by Susan O'neill
Although Toronto remains Canada's largest urban centre, the city's population growth is flagging and that doesn't bode well for the local business community, Glen Stone of the Toronto Board of Trade said Wednesday in response to the latest census data. Stone, the board's public affairs manager, said the city and province need to do more to attract residents and retain businesses in Toronto, which has lost 100,000 jobs to communities in the 905 region over the past 15 years. According to Statistics Canada, the suburbs are booming, while Toronto's population grew by only 0.9 per cent since 2001. "The idea of the population in general moving to the 905 is not surprising," said Stone. who pointed out the business community is also moving to the 905. Stone reported that 600,000 to 800,000 jobs have been created in the 905 since the early 1990s.
"The No. 1 reason people give (for relocating to the suburbs) is the cost of doing business in the city," Stone said. "It's a lot cheaper to do business in the outer ring than it is in the core," he said, adding that Toronto is "in danger of turning into a jobs doughnut." So what should the city be doing to attract and retain residents and businesses? Stone said Toronto is already doing some of the right things. The mayor has set up an economic advisory committee that is working to adjust the business tax ratio, he said, noting the city has pledged to bring it down to the provincial average over the next 12 years. But those rates will continue to increase during that time frame, Stone said, explaining the city needs to reduce its own tax rates to a competitive level.
Toronto also has a role to play in convincing the province, which charges Toronto businesses 23 per cent more per square foot in taxes, to address the tax differential between the city and the outlying regions. "There's no reason those business taxes should be higher in Toronto, but they are," Stone said. When you add it up, it's tempting for business owners to relocate elsewhere, he said. "You can literally look across the road and see your competitor paying 40 per cent lower taxes," he said. Stone also said more needs to be done to address the needs of immigrants, the driving force behind Canada's population increase. Newcomers bring new investments, new ideas and new businesses, Stone said, noting that credential recognition is key so foreign trained professionals have access to suitable jobs. "We are so dependant on new Canadians, for not just our population growth, but our economic growth," he said, adding that newcomers must be given the opportunity to succeed.
Although Toronto remains Canada's largest urban centre, the city's population growth is flagging and that doesn't bode well for the local business community, Glen Stone of the Toronto Board of Trade said Wednesday in response to the latest census data. Stone, the board's public affairs manager, said the city and province need to do more to attract residents and retain businesses in Toronto, which has lost 100,000 jobs to communities in the 905 region over the past 15 years. According to Statistics Canada, the suburbs are booming, while Toronto's population grew by only 0.9 per cent since 2001. "The idea of the population in general moving to the 905 is not surprising," said Stone. who pointed out the business community is also moving to the 905. Stone reported that 600,000 to 800,000 jobs have been created in the 905 since the early 1990s.
"The No. 1 reason people give (for relocating to the suburbs) is the cost of doing business in the city," Stone said. "It's a lot cheaper to do business in the outer ring than it is in the core," he said, adding that Toronto is "in danger of turning into a jobs doughnut." So what should the city be doing to attract and retain residents and businesses? Stone said Toronto is already doing some of the right things. The mayor has set up an economic advisory committee that is working to adjust the business tax ratio, he said, noting the city has pledged to bring it down to the provincial average over the next 12 years. But those rates will continue to increase during that time frame, Stone said, explaining the city needs to reduce its own tax rates to a competitive level.
Toronto also has a role to play in convincing the province, which charges Toronto businesses 23 per cent more per square foot in taxes, to address the tax differential between the city and the outlying regions. "There's no reason those business taxes should be higher in Toronto, but they are," Stone said. When you add it up, it's tempting for business owners to relocate elsewhere, he said. "You can literally look across the road and see your competitor paying 40 per cent lower taxes," he said. Stone also said more needs to be done to address the needs of immigrants, the driving force behind Canada's population increase. Newcomers bring new investments, new ideas and new businesses, Stone said, noting that credential recognition is key so foreign trained professionals have access to suitable jobs. "We are so dependant on new Canadians, for not just our population growth, but our economic growth," he said, adding that newcomers must be given the opportunity to succeed.
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