themselves as city builders.
My commitment both to building this city, and building this city's businesses is clear. I look forward to working with business leaders on both of these worthy and mutually beneficial endeavours.
Thank you very much.
|
|
