Ministry of Economic Development and Trade Results-Based Plan Briefing Book 2007-08

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• Results-based Plan Briefing Book 2007-08 - PDF

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PART I: Published Results-based Plan 2007/08

Ministry Overview

Ministry Vision and Mandate

With its vision of Jobs and Prosperity for all Ontarians, the mandate of the Ministry of Economic Development and Trade (MEDT) is straightforward: to promote Ontario’s economic growth and competitiveness.

The ministry supports the government’s Economic Plan Priority ‘Strong People, Strong Economy’ by providing leadership in fostering a competitive business climate that will attract jobs and investment to Ontario’s economy. 

Priorities and Strategies 

To achieve its mandate, the ministry priorities will be:

• To support the growth of innovative companies
• To attract quality jobs to Ontario by attracting/leveraging new investments
• To expand exports to world markets.  

MEDT will deliver its priorities by focusing on three strategies:

• Industry and Cluster
• Automotive Investment
• Investment and Trade.

The Industry and Cluster Strategy positions Ontario as a North American centre for advanced manufacturing by supporting strong job growth, the removal of barriers to investment by business, and infrastructure improvements. 

 A critical initiative is the $500-million Advanced Manufacturing Investment Strategy (AMIS) Program which provides loans to encourage manufacturers to invest in leading-edge technology and processes that will attract investment; implement new or improved products/processes; reduce waste, energy and environmental emissions; and create/retain jobs. 

The Ontario Automotive Investment Strategy focuses on ensuring Ontario remains a leader in North American auto production by attracting significant investments with innovation, strategic skills training and public infrastructure components.

The Investment and Trade Strategy actively positions Ontario worldwide as a preferred business location, attracting more foreign direct investment and skilled jobs; and promotes the sale of Ontario products/services in the global marketplace, focussing on rapidly developing new markets and opportunities. 

Delivering on the Ministry’s Mandate in 2007/08

The ministry faces a number of challenges in delivering its mandate.  More moderate economic growth is forecast due to external factors, primarily a slowdown in the U.S. economy, high oil prices, a strong dollar, and competition from emerging global economies. 

The ministry plans to meet these challenges by focusing on:

• Marketing Ontario’s strengths aggressively
• Targeting promotional efforts to areas of strength where Ontario has a competitive advantage and future growth industries
• Reaching out to industry leaders to identify future investment opportunities
• Using Ontario’s increased international presence to more actively promote trade and investment opportunities
• Strengthening inter-provincial trade
• Providing assistance to regional and local economies affected by the economic slowdown. 

In 2007/08, MEDT will introduce a number of new initiatives to complement its existing programs.    

MEDT will spearhead the new Ontario Manufacturing Council that will bring together industry and government leaders to chart a strategic vision for Ontario manufacturing. 

MEDT will also provide leadership to the government’s newly-announced Regulatory Review Project to streamline approval processes and modernize the regulatory regime, making it more efficient and effective for business.

As the need for advanced manufacturing and innovation is very important for the auto sector, in 2007/08 the ministry will continue to work with key auto industry companies to develop the automotive products of the future.

To increase the flexibility of the Advanced Manufacturing Investment Strategy (AMIS) program and enable more small and medium-sized companies to participate and invest in new technologies, the investment project-size threshold for loan applications has been reduced to a minimum of $25 million invested or 100 jobs created or retained (previously $50 million or 150 jobs). 

The ministry’s outreach strategy includes engaging key sector partners to gain a better understanding of their challenges and opportunities, and how MEDT can work with them.  Currently, roundtable meetings are being organized with the financial services sector; the information, communications and technology sector;  the tool, die and mold sector; and ongoing work with the video game sector.  The ministry also remains committed to working with national sector councils, in the automotive, aerospace and steel sectors.

In support of MEDT’s role in providing strategic advice to the government to foster a competitive business climate in Ontario, the ministry will continue to consult with/access the research from the Institute for Competitiveness and Prosperity, chaired by Roger Martin, Dean of the Rotman School of Business, at the University of Toronto (U of T).  The government will also provide $50 million between 2006/07 and 2011/12 to U of T for interdisciplinary research on the creation of jurisdictional advantage.

The ministry will support the work of Dr. Robert Rosehart, President of Wilfred Laurier University, who has been appointed as the Northwestern Ontario Economic Facilitator. In cooperation with other Ministries, he will engage stakeholders and governments at all levels to help the northwest find solutions to their challenges, in the face of restructuring in key sectors.

Under the ‘Local Economies in Transition’ project, MEDT and the Economic Developers Council of Ontario (EDCO) will work with site selectors to conduct in-depth studies identifying investment challenges and opportunities throughout Ontario.

MEDT will continue to assist Ontario manufacturers to build business relationships to supply products/services to the oil-sands developments in Alberta.  The ministry has identified opportunities for Ontario firms specializing in metal products, industrial machinery and equipment, and engineering and construction services to meet the demand in Alberta. MEDT will work with the Ministry of Small Business and Entrepreneurship (MSBE), the Ministry of Northern Development and Mines (MNDM) and local Economic Development Officers (EDOs).  MEDT is also exploring the merits of the now implemented Trade, Investment and Labour Mobility Agreement (TILMA) between British Columbia and Alberta.

MEDT will expand investment and trade activities in Europe, the United States, Mexico, China and India.  New International Marketing Centres are set to open in Beijing, Mexico City and Paris.  The international network of investment and trade consultants will grow from nine to seventeen.

The Premier’s investment and trade mission to India and Pakistan in January 2007 generated a number of leads which the ministry is following-up.  The ministry will also continue to strengthen relationships with key organizations, such as, the Canada-India Business Council and the Canada-Pakistan Business Council.

On the business immigration front, MEDT will work with the Ministry of Citizenship and Immigration to administer a component of the pilot Provincial Nominee Program to support multinational investment.  The ministry also has the lead to finalize a Temporary Foreign Worker Annex to the Canada-Ontario Immigration Agreement.

In order to take advantage of strategic opportunities and to achieve efficiencies, MEDT will work with other Ontario ministries, other levels of government, industry organizations and the private sector.  For example, MEDT will work with:

• The Ministry of Research and Innovation (MRI) to promote Ontario’s strengths as a preferred location for undertaking research and development in medical/life sciences, advanced materials and information/communications technologies. 
• The Ministry of Small Business and Entrepreneurship (MSBE) to introduce export opportunities to Small and Medium Entreprises (SMEs).
• The Ministry of Northern Development and Mines  (MNDM) on the GO North and Mineral Cluster Strategies to promote investment and trade with Northern Ontario. 
• The Ministry of Culture on the Entertainment/Creative Cluster Strategy.

Ministry Contribution to Key Priorities & Results – Highlights

The ministry’s strategies and programs support the government’s priority of a ‘Strong People – Strong Economy’ by:

• Promoting the growth of an innovative, competitive economy
• Increasing skills and quality of jobs
• Attracting investment and selling Ontario abroad.

The ministry results are measured by tracking:

• Investment dollars leveraged by the Automotive Investment Strategy and the Advanced Manufacturing Investment Strategy (AMIS) program
• New investment dollars attracted in strategic industries
• Jobs created/retained
• Exporters assisted.

In order to deliver on results, the ministry has a number of programs within the framework of three key strategies:

• Industry and Cluster
• Automotive Investment
• Investment and Trade.

Through the Industry and Cluster Strategy, Ontario has levered an investment of $34 million in AMIS loans to attract private sector investments valued at $348.1 million, which are expected to create or retain almost 2,700 jobs within five years. 

Through support from the AMIS loan program, the ministry hopes to lever a $500-million investment by the province to attract investments of $3.5 billion in leading-edge technologies and processes by 2012.

Advanced Manufacturing Investment Strategy (AMIS) Projects
Company	Location	Investment $M Levered
Diamond Aircraft Industries	London	106.4
FAG Aerospace Inc.	Stratford	17.8
Flakeboard Company	Sault Ste Marie	16.0
Koolatron Corporation	Brantford	23.4
Messier-Dowty Inc.	Ajax	50.8
Procter & Gamble Inc.	Brockville	30.0
Roxul	Milton	103.7
TOTAL		348.1

In 2006/07, Ontario led two delegations to Alberta to promote east-west partnerships in the Alberta Oil Sands project.  Over 230 delegates participated in these business delegations.  As the centre of Canada’s manufacturing base, Ontario firms specializing in metal products, industrial machinery and equipment, and engineering and construction services can work with Alberta firms to help deliver oil sands projects on time and on budget.

Through the Ontario Automotive Investment Strategy, a $500 million investment has secured over $7 billion in new investments and anchored thousands of high-value jobs. 

Ontario Automotive Investment Strategy
Company	Location	$M Invested
DaimlerChrysler Canada	Windsor and Brampton	768.9
Ford Motor Company of Canada	Oakville	1,000.0
General Motors of Canada Ltd.	Oshawa, St.Catharines, Ingersoll	2,500.0
International Truck & Engine (Navistar)	Chatham and Windsor	270.0
Linamar Corp.	Guelph	1,084.0
Nemak of Canada	Windsor	100.0
Toyota Motor Manufacturing Canada	Woodstock	1,100.0
Valiant	Windsor	93.7
Honda Canada	Alliston	154.0
TOTAL		7,070.6

Through the Investment and Trade Strategy, the ministry’s achievements included:

• Assisting 800 exporters access to new markets.

• Premier-led missions to India and Pakistan to promote Ontario’s highly skilled workforce and encourage more investment in the province.  Eighty-seven organizations and 101 delegates participated in the missions.

• Three new International Marketing Centres, Beijing, Paris and Mexico City were announced and will be opened in 2007/08.

• Special Advisor, former Premier Ernie Eves, is working with top senior business leaders on the Ontario Investment and Trade Advisory Council which provides advice to the Minister on investment and trade opportunities.
  

• Investment promotion and servicing activities supporting the attraction of $544 million in new investment in strategic industries.

2006/07 Investment Attracted
Company	Location	Investment $M Attracted	No. of Jobs
Aisin Canada Inc.	Stratford	26	100
Dell Canada	Ottawa	25	1,200
Procter & Gamble	Brockville	40	100
Sutherland Global Services	Windsor	20	1,190
Toyota Boshoku Canada Inc.	Woodstock	65	330
Toyotetsu Canada Inc.	Simcoe	50	250
Upper Canada Ethanol	Loyalist Township	200	50
19 Customer Contact Centres throughout Ontario	Various	78	3,796
Other Manufacturers in various locations throughout Ontario	Various	40	655
TOTAL		544	7,671

Ministry Activities

For the Industry and Cluster Strategy, the ministry’s key programs that support economic growth and job creation are:

• The Advanced Manufacturing Investment Strategy (AMIS) program supports investments in advanced manufacturing technologies and processes, such as new or improved products/processes, materials innovations, innovative waste management technologies and energy efficiencies.

• Support for key industry clusters to achieve strong, sustainable growth, including information and communications technologies (ICT), financial services, life sciences, aerospace and advanced manufacturing.  Specific activities include working with the Ontario Chemical Value Chain Initiative (OCVCI) and the new established Ontario BioAuto Council

• The Institute for Competitiveness and Prosperity is a not-for-profit corporation which measures and monitors Ontario’s productivity, competitiveness and economic progress compared to other provinces and U.S. states.  The Institute provides research to support the Task Force on Competitiveness, Productivity, and Economic Progress ("Roger Martin" Task Force). 

• Economic Stimulus Support provides assistance to regional and local economies affected by the economic slowdown in the manufacturing sector.

• Support to Strengthen Inter-Provincial Trade includes the negotiation of international and internal trade agreements and the resolution of trade disputes to remove barriers to trade.

• Creation of the Ontario Manufacturing Council to help increase the competitiveness of our manufacturers. 

• The Regulatory Review Project will streamline approval processes and modernize the regulatory regime, making it more efficient and effective for business. 

For the Automotive Investment Strategy, the ministry’s key programs that support economic growth and job creation include:

• The Ontario Automotive Investment Strategy (OAIS) program supports significant investments by the automotive industry in research and innovation, skills training, improved environmental and energy technologies and public infrastructure.

• The Strategic Manufacturing Investment program supports the Toyota and Honda investments.

• The ministry participates in:
• The Canadian Automotive Partnerships Council (CAPC) is an industry-labour-government forum for the auto industry.  The mandate of CAPC is to identify and prioritize actions needed to strengthen the Canadian automotive industry. 
• The Auto Parts Manufacturers Association (APMA)
• The Japanese Auto Manufacturers Association (JAMA)
• The Canadian Vehicle Manufacturers Association (CVMA)
• The Ontario Automotive Dealers' Association (OADA).

For the Investment and Trade Strategy, the ministry’s key programs to support economic growth and job creation are:

• Investment and Trade Marketing focuses on Ontario’s international branding and marketing campaign to promote Ontario as a premier investment location and trade partner.

• Investment Servicing provides site location services and detailed investment information to meet foreign investors’ needs.  The program focuses on key sectors for new and expanded investment including:  automotive; life sciences; business services; information communication technologies; and advanced manufacturing.

• Export Market Development programs assist Ontario companies to develop new export opportunities and assists foreign buyers to find Ontario suppliers for their purchasing requirements.  Initiatives include international trade missions and shows.

• Export Education programs and products include market research/sector and country profiles; “Getting Ready to Export” brochures and seminars; and website information on export opportunities. 

• The GO North program attracts anchor investments (over 100 employees) to northern towns and cities.  MEDT collaborates with the Ministry of Northern Development and Mines and the Ministry of Finance (MOF) to deliver the program.

• International Marketing Centres (IMCs) provide investment and trade services in key markets.  Centres are located in London, Los Angeles, Munich, New Delhi, New York City, Shanghai and Tokyo.   Centres will open in 2007/08 in Beijing, Mexico City and Paris.

• The Business Immigration program provides services to new business immigrants, including consultations, seminars and information on establishing businesses in Ontario.

• The Ontario Investment and Trade Advisory Council includes senior business leaders from key industry sectors.  The Council advises the Minister and members assist in promoting Ontario internationally. 

LEGISLATION FOR WHICH THE MINISTRY IS RESPONSIBLE

Development Corporations Act
Ministry of Economic Development and Trade Act
Research Foundation Act
Dissolution of Inactive Corporations Act

AGENCIES, BOARDS AND COMMISSIONS

Advisory Agencies

Ontario Investment and Trade Advisory Council

The Council was established to provide strategic advice and support to the government on marketing Ontario to the world as a preferred location for investment, and helping Ontario firms to begin exporting to new markets or to expand their exports to existing markets.

Operational Enterprise Agencies

Ontario Immigrant Investor Corporation (OIIC)

The OIIC was established to act as a receiving vehicle for immigrant investor funds, as required by the federal government under the federal Immigrant Investor Program (IIP). 

The Development Corporations

The corporations are currently responsible for managing the wind-down of their financial portfolios in a prudent and fiscally responsible manner. Public servant appointees are responsible for managing the final stages of the corporations’ administrative wind-down.

ORTECH Corporation

The assets of ORTECH Corporation were sold off and the corporation is no longer operational.  Public servant appointees are responsible for managing the final stages of the corporation’s administrative wind-down.

MINISTRY FINANCIAL INFORMATION

Table 1:  Ministry Planned Expenditures 2007/08

Program Name	Ministry Planned Expenditures ($M)
Operating*	313.2
Capital	6.0
Total	319.2
Operating Assets	127.6

*Excludes Net Consolidation Adjustment – Ontario Immigrant Investor Corporation

Table 2: Operating and Capital Summary by Vote

Votes/Programs	Estimates2007-08 * $	Change fromEstimates 2006-07		2006-07 *		Actuals 2005-06 $
				Estimates $	InterimActuals $
		$	%
OPERATING AND CAPITAL
Ministry Administration Program	15,248,400	(624,200)	-4%	15,872,600	14,627,021	12,444,480
Economic Development and Trade	301,846,500	(22,048,800)	-7%	323,895,300	246,552,404	158,554,459
Program
Total Including Special Warrants	317,094,900	(22,673,000)	-7%	339,767,900	261,179,425	170,998,939
Less:  Special Warrants	-	-	-	-	-	-
Total To Be Voted	317,094,900	(22,673,000)	-7%	339,767,900	261,179,425	170,998,939
Special Warrants	-	-	-	-	-	-
Statutory Appropriations	2,063,699	999,761	94%	1,063,938	455,799	90,367
Net Consolidation Adjustment -
Ontario Immigrant Investor Corporation	7,400,000	240,300	3%	7,159,700	6,300,000	4,668,000
Ministry Total Operating and Capital	326,558,599	(21,432,939)	-6%	347,991,538	267,935,224	175,757,306
OPERATING ASSETS
Economic Development and Trade	127,575,500	58,634,500	85%	68,941,000	37,006,348	90,413,845
Program
Total Assets To Be Voted	127,575,500	58,634,500	85%	68,941,000	37,006,348	90,413,845

* Estimates for the previous fiscal year are restated to reflect any changes in ministry organization and/or program structure.  Interim actuals reflect the numbers presented in the Ontario Budget.

APPENDIX I: ANNUAL REPORTS 2006/07 AND 2005/06

2006/07 Annual Report

The Ministry of Economic Development and Trade (MEDT) provided leadership in fostering a competitive business climate that will attract jobs and investment to Ontario.  The ministry supported the government’s Economic Plan Priority ‘Strong People, Strong Economy.’

The ministry focused on four strategies to achieve economic growth:

• Industry and Cluster

• Automotive Investment

• Investment and Trade.

• SMEs and Cluster Growth Firms.
  

On May 23, 2006, the Small and Medium Enterprise (SME) Division which focused on the SMEs and Cluster Growth Firms strategy was transferred to the Ministry of Small Business and Entrepreneurship (MSBE).  Since the financial allocation for 2006/07 was included in the Ministry of Economic Development and Trade, key results for MSBE are reported with MEDT’s results.

Through the Industry and Cluster Strategy, the ministry supported economic growth and job creation by:

• Positioning Ontario as a leading North American center for advanced manufacturing with strategic and concrete action through the Advanced Manufacturing Investment Strategy (AMIS).  Seven projects have been announced which will generate almost $350 million in new investments and support the creation or retention of about 2,700 jobs, over a five-year period.
  

• Consistent with the Fall Economic Statement direction, MEDT has been leading efforts to help local economies and communities in transition in order to create new opportunities and attract new investment.  For example:

• In December 2006, the Minister announced a $200,000 investment to support a renewal plan for the Municipality of Chatham-Kent.

• In February 2007, the Minister announced a $250,000 grant to the Economic Development Council of Ontario (EDCO) to support an assessment by a group of site selectors of opportunities and challenges in a number of regions.

• In March 2007, the Ministry of Agriculture, Food and Rural Affairs and MEDT announced a commitment of $250,000 to support Ontario’s pork producers for the development of a business strategy for the sector.
  

• Strengthening Ontario/Alberta alliances and creating opportunities for Ontario manufacturers from the oil sands development in Alberta.  In November 2006,  the Minister led a delegation of 28 companies to Alberta and in March 2007, the Minister led a second delegation of more than 200 delegates to the 2007 National Buyer/Seller Forum in Edmonton – the premier event for oil sands procurement.
  

• MEDT supported a number stakeholder consultations with business, academic, research and civic leaders to address and resolve key issues affecting the business climate.  MEDT provided strategic economic analysis and advice to government on sector competitiveness and industrial restructuring issues. 

Through the Automotive Investment Strategy, the ministry supported the attraction of investments by:

• Providing financial assistance to support significant investments by industry in research and innovation, skills training, environmental and energy technologies as well as infrastructure.

• Attracting an additional $1.332 billion in investments, bringing the cumulative total to over $7 billion.  The key investments were:
  • Linamar – investment in the establishment of a Technology Centre
  • Honda – investment in a fully integrated engine facility
  • Valiant – investment in the next generation of flexible auto assembly systems.
• Continuing to build strong relationships with key automotive partners and stakeholders, including:
• The Canadian Automotive Partnership Council (CAPC)
• The Auto Parts Manufacturers Association (APMA)
• The Canadian Vehicle Manufacturers’ Association (CVMA)
• The Japanese Automotive Manufacturers’ Association (JAMA)
• The Ontario Automotive Dealers' Association (OADA).
  

Through the Investment and Trade Strategy, the ministry promoted Ontario’s economic growth and competitiveness by:

• Introducing a new advertising campaign and marketing strategy to promote the province as a premier investment location to key investment decision makers.
• Supporting the attraction of $544 million in new investments in strategic industries including:
• Upper Canada Ethanol – announced a $200 million investment in a          new ethanol plant in Loyalist Township.

• Toyotetsu – announced a $50 million investment to construct their first Canadian auto parts plant in Simcoe, Norfolk County.
• Toyota Boshoku – announced a $65 million investment to construct their first wholly-owned seat manufacturing facility in Woodstock, Ontario.
• New investments also included 19 customer contact centres in locations throughout Ontario, with an investment value of approximately $80 million. 
• Increasing our international presence to raise Ontario’s profile and increase investment and trade.  Presently, there are centres in Munich, New York City, Shanghai, London, Tokyo, New Delhi and Los Angeles.  In 2006/07, the ministry received approval to open three more offices: in Beijing, Mexico City and Paris.

• One of the year’s highlights was the Premier’s mission to India and Pakistan.  101 delegates representing 87 different organizations joined the mission.  Contacts were made with over 800 Indian and 300 Pakistani businesspeople.  35 contracts were signed in India and a further seven signed in Pakistan.

• Organizing 46 trade shows and missions, assisting 800 exporters to access new markets.

• Special Advisor, former Premier Ernie Eves, has travelled to Boston, New York and Ottawa, successfully profiling Ontario through speeches and corporate calls.  Mr. Eves also Chairs the Ontario Investment and Trade Advisory Council (OITAC) comprising senior business leaders representing target sectors, including auto, life sciences, information technology, environmental and financial services who advise the Minister on investment and trade issues. 
  

• Continuing to strengthen our relationships with economic development offices, chambers of commerce and other business organizations engaged in trade and investment promotion, and international business relations. 

• Working with the Ministry of Citizenship and Immigration and administering a component of the pilot Provincial Nominee Program to support multinational investment. 

• Leading the development of a Temporary Foreign Worker Annex to the Canada-Ontario Immigration Agreement.

Through the Small and Medium Enterprise (SMEs) and Cluster Growth Firms Strategy, the ministry championed the development of SME firms by:

• Continuing to support the Small Business Agency of Ontario (SBAO) to improve government’s interaction with SMEs, particularly with regards to paper burden, procurement and reducing regulatory barriers to SMEs.  Accomplishments include:
• Eliminating 180 forms, converting 58 high volume and priority forms to electronic format, upgrading 104 forms to electronically fillable format and adding 136 forms to the electronic central forms repository.
• Enhancing the Regulatory Registry, an online system for obtaining business input on Lieutenant Governor in Council regulatory proposals and informing business of approved regulations.
• Working with the Ministry of Government Services (MGS) to improve the ability of SMEs to sell goods and services to the government.
• Regular regional outreach with the small business community to examine how government can be more responsive to their needs. 

• Through the network of 44 Small Business Enterprise Centres (SBECs) in 53 locations throughout Ontario, delivering over 24,000 one-on-one consultations, over 1,400 seminars and workshops and over 2,600 outreach events.  Opening three new SBEC satellite offices to better serve small businesses in Waterloo, Rockland and Parry Sound.

• Creating a number of new information products including:
• Ontario Small Business Beat, a quarterly newsletter with articles and information of interest to small businesses.
• A Pocket Guide to Small Business in Ontario, a one-stop resource for small and medium-sized businesses in Ontario.
• A one-stop shop website, to create an enhanced resource for SMEs.
• Two Leading Growth Firm reports, with the themes of Shifting Demographics and Profiles in Innovation were researched and are on the website.

• Providing consultations to more than 2,000 of Ontario’s high performing firms through the ministry’s 12 regional offices.  This included support for new export opportunities resulting in about $44 million in first order sales revenue for 35 SMEs.

• Implementing a $1.4 million business assistance program and assisting over 150 businesses in the Caledonia area at the time of the land dispute.  Provided the County of Haldimand a further $600,000 to assist in economic marketing and business attraction.

• Providing over $1.7 million to the Canadian Youth Business Foundation (CYBF), which enabled 282 young people to receive loans to start up new businesses.

• Organizing the first-ever Young Women Entrepreneurs Conference in February 2007 with over 250 young women participants.

• Launching Global Edge, a pilot program that will expose 10 –15 enterprising post-secondary students to the global marketplace over the summer of 2007.

• Through the Youth Entrepreneurships Partnerships initiative, providing 14 grants across the province to aboriginal groups, educational institutions and other community groups.

• Increasing the number of students participating in the Summer Company program to 370, exceeding the target of 300.  Continuing to develop partnerships that will assist youth in rural or remote areas, as well as distinct groups that are traditionally underserved such as ethnic, language and other groups, and at risk youth.

• Continuing to support the Ontario Small Brewers Association and the Wine Council of Ontario for marketing, tourism and promotion initiatives.  Administering the new, three-year $10 million VQA Wine Support Program.
  

• Partnering with stakeholders to assist SMEs, for example:
• With Home Depot on a supplier fair that attracted over 60 companies.
• With the Association for Manufacturing Excellence, Canadian Chapter to help with the organization and promotion of the Canadian Regional Lean Manufacturing Summit, attended by over 860 participants.
• With the Ministry of Culture to fund 15 projects created by SBECs across Ontario to deliver business training and support to entrepreneurs in cultural industries.

• Organizing a number of events including:
• In October 2006, the annual Salute to Small Business Month which included over 30 'Bridges to Better Business' events across the province.
• Also in October 2006, the Eastern Automotive Parts Manufacturers Summit in Belleville was attended by about 100 people.
• In May 2006, the 12th Annual Wisdom Exchange was held.  It is an annual networking and learning event for CEOs and Presidents of leading growth firms.
• In December 2006, an Evening with the Innovators was held.
• To help SMEs reduce energy costs, 11 energy workshops were held with more than 220 participants.

Table 1:  Ministry Expenditures

	Ministry Interim Acuttual Expenditures ($M) 2006/07
Operating	267
Capital	20
Staff Strength (As of March 31, 2007)	394

2005/06 Annual Report

The Ministry of Economic Development and Trade pursued five strategies to support the government’s vision for a ‘Strong People, Strong Economy.’

• Industry and Cluster
• Automotive Investment
• Investment and Trade
• Small and Medium Enterprise (SMEs) and Cluster Growth Firms
• Research and Commercialization.

Through the Industry and Cluster Strategy, the ministry supported economic growth and job creation/retention in Ontario.  Initiatives included:

• Launched the Advanced Manufacturing Investment Strategy (AMIS) in December 2005.  This $500 million loan program encourages companies to invest in leading-edge technologies and processes that will increase productivity and competitiveness.

• Support for industrial restructuring projects in Hamilton and Cornwall.  Worked with the Ministry of Finance on Stelco’s restructuring plan.

• An endowment for a research chair in productivity and competitiveness at the University of Toronto, recognizing the value of research in providing better understanding of the key factors which improve Ontario’s long-term prosperity.

• Developed stronger relationships with:
  • The Ontario Chamber of Commerce
  • The Ontario Aerospace Council
  • The Canadian Steel Partnership Council
  • The Canadian Manufacturers and Exporters Association
  • The Canadian Plastics Industry Association
  • The Canadian Chemical Producers Association
  • Ontario Chemical Value Chain Initiative
  • Ontario BioAuto Council
  • Other industry stakeholders.
    

Through the Automotive Investment Strategy, the ministry moved aggressively to support innovative automotive sector investment in Ontario.  The government  levered financial assistance by the Province to attract new auto investments by supporting skills training, innovation and public infrastructure.  Investments attracted included:

• Toyota announced a $1.1 billion investment in the first greenfield automotive plant in Ontario in almost twenty years.  Located in Woodstock, the plant is scheduled to open in 2008 and will build the RAV4.

• Daimler-Chrysler announced a $768.9 million investment in a new paint shop and expansion at its Windsor plant, research at the Advanced Research and Development Centre in conjunction with the University of Windsor, and skills training at its Brampton plant.

• International Truck and Engine (Navistar) announced a $270 million investment to retool their manufacturing plant in Chatham and establish two R&D centres in Windsor.

• The cumulative total of investment in the automotive industry, through the Automotive Investment Strategy, grew to $5.9 billion.   

• The ministry also continued to work closely with:
• The Canadian Automotive Partnership Council (CAPC)
• The Automotive Parts Manuacturers’ Association (APMA)
• The Canadian Vehicle Manufacturers’ Association (CVMA)
• Other automotive stakeholders.

Through the Investment and Trade Strategy, the ministry marketed Ontario as a premier investment location and assisted Ontario exporters to compete in world markets. Initiatives included:

• Attracting 22 investments in the following sectors:  information communication technologies, business services and consumer products.

• Assisting 876 experienced exporters and 584 new exporters to new markets. 

• Increasing Ontario’s profile in a key emerging market by organizing an investment and trade mission to China, led by the Premier and Minister.  The mission included over 130 participants from Ontario.  Meetings were organized with 600 Chinese business leaders and 35 contracts were signed.

• Raising Ontario’s international profile by opening International Marketing Centres (IMCs) in New Delhi, London, Tokyo and Los Angeles to promote investment and trade. 

• Organizing Minister’s missions to raise Ontario’s profile internationally and seek opportunities for investment attraction.  Missions were organized to Japan, Scandinavia, Davos for the World Economic Forum, France, India, Atlanta and Philadelphia for BIO 2005.

• Organizing 44 business immigration seminars to help both prospective and landed immigrants.  439 people attended. 

• Strengthening the ministry’s relationship with the Ontario Chamber of Commerce (OCC) to lever their strengths and connections to support MEDT’s international work. 

Through the Small and Medium Enterprise (SMEs) and Cluster Growth Firms Strategy, the ministry championed the development of SME firms and leading growth firms.   Initiatives included:

• Launching the Small Business Agency of Ontario (SBAO) on April 21, 2005 to ease small business regulatory and paper burdens and improve small business experience and interactions with government.  SBAO initiatives included:
• Launching the Regulatory Registry on October 5, 2005.  The Registry provides business, labour and the public with information on Lieutenant Governor in Council (LGIC) regulatory proposals and approved regulations that affect business, and a means by which people can comment on new regulatory proposals.
• Organizing regional outreach events to consult with the small business community to see how government can promote their growth.
• Working with other Ontario ministries to plan projects to reduce paper burden for small business by making government business forms electronically accessible and improve government procurement processes for SMEs.

• Assisting over 19,000 entrepreneurs and leading growth firms through 44 Small Business Enterprise Centres (SBECs) and business advisors in 12 regional offices throughout Ontario.

• Organizing the Wisdom Exchange, an annual networking and learning event for CEO’s and Presidents of Ontario’s leading growth firms.  More than 130 participants from across Ontario attended.

• Promoting youth entrepreneurship.  Activities included:
• Summer Company – over 275 students participated in Summer 2005
• Ontario Secondary School Business Plan Competition – 444 schools took part in 36 competitions
• Future Entrepreneurs – 1200 information kits requested
• Engaging non-profit service providers active with youth in rural or remote areas, distinct groups that are traditionally underserved, and at risk youth to deliver the ministry’s programs
• Through the Youth Entrepreneurship Partnerships initiative, providing 6 grants across the province to aboriginal groups, educational institutions and other community groups.

Through the Research and Commercialization Strategy, the ministry provided leadership and co-ordination of science and technology programs and activities across government. 

On June 29, 2005 the ministry’s Science and Technology Division was transferred to the new Ministry of Research and Innovation (MRI).  Since the Division was part of MEDT for the initial part of the year, and their financial allocation was included with MEDT’s, their key results for 2005/06 are reported here.

Initiatives included:

• Launching the Ontario Research Council was launched to advise the government on research priorities, help co-ordinate public research and raise Ontario’s profile as an international research centre.

• Launching a number of key innovation initiatives were also launched, including:
• The Ontario Research Fund
• The Ontario Research Commercialization Program
• The Ontario Cancer Research Program
• The Ontario Research Innovation Networks
• A number of new programs at MaRS Discovery District, including:
• The Commercialization Program
• The Gateway to Ontario Program.

• A Centre of Excellence for Alternative Energy was established to implement new research and commercialization programs for innovative energy-related technologies.

Performance measures included:

• $314 million of leveraged investment in 2005/06, an increase of $36 million over 2004/05.

• 10,500 highly qualified people were involved in MRI funded projects in 2005/06.

• 108 active licenses in force from R&D directly supported by MRI.

Table 2: Ministry Expenditures

	Ministry Actual Expenditures ($M) 2005/06
Operating *	506
Capital	62
Staff Strength (As of March 31, 2006)	482

*Excludes Net Consolidation Adjustment of $7.2M for the Ontario Immigrant Investor Corporation

GLOSSARY

AMIS - Advanced Manufacturing Investment Strategy
APMA - Automotive Parts Manufacturers Association
CAPC - Canadian Automotive Partnership Council
CIBMS - Customer Information and Business Management System
CVMA - Canadian Vehicle Manufacturers Association
CEO - Chief Executive Officer
CORPAY - Corporate Payroll System
DRS - Democratic Renewal Secretariat
eCRM - electronic Client Relationship Management
eDA - electronic Delegation of Authority System
EDCO - Economic Development Council of Ontario
EDO - Economic Development Officer
HR - Human Resources
ICT - Information and Communications Technologies
IT - Information Technology
IFIS - Integrated Financial Information System
IMCs - International Marketing Centres
JAMA - Japanese Auto Manufacturers Association
LGIC - Lieutenant Governor in Council
MaRS - Medical and Related Sciences
MEDT - Ministry of Economic Development and Trade
MGS - Ministry of Government Services
MIA - Ministry of Intergovernmental Affairs
MOF - Ministry of Finance
MNDM - Ministry of Northern Development and Mines
MRI - Ministry of Research and Innovation
MSBE - Ministry of Small Business and Entrepreneurship
OADA - Ontaro Automotive Dealers’ Association
ODC - Ontario Development Corporation
OCC - Ontario Chamber of Commerce
OITAC - Ontario Investment and Trade Advisory Council
OIIC - Ontario Immigrant Investor Corporation
OPS - Ontario Public Service
ODOE - Other Direct Operating Expenditures
OSS - Ontario Shared Services
SBAO - Small Business Agency of Ontario
SBECs - Small Business Enterprise Centres
SMEs - Small and Medium Enterprises
TILMA - Trade, Investment and Labour Mobility Agreement
U of T - University of Toronto
WIN - Workforce Information Network

ISSN 1718-6420  (Online)