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TRANSCRIPTION AM PM

VIEWS: 36 PAGES: 53

									                                     TRANSCRIPTION
                                     8:00AM – 1:30PM

Welcome and Opening Remarks – 8:00 a.m. ………………………………………….……………... Page 2
      Roger Anderson – Regional Chair, Regional Municipality of Durham
      Conference Co-Chairs
      Don Lovisa – President, Durham College,
      Richard Marceau – Provost, University of Ontario Institute of Technology (UOIT)

Opening Remarks Opening Keynote Address – 8:15 a.m. ...………………………….…………… Page 5
      The Roadmap To Recovery, Sustaining Economic Prosperity In A Global Economy
      Jayson Myers – President, Canadian Manufacturers & Exporters (CME)

Introduction of Conference Moderator 9:00 a.m. ………………………………….…….………… Page 13
       Dianne Buckner – Conference Moderator, CBC Dragons’ Den

Forum #1 — Community Initiatives 9:05 a.m. ………………………………………… ………..,… Page 13
      Garth Johns – Commissioner of Human Resources, Regional Municipality of Durham
      Dave Hare – Chair, Durham Economic Prosperity Conference (DEPC) Committee

Forum #2 — Economic Prosperity 9:25 a.m. ………………………………………… ……..…...... Page 18
      Dr. Neil Alexander – President, Organization of CANDU Industries (OCI)
      Derek Holt – Vice President Economics, Scotia Capital
      Birgit Matthiesen – Senior Advisor to the President, US Government Relations, Washington
      CEO of the Canadian Manufacturers and Exporters (CME)

Interactive Panel Discussion —
Positioning Durham Region in the Global Economy ...…….......……………………… ……….… Page 30
Panel # 1 – Speakers – 10:30 a.m.
        John Wright – Senior Vice President, Ipsos-Reid Corporation
        Richard Marceau – Provost, University of Ontario Institute of Technology (UOIT)

Panel # 2 – Speakers – 11:25.……………………………………………………………… …..…..... Page 33
       John H. Tory – Newstalk 1010
       George Hanus – President & COO, Greater Toronto Marketing Alliance (GTMA)

Q & A Session
Panel # 1 ……………………………………………………………………………………… ………,.… Page 37
       Jayson Myers – President, Canadian Manufacturers & Exporters (CME)
       Dr. Neil Alexander – President, Organization of CANDU Industries (OCI)
       John Wright – Senior Vice President, Ipsos-Reid Corporation
       Richard Marceau – Provost, University of Ontario Institute of Technology (UOIT

Panel # 2 ……………………………………………………………………………………… ………..... Page 44
       John H. Tory – Newstalk 1010
       George Hanus – President & COO, Greater Toronto Marketing Alliance (GTMA)
       Derek Holt – Vice President Economics, Scotia Capital
       Birgit Matthiesen – Senior Advisor to US President, US Government Relations,
       CEO, Canadian Manufacturers and Exporters (CME)

Networking Lunch – Keynote Speaker John H Tory Newstalk 1010 ..........…… …….… Page 48
      * The Next 4 Years Municipally in the GTA!

Closing Remarks – Dave Hare, Chair, Durham Economic Prosperity Conference .…… …… Page 53
TRANSCRIPTION

Welcome and Opening Remarks …………………………………………………………………… 8:00 a.m.
      Roger Anderson – Regional Chair, Regional Municipality of Durham
      Conference Co-Chairs
             Don Lovisa – President, Durham College,
             Richard Marceau – Provost, University of Ontario Institute of Technology (UOIT)


Welcome and Opening Remarks
Dave Hare – Chair, Durham Economic Prosperity Conference (DEPC) Committee
Good morning ladies and gentlemen, welcome to the Durham Economic Prosperity Conference.
I'm Dave Hare, President of Petley-Hare Insurance and Chair of the Durham Economic Prosperity
Committee. The conference includes CEOs from many of the most influential companies in the region,
government leaders, university and college presidents, forward-thinking entrepreneurs, labour leaders
and non-profit executives who all share a common goal – moving Durham’s economy forward.

The Conference is a partnership between the Region of Durham, the University of Ontario Institute of
Technology (UOIT), Durham College of Applied Arts and Technology and the Greater Oshawa Chamber
of Commerce and is being funded by delegate fees and sponsorship assistance.

Ladies and Gentlemen we owe a big thank you to our Prosperity Conference sponsors. I would like to
take a moment to recognize and thank them. Please hold your applause until everybody has been
recognized. Region of Durham Economic Development, UOIT, Durham College, Greater Oshawa
Chamber of Commerce John Williams CA, Ontario Power Generation, Gerdau Ameristeel, the Ajax
Convention Centre, Via Rail Canada, the Organization of CANDU Industries, Innovative Solutions,
Enbridge Gas, Town of Ajax, the City of Pickering, Durham Business Times and Stagevision. Thank you
and without your support this event wouldn't be possible, thank you very much.

<Applause>

We have a group of third-year Multimedia Design students from Durham College filming the conference
today with the goal of compiling a media package that will display the coverage of the conference on DVD
and through the web. This will allow others to see the discussions and the presentations today. They
have two teams of four camera operators that will be present throughout the day covering the conference,
and one reporter from the college newspaper “The Chronicle” taking notes and doing interviews. This is a
real-time project for the students, and when they complete it they will form part of their portfolios.

Now to get the conference underway I'd like to call on Roger Anderson, our Regional Chair, Regional
Municipality of Durham, for his opening remarks, Chair Anderson.

<Applause>

Roger Anderson – Regional Chair, Regional Municipality of Durham
Well good morning ladies and gentlemen; I didn't think Bob Malcolmson woke up this early so I'm
surprised you actually followed his directions so well this morning. Before I get started there's some folks
in the room who I think need some introduction, you might not know them, they've never been in the
papers before or anything like that, so, first of all there's Mayor Pat Perkins from the Town of Whitby,
Mayor Ryan — do you want to stand up? People don't know who you are — Mayor Dave Ryan from the
City of Pickering, Mayor-elect John Henry from the City of Oshawa, Mayor-elect Chuck Mercier from
Scugog, where's Chuck, and Councilor-elect Bob Chapman from Oshawa and did I miss anyone, I hate
doing this cause I do, oh, and Bobby Drew from Sucgog, our new regional councilor as well, so welcome
ladies and gentlemen.

Ladies and gentlemen on behalf of Regional Council I welcome each and every one of you to the 2010
Durham Economic Prosperity Conference. The region is pleased to be a sponsor and a participant in
today's discussions about moving forward together. It's a great title and it has all sorts of connotations. An
especially warm welcome goes to our guest speakers who are visiting the Region of Durham for their first
time and we thank you for joining us today and offering your expertise on economic renewal. We have an
impressive lineup of speakers who will share information about the big-picture trends. Discuss the issues,

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reflect on opportunities right here in Durham Region, and we hope this day will fuel discussion and inspire
actions that, within the community of Durham, we will move forward and prosper.

We have some great fundamentals, we have good location, we have a highly skilled workforce, and we
have ample electricity, three dynamic post-secondary institutions and a beautiful natural environment that
is the envy of Ontario.

One key aspect of Durham that needs enhancement though, is our transportation network. That the
foundations are in place for all of us. The 407 route has been approved. The Pickering airport lands are
owned and ready to build on and the Oshawa deep water port. And if you drove by the Oshawa deep
water port on Thursday morning, you would have seen a line-up of trucks waiting to unload their wheat so
that it could be shipped. Some of the trucks sat there for six hours waiting to unload because it was better
than driving it to other locations. But correcting these deficiencies ladies and gentlemen depends on the
decisions and the actions of others. Until those facilities are in place, Durham must be super-resourceful
to overcome our transportation challenges.

Many of other challenges facing our businesses and manufacturers are shared with the rest of Ontario
and indeed Canada as a whole. A dollar on par with the U.S. dollar. Competition from emerging
economies like China and India. And physical and regulatory barriers to getting our goods across the U.S.
border are very, very difficult for some companies. These factors affect all of us. Our speakers today are
very knowledgeable on these items and we hope that they'll enlighten us and help us move our goods
faster and more easily.

But the question remains what can we do in Durham to make investment in our community as attractive
as possible. What unique and enticing brew of success-factors can we as Durham residents and
businesses and politicians offer? And how to we best support our existing firms and to nurture new
companies to move here to Durham Region. Sessions like this can help us identify those factors, ladies
and gentlemen, and today is designed to give our businesses some context for those discussions and
those decisions. We hope that the panel discussions will provide valuable intelligence and a variety of
views about the broader economic situation across this province. It's also an opportunity to generate
discussion about how this translates right here in our home town.

Our intent is to create an environment that supports partnership, collaboration and innovation. Durham
Region believes we can transform our economy by building on our strengths, especially in agriculture, in
automotive and in energy. We also are nurturing our creative cultural sector as well. Not only does this
sector make our community vibrant, but it attracts businesses, tourism and holds real economic potential
for every one of us. Durham is also actively reaching out to immigrants through our immigration portal
with information in multiple languages about business opportunities right here in Durham Region. And
we'll need newcomers to build our work force in the future.

A few weeks ago at the Whitby Chamber of Commerce I challenged the members of the Whitby Chamber
of Commerce to get busy, real busy, bolstering the local-grown work force. But I think we're going to have
to wait nine months to see if they took that advice. In the meantime we need all the new Canadians we
can have.

Durham also has great existing strength in the energy sector, and no doubt, you are all aware, that 30 per
cent of Ontario's electricity is generated right here in Durham Region. The prospects of refurbishment and
the new generation of electricity at Darlington are essential and exciting at the same time. We are the
energy capital of Ontario, ladies and gentlemen, and not just because of our nuclear generation capacity,
either. Durham Region is simply bursting with people power and creative energy in our industries and our
educational institutions. We have some great partners. Like the Durham Strategic Energy Alliance and
our post secondary institutions supporting research, innovation and renewable energy and environmental
technologies as well.

So it's a very exciting time in Durham Region and we appreciate the time you have taken out of your busy
lives, your busy schedules and your busy companies to join us today and help us help you. So we hope
you go away informed, we hope you go away inspired and energized to blaze a new trail of prosperity for
your company, for your town and our Region. Thank you very, very much.

<Applause>

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Dave Hare – Chair, Durham Economic Prosperity Conference (DEPC) Committee
Thank you Chair Anderson. I'd now like to call upon the first our two conference co-chairs, President of
Durham College Don Lovisa, for his opening remarks.

<Applause>

Don Lovisa – President, Durham College, DEPC Co-Chair
Thank you Dave, and good morning. It's truly an honour to share the opening of this conference with
Roger Anderson and Richard Marceu and to be one of the co-chairs of this event. This conference and
discussion about the current and future economic prosperity of the Durham Region started four years ago
on the joint campus of Durham College and UOIT. It's wonderful to see the momentum since creating this
event and to see it occurring every second year. Durham College has been an integral part of this region
since 1967 and continues to contribute to the economic prosperity in our communities in a number of
ways.

I'd like to touch on a few of those as we open our conference this morning and as the day unfolds I'm sure
that we will collectively discover even more avenues to success as we move forward and into the future.

Durham College's current strategic plan focuses on four areas: our students, our people, our business
and our community. I will talk about each of these and the relevance to today's agenda. Durham College
is all about students. Their success is our success and the community's success. Each year we welcome
more students, introduce new programs and graduate even more students.

Our focus on our students and what they need to succeed allows many local students to stay in the
region to study, live, work and play. In addition, the reputation of our programs attracts students from
across the province and around the world.

Our students inject dollars, enthusiasm, social responsibility and new ideas and innovation and
commitment to success in the local community.

If they live in Durham, often they stay in Durham after graduation, again contributing to our local
economy. For example, we now have approximately 25,000 alumni living in Durham Region, and many
work at local businesses such as OPG, Lakeridge Health, the Ministry of Revenue, General Motors and
many more.

Some of our alumni have started their own businesses right here in the Durham Region. Let me give you
an example of one such success. Lorelei Hepburn enrolled in the Durham College Environmental
Technology Program in 1991. And graduated with a three year diploma in 1994. In 1997 she registered
her company, The Environmental Factor, the first registered company with Environment Canada to offer
chemical-free weed and feed. Growth of the company resulted in her moving from Oshawa to a larger
location in Ajax. Her small company now has 16 franchises and is expanding into the United States.
Lorelei appeared on The Dragons’ Den in June of this year and was offered money from the dragons, but
she turned them down. She was named Ajax-Pickering Board of Trade Business Person of the Year this
year and we're very proud of her.

The staff and faculty at Durham are about a thousand strong including full-time and part-time and many
live in the Durham Region. And too, play an important role in the economic and social fabric of the
communities that we live in. In addition to ensuring our students' success, they sit on community boards
and service clubs, volunteer for dozens of charities, children's sports teams, coaches, managers, the list
goes on and on. I’m privileged to lead such a caring and committed group of individuals. The Durham
College family is like no other.

Post-secondary institutions don’t usually come to mind when we talk about business. They are, however,
business entities in their own. With a 130 million dollar annual budget, our business is focused on ways to
engage strategic growth, to integrate new technologies and equipment into our programs and services, to
increase efficiencies and reduce our carbon footprint.

Many decisions that are made involve purchasing goods and services within the Durham Region,
employing local contractors, injecting millions of dollars into the Durham Region communities.



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Finally, our focus on the community means that Durham College enters into strategic partnerships that
contribute to both the economic and social prosperity of the communities that we serve.

We work with local businesses to ensure that we can provide them with graduates that have the right
skills to meet their needs. Employers rank Durham College graduates among the best, with 93.8% of
them providing a very high satisfaction rate.

The recent launch of our innovation research agenda has resulted in many partnerships with local
companies to help to bring them and their ideas and their innovations such as Innovations Solutions
Incorporated to the marketplace.

Ladies and gentlemen, you’ve probably gathered by now that I’m very passionate about our college,
Durham College. I am proud of the impact that we have on the Durham Region and beyond. And I look
forward to our continued contribution, our contribution, both economically and socially. Please enjoy
today’s conference. Thank you very much.

<Applause>

Dave Hare – Chair, Durham Economic Prosperity Conference (DEPC) Committee
Thanks Mr. Lovisa. I’d now like to call upon our second conference co-chair, from UOIT. Filling in for
Doctor Bordessa who is currently in India, is Richard Marceau, Provost, University of the Ontario Institute
of Technology. Richard.

Richard Marceau – Provost, University of Ontario Institute of Technology (UOIT)
Thank you very much, Dave. Good morning everyone. Your worships, ladies and gentlemen, friends and
colleagues. Welcome to the third edition of the Durham Economic Prosperity Conference. It’s no secret
that the world is changing. Successful communities learn to embrace change, to innovate and to adapt to
change and those that don’t, don’t. So clearly, Durham needs to change. But what does this mean for
Durham? And what impact does this have for us today at this conference? In many ways, this is the
purpose of this conference.

Today we will host a number of panels, composed of engaged citizens, opinion leaders, community
leaders and experts in their fields in addition to you, the audience. Some will talk about sustainability.
Some will talk about prosperity. Some will talk about leveraging our assets more effectively, such as
energy, manufacturing and agriculture. Some will talk yet again about the need for better transportation
corridors. However, some will say that climate change is a game-changer that changes everything. That
prosperity and sustainability can no longer go together. That humanity is simply consuming too many of
the Earth’s resources. And that we are fundamentally in need to rethink our relationship with our planet
and the way that we conduct our business. And then again, others will take the position that in great
challenge lies great opportunity, especially for Durham Region. Hopefully by the end of this conference,
through this candid exchange of ideas, we will have some sense of where Durham Region stands in the
global economy and have greater insight of the challenges we need to deal with, the opportunities we
need to seize and the threats that we need to come to grips with.

So to help us set the stage, we have invited Jason Myers, President and CEO of the Canadian
Manufacturers & Exporters Association to speak to us this morning. Mr. Myers is a well-known economic
commentator and is widely published in the fields of Canadian and international economics and
technological and industrial change. Mr. Myers sits on advisory councils to the Minister of International
Trade, the Minister of Industry and the Canadian Border Service Agency. Mr. Myers will speak on the
roadmap to recovery, sustaining economic prosperity in a global economy. Ladies and gentlemen, please
join me in welcoming Mr. Jayson Myers.

Opening Remarks Opening Keynote Address …………………………………………………….. 8:15 a.m.
      The Roadmap To Recovery, Sustaining Economic Prosperity In A Global Economy
      Jayson Myers – President, Canadian Manufacturers & Exporters (CME)

Good morning. Good morning! Look I had to drive here from Guelph; I have to say that I hope the 407
extension gets in here pretty soon.

Thank you very much for inviting me here today, Certainly CME has a big commitment here to the
success of the Durham Region largely because a great number of our members are located in Durham
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and we’re in business to help them succeed in business and I think that everybody realizes today that no
single company can be successful on its own. This is a time when supply chains are competing around
the world and the success of any company is going to depend on the success of their customers, the
success of their suppliers and primarily the success of the communities in which they are located. So
today’s discussions I think are very apt, very important in the context of all of the change that is affecting
the world economy, the Canadian economy here in Ontario and the Durham Region. But it’s also very,
very important because we’re talking about not just the success of businesses but we’re talking about
jobs, we’re talking about prosperity of every citizen of this community. And I can tell you this isn’t a win-
lose proposition. This is, we have to look at economic growth, the economic opportunities today as win-
win. So if Durham is successful I can guarantee you that Ontario will be successful and that Canada will
be successful as well.

So I’m very pleased to be here to set a bit of the context — and I think my clicker’s up here somewhere
— but let me start off with a couple of thoughts, so first of all, much has changed since the last economic
prosperity conference that we had two years ago. We’ve gone through the deepest financial meltdown
and one of the most severe industrial recessions since the 1930s. And maybe if there’s a lesson to be
learned from that, it’s that you don’t create wealth in an economy simply by spinning other people’s debt
around and around and around again. You create wealth by producing goods and services that
customers value and that they want to buy. And that’s what business is really all about. Creating that
value. A good deal of the risk today in the economy and in financial markets comes from the fact that I
think our financial markets, number one, don’t reflect the risk and don’t reflect the value that is being
created by businesses on Main Street, businesses in manufacturing and other industries and service
industries as well. And that’s a risk but clearly the fundamental thing here is how do you create wealth in
an economy that’s fundamentally changed. I’m going to be here to set some of the context of those
changes. I’ve got to compliment everybody for getting up so early to hear an economist speak,
particularly at this time of the morning. And you’ll not only get a good dose from me but I know Derek Holt
is going to be here later on too, so two economists first thing in the morning, that is well worth the drive
from Guelph I gotta tell you. The other thing that I wanted to say though is I have a great job, I get to
travel not until across Canada but Brigit Matthiesen, my special adviser is located in Washington and
she’s going to be here today to give you the view of what’s going on in the United State and in particular
around the Canada-US border. So I get to travel a lot in the United States and a bit around the world. But
I can tell you one thing. Every business, every community, every industry sector sees itself as a bit
unique. Ask a business what are your issues and all too often you hear, well, we have really unique
issues, you know, I doubt if anybody else has these issues. I’m sure you’ve heard that here in
communities and maybe communities within Durham Region well, you know, the issues in Pickering may
not be the same issues in Oshawa. The second thing that I learned as I travel around is that Canadians
are all unique in extremely similar ways. The issues are not that different from community to community
and especially now as we’re beginning to recover from this deep recession I think a lot of the issues are
pretty much the same and I’m going to go through some of those issues today. But the other thing that I’m
convinced of is that everybody is looking for a local solution to those issues and again that’s why what
you’re here today to discuss is so important. Because it’s communities that are able to work together,
move forward together, who are able to communicate their assets and work on their strengths that are
going to be the most effective here in leveraging up economic opportunity. And I think that’s extremely
important.

A few of the speakers before have talked about the importance of retaining business as well as attracting
business to the region. And that’s also extremely very important. You know, anybody who is in Marketing
or in Sales can tell you it’s always easier to keep your customer than it is to attract new ones. And if you
do a good job in keeping your customers and retaining your businesses I guarantee the word gets around
and that’s number one priority in terms of making decisions about investment. And we can talk about tax
rates, those are important. We can talk about the quality of the labour force, that’s important as well.
Location, logistics, all of that’s important. But the number one factor driving investor location is, is this
community the right place for me and my employees? And so a community that has its act together, a
community that sees the importance of retaining their own business base and provides a good, sound,
investment location, is far ahead in also attracting business today.

So, with that, let me, I’ve spent a lot of time just talking here and I have about 90 slides that I have to go
through in about four minutes.

Reference to Power Point Presentation

                                                                                                            6
So like any strategy let’s start first of all with an environmental scan, just a simple swat analysis. I have to
say I took a lot of this from the work that’s already been done here in Durham. So let’s start with
strengths, weaknesses and then I talk a little bit about threats and opportunities here. This is the type of
environmental scan that should be going into any strategic plan, but a strategic plan, at the same time,
can remain on the shelf as a plan. I’ve seen too many strategies in too many businesses do exactly that
when the key is, how do you move that plan to actual implementation. And that requires a concerted
action plan, benchmarks, timelines, and responsibilities. And it also requires money. Because I also see
all too much, you come up with a great idea, great strategy, a great vision. But I can tell you vision without
money is just hallucination. But that implementation plan and the money behind it is extremely important.
So let’s start with some of the strengths. A great deal of the regional strengths here, this is your view of
the regional strengths of Durham and I think we’ve already touched on many: skilled labour force, the
logistics in terms of air and of the port facility. Strong agricultural base. Strong auto manufacturing and
other manufacturing base here. State of the art advanced manufacturing base. World-class medical
facility. The educational research institutions, the nuclear power that’s located here and the quality of life
of the region. We have strengths at the provincial level too and I’m not talking necessarily about provincial
governments but just province-wide, our location, proximity, if you can actually get around the GTA, our
location, proximity to customers, suppliers, the world-class innovation infrastructure that is here in
Ontario, which we usually don’t recognize as such, but I can tell you that there are few places in the world
where you have this concentration of manufacturing, real-world-class manufacturing capabilities, of
research, of education, of a skilled work force, location and logistics. There are very, very few places in
the world that bring that all together. There may only two other places in North America, along the I-75
and I-95 corridors in the United States that can bring that combination of assets together.

And very strong Federal and Provincial support for innovation, next-generation technologies and for
companies that are trying to transition themselves into these new technologies. And I think you’ll hear
later on about some of the initiatives both at the federal level and at the provincial level. Nationally,
competitively low business tax rates. The idea is to reduce the combined federal-provincial tax rate to 25
per cent in 2012. I think that’s a very important thing to do. Follow through with that commitment. Because
a lot of companies are making investment decisions based on the expectation that that’s where tax rates
are going to be. Comparatively low levels of government debt and a comparatively strong financial sector.
Although I don’t think we should take that necessarily too far because there’s some risks here that still
remain on the financial side.

But let’s be very clear here too. That there are some weaknesses. At the regional level, we’re talking
about the road system. The fact that job creation isn’t keeping pace with demographic growth in the
region. The loss of the industrial base, here. And talk about that in a second. Provincially, the regulatory
system is a real detriment to investment, and it’s a real detriment to retaining investment. Particularly on
the part of those companies that are facing now new regulations that are often impractical to achieve, that
are costly to comply with, and don’t get me wrong, I’m not saying we shouldn’t be regulating business.
We need to regulate business, every business faces regulation, that’s how markets are defined. And we
need to be able to protect the environment and health and safety, but we can do that in an effective way
and it seems to me if we can make that simple, and less costly to comply with, we get better compliance.
And that’s the economist in me speaking. That if it’s easy to comply then companies will do it. More easily
than a system that is complex, that takes a lot of time to comply with, that’s duplicative, that we’re
wasting, as anybody here in business knows we’re focusing on what customers need and trying to
remove all the non-value-adding activities that are simply a waste of time and a waste of money and a
waste of space. Then let’s focus here on achieving regulatory objectives. What’s really necessary to
achieve environmental, safety, health objectives? And let’s try to streamline the regulatory process as
much as possible. That’s a message that has to go through at all levels of government here and in
Ontario.

Reliable access to cost-competitive energy. A big question mark. This is something that’s fundamental to
any community, to consumers and to industry. And a big question mark about that because I think that
where we’re going here, over the next ten, twenty years, is still a big question mark. Big opportunities
here, particularly in the nuclear side for Durham Region. But I can tell you if we don’t get this right we’re
jeopardizing the economic base and the industrial base of the entire province. I think we don’t have a
clear idea of where transportation planning is going across the province. I don’t think we have a clear idea
of how the province itself and how communities across the province can work together to achieve a
common economic development set of objectives. And I think we, in spite of the strength of our innovation
infrastructure, I don’t think we have the linkages that we necessarily should have between the innovation
system, the innovation infrastructure and the needs of business. And that’s something that is maybe
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unique in many ways in the Durham Region with Durham College and UOIT here because these
institutions do work very closely with local business. They understand what’s going on here. I’m not so
sure that’s the case everywhere. And businesses in this region also depend on other institutions here. We
need to do a lot better job I think in connecting what is going on in innovation to the real business
problems that are out there.

At the national level…I don’t think we have a clear sense of an economic strategy, a clear sense of where
Canada is going in terms of industrial transition here and what we need to do to back that up. And I’m
being very, very blunt here and I’m sorry if I’m hurting anybody’s feelings and I’m sure I’ll get lots of
emails from staffers and MPs since I usually do when I say things like this, but I don’t think we have a
very good long-term idea of where the Canadian economy has to transition itself. All too often,
partisanship is trumping policy. We see that every day. Let’s talk about what we need to sustain this
recovery and grow the Canadian economy and as I’m showing we’ve got some big challenges that lie
ahead. A very highly leveraged consumer sector both on consumer debt and mortgage debt which may
be a bubble waiting to burst and that’s a huge risk that lies ahead. And a manufacturing and exporting
sector that’s frankly been very highly leveraged into the United States market and it’s that market in
particular that has gone down and as I’ll show you in a minute that is really what has affected
manufacturing and particularly here in the Durham Region. So these are my assessment, there are
probably others, other strengths, other weaknesses that you can identify but just to set the context on
that.

The threats - I’m sorry the print is rather small, (reference to power point presentation) I hate to throw
this up because; I don’t have the time to go into each of these in the detail they deserve. I think we face
three types of risks. Number one, the risk that we are not yet into a sustainable recovery, I’m not
convinced that without government spending, without government stimulus, that consumers and
businesses in Canada, or in the United States or in other countries are going to be able to sustain
economic growth. And as governments unwind their stimulus and begin to wind down their budget deficits
they have to be very careful that they do that balancing the economic growth prospects here in Canada
and Ontario and elsewhere, particularly in the United States.

What I see coming out of the United States right now in quantitative easing is going to put further
downward pressure on the U.S. dollar, further upward pressure on the Canadian dollar, further upward
pressure on commodity prices which is good for some parts of Canada but not necessarily good for
manufacturers here in Durham. And it throws up all sorts of risks about the potential for inflation that lies
ahead and what that could do to interest rates not today but three or four years down the road. And the
impact that that would have on property markets, on consumer spending and on the Canadian economy.
So there are risks that still lie ahead, financial, fiscal risks, with respect to whether or not we are on the
track to recovery at all. On top of that, there’s a second set of risks that I like to think of as obstacles, the
impediments that businesses face as they begin to take advantage of the recovery. And I think, these are
pretty straightforward and I don’t have to go into too much detail about them because I think most of you,
face these on a day to day basis.

A strong and volatile Canadian dollar. You know, over the last eight years the dollar has gone from 62
cents U.S. to a dollar ten in November of 2007 to 78 cents in May of last year to just above parity a few
months ago, then back to 95 cents, then up to parity today. The strength of the dollar means that the
goods and services we produce here and export around the world have to be high margin products. That
is what that means. But the volatility of the dollar is the real killer here. Because it’s really difficult for any
business to manage that volatility, it’s costly, you can lose on the upside as the dollar eats into export
income and you lose on the downside if you’re fixing your contracts and your prices for materials and your
own contracts and let’s face it, any business here in manufacturing, it takes a period of time from the time
that you set the original contract the time you actually get paid in cash money for what you delivered. That
period of time may last you know, three months (rarely) its probably going to last 18 months to years,
during which time the dollar can act as a roller coaster in there and wipe out any profit margin that’s
planned in between. So there’s a good deal of luck here, a lot of hedging has to go on both financial and
trying to position in terms of imports and strategic positioning of supply chain to lower the risk of this. But
it’s very difficult, for any Canadian company whether you are exporting or not, to manage the impact of
that dollar volatility. And that is just going to continue. There’s continued upside pressure on the dollar.
The risk is on the upside. And here’s the lesson about economic forecasting: Be prepared for a strong
dollar. If the dollar is strong and you’re prepared and you can compete at a strong dollar, that’s good. But
look, if I’m wrong and the dollar falls to 90 cents and the dollar falls back to 85 cents and you’re prepared
to compete at a dollar at par, you’re going to be making money anyway at a 90 cent or 85 cent dollar,
                                                                                                                 8
you’ll forget my forecast in the first place. Be prepared for a strong dollar ahead. And with the strong
dollar, higher commodity costs. Because whether it’s gold, oil or any other commodity that’s priced in U.S.
dollars, as the U.S. dollar sinks the price of those commodities will naturally increase. I’m not so sure if
the Canadian dollar is driven by higher commodity prices or if they’re both being driven that way together
by a weak U.S. dollar.

Weak cash flow. As I said before, it’s money that makes things happen, and as I’ll show you in a minute
the relationship between cash flow, innovation and investment in business. But the weak cash flow
position of manufacturing, of every business that is feeding into the manufacturing sector, that cash flow
position has improved but it’s certainly not where it was back in, oh say, when you map two years ago.
That means that the number one thing that is related to cash flow is the availability of financing. If you
have cash the likelihood is that you’re going to have financing available. If you don’t have cash, well, the
financing challenge is a little bit more of a challenge there. Over the last two years businesses have
needed more financing to survive. We’re into a different game now. As the recovery takes hold,
businesses are looking for financing for growth. And all too often that’s more difficult to find than survival
financing was. Because now companies are having to go back to the bank, renegotiate their lines of credit
and ask for more money on the basis of potential growth, investments that they have to make in new
capacity in new technology, in new product development, in new market development that they expect
they need in order to grow the business. And that’s much more challenging. And much of that growth
today is driven by internal cash flow, the internal savings of companies, rather than the money that is
coming in from the financial sector itself. That’s still a major challenge and particularly in manufacturing.

The fact is we have overcapacity in a lot of markets still. And that’s putting downward pressure on prices,
it’s leading to corporate consolidation, a loss of product mandates here as companies consolidate out of
the Canadian market.

Today, Ontario and probably Canada as a whole, is one of the highest cost jurisdictions in the world for
anyone in the manufacturing industry. The only way we could compete under those conditions is by
producing a specialized product or service that can sell anywhere in the world at a premium. We are not
competitive right now on low-margin, commodity products. So, as we’re planning, as any business is
planning its future, it has to be thinking about where those high value goods, high value services, how do
I wrap that specialization around what I’m doing to differentiate myself from my competitors. Because
that’s really the only way that we are going to be able to sustain an industrial base and a competitive
business sector here at the high level of cost, high level of the dollar that we have right now and
particularly as we’re seeing, this overcapacity and the pressures of commoditization pressing down
prices.

See, unfair trading practices, protectionist measures, Birgit will be talking no doubt in a few minutes about
what we’ve been doing about trying to fight the Buy American protectionist actions. I don’t see that
protectionism dwindling in the United States, in fact, the potential for that is higher than ever as a result of
the election of some pretty populist Republicans in the House of Representatives right now. It’s
something that is extremely worrying for us and I can tell you it’s not good for the American economy
either. You don’t create jobs by closing off business opportunities and there are a lot of American
companies that have lost jobs because their Canadian customer is no longer able to sell into
infrastructure markets in the United States. Increasing mandatory overheads, in the form of regulatory
compliance costs, taxes, fees, employment insurance premium increases, that’s all pretty hard stuff to
take if your pricing is going down and if you don’t have a very strong cash flow position. That’s all
mandatory overhead that has to be paid.

And the thickening border, we talked about that earlier, not only in security and customs but new
regulations being applied, new fees being applied. You know when a boatload of cars comes over from
Asia, it goes through one customs inspection as it enters North America, usually through the port of Los
Angeles. Because of our integrated market, when GM sells an equivalent amount of cars into the United
States, because of the fact that parts cross the border so many times before it gets into the final vehicle,
before that vehicle gets in the hands of the final customer, the estimate is that it would take 28,000
customs inspections covering all of those truckloads of cars and parts in North America versus one
customs inspection of a boat coming in from Asia.

What are we trying to do here in the North American economy? Are we trying to do as much as we
possibly can to ensure this doesn’t work here? Because the additional costs of this are huge. And again,
this is, if we’re trying to remove non-value-adding activity, let’s protect the border, let’s focus on the high-
                                                                                                              9
risk traffic, that’s what NEXUS and FAST and CTPAD is all about. But let’s do that and make sure that
commerce flows across that border. Because again it’s not just Durham and it’s not just Canada that
depends on it, it’s the US economy too.

We talked about game-changers and I think there are a number of those that could be considered threats.
Or opportunities. And I’ll show you those in a second, too. Changing customer requirements. Consumers
are not buying the same way, they’re buying different things now. Changing customer expectations. A
shift in market power away from North America, away from Europe to Latin America, Asia, particularly
China. The corporate restructuring, the supply-chain restructuring which is changing the nature of supply-
chains and for many companies stranding suppliers because their customer; their entry into the global
supply chain has disappeared and is forcing suppliers, maybe second, third-tier suppliers now; to find
new customers, or new supply-chains, new markets to do their business. And that’s difficult.

An aging population. You’re all getting older, here, myself excepted, of course. Well what does that
mean? Well, an aging population is going to mean fewer people at work. More skill shortages. It’s going
to mean more draw on health care. It’s going to mean more people looking for retirement incomes and
fewer people earning money here. Earning money to invest. That’s why pension issues are so prominent
today and a lot of the policy making. And energy constraints and environmental policies, climate change
probably the most predominant here in terms of changing expectations about environmental
responsibility, environmental sustainability. And this being a major source of challenge but also
opportunity for companies as they respond to those expectations.

Opportunities. Well, clearly for, their challenges in terms of new business opportunities because of all
those changing customer requirements are also building opportunity for companies that can take
advantage of those opportunities. One of our members sells air conditions to China. They don’t compete
with Chinese air conditioners because they have a very unique product that they brought into the Chinese
market that provides air conditioning and a power pack battery to provide air conditioning in Chinese
apartment buildings. It’s unique. They can’t keep up with the business there. Would anybody go into
business selling air conditioners to China? Probably not. Except that you do if you have a unique solution
to customer’s problems. The shift in market power to China, Asia, Latin America, how can we take
advantage of that? How can we build on that? The fact that in ten years there will be twice as many
middle class households in Latin America and China combined than there will be in the United States and
Europe. New procurement and supply chain requirements. There are new opportunities here in the
energy sector. Nuclear energy here in Durham. But not just in nuclear, in other forms. In alternative
energy, in Western oil and gas industry. New requirements on the auto-side here, new requirements in
infrastructure. New opportunities, new requirements in aerospace.

An aging population, well there’s an opportunity here because it puts a premium on productivity, and for
those companies that are providing healthcare services, the services that an older population requires.

Energy opportunities, a whole series of opportunities here, energy efficiency, new processes. As I said,
new markets, new technologies. My take on climate change is very simple. The Canadian economy
usually grows at 3%. Over the last 30 years our emissions have grown by 2%. The difference has been
technological progress. That difference has been driven by energy efficiency improvement, new industrial
processes, new cars, new consumer products that use less energy, switching to alternative non-carbon-
intensive fuels. It is very simple. If we want the Canadian economy to continue to grow at 3% a year, and
we want to stabilize emissions, then we have to triple the rate of technological progress. And if we want to
meet the government’s objective of reducing emissions by 2020 then we’ve got to quadruple that rate of
technological progress. So what is our strategy for driving technological change? I can tell you cap and
trade, carbon-tax, environmental regulation, none of that will be successful unless we have the
investment and the technology in place to achieve a reduction in emissions. That’s the key question here.
It’s very much an economic, a business, and an investment question. And that’s what we have to focus
on going ahead, and that’s where the opportunity is for businesses here in Durham and for manufacturers
and for businesses across the country.

All that being said, there are technological priorities here as well. Energy, manufacturing, new much more
automated, much more advanced technologies and manufacturing. In environment, in healthcare. And
those new opportunities are local, they’re here in Ontario, they’re in Canada and North America and right
around the world.

Let’s just see how I’m doing on time…I’ve got 80 slides and 2 minutes…so let me go quickly.
                                                                                                        10
That’s the context here. Some key questions. Is manufacturing disappearing? No. It’s not. Is it
transitioning, is it reforming itself? Yes, very definitely. In my mind, manufacturing is the anchor that
creates value across the economy. This is the sector that exports, this is the sector that brings 85% of
new products to market, this is the sector that creates the anchor for all the value-added activities around
manufacturing. It’s very important and really, it’s important because every dollar of output in
manufacturing creates about 2 dollars and 25 cents in activity around manufacturing. And much of that is
in the services sector. In technology, in telecommunications, engineering, design, logistics, materials
handling, finance, business management, in all of the other personal services that are all driven by the
fact that employees are out there spending. Government services because 30% of the business taxes in
communities are paid by the manufacturing sector. That’s what drives an economy, and we have to think
of manufacturing as the anchor of growth. Not necessarily as the sector that is going to be creating all the
jobs, but the sector that anchors all the high-value jobs around it. This is what’s happened to
manufacturing, 30% loss of orders, we’re climbing up, and we’re halfway up that hill in terms of recovery.
In fact, this year manufacturing will outpace the Canadian economy by a factor of 4 to 1. Here we’ll see
12% growth; I’ll guarantee it, in manufacturing this year. Double-digit growth. Not too bad on the part of a
sector that everybody thinks has disappeared. And a lot of that is driven by automotive; a lot of it was
caused by a downturn in the U.S. market. So we depend on that recovery in the U.S., which is going to be
a long way off, to drive the recovery of Canadian manufacturing, as well.

Here are some slides; you’ll see Ontario over the last year has experienced some of the highest growth in
manufacturing. And here, just some background information about where the strength is.

Agri-food has been a strong sector throughout the recession. Transportation equipment, this is largely
automotive driven. You’ll see the snap-back we’ve seen as automotive is restructured, and now on the
way to recovery. So let’s hope we can keep that, because that drives about 40% of manufacturing across
the country, just the automotive supply chain. In a very much higher proportion of manufacturing and
business activity here in Durham region as well. But for any company, business as usual isn’t an option.
And if businesses are doing what they were doing 5 years ago and if that’s what they’re doing today, no
doubt they’re in trouble. And if companies are thinking they’re going to survive over 5 years doing the
same thing that they’re doing today, good luck. It isn’t going to be the same, and we have to put in place
an environment that assists companies with the transition to the changes they have to make. It starts with
leadership but it’s fundamentally about how to position yourself as a solution for customers. Find new
customers, develop new products, bring new processes in to deliver those products successfully, find the
money to do that, make sure you get a lot of that money from internal savings. And maybe one of the
most challenging things of all, make sure that your people are mobilized to achieve new results in your
business. None of that is easy, but that’s what every single company is going through today. At least in
manufacturing, as they make this transition to a more modern manufacturing economy.

Innovation is key. Innovation is about how to do things better, or in new ways. And that has to be
pervasive, not just in new product development, but in new market development, new ways of marketing,
of dealing with customers, new ways of communication, new ways of delivery, new logistic systems. At
the bottom of this, it’s all about people, about knowledge, and about technology. And with those core
productive assets at the center of a community economic development strategy, then now you’re talking
the language of value-added business.

Here are just a couple of slides I said I wanted to show you how cash flow drives R&D and investment.
This shows me that R&D spending in Canadian business depends on the previous year’s cash flow
performance. This is the good one; this is the relationship between after-tax cash flow and investment in
technology. I can see that and I like graphs where you can actually see some sort of a relationship there.
But it’s a pretty strong relationship, and in fact it’s pretty consistent over a period of time that companies
in Canada are investing somewhere around 35% of the cash flow in new technology.

Here’s some things that we’ve been focusing on in terms of policy priorities to support economic recovery.
First of all, focusing on a value-added strategy. Of course from our perspective looking at manufacturing
and exporting is the key to that recovery. Focusing on investment and productive assets, in people, in
technology, in new markets. Helping businesses find new customers, support the development and
commercialization of the new technologies. Strength in technology transfers to business. Maintain an
innovative work force. Improve the availability of financing. Improve the business infrastructure. These are
pretty general objectives in a public policy sense. But I suggest that they would make a lot of sense for a
community economic development strategy as well.
                                                                                                          11
And then some regional priorities that I think come out of that. Number one, community leadership.
Focusing on where you can make a difference. There are a lot of things here where you will have no or
little impact. They’re very hard to have an impact on the Chinese currency out of Durham Region. But,
there are things that are within your control. And particularly when it comes to prioritizing, when it comes
to looking at an economic development strategy that doesn’t necessarily pick winners. I don’t think its an
issue about picking the sector, its an issue about focusing on the strengths of the region and making sure
that businesses can thrive here in an entrepreneurial way to develop new products, and do their business
based in Durham. There’s a lot of discussion today about alternative energy, windmills for instance. There
are 15 000 parts in a windmill, and three quarters of those parts are concrete, structural steel, metal
products, fabricated metal, tubes, piping. That is the windmill. Along with modern materials and
technologies and everything else that goes into it, a lot of services that come along with it. But technology
itself will help to drive a lot of existing sectors that are strong across this region. I wouldn’t be focused too
much on trying to pick the winners of technology, winners of the sectors. I’d be focused on making
business as successful as possible. And start with the businesses that already exist in the region.
Develop a clear understanding of business needs. Support local entrepreneurship.

Communicate. I’m always struck by how little local businesses actually know about what is available
within their own communities to help them. Communicate, communicate, communicate.

Collaborate. As I said, nobody can do this on their own. And a community that works together and with
other regions on a clear set of objectives is far ahead in being able to retain and attract investment. Build
new connections. And then finally, ensure that you’ve got benchmarks and measurables, things to
measure success and measure progress.

Anyway, I’m pretty much on time except I don’t think we have any time for questions. I’m going to be on a
panel later on this morning so maybe if there are any questions we could cover them then. I think the
panel’s going to be talking about economic development so a lot of these issues will no doubt be
discussed at that time.

Let me just conclude by saying, what you’re doing here is extremely important. Much has changed in the
last two years; you can see the impact here in Durham and particularly in the industrial base here. But
don’t forget about the assets that we have, the people, the technology, the innovation infrastructure, the
logistics, the potential that you have here.

This is above all a community initiative, and it depends on you and leadership of this community to bring
together the people to get things done that you can do effectively. I always have a word of advice for our
members, and that is that your job is no longer to get product out the door. Your job is to provide a
solution for your customers, through a product, through a service. But a solution that your customers can
afford, that they can manage, and you can deliver when they need it, on time. I think that my advice,
generally, to you is that a community economic development strategy has to do the same thing. It has to
position itself by providing solutions to business. To the businesses that are here. And again, if you can
do that effectively, you will be in a prime location for bringing more business into the Durham Region.
Thanks very much.

<Applause>

Don Lovisa – President, Durham College
Thank you Jayson, I look forward to the other 80 slides. We need a Jayson Myers day, I think, just to get
through it all. But thank you very much for all your comments, your words; you gave us much to think
about. You started your speech talking about leadership and about a local solution, and you ended your
speech with a comment about leadership. What stuck with me is that not only about a local solution, but
here’s a comment I wrote down. “There are few places in the world that bring such a strong collection of
assets together like the Durham Region, which really creates an opportunity for us in Durham. And our
future is really about the development of high value goods and services, which is going to be led by our
people, our knowledge, and our technology. So once again thank you very much for your comments and
your presentation today.




                                                                                                             12
Introduction of Conference Moderator …………………………………………………………… 9:00 a.m.
       Dianne Buckner – Conference Moderator, CBC Dragons’ Den

Now I have the pleasure of introducing our moderator.

We are pleased to have Dianne Buckner, host of CBC’s Dragons' Den, my favourite show. As the
moderator for the 2010 Conference, Dianne has incredible versatility in her presentation and producer
who has hosts programs on both Canadian and major networks, from national newscasts to quirky
magazine shows. Until Dragons’ Den Dianne was best known to television viewers as the host of
Canada’s most popular business program, Venture, my second favourite show. Dianne is a frequent
speaker and presenter who imparts the knowledge she's gained from years of reporting about the world
and the world of business.

Ladies and Gentlemen...Ms. Dianne Buckner

<Applause>


Forum #1 — Community Initiatives………………………………………………………………….. 9:05 a.m.
      Garth Johns – Commissioner of Human Resources, Regional Municipality of Durham
      Dave Hare – Chair, Durham Economic Prosperity Conference (DEPC) Committee

Dianne Buckner – Conference Moderator, CBC Dragons’ Den
“Well good morning everybody, I’m very happy to be back in the Durham region. I was very honoured last
year; I was invited to be the MC of your (Greater Oshawa Chamber of Commerce) Business Excellence
Awards, and what a great night that was. So many dynamic people and lots of fun and drinking. Why
couldn’t that be happening now? But anyway, looking forward to a really great session today. Just one
comment on Dragons’ Den, glad to hear it’s your favourite show. It’s the CBC’s favourite show because
the ratings have been fantastic, we’ve been so thrilled. I don’t know how many people saw this weeks
show, Wednesday night at 8, but it got 1.8 million viewers across the country which is better than hockey!
Unbelievable! Not better than playoff hockey, but still right up there. And it’s really been so gratifying for
us to work on the show, and it’s also I think interesting in connection with what you guys are doing here.
Just that so many Canadians across the country are obviously interested in business, interested in new
ideas, in people who are trying things. Coming up with new ways to sort of exploit trends and create jobs
and help their communities with their own ideas and energy and resources and all that sort of thing. And
that’s what this conference is about, so I agree with everyone who is saying how important it is and how
commendable it is. Because obviously in this very challenging environment that Jayson was just talking
about, bringing people together and helping each other is a key, key part of that. So now this conference
itself started in 2006, as you heard, it’s already become the go-to event in this area, and in 2008 as well,
people meeting to discuss the pressing issues and make a report out of it. That’s basically what this event
will generate, is that there will be a report distributed to all the participants and also to all levels of
government to follow up on the initiatives that are identified today. So it’s great to have so many really
great thinkers in the room, and all of you as well to interact with those people, because what is sparked
here today will go forward to people, obviously, in positions who can do something about all of that and
do great things for Durham Region.

Now, we’ve got a couple things happening. We’ve got two forums to start off with. Now, those are
basically a forum to share information with you. As well, though, we’re going to have to panels, and that
will be the interactive portion. You can see there’s microphones in the room already. As you’re listening
today and different questions are coming to your mind or you have particular areas of concern or interest,
make a note of that because there will be opportunities to interact with some of these special guests that
are here today and bringing their own unique perspectives on all of these things.

Now, our first forum is basically to give you an update on the community initiatives for the past two years.
We’re going to be hearing from both Garth Johns, of the municipality of Durham, as well as Dave Hare,
who you met earlier, who will update us on developments through the Durham Economic Prosperity
Conference. So let me first begin just by introducing you, telling you a little bit more about Garth Johns.
Garth is the Commissioner of Human Resources and Corporate Services for the Regional Municipality of
Durham, and he’s going to give us an overview of the happenings at the Region in the area of Economic
Development. Garth Johns.

                                                                                                          13
<Applause>

Garth Johns – Commissioner of Human Resources, Regional Municipality of Durham
Thank you. I just want to start out by saying Jayson noted to begin things that he was curious that an
event like this would start out an economist. I’m not sure if curious was the right word he used. But we
started out with an economist, and later this morning we came up with another economist. I hate to tell
you, but sandwiching between those is an HR guy. To borrow a line from Alice in Wonderland, “Things
just get curiouser and curiouser.” The other thing I would like to note is that when I first came in this
morning, I saw Bob and he said good morning and all of the usual things, but immediately followed that
up with saying, “you’ve got 10 minutes, you take 1 minute longer and there’s going to be a big hook that
comes out and removes you from the stage.” So, in light of that what I want to say is that I agree with
everything Jayson said, I agree with everything Chairman Anderson said. That doesn’t always happen.
He’s gone now unfortunately, but anyway, so are there any questions? The last unfortunate thing is that
even with the 20 font I still can’t read this stuff.

So, anyway, good morning ladies and gentlemen, it is my pleasure to bring you some update information
from the Region of Durham. Believe it or not, we have not escaped the ravages of the recent recession.
Unemployment is down slightly for us, but continues to hover around 9%. That’s quite unacceptable. Our
welfare caseload in Durham is hovering around at about 9800. That’s about 2000 cases more than the
pre-recession level of 7800 in August 2008. In the better times we were down below 6000, in 2005.

We have also seen some fundamental restructuring of our local economy. In the past decade in the
Oshawa area, the proportional labour force involved in manufacturing has dropped from 20% to about
12% today. Many of those lost jobs, not surprisingly, are in the auto-sector. However, recent analysis from
GM (it’s not all bad news) indicates some promising rebound in the auto-sector. Up to 15 000 workers
may be added in 2011 and 2012 at GM’s operations in Oshawa. The Region is also experiencing growth
in the institutional sector, thanks to the expansion of 3 post-secondary institutions mentioned this
morning, Durham College, UOIT, and Trent University in Oshawa.

While gross-domestic product in Oshawa declined by 3.6% in 2009 that’s the second year in a row
Conference Board of Canada does predict an improvement in 2010. Something more in the range of
3.2%. We have, as has been noted already, a highly skilled labour force. But like other jurisdictions, other
than Jayson and myself, our labour force is aging. Last March we launched the Durham Community
Immigration Portal. Conference Board of Canada has predicted that any positive labour growth will come
from immigration in this area, starting as early as 2011.

Immigration is absolutely critical to us in this area, and for those who have a chance I would invite you to
check out the Immigration Portal. It has a wealth of information, great things that are available through the
Region and through our partners. We also want to track new comers as entrepreneurs to bolster our
small and medium-sized business sector.

Transportation is obviously a key factor in unleashing our economic potential. Creating that network
requires a team effort. It’s not something that we can sit down and say, “we’re going to do this, we’re
going to do that.” Our 2005 Transportation Master Plan will be updated in the next couple of years, that’s
being worked on. To better support our maturing urban community, the new plan must incorporate a trail
plan, a bike plan, and a region wide transit system that didn’t even exist when the previous Master Plan
was first developed. Directions from the Durham Region Long-Term Transit Strategy, completed last
March, must be added. Master Plan doesn’t just serve communities along the south; we have to think of
our colleagues in the north as well. Consultation stake-holders are part of the updating process. In the
meantime, we are pressing ahead with the first Phase of our transit strategy, which is Phase 1 of our
Highway 2 Bus Rapid Transit network. This project will result in more frequent, reliable bus service right
across Highway 2 from Clarington over to Toronto. That will become Durham’s “main street” over the next
couple of years, and will support the revitalization of several downtown areas.

Our key highways 401, 7, 12, 407, are all managed by the province. All of them need improvements to
better support our economy. Highway 401 needs to be widened. Anyone who comes across east on the
401 from the Toronto area any day at 4 o’clock, 5 o’clock, bang, you just hit a logjam at Pickering/Ajax.
We need to open it up. It’s incredibly frustrating to all of us. New 401 interchange at Lakeridge Road is
urgently needed to access employment lands. If the proposed nuclear projects proceed at Darlington, a
new interchange also will be needed at Holt Road. We need to widen Highway 7 between Brock Road in
Pickering and Brock Street in Whitby. It’s proceeding, but it’s time consuming. We need to do work on the
                                                                                                         14
expansion of 404, from Ravenshoe Road to Highway 12. Again, it helps our friends in the north. The one
that received the most talk, in the last few months anyway, is the 407 East extension, which, someone
decided, should stop at Oshawa. Not acceptable, we need that roadway to go across to 35/115. There
are some positive developments in other transportation modes. We talked about GO Transit, they’re
looking at expanding their services over to Bowmanville. Again, 407 stops in Oshawa. We need to keep
the movement going.

Settlement of the Oshawa Harbour issues is great news. Infrastructure development plans can finally
move forward. That’s been in a hiatus of some sort for a number of years, we’ve finally got what looks like
things moving on there, and that’s a tremendous boon and boost for the local economy. In 2010 (this is
an example Chairman Anderson mentioned this morning) more than 30 000 tons of locally produced grain
will be shipped from that harbor. And every one of those tons represents a $10 savings for local farmers
in their transportation costs. Huge boost for us, Not only for the transportation in that regard, but also for
recreation tourism. We have a tremendous potential to develop that area, make it a great area. The
upcoming closure of the Buttonville Airport underscores the demand for air services. Some businesses
that were using Buttonville have already shifted operations to the Oshawa Airport. Others may come. It
also highlights the ongoing uncertainty regarding the federal Pickering Airport site. Strong goods
movement network that integrates air, water, rail and highways is a vital support to supply chains for
Durham operations, and copies of the executive summary from the Region’s recent goods movement
study are available today to outline those transportation challenges. That goods movement study is just
one example of the Region’s work to support Durham’s economic renewal. The goal of our programs is to
create conditions that will allow our businesses and industries to thrive. Our retention and expansion for
all of our communities and sectors is a key element of our economic development program. Formal
studies recently were completed for Uxbridge and Brock Townships and our food processing sector. This
past year we offered workshops to help people, info sessions on subjects ranging from agri-business and
accessible service to green manufacturing, the HST and tourism packaging. Our work on expansion of
broadband internet across the entire Region and again I repeat not just across south but into the north as
well, is absolutely critical. Everyone should have access to highspeed internet. We have strongly
supported an application by the DSEA and Northumberland County to establish an Ontario Research
Innovation Centre at UOIT. We eagerly anticipate Provincial approval for that initiative.

Many of you recall we had the “Art of Transition” event just over a year ago, and launched tremendous
community discussion on how our cultural assets and creative industries can help renew and diversify
Durham’s economy. It’s been mentioned a couple of times we are not solely reliant on manufacturing. We
need other sectors to step up. We’ve created three task groups who are working on action plans that will
support entrepreneurship, help us integrate culture, and improve communication and collaboration,
especially within the small and medium enterprise sector. We’ve recently adopted a new five-year tourism
strategy with directions like culinary tourism that respond to changes in the sector. We are also part of the
new Ontario regional tourism organization that gives Durham access to broader marketing schemes and
a bigger pot of funding. Attracting new investment to Region is another strategic focus. Collaboration with
our area municipalities, local businesses and the Greater Toronto Marketing Alliance is vital to this effort.
Together, we host business delegations visiting the GTA and participate in national and international
trade shows for growth sectors like energy and green technology. The name of Durham is getting out
there.

To support innovation and commercialization of research done in Durham, our economic development
and tourism department has recently developed a close link with the leadership and researchers at UOIT
and Durham College. That doesn’t exist in all the university and college towns. We have a relationship
that we are particularly proud of. That relationship also helps ensure that academic programs are
developed to match emerging local industry needs. Great examples are the new renewable energy
technology and culinary arts programs at Durham College. We are thrilled to see the creation of the Trent
at Oshawa campus. Having these post-secondary options available in Durham will help retain our youth
and keep our workforce up-to-date.

In summary, ladies and gentlemen, we clearly face challenges, but we also have some great
fundamentals in place. Some new infrastructure assets and research capacity are coming on stream.
The Region is working hard to create an environment that will support collaboration, innovation, inclusion
and diversification within our business communities. We want to put Durham on the map by tapping into
the resourcefulness and richness in our community. We want to demonstrate that Durham’s famous
manufacturing muscle is matched by its creative capacity and collaborative character. Ladies and

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gentlemen, the final message we want to convey to everyone out there is we are open for business.
Thank you very much.

<Applause>


Dianne Buckner – Conference Moderator, CBC Dragons’ Den
Alright, thank you very much, Garth. And yes, I know all about that traffic. My daughter plays soccer in
Ajax and Whitby and all those places, and we live right downtown! So, it’s a fabulous idea.

Alright, we’re next going to hear from Dave Hare. He is the chairman of the 2010 DEPC Committee, he’s
the Past President of the Greater Oshawa Chamber of Commerce, and is President of Petley-Hare
Insurance. Dave’s going to give us an update on initiatives that came out of this event in 2008. Dave…

<Applause>


Dave Hare – Chair, Durham Economic Prosperity Conference (DEPC) Committee
My notes just became briefer in the interest of time….

Ladies and gentlemen it gives me great pleasure to give a brief update on the 2008 Conference. The
Committee prepared a report of the Conference and it was sent to all Conference participants, all levels of
government and all other parties deemed appropriate by the Committee.

The report encourages dialogue among community leaders and assists in laying the groundwork for
future economic initiatives in Durham Region.

The Prosperity Conference initially a joint effort between the University Of Ontario Institute Of
Technology, the Region of Durham Economic Development and the Greater Oshawa Chamber of
Commerce expanded in 2010 with the additional support of Durham College.

This bi-annual event brought together community leaders from business, labour, government and
academia to identify potential solutions for fueling growth and creating long term wealth for the region's
municipalities.

The 2008 Conference had a line-up of distinguished and accomplished speakers. The Honourable Perrin
Beatty, President of the Canadian Chamber of Commerce opened the Conference and addressed the
local, Canadian and international economies, while profiling key sectors and demographics. Forum
speakers included: Derek Holt, Vice President Economics, Scotia Capital; Eric McSweeney, McSweeney
& Associates Management Consultants; Richard Marceau, UOIT; Mike Szarka, UOIT; Glenna Carr, Chair
of Atomic Energy of Canada Ltd (AECL); and Patrick Olive, Commissioner, Economic Development and
Tourism for the Regional Municipality of Durham. They discussed the current and future economic climate
of Durham Region.

The event wrapped up with a working lunch with the Honourable Michael Bryant, Minister of Economic
Development as the keynote speaker.

The objective of the Conference was to identify areas where economic cooperation can pay even greater
dividends, assess challenges to a regional approach, and outline the next steps to ensure a regional
approach succeeds.

The interactive discussion between panelists and delegates addressed potential avenues for future
success the Region should target, and what concrete steps can be taken to realize a prosperous future
for the Region’s municipalities. It outlined the challenges coming from the Conference as well as a
synopsis of the presentations and the panel discussion.




                                                                                                        16
The Challenges were categorized into 5 areas;

       Strengthening our Competitiveness and Investment;
       Repositioning our Industrial Sector;
       Investing in our Labour Force;
       Promoting Research, Creativity and Innovation; and
       Speaking with One Voice.

Several of the outcomes were taken up by the Ontario and Canadian Chambers of Commerce with these
organizations making recommendations;

       Urging the Ontario government to address the negative economic and capital investment impact
        to Ontario of not proceeding to complete the Eastward Extension – Highway 407 eastward from
        Brock Rd. in Pickering to Hwy 35/115.
       Urging the federal government to find a better balance between funding for research
        infrastructure and funding for research personnel in order to ensure the adequate use of the
        research infrastructure investments and Stop the Brain-Drain of highly-qualified researchers,
        graduate students and research assistants; and
       Urging the federal government to be a leader by creating a national nuclear energy strategy that
        will benefit the Canadian nuclear manufacturing sector ensuring that it will continue to provide
        jobs, investment and economic strength for the Canadian economy in the coming decades.

Finally I would like to take a few short minutes to introduce and give a brief overview of the Global
Experience @ Work Initiative Durham.

This initiative comes from the identified Challenge of INVESTING IN OUR LABOUR FORCE and
addresses the foreign credentials problem and other challenges facing internationally trained
professionals.

In efforts to benefit Durham’s small and medium size enterprises and to integrate more internationally
trained professionals and skilled workers into the local labour force, the Greater Oshawa Chamber of
Commerce was pleased to partner with the Ontario Chamber of Commerce and launch the Global
Experience @ Work Initiative Durham in the spring of 2010. This initiative was a direct result of the
identified need to address the foreseen aging labour shortages that was identified at the last Durham
Economic Prosperity Committee Conference in 2008.

Reference to power point presentation; The Global Experience @ Work as I stated is an initiative of
the Ontario Chamber of Commerce, with support and funding from the Government of Canada and the
Government of Ontario. It is also part of an OCC strategy to better promote Ontario as a career, business
and investment destination of choice, and to ensure that Ontario keeps pace with the global economy.

Over sixty community organizations are partnering in local community programs which are taking place in
15 locations across Ontario.

Under the direction of its Project Coordinator Jason Irani, this Initiative has been able to bridge local
expertise and experience with the goal towards raising awareness about the importance of integrating
foreign trained professionals into the workforce,

As a direct result of this initiative, the Greater Oshawa Chamber of Commerce is pleased to announce 2
publications available to you today.

One is a Workbook full of resources, information and references on the benefits of small and medium size
enterprises to integrate more internationally trained professionals and skilled workers into the local labour
force.

Second, is a resource guide, filled with useful immigration resources both local and Canada wide to assist
an employer, immigration service provider, including new Canadians.

                                                                                                         17
For more information on any of these resources and to learn more about the Global Experience @ Work
Initiative Durham including a FREE training seminar you can sign up for, please stop and speak to Jason
at our Durham Economic Prosperity Table.

For a complete copy of the DEPC 2008 report, presentations, power points, panel discussion, question
and answer session and the 2006 Conference report, please visit www.durhamprosperity.org.

Thank you.

<Applause>

Dianne Buckner – Conference Moderator, CBC Dragons’ Den
Good speed talking there, Dave. Alright, so, lets move on to our next forum, and again these forums are
basically just sharing of perspectives and information. We’ll do the panels after that. There are more
detailed biographies of all the speakers, by the way, in the speaker packages so I’m just going to give you
brief introductions now. Our next forum is actually 3 people. They’re going to be addressing the subject of
economic prosperity from their own unique perspectives. The 3 of them are Dr. Neil Alexander, President
of Organization of CANDU Industries. Derek Holt, VP of Scotia Capital Economics in Toronto. And Birgit
Matthiesen (am I saying that right? Ok) who has travelled from Washington, where she works with the
Canadian Manufacturers and Exporters Association. They’re all going to be speaking on the subject of
strengthening our competitiveness and investment, repositioning our industrial sectors, energy, science,
technology and innovation, and giving insights as well into what the province, Canada, and the world are
doing in those sectors.

So first of all, let me tell you a bit more about Dr. Neil Alexander. He’s been involved in the nuclear
industry for more than 25 years, with consulting experience and in-depth knowledge of business
management, marketing and sales. He’s a long time advocate of nuclear power as a secure and
environmentally sensitive source of energy. Dr. Alexander has worked for business-to-business service
companies within the nuclear services waste management and radiopharmaceutical sectors in the UK
and in Canada. He’s the president of OCI, the Organization of CANDU Industries. Please welcome Dr.
Neil Alexander.

<Applause>

Forum #2 — Economic Prosperity
Dr. Neil Alexander – President, Organization of CANDU Industries (OCI)
Good morning everyone, I’m another one of the people that is in the ‘young’ category, and not getting
older. You’ll notice nowadays is that the style is that we wear our hair white or gray. It’s very popular. I
often wonder when I stand up at these events whether anybody has any interest in what I’m saying, so I’d
just like to calibrate it: anybody out there use electricity?

Okay, a few of you. Anybody use that electricity 24 hours a day 7 days a week? Yeah, absolutely. Modern
society is entirely dependent upon electricity. You do not want to be in a hospital waiting for an operation
wondering whether the power’s going to go out while they’ve got you opened up and are working on you.
Even simple things like our offices cannot run unless we have reliable electricity, because our computers
go down, they crash, and if they’re anything like my computer they come up working some different way
to the way they did when they went down. Then you are completely lost for the entire day until an IT
expert shows up. We are entirely dependent upon it, and yet we have some very significant challenges in
understanding how electricity works. Our electricity system is remarkably complex, and it is the most
perishable commodity that we use in our lives today. Electricity is produced and used instantaneously,
and one of the challenges for our electricity system is that we never know when people are going to be
using it. There are trends and patterns, but then there are hockey games and things like that that come
along to confuse the system. So it’s a very difficult system that requires a lot of balance, and I want to talk
a little bit about today (to start with) about balance, because it’s very important to us. And we have some
challenges to our system that are throwing us out of balance.

Reference to power point presentation; This is probably the most frightening statistic I have come
across recently, and that is that more than three quarters of Ontarians do not know where their electricity
comes from. And yet, most of those people are involving themselves in discussions about where it should
come from, so it is very much the blind leading the blind. More frighteningly, 50%, more than 50%, over
                                                                                                           18
half of Ontarians believe they know where their electricity comes from, and have got it wrong. So, if we’re
running our electricity system on a democratic system, it’s going to be a disaster. And as I think Jayson
was saying, occasionally nowadays policy goes to one side in order to deal with political matters and that
can be a challenge, particularly when we’re dealing with long-term strategic issues. So that is an
education point that we’ve got to move past and get people to understand so that we can start making the
right decisions.

I can understand why they don’t make the right decisions, and I’ve completely made this statistic up. I’m
often discussing nuclear energy with anti-nuclear groups. They make their statistics up, so I thought what
the hell, I might as well do the same.

<laughter>

Anyway, so these are very clearly mine and it’s just an assessment, broadly, about what goes on in
Ontario at the moment. Media attention, almost entirely on wind and solar. These are very important
technologies and we should certainly be investigating them, that they have a lot to offer us. But the
attention is something in that size. Nuclear has had a couple of discussions lately, gets the word in now
and then. Natural gas, virtually never mentioned unless you happen to live in Oakville, and we’re not
going to be mentioning it much in the future either. So, that’s the kind of layout as to what people are
reading about and likely what is driving their decisions in terms of the importance and one of the reasons
they might be confused. This is what the supply system actually looks like, and these graphs/pie-charts
have been deliberately made too small for you to read, because you’re going to help me understand them
in a minute. I really want to drive this point home. Two important categories and showing the trends from
2003 to 2009 in stored capacity is if you ran all of your electricity generation that would be the proportion
coming from various different technologies. The production capacity, because you don’t run all of your
generators all of the time, the production capacity is how much of your electricity in a year came from the
various different technologies. So this is the important one, and you can see here that nuclear in the
province of Ontario produces way over half of our electricity. It pretty much has always done so, during
the period that Ontario has been a manufacturing province. It’s a very important part of our electricity
production systems.

To give you some concept, what I’d like to do is have everybody behind the microphones stand up, so
you can be our nuclear fleet? I’d like to try and demonstrate exactly what these proportions are. Oh go on,
it’s not too difficult, you just put your feet on the ground. There you go. So get used to standing up,
because you are our nuclear fleet, and you will operate somewhere between 90 and 95% of the time.
Now, I’d like to establish our wind generators, and I thought the mayors would like to stand up and identify
themselves. Now, the story behind this is I thought wind is very important and when I heard the number of
mayors… (laughter)…

I would say that 2 weeks ago you’d have been on your feet much quicker and probably taken the
microphone from me. So the mayors can be our wind generators. It did say in my notes, “call them
important people.” But before that it said, “find a couple of windbags.” Mayors seem to come to mind. So
you’re our wind generators, now could you sit down again? Okay, can you stand up? Can you keep doing
that now, at about roughly that time-scale? Because that’s Ontario’s wind generators coming on and
offline.

Bob, we’re going to do solar. Bob, you’ve a bright sunny disposition, are you still around? Exactly. I’d like
you to raise your arm in the air, because your arm is our solar power. In fact, you’re solar bio-mass and all
of the rest put together. In fact, if you look out the window today you actually don’t need to put your arm
up at all, you can put it back down. So, that’s the reality of it…so the mayors have stopped bobbing up
and down, I really wanted to see that. But that’s the reality of our situation.

The reason I wanted you to do that (you may sit down again) is to put the reality of the situation into
peoples’ minds that there are a lot of anti-nuclear campaigners, complainers is probably as good a word,
that are out there at the moment that are trying to say that we shouldn’t invest in our nuclear fleet. We
should put all of our money into solar and wind, and I hope you can see from this that whilst it might be a
good idea to invest in solar and wind you cannot take your eye off the nuclear fleet if you want to have a
successful 24 hour a day 7 day a week electricity system. And we have some challenges to our system,
and they are that we know that Pickering is going to be taken out of service in 10 years time. Before then
we are going to have to take the Darlington units down for refurbishment. So if we are going to have
clean, non-greenhouse gas emitting electricity generation to replace Pickering we need to be starting to
                                                                                                         19
plan Darlington too, and actually we need to be making progress on that project in the very near future.
The cycle of time for a nuclear project is 10 years from when you start, really start work, to when you start
connecting it to the grid and start producing electricity. So we don’t have the luxury of time for these
decisions. My first message today is we mustn’t take our eye off the nuclear ball. We do have to keep the
province aware of the fact that it’s got to be making that decision, and it’s got to be making it soon.
Otherwise, we won’t have the electricity we need to run our industries, and that would be a disaster. The
upside. . .

Oh, sorry. I just wanted to make a comment about Sweden. Sweden, I tell people, is a country of about
10 people, 5 of them are very rich and have villas in the Mediterranean that they go to for the winter when
the power demand’s high. They’re also a country that is used to their government telling them what to do,
and they go along and do it. It’s very different from Canada. It has plentiful resources, and it took a
decision a number of years ago to exploit those resources to the maximum and not to invest in their
nuclear program. They did that. Last year then they came back and they said, “we concede the futility of
trying to build a modern nation on a dream,” and they re-established their nuclear program. So, we’re not
the first people that have been too distracted by these other issues, and they’ve had to turn around and
come back. The same is true now of the United Kingdom.

Benefits. Benefits to the region are that the great thing about nuclear power is that the jobs are created at
the point where you generate the electricity, not where you dig the stuff up out of the ground. So that’s a
fantastic benefit to the region. A great leader that we had here, Gregory Smith, he used to be the site VP
for Darlington, he used to say that the only more labour intensive way of producing electricity at the site or
in the region is to put people on treadmills and make them run to produce electricity. He’s kind of right.
They are very good employers, and they are employers locally. And that’s why actually nuclear power
plants are very popular in their localities. They create jobs, as Jayson said, each job that you produce has
spin-off jobs. As well as the jobs on-site which are well paid jobs for highly skilled people. They’re also the
safest industrial jobs in the province. You should want your children to go out and work at nuclear sites. I
found out recently that the divorce rate amongst nuclear engineers are in the lowest category of all
divorce rates. So you should not only want your children to go and work at nuclear sites, you should want
them to marry people who have gone and worked at nuclear sites as well. There’s benefits all over the
place. And there are spin-off jobs all around, too. Nuclear sites require telephones, they require computer
services, they require coffee shops as the people drive in to the sites. Huge opportunity for Tim Hortons
as we build these facilities. And they operate for 60 years. 10 years to build them, 60 years to operate
them, 10 years there after. A fair amount of work as you close them down again. So if you want to create
solid jobs, once you’ve got a nuclear facility there it goes up, people can go and work there for their entire
careers if they want to, and retire from that one facility in certainty that it will still be operating. So
tremendous local economic benefits.

There is a renaissance taking place in the nuclear industry around the world. In the early 2000s there
were no new plants being ordered. Today, as I stand before you, there are 50 new units in construction
around the world. There are something like 400 in planning phases. I did this slide less than 3 months
ago, and during that period Vietnam was up there as a most-unlikely project, came right through, and is
now right at the bottom-end of the sales front about to place an order. That’s the kind of thing that’s
happening. U.A.E. recently placed an order for 4 nuclear reactors. If I had stood before you even 5 years
ago and told you the United Arab Emirates would be buying 4 nuclear reactors, you’d have asked me
what I was smoking. And a fair number of you probably would ask if you could have some too.

Now, what’s the size of these projects? Well that United Arab Emirates project, Korea was actually
successful in winning that. It’s a shame, Canada is in the business of selling nuclear reactors, or used to
be, and we’d like to get it back into that position. But the Koreans won this one. They have a very
substantive drive into the nuclear industry, they’ve recognized the opportunity. But when they went back
to their people and they said, “we’ve just signed a project for 4 nuclear reactors with the United Arab
Emirate.” You probably don’t know what that means but you build supertankers. So let’s tell you what it
means in terms of supertankers. Those four units are worth 180 orders for a 300 000 ton supertanker.

Reference to power point presentation;
That’s a 300 000 ton supertanker. And this is going to be one hundred and eighty, 300 000 ton
supertankers. Imagine the value of that to this region if we could have secured that project and be doing
that project. We don’t build supertankers, so clever people will realize that’s not 180 so we need a couple
more to come in. And really clever people will realize that even with the 4 that I had here I’m still 1

                                                                                                           20
missing. But that was the one on the previous slide, so that’s actually a total of 180. Huge amount of
work.

We don’t build supertankers here, so let me put it in another context. That one project was worth the
same as an order for a million cars, that’s about two thirds of Canada’s entire output in a year of vehicles.
So a tremendous order, and that was 4 units. 50 are in construction, 400 are going to be built. That’s the
market size we have out there.

Canada used to be in the business. We have our own brand, the CANDU brand. Atomic Energy of
Canada Ltd. are being restructured at the moment. Nobody wants to buy a reactor from a company when
they don’t know that company is going to be in existence to support it. So it’s very, very important that the
government gets on with the job and successfully partners AECL with people that have the money to take
that technology forward, and to create the benefits for the region that would come out if manufacturing
components equivalent in size to a project of that magnitude.

So in conclusion, we’ve got to keep appropriate attention on what really makes a difference to the
electricity in the province, and that’s our nuclear fleet. The Darlington second station will immediately
create jobs, an enormous construction project in the region and will create sustaining jobs into the far
distant future. And if we use it for a strategic reason to demonstrate the capabilities that we have with our
own technology, we’ll then be able to go and sell that around the world. And we will be the people making
those 300 000 ton supertankers. Thank you very much.

<Applause>

Dianne Buckner – Conference Moderator, CBC Dragons’ Den
I’m trying to think of something we can make you do now. Standing, waving, jumping, do the twist,
maybe?

Now, our next commentator here is a gentleman who…last time I saw you we were on the set of the Lang
And O’Leary Exchange I think, Derek. Derek Holt is the Vice President of Scotia Capital Economics in
Toronto. He’s actually back by popular demand. He’s presented at both of the two previous conferences
here in Durham, and the last conference actually was just before the downturn. It was 2008. I wasn’t here,
but apparently his predictions were very, very accurate. So, that’s why he’s back again to try and repeat
that. He has broad responsibilities at Scotia Capital for applying economic and capital market forecasts
and research to fixed income and to equity markets. So let’s hear what he has to say today. Ladies and
gentlemen, Derek Holt.

<Applause>

Derek Holt – Vice President Economics, Scotia Capital
Thanks very much Dianne. Good morning everyone, it’s a pleasure to be back here. This is always a
great group to speak with, although I have to admit when I first walked in the room and I heard Dianne
mentioning that this was a forum of great thinkers, I felt a little intimidated. That’s something that I would
reserve in terms of the accolades for people like Jay Myers, who deserves that. His organization’s done
fantastic work. I work on a trading floor. These days trading floors, great thinkers, it’s a bit of a tough sell
in the global economy. In fact, two tell-tale characteristics of the kind of environment we’ve been in, in the
last couple of years; myself and a number of my colleagues have generally tended to give up caffeine a
lot more than in the past, and then number two I swear to God no joke, no word of a lie, our health and
safety committee took the opportunity through this crisis to install defibrillators on the walls of our trading
floor. That’s an indication of the kind of environment we’ve been in, in the last 2 to 3 years.

What I have in mind for about the next 15 minutes or there-about is to not put you through any exercises.
Although, Neil did a fantastic job with that. Instead, I intend to give you a frank assessment of where the
Canadian economy is going over the next few years. We are at a transition point in terms of what we can
rely upon to drive the Canadian Economy in the context of a fairly weak global economic backdrop that
will present a number of risks but against that, a number of opportunities, including to many of you, the
business people who are running our economy on a day-to-day basis.

Reference to power point presentation;
I’ve tipped our hat right off the bat in the title to this presentation in terms of where I’m going with this.
We’re not going to enjoy a repeat of the past 10 years in which the Canadian economy has outpaced
                                                                                                            21
many of our G7 peers on average annual economic growth throughout this period of time, principally
because of the outperformance of our consumer sector and our housing markets.

These days are done, they’re gone. We’ve pretty much booked about as many of the gains as we can
expect from those sectors going forward. You, our business people, our exporters, sources of net trade.
These are the sources of strength that we are going to have to rely upon more aggressively in order to
steer the ship over the course of the next few years. And we are going to grow at a considerably softer
pace than what we’ve become accustomed to in the last few years. As we go through the presentation, I
will mention the pros and cons to the net outcome of the general take on the economy.

To start off with, just a couple of brief points about the U.S. economy; we’re not terribly upbeat on the
continued outlook for the U.S. In fact, I think they’ve entered a nasty period of political divide in the U.S.
Congress. It’s going to lead to an outright stale-mate in terms of the prospects for fiscal policy to do any of
the heavy lifting required throughout the rest of this very, very muted, soft, volatile recovery that the U.S.
is going through. The two key debates are whether or not there will be enough meeting of the minds in
the middle in order to extend jobless benefits that expire at the end of this month, but also to extend tax
cuts that expire at the end of this year. This is going back to the Bush administration’s tax cuts that were
implemented in 2001 and 2003, and that all expire by the end of this year, including from marginal
personal income tax rates, estate tax rates, tax rates on investment returns. A broad variety of taxes are
slated to go up at the end of this year, by multiples of percentage points for all different classes of income
earners. The Obama administration says, “We’ll extend those tax cuts for households earning up to a
quarter million a year but beyond that you’re on your own.” And our view, if that’s all that they do and
there isn’t a greater meeting of the minds, we can look forward to a step back in the U.S. consumption as
we go off into next year. On this, we would side with the thinking by respected economists like Martin
Feldstein of Harvard University and past President of the National Bureau of Economic Research. And we
would point to research we’ve done that argues that it’s the upper income earners who have done much
of the heavy lifting on the consumer spending cycle in the past, and who are doing much of it now. Even
when you look at Mercedes-Benz sales in the United States, it’s the U.S. and China that are that
company’s top two sales markets in the world right now. The luxury goods segment is doing quite well.
The upper income earners are what have driven 40 to 50% of aggregate consumption growth In the U.S.
economy. Obama is not doing a great service to the debate by essentially committing himself not to
extend tax-cuts for the upper earners by saying that he doesn’t want to give tax cuts to millionaires and
billionaires. That’s not the kind of income segment that we’re dealing with here. If we don’t get a greater
meeting of the minds in the middle on this, then I think we are looking at a very rocky road for U.S.
consumption off into next year and a higher personal saving rate.

The other concern that we have, however, in a broader context, in the broader fiscal policy political
landscape, is that fiscal policy is about to turn direction in the U.S. economy towards being much more
restrictive than it has tended to be in the past 1 to 2 years. Just by virtue of taking the Obama
administrations net stimulus profile for spending and tax revenue and spending numbers over the course
of the next few years, we crest right about now in terms of its contributions to economic growth and then
start to wane on a quarter-by-quarter basis and see fiscal stimulus coming out of the system. That is
sparking a debate on a wide variety of opinions on how exactly it will translate in terms of a hit into U.S.
economic growth off into next year and the year beyond. The Bank of Canada’s assumption is essentially,
“don’t worry, be happy.” And less than 1 percentage drag on U.S. economic growth in the next 1 to 2
years. Other respected economists like Robert Burrow of Harvard University would argue that we all
know, be careful here, the multipliers are a lot more severe than perhaps people of the Bank of Canada
are assuming. We have to knock maybe 2.5 percentage points, maybe even more, off of the U.S.
economic growth throughout this transition period. That means that it’s going to require enormous
strength in the private economy to pick up the slack and eek out pretty modest economic growth rates in
the U.S. GDP over the course of the next couple of years. In fact, so much so that we think we need 5 or
6% growth in private demand, consumption, business investment on the whole, and housing markets in
order to absorb the impact of the coming fiscal crunch that’s going to really have binding effects on U.S.
growth prospects.

Why do we care? We’re the most affected in Canada in terms of U.S. growth prospects among major
regions around the world. For every 1 percentage point hit to U.S. economic growth we get dinged by
about a half a percentage point in terms of longer average studies. One might even argue that it’s a bit of
a greater hit in terms of certain sensitivities that the IMF has estimated over this longer run period, if we
evaluate it in the current context. That’s why people like Mark Carney, governor of the Bank of Canada,
are very, very concerned about the outlook for the U.S. economy. That’s why rates are on hold in
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Canada. In our view, short-term interest rates parked where they are until the fall of next year. In part,
because of the uncertainties over the political landscape, the fiscal policy outlook for the U.S. economy,
the broad direction of the U.S. economy, and the domestic concerns that are going to be the dominant
focus for the rest of my presentation.

In fact, this is the punch line in terms of the rates outlook. If you’re an investor, forget floating rate notes,
forget money markets, you will not earn considerable returns on your cash holdings throughout this entire
environment over the course of the next couple of years. I think we’re in a prolonged environment of very,
very low short-term interest rates. In fact, further up the curve I would expect that to also be characteristic.
Business borrowing costs, I think, are going to be very supportive of your capital spending plans. Great
opportunity, once in a lifetime opportunity, to retool your operations given the particular impact of lower
interest rates; an elevated level of the Canadian dollar, given that we tend to import over two thirds of our
capital goods spending from the United States. A great opportunity to import computer software,
machinery, and equipment. We have the balance sheet strengths in Canada on the corporate balance
sheet picture to support those, and we have tax incentives on top of it all that go throughout much of next
year.

The downside, however… (and the next few charts, I have to warn you, are going to be a little bit bleak,
but I’ll end on a positive if for no other reason than the fact that the liability costs of getting insurance on
presentations like this, if you leave people at the end of the presentation on a bleak note are just
prohibitively expensive).

We’ve tapped out in terms of the potential for consumer and housing markets to continue to drive growth
in the Canadian economy. The homeownership rate is at an all time record high. The last time it was
measured was 2006 and even then it was a record high. Unfortunately because of the foolish, short
sighted measure of the federal Government to drop the long census we won’t get an update on the
homeownership rate in the 2011 census. So we’re left guessing as to how many people actually own
homes in Canada. Our guesstimate right now is that about 70% of Canadians are in homes. That’s higher
than the U.S. homeownership rate that peaked out at 69% back in 2006 or there-abouts, and has since
drifted a few percentage points lower than that. We’ve put more people into homes today in the Canadian
economy than we’ve ever done in the course of history in the past. Because of low rates, because of
mortgage innovation that started in 2007, because we’re taking on riskier borrowing appetite, people go
on longer-term amortizations, ensured investor mortgages arrived only 2 to 3 years ago, we’ve changed
the dynamics of the landscape in terms of this argument. I don’t think going forward that we can expect
continued gains in that regard. In fact, I think this is showing a cycle, topping out in the homeownership
cycle. In fact, going forward over the next 3-5 years, if we want to talk broad themes for your business-
planning environment I think you can expect, at best, housing market demand to run in line with the broad
population dynamics and the rate of entry into home ownership cohorts and the demographics
fundamentals as opposed to pulling in higher percentages of people into homeownership.

We have driven renovation spending into an all time record high. The home renovation dream is alive and
well for a lot of Canadians still. My wife and I, actually I think - are that last blip right on that chart. I have
myself scratching my head every time we go home at the end of the day, wondering what were we
thinking on some of these projects and I can say that because my wife’s not in the room today.
<laughter> But, this is another sign of what I think is raising bubble concerns for the Canadian household
sector in Canada. Our house prices, while the U.S. has corrected and pulled off its peak, our house prices
have plodded on to ever higher heights, all time record highs. It doesn’t matter how you measure
this…average resale prices, average new home prices, if we take the Canadian equivalent to the
preferred U.S. measure, which is the S&P/Case–Shiller Repeat Sales Metric that tracks the same homes
sold over time, and look at the retirement age in Canada. That, too, is at an all time high. The U.S.
experienced house price gains from 2000 to the 2006 peak equal to about 105%. In Canada, we’re up
about 100% over the course of the past full decade. Other than gold, I can’t think of what better
investment households have been able to make, particularly given the tax-shelter nature of this
investment over that span of time. Some analysts will say, “don’t worry about it. It’s just one or two
pockets in the country driving much of that.” Don’t buy that, that’s nonsense. Over the course of the past
decade, every single province across the country has experienced massive gains.

We can’t judge who has participated in this housing boom in the context of the last six to twelve months
worth of house price data. Over the full decade, every province has experienced or most of these
provinces, have gone up 80 to as much as 150 or 160% on house price gains over this full span of time.
That’s something that’s run its course in our view, and poised to pose downside risks to house prices. In
                                                                                                               23
fact, I don’t rule out for one minute the possibility that we might be looking at a 10% pull back in average
nationwide house prices as we go off over the next couple of years. We’ve also leveraged many of those
gains to ways that Canadians have simply not done in past cycles. One measure is the debt-to-assets
ratio. The United States tops the charts; nobody takes on debt better than Americans. It’s a national
advantage, a great, great strength of theirs. In Canada, however, we’re second in the G7 in terms of the
amount of debt we use to fund our asset-book. This myth that we’re somehow pure and manage
ourselves much more conservatively than the United States is just that, I think it’s, in significant part, a
myth. On debt-to-income we’re at an all time record high (that’s not this chart but I’ll come to this in a
moment), we sit at about 145% worth of after-tax income sitting in the form of debt. That’s an all time
record high in Canada, and not too far off the U.S. picture, and among the highest in the world as well.
Perhaps only Australia exceeds us, but well ahead of many of the European economies.

As a share of after tax incomes, Canadians are spending more to service their debts now than they’ve
ever done in the past, despite low interest rates. Back in the early 1990s we were paying less out of our
incomes to service our debts, despite the fact that 90-day bills were trading in and around the 12 to 15
percentage point range. Because the Bank of Canada was hitting the brakes on interest rates to cool
inflation risk. The reason why we’re paying so much to service our debts is because households took
advantage of that movement towards a low interest rate environment by taking on higher than average
sized debts, hence allocating more of their incomes towards the principle component to their debt
payments. You’ll see that on this chart, the black line is showing the ramping up of the share of incomes
going towards paying principle on their debts. Back in the early 1990s was about 5% of income, so it’s
about triple that right now. Just to give you an idea of the extent to which Canadians have really ramped
up on their debt positions. The top redline is the aggregate share of the incomes going to resolve debt
payments. In fact, not all debt payments, what we can’t measure is some of the consumer lending
products, because we just don’t have the data for that on the principle side of the picture. So the true
measure is actually higher than this.

Now, I’ll step back from the edge, it’s a good thing we’re on the ground floor even though there are
windows here. There is better news, actually, to end our presentation on.

I do firmly believe that we’re entering a much softer environment for our housing market and the
consumer strengths. Even though we’ve gained 425 000 jobs ever since August of 2009 when the job
market expansion began in Canada, and that by the way would be comparable to a pace of new growth in
U.S. job markets equal to about 4.5 million jobs heaped on the U.S. economy, and they’ve come nothing
shy of that. Although this morning’s print was encouraging, they grew all above the consensus
expectation for jobs, but they have a long, long way to go in terms of a path going forward.

Against those risks however, any tendency to draw further parallels back to the period of time we went
through in the 1990s I think is dead-on wrong. We have many more strengths that we can leverage in this
current context that insulate ourselves against these household risks and that shift the opportunities,
wisely so in my judgment, away from allocated so much excess capital towards housing markets and
consumption, and more towards funding businesses and bright ideas and capital spending and longer-
term thinking, in terms of the Canadian economy. As opposed to here-today-gone-tomorrow types of
consumption that soaked up so much of the capital in the North American economic landscape.

One of those strengths is you. You’ve managed your balance-sheets far better than you’ve tended to do
so in the longer-term past. The redline here showing the amount of debt that exists on Canadian non-
financial corporate balance sheets relative to the amount of equity, was out of control by the late 80s,
early 1990s. You remember the Drexel Burnham Lambert, Michael Milken days, the junk bond kings, the
late 1980s, the debt in corporate capital structures was just frankly out of control. Over that span of time
they’ve brought their debt-to-equity ratio downed sharply for a lot of reasons. For one, lower inflation
discourages so much debt in that context. For another, as interest rates have fallen they’ve lessened the
interest write-offs against taxes for a lot of businesses that also discourages debt relative to equity. At the
same time, corporate income tax rates have dropped throughout this period of time. That also lessens the
interest tax shield savings on corporate earnings from the write-off effect.

I think they’ve learned from the early 1990s, that was a nasty period, many of these companies were on
the brink and or failed so they’ve responded in lagged fashion by managing their finances much more
conservatively than in the past. That gives them a tremendous strength. In fact, in a paper we published
this week, one of the key areas of strength that we’ve flagged was that corporate balance sheets in

                                                                                                           24
Canada are among the strongest anywhere in the world right now, judging by metrics like debt-to-equity,
interest coverage, and comparable measures.

Canada’s public sector was in a mess in the 1990s. We learned, we pulled back from the brink. The mid
1990s was not kind to this country. The Wallstreet Journal called us a “Banana Republic”, we don’t like to
be called Banana Republic. It hurts our national pride. The ratings agencies threatened downgrades. Our
Prime Minister wasn’t particularly capital market savvy in the day, he dismissed capital market’s critics as
quote, “armchair observers who wouldn’t know how to run a country.” Didn’t go over well on global capital
markets! We’ve learned from that and de-leveraged long before much of the rest of the world ever settled
on that path. You hear all the headlines now about the huge fiscal problems facing the U.S. economy and
much of Europe? That was Canada mid-1990s. We’ve pulled our debt-to-GDP ratios well off of those
peaks. We’ve reformed ourselves. That’s one of the other reasons, along with corporate balance sheet
strengths, why Canada outperformed and performed much better than the huge vicious downsides to
house prices and jobs and other economic fundamentals in other countries.

Another positive, despite the U.S. having seen its home equity position vaporize, in Canada it’s much,
much stronger. This is the difference between the value of a house minus the debts owing on that house
divided by the value of the house, it’s a percentage measure. What we have still invested in our homes is
almost double the ratio that Americans have invested in their homes. I think we may give up a little bit of
that in the short term, but we’ll still retain a strong advantage over Americans in that context. And the key
here is because leverage doesn’t operate in the Canadian economy anywhere near what it does in the
U.S. Households may have leveraged themselves up comparably as in the States, but the key differences
are that our banks are far stronger than they are in the States, with far stronger capital ratio positions.
This is why the World Economic Forum ranks Canadian banks tops in the world, in terms of their
resilience and stability, compared to other banks elsewhere. It’s why people like Paul Volker, past
Chairman of the U.S. Federal Reserve, continues to heap accolades on the banking sector in Canada.
That strength is what enabled them, through their buffers and capital sources of strength, to continue
lending throughout much of this crisis, or to not retreat in other categories of lending to anywhere near the
same extent which occurred elsewhere in the world.

And lastly, Canadians have a huge cash buffer. It’s not doing them any great favours right now because
they’re earning a ‘big donut’ on it in this kind of environment. But it’s a great credit-quality insulating
factor. They stand on about 1 trillion dollars worth of idle-cash, sitting on household balance sheets right
now in the aggregate Canadian economy. That, too, is at an all time market high, and they’ve continually
ramped it up during the period of (in frankness, in all fairness to them) pronounced equity-market volatility
throughout much of the past decade. That, too, is a good supporting factor to the outlook for consumption
along with the jobs picture in the near term. At least carving out bottoms, but I think most of that is
probably going to get re-deployed over the longer term towards some better investments.

I’ll end on this slide, (these slides are available by request if you would like), with some comments on the
health of Canadian mortgage markets. And this is the most important point that one can make, going
back to the negative comments I was making about the risks facing our household sector and housing
markets. We do not run the same mortgage market in Canada. We check your incomes, we actually
make sure that you have the house papers that you are claiming to purchase. We don’t engage in things
like liar-loans or ninja-loans. No income, no job, no assets, here are the keys to your new home, like they
did in California. We don’t securitize or parcel off the loans and sell them off to the blind market as much
as they did in the United States, to anywhere near the same extent. Much more of our bank mortgage
book is, in Canada, funded by stable deposits. As opposed to the revolving door type of funding that
characterized Wall Street, where they originated the loans and then sold them off as quickly as they
could, in an elaborate game of musical chairs where you don’t want to be the last one looking for a chair.
In that context, this whole long list of competitive strengths facing our mortgage market is what insulates
us against any more material downsides to our housing markets.

Closing, I’ll leave you with a concluding comment. The Bank of Canada, we think, is on hold until next fall.
By the time they start to raise interest rates, they will do so at a modest pace. This is a generational
turning environment of prolonged lows and interest rates for a multi-year period of time; I think we’re
looking at. However, get used to a very, very strong Canadian dollar, because of the problems affecting
the U.S. fiscal landscape and the deteriorating appetite for risk in world markets that is shifting towards
merging markets relative to the United States. I think this is going to be a prolonged period of time, which
appetite for holding U.S. dollars is going to be diminished. And that’s probably going to put upside
pressure on our Canadian dollar. Don’t rule out for one minute any of our forecasts, in fact, that the
                                                                                                         25
Canadian dollar goes up another nickel beyond parity against the U.S. dollar as we go off into the end of
next year. This is an environment in which we have the strengths to leverage balance sheets, low interest
rates, cash positions, to invest, to become more productive and efficient, in the context of a prolonged
period of time in which the Canadian dollar is going to be at elevated levels against the U.S. dollar, just by
virtue of the problems they are going to be going through in the U.S. economy for a long period of time.
Thank you very much for your attention, and I look forward to the panel.

<Applause>

Dianne Buckner – Conference Moderator, CBC Dragons’ Den
Alright! Thank you, Derek Holt, for a really interesting overview of so many different points.

Now, another interesting speaker coming up, the last one before we take a short break, and she’s come
all the way from Washington DC. Perhaps she’s going to give us some insight into the recent US election
perhaps, we’ll find out.

Birgit Matthiesen, is currently the Senior Advisor to the President of the Canadian Manufacturers and
Exporters Association. Her specialty is U.S Government relations. In this capacity, Mrs. Matthiesen is the
Association’s point person in the United States to advocate trade and economic issues on behalf of
Canada’s manufacturers and exporters. She covers the Hill, the Executive Branch and works closely with
U.S. associations such as the National Association of Manufacturers, the US Chamber of Commerce and
other groups, always working towards a common North American competitiveness cause.

Now, prior to joining the CME, Mrs. Matthiesen was on staff at the Embassy of Canada in Washington DC
in the Economic and Trade Policy Division. Please welcome, Birgit Matthiesen.

<Applause>

Birgit Matthiesen – Senior Advisor to the US President, US Government Relations, Washington and
CEO of the Canadian Manufacturers and Exporters (CME)

Divorce rate among nuclear engineers, where do you come up with this stuff? That was the only thing I
took in from that presentation. I have two sisters, where’s that conference being held?

Well good morning, your honors. Thank you very much for asking me here to speak to you today. I am
speaking in front of my boss, so everything he said was wise and wonderful and I’m just going to humbly
try and give you my remarks from the Washington perspective.

My introduction pretty much says it all. I have been working with CME for two years now in Washington;
it’s the best gig in town. Truly it is. I spend an awful lot of my time, however, in making the case that
Canada is distinct, that Canadian manufacturers are a trusted and competitive business partner in North
America, its not always about China (a little bit more about that later on in my presentation). But it’s an
uphill battle. I came back up to Canada via Montreal, that’s my hometown. About a week ago, just before
the elections as a matter of fact. So I’ve sort of been hopping down the 401 to get to you today. I was at
the UOIT in Oshawa yesterday and that’s a pretty impressive place.

But when I got to my hotel room in Montreal, I of course (like any policy wonk) turned on first CNN (sorry)
and then CBC, and watched the midterm elections. And I will tell you as a Canadian observer in the
United States for a long, long time, married to an American, Canadians are far more sophisticated and
aware of what is happening in the States than vice versa. Not only are you aware, you are better
informed. I had to turn away from CNN with all their techno-classy-gitzy maps of the electromap of the
United States to turn on to an excellent series of panel discussions on Canadian media about the U.S.
midterm elections. Even my husband was pretty impressed and noted that fact. It is hyperbole in the
United States, the era of rational conversation both public, and probably private, conversation is over and
the midterm elections last week pretty much said it all.

The results of the elections will have enormous consequences for us. But let me just make one thing very,
very clear at the onset. The big prize was not last week; the big prize is two years from now in 2012 when
the Presidential elections will take place. And there will be 2 years of gridlock. I completely agree with the
presentations of my co-panelists, both on the economic front and on the energy policy front. We have
now a period of 2 years that I’m going to start calling the Period of Two and a Half Party system in the
                                                                                                          26
United States. We no longer have this monolithic Republican Party that we thought we knew 10 years
ago, even 4 years ago. Frankly we don’t really have the Democratic counterparts that we thought we
knew. What we do know is that presumptive speaker Mr. Bayner will have his hands full in doing two
things; rallying the troops, there were a number of not only freshmen candidates in the now 435-member
house, there are a number of Tea Party candidates. Make no mistake, they might have been kinda wacky
before, they are now becoming and have shown themselves to be an organized voice. What their action
plan and game plan is going to be is still up in the air, but they will be arriving in Washington on the Hill on
            rd
January 3 2011, and man they’re going to be revved up. They will not be the typical freshmen
candidates who stood gleefully in the back benches getting their brownie points until they get an
appointment to a committee. They will be, not only very active in Washington; they’ll be backing their
constituents at every opportunity. And so, Mr. Bayner will have his hands full in trying to A) determine
what the Republican agenda is over the next 2 years, how he’s going to show GOP leadership in the next
2 years, and trying to manage (I’ll just use that word for the moment) his extreme Right in the GOP party
which is much stronger. And that GOP Conservative Right is bolstered by a far-reaching shift at the
constituent level in the United States towards Social Conservatism. And also patriotic, a sense of
patriotism in the United States that’s going to manifest itself, for the purposes of this audience, in very
many ways and I’ll give you a few suggestions.

On the Democratic side you had loss of number of seats for the senate, for Mr. Reed. Not only is that the
case, we’re down to, I can’t remember, 52 for the Dems. So they still have the majority, they don’t have
the filibuster proof 60; they lost that last year. But Mr. Reed himself had quite a battle in his home state
with a Tea Party candidate. And he, personally, will be always watching his backyard in the next 2 years
to make sure that he doesn’t overstep his political brownie points and his playbook, either. And then of
course you have for the next 2 years the same players in the administration, that did not change, that will
change in the next presidential elections. So what we can expect on the Hill, well, for the next week or so
it’s going to be a lame-duck session. With the same players and the same members and the same power-
schemes and leverages in Congress as we had before the elections. That will be the case until the end of
this calendar year, before the new session starts. So we have a lame-duck session, they left town to go
vote with not a lot having been accomplished. The government is still operating under Continuing
Resolution. They did not even get one of the key 13 Appropriation Bills, I don’t even think, passed out of
committee. So who knows what’s going to happen with the lame-duck, it might be ominous government
spending.

Why do we care about that? Because those ominous Appropriation Bills are huge, they can be voted
upon in the middle of the night as we’ve seen in the last two or three cycles, and there’s a lot of pork
barreling going on in these Appropriation Bills. Me, and many of my colleagues in Washington DC are
going to have some sleepless nights in the next 2-3 weeks. Budget cuts were mentioned, also I think it is
before the end of the calendar year, if not very early in the new year; Mr. Obama’s Deficit Commission is
going to be announcing their conclusions and their recommendations. I doubt very much that any one of
those recommendations are actually going to be acted upon, but its going to bring out a lot of extreme
rhetoric, a lot of political dialogue, and there’s just that much time on the Hill and I think therefore that if
we’re going to get any legislation it’ll be very targeted legislation, almost ‘must-pass’ legislation and no
way of knowing what final vote counts will be until the votes are counted. It is that cantankerous. So yes,
it is a period of gridlock, and as we all know in this room, business hates gridlock. Business hates
uncertainty.
                                                                                                  th
I don’t think that there’s a hope in heck that we’re going to get energy legislation in the 112 Congress.
Before I came here this morning, I made 3 phone calls to my stalwart 3 people in Washington who I
respect and admire an awful lot who watch this, and no-one thinks that any version of the Cap & Trade
                            th                                                              th
that was vilified in the 111 is going to reemerge in any shape, manner or form in the 112 . I don’t like to
make predictions so I will be careful about that, but that’s my bet.

What does that mean? Well, at least 2 more years of the absence and lack of any national standards; any
price on carbon. And what that will mean states like California, the coal states in the Midwest that have
regained their power-of-leverage in the House and I think in the Senate, they will be very, very active.
EPA’s Browner is not going anywhere, and she and her administration and her agency will continue a
very robust and vigorous rule-making on a number of fronts, under their authority and the Clean Air Act of
2005. So watch for that. Each one of the EPA rule makings will be lengthy and drawn out, the public
comment period I’m sure will be more than the traditional 3-6 months. They will be challenged at the court
by many industry, if not NGOs, in the United States. It’s not going to be pretty. Prop 23 in California did
not make it, for those of you who aren’t following this one particularly. The California ballot (I love that
                                                                                                            27
state, it really is governed by proposition. I can imagine what it must be like to be a governor in that state)
but Prop 23 was the proposition that the state should not implement any of its emissions rules if the
unemployment rate is higher than a certain percentage, I think it was 7 or 9%. Anyways, it hasn’t been
that low since 1968 or 69. But that sent chills down a lot of peoples backs in the energy industry, because
what happens in Sacramento usually sort of barrels and rolls east. And so the defeat of Prop 23, which
was fuelled by out-of-state money, is for this year anyway and for the next 2 years, that was defeated. But
energy and emissions and renewable energy portfolios on a national scale, I’m not sure, unfortunately,
that we’re going to be seeing any of that.

GOP does have to show leadership. (I’m down to my last cough-drop, I’m guarding it jealously, sorry, I
apologize.) The first thing that I would look at and be watching is that G20 in Seoul next week. Mr. Obama
will want to show political and economic leadership quickly. Mr. Bayner is going to be looking for some
kind of compromise with the White House, he’s has to get something out of the gate soon. And it may be,
just may be, the Free Trade Agreement with Korea. I think the other two will languor, but Korea might
have a chance. So, not only watch the G20 and if there’s that infamous camera shot of the formal
handshake with the two leaders of Korea and the United States, but also watch Mr. Bayner’s formal
remarks and reactions after the G20. It will tell you much about what the trade agenda in Congress is
going to be for probably the next 2-3 years.

On trade, the last two years have been all about jobs, jobs, jobs, jobs, (jobs), and preferably
manufacturing jobs. Manufacturing in the United States, especially small and medium sized
manufacturers, it’s almost like the small farmers of before. You know, you used to have commercials in
the U.S. where the subsidies to U.S. farmers were always protected and defended by showing this small
family farmer in Oklahoma. That’s kind of what the manufacturing PR efforts are in the United States.
Larger manufacturers, large companies (depends on who it is), them and Wall Street are being battered
in the United States. But for the most part, I think that a domestic economic focus is the game in town for
at least the next 2 years, probably well into 2013 and 2014 as well. It all depends on the unemployment
rate. Every evening, it’s either terrorism or what the daily unemployment rate is, is what we’re watching on
CBS and NBC in the United States. So, that populist, very constituent driven demand to “make my life
better; I don’t know why it’s not better, but it was really better 5 years ago. And I can’t understand why I’m
so mad, and why have I lost my house? And why have I lost my health care when I lost my job in the
U.S.?”

The anxiety level in the United States, (I call it anxiety, other policy wonks will call it Polar Anger, I call it
anxiety) its right here. It’s palpable, all over the United States. My generation of Americans - are scared.
And you know when people get scared; it started with 9/11, out of physical insecurity. We’re now into the
last 2 years of economic uncertainty, what do people do? They circle the wagons. And that’s what we’ve
seen. Whether it be Buy-America – that was introduced in 2009. Or what I call Buy-America-A-Sheep-in-
Wolf-Clothing, we will see it pop up in various forms, make no mistake about that. The Americans
demand it of their policy makers, they expect it, trade (if they’re going to talk about trade at all) it’s China.
China sucks the air out of every policy conversation or media interview about trade. NAFTA is a four-letter
word. 1% of American companies are in the exporting game. Compare that with where we are in Canada.
So, no comfort level, or knowledge or sophistication about trade. Their Exxon bank gives out, doles out
$20 billion a year to help U.S. exporters. We give out $80 billion a year, shows you where the focus is.
Mr. Obama’s going to be on the hook for his national exporting initiative, to double their exports in 5
years. That’s a tall order. But Secretary Lock of the Department of Commerce is on a warpath on that. On
China, not only is there currency manipulation that some people in the United States kind of get but not
really, they just know that it’s China, China, China. China just seems to be the cause of so much of their
woes in American households. You kind of see it reflected in coverage by U.S. media, or by some U.S.
media. It is also the real reason why U.S. import volumes has dramatically risen, and for the most part
there in finished goods. You need to know that for lots of reasons (I’m sure you do already). But the surge
of finished goods into the United States has not only affected the trade balance, but it has brought forth,
in the last few years, this real focus on import safety. Chinese drywall in Florida homes that crumble, I
guess, or was unsafe, brought us the Foreign Manufacturers Legal Accountability Act. That was all about
seeking damages from manufacturers overseas, and we got hit with it as well.

Why? Because Americans make no distinction about their borders. The U.S./Canada border, we can talk
about that special relationship until we’re blue in the face, it gets us nowhere. It doesn’t. I know that’s a
hard pill to swallow, especially early this morning. We are not on their radar screen. That’s why it is an
uphill battle for Gary Doer, Ambassador Doer in Washington. Frankly for me, that we spend, I guess,
almost every day on the Hill saying, “hey, ohhh, over here! Canada, woah! You’re doing that? That’s
                                                                                                              28
China!” That’s your enforcement concern, your security concern, and your product concern about the
Pacific Rim. You’ve had us as a NAFTA trading partner for the last, what are we up to, 17 years? Is it old
enough to drive yet?” And we’ve lost the benefits, the tariff reduction benefits of that NAFTA because of
this fear and response to this rising surge of imports that have been less-than-quality-standards in the
United States. And this reaction has, and will continue to result in this alphabet-soup of border agencies
along the Canada/U.S. border. And if you talk to your companies, especially if you talk to your truck driver
or warehouse guy, they’re going to know what I’m talking about. There are more men and women along
       th
the 49 parallel today (and I used to be a customs inspector way back when, I won’t tell you when), than
we’ve ever seen before. They’re tripping over each other. They start on the U.S./Mexico border, try to
build their career in drug seizures and get rotated to the U.S./Canada border, and guess what. They’re
looking, and they’re opening, and they’re searching. So now we have new agencies on the block called
The Consumer Products Safety Commission. They’ll start being on the border in 2011. The more people,
the more inspections, more inspections means more compliance, more compliance means more fees. Jay
had that up on his screen earlier this morning. And if you talk to them to say, that’s unnecessary for our
bilateral trade, you don’t need to oppose that on our integrated supply chain, they’ll nod. They’ll get it. It
will not be reflected in national policy.

Okay, I’m going to speak another 2 minutes; I just want to make one more argument. This anxiety level,
new politics, that’s highly unpredictable, is also arriving at our doorsteps at a time when the 2009 Obama
stimulus package of $787 billion, the infrastructure spending of $280 billion, is by now, except for a few
large programs, completely spent. It would have to be completely spent by the end of this next year, of
2011, and no one else in the U.S. is forecasting a new Stimulus package along those lines. Apart from
what Mr. Bernanke did yesterday. So there’s a couple things on that. What do you do in the vacuum of
when all that money is spent? Because projects are started, innovation has been funded to some degree;
the Department of Energy had more money from the Stimulus money than they literally knew what to do
with and the Assistant Secretary told Jay that last year at the DOE (Department of Energy) headquarters.
So there’s one thing. We’re probably not going to get that kind of stimulus money in the United States for
a while. There isn’t, because budget deficits and budget cuts are going to be all the rage. The other thing
is in this area of predictability, and I’d like to hear the comments from my panelists, the money that is
sitting in banks and in venture capital offices in trillions of dollars will continue to sit. They are risk-
adverse, they don’t know (especially because of the absence of energy legislation, but also a lot of other
things) they just don’t know where the U.S. economy is going to bump up and how. And so there’s very
much a sense of just waiting in the United States. And if we look at Washington DC, we also have to look
at all the state capitals. Almost every state in the United States with the exception of Vermont, by
Constitution, must balance their budget at the end of their cycle. That hasn’t happened in a dog’s age, but
doesn’t matter. It’s always this push and pull. You’ve saw that in many, many states in November, you
saw it specifically in Massachusetts.

Why do you in this audience care? Because states are broke, they’re going to be looking for money, and
they can’t tax their own residents. They don’t want to tax their own businesses, in fact they’ll probably
keep the money that they kind-of have, and give tax incentives, tax credits, tax holidays to domestic, in-
state manufacturing to draw in investments in-state (that’s another thing you need to be worried about)
but they’re going to be looking therefor revenue from out-of-staters, and I worry that other states will
follow the Massachusetts example of a couple of years ago, where they changed their tax nexus policies
and started looking for ways to tax out-of-state business operations and business-partners.

Those are the kinds of things that kind of keep me up late at night, keeps me very, very busy. I hate to
end it on a ‘downer’ note, but I think that what I have learned, and what I do for CME – we have a website
that’s been refurbished and looks really great now, and I probably put something on that website on the
USA page pretty much every day. I literally do read the Federal Register every morning, which is their
version of our Canadian Gazette, because things are going to happen so quickly. Canadian audiences
are very sophisticated, they know the scoop, but it’s going to happen very, very quickly. I like to say that,
“I have to deliver bad news to my CME members, but they’re going to get the news.” And then the other
thing, I do a USA watch every month. “This is what’s happening; this is who’s doing it; do you want to
read more? Click here. Do you not care? Fine! Do you want to comment? Does it really worry you? Let us
know.” And the other thing is a U.S. column I write every month that sort of gives the readers an in-
between the lines sense of the political and social environment in the United States. Canadians get
Americans to a large degree, not as much as we think we do actually. But, Americans don’t get
Canadians, they really, really don’t. And so, it is a job, and a job description that is always changing. It is
the best gig in town, and I’m quite delighted as I always am to speak to Canadian audiences. So thank
you very much.
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<Applause>

Dianne Buckner – Conference Moderator, CBC Dragons’ Den
Alright! Thank you so much Birgit. Oh, such interesting presenters today. This is an excellent session.
We’re going to take a short break now. Be back at 10… please look at your watches. 10:45 sharply.
We’re going resume the panels, and we will be hearing again from some of the people you’ve already
heard from, and some other special guests. So we’ll see you shortly, thank you.

Interactive Panel Discussion —
Positioning Durham Region in the Global Economy
Panel # 1

Dianne Buckner – Conference Moderator, CBC Dragons’ Den
Welcome back! During this portion of the conference you, the audience, get to participate. We are going
to have a discussion around the topic of “Positioning Durham Region in the Global Economy”. I would like
you to welcome our panel to the stage Jayson Myers and Dr. Neil Alexander.

Also joining the panel are John Wright and Richard Marceau, and we’re going to get their position on this
whole question of positioning Durham Region in the global economy. So each of them is going to come
up and give us a little overview of their own perspective, what they’re bringing to the dialogue this
morning.

So let me first introduce you to John Wright. He’s the Senior Vice President of the Canadian Public Affairs
Division of Ipsos-Reid Corporation. In addition to his client responsibilities involving strategic and tactical
communications research, John has been the company’s lead media spokesperson for the last decade.
He speaks on politics, policy and consumer trends. On a local note, Mr. Wright is the Honourary Colonel
of Durham’s own Ontario Regiment. So please welcome John Wright.

<Applause>

John Wright – Senior Vice President, Ipsos-Reid Corporation
Thank you very much, ladies and gentlemen. I’m going to try and work within about 8 minutes worth of
space so you get lots of questions, if you can believe that. But only 40% of you actually believe anything I
say, because I’ve done the research and I know that. <laughter>

First of all, also, the panel discussions or the speeches before were really interesting. I have to say that
the support for nuclear power in this province is the highest anywhere in the country, it’s around 63%. So,
you know, wind may be getting lots of attention and so are some of the others, but the largest victory of
support in fact is for the nuclear industry. So that bodes well for the region.

I’ll just make one comment on the U.S. election. We are the agency of records Reuters in the United
States and everybody always asks, “Well how did the polls do?” Well, the polls did pretty well. Polls
actually do pretty well, we fit within the margin of error, and we were off by 0.2%. Working on the poll, we
did 28 state polls in the United States. You know, we’re held to a standard of working to get almost the
exact number 19 times out of 20. There’s almost every day I wish I was an economist.

But the point I’d make about the United States is that I think we’d have to recognize 2 things. Number one
is that we have a righting of the ship. Let’s remember that the Democrats and the Republicans voted
against outgoing George Bush, who was sitting at 23% approval rating at the polls. So what we actually
see from the Civil War on is basically a 50/50 split in the United States between Democrats and
Republicans, the Independents sure are a part of that, but what you see now is a righting of the ship. So,
that’s the first thing to remember.

Number two is for the last number of years, Mr. Obama has not had an opponent. He hasn’t had a face or
a name to put his challenge to. And now he’s going to get it. So it’s not some opaque group called the
Tea Party or the Republican Party. Let’s remember that Bill Clinton was given a gift, and that was Newt
Gingrich. Who wrongly interpreted that what Congress got in that mid-term election was a mandate
instead of a message. What America was given was a message to the United States, not a mandate for
radical change. And if what happens is, as is suggested, that people go to the Hill and decide that it’s
going to be their mandate, that Mr. Obama will, like Ronald Reagan – at this time in Ronald Reagan’s
                                                                                                           30
term he was sitting at 36% in the polls. First term, Mr. Obama’s sitting at 35%. Mr. Clinton was sitting on
35% who went on not only to win the next election but the one after that. Mr. Truman was in the same
position. So I think we have to keep it in perspective, that there is a righting of the ship going on, and if
the Democrats are able to paint the other guys’ wagon before they get a chance to paint it themselves,
then I think it will be a very different race than some people think over the next period of time. So those
are my only comments on that.

I’m going to try and keep you to 8 minutes on this podium.

Public opinion is something which our company does $200 million worth of research in Canada, and $1.6
billion of research around the world. I’ve been very fortunate, I’ve been with the company for 21 years and
I’ve seen an awful lot of stuff. I believe very much in public opinion, because while we talk about pollsters
doing things it is market research. It is what our largest clients – Proctor & Gamble, SC Johnson, and
L'Oréal, and many, many others around the world – use research to identify what people think and where
they’re going.

So I’m going to talk to you this morning specifically about what I thought we should, and that is positioning
Durham Region in the global economy. I bring to you this morning public opinion; I don’t bring to you
anything else. But I want to share with you some stuff that in order to position for the global economy, you
need to know the pulse of the global economy. So what I intend to show you this morning is something no
one else has seen. So you get it for the very first time, this was just completed last week. It is in fact 18
600 interviews that I do once a month among 24 countries around the world, and then I track this and we
release it only to a select number of people. So as I said, this was done last week and I have put the
numbers together last night and you get to see where the pulse of the world is right now.

Reference to power point presentation; That is the pulse of the world in terms of how people assess
their economic situation in their country today. <reference to slide presentation> You can see that from
the left hand side of the screen to the right, you can see where the recession took its dip. And what the
world economy’s doing right now is very much like a clock that’s going back and forth, its tick-tocking, tick-
tocking where every month the regions in fact go up a little bit and then they go down a little bit, go up a
little bit and then they go down a little bit. And if you were to watch that just going back and forth, you’d
say nothings going on. But in fact it is going on, it’s going up. So the trend line behind me shows what I
call not a V or a U or a W, it’s an L. People talk about in the economy that you’re going to have a U, you
know. The problem with this right now is we have always expected a recession to recover (’93-’94, the ’81
recession) in a particular way, and the engine would start. And the reality is, right now, it’s not starting the
way that we thought because there are different conditions. So you can see now that as of last week it’s
up to 42% confidence the consumer citizens have in their local economy, and we can see where Canada
is versus the United States. So, the countries that are the most optimistic or engaged in their economies
right now, and this is their assessment of how their economy is going by their citizens are what you would
expect. India, China, Australia actually way ahead, Sweden, Saudi Arabia, Brazil. But Canada in fact has
been near the top of the list. This is the first time that it’s actually slipped a rating for this month. It goes up
and down occasionally. But you can see the United States at the bottom. Dealing with a completely,
almost two separate nations, worlds apart in terms of how we see the economy and they see the
economy and everybody in between.

So the first thing to take away from this is that Canada in fact is in the top tier of how people feel about
how good the economy is. It’s all a relative thing, but I gotta tell you, you don’t want to be in France or
Italy or Spain or Japan at the bottom of the list, where only 8 or 10% feel good about the economy. Look
where we are, and when you do look at it look at the difference between the two countries. Canadian
optimism about their economy and their assessment of where their economy is, is huge compared to the
United States. And this is significant. Again, we get up and we complain. This morning, the employment
statistics were out. It’s dropped from 8 to 7.9%, Oshawa still at 10.2%. I mean, we’re terribly engaged with
that, we’re really upset about it, because we want to see progress. But you go to other countries and you
see where we are. The first thing is in positioning ourselves in the global economy, look where we are.

The next thing is, you can see here, look at the red line. That’s actually North America, Canada and the
United States. That there are other parts of the world that are in far better shape in terms of how they see
their region in the economy. I leave all of this after you so you can take it home and you can read it before
you go to bed tonight, it’ll put you to sleep. But if you look through this you can see that we’re kind of in
the middle but it’s the United States that pulls the average down. So positioning is not just about
geography or brains or incentives or things like that. It also comes down to something else. It’s about
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public sentiment. I mean, if you want people to invest in Durham, if you want people to grow in Durham,
then you are attracting from other parts of the world. And it is an international economy. Then you also
want to talk about the people that are here. Not just about the geography, not just about tax breaks, you
want to talk about how we feel. You want to open a plant in France tomorrow? How about Britain? I have
to go up to a tourism conference in Huntsville on Monday and give a speech, and they’ve targeted 7 or 8
markets around the world where they in fact pitch the Ontario Tourism message, and you want to know
something? Of the 7 markets out of the 24, there’s 8 they’re missing that want to come here more. And
that’s the thing we have to look at. Traditional markets may not be the traditional markets. Going
someplace and finding them, but telling people what you have to offer about public sentiment should also
be an ingredient here. So let’s go through this and compare ourselves to the United States, and I’m just
going to give you like 8 slides and then step off the stage.

Number 1: we’re more satisfied with the way things are going in this country than our friends across the
border. We may complain about Stephen Harper or the Liberals or whatever, but guess what? 4 years of
minority government? How’s it working? Not bad. Would you rather trade it for the U.S.? How about a
majority here believes things are headed in the right direction? Oh, 50%. Do you know what a win is in
Canadian politics? About 41. I mean, you can get 59% of people waking up in the morning and hating
Stephen Harper, he still gets the majority at 41 or 42. You can’t get that high. Same with Dalton
McGuinty, 57% can hate his guts and he still wins. So, when you get 50% of the people in this country
actually seeing that things are going in the right direction, that’s pretty good. More of us feel we have a
strong local economy than we have in the United States. More of us feel that we have a strong personal
financial situation today than we did 6 months ago. I mean, there’s a little bit of a change that’s going on
here but you can see the trend line has been above. We’re more comfortable making a major purchase
like a home or a car now, compared to 6 months ago (although there’s been a little bit of a drop). We’re
more comfortable making other household purchases now compared to 6 months ago. We’re more
confident about job security for ourselves, our family and other people we know personally now compared
to 6 months ago. Look at that, 53%. We’re more confident of our ability to invest in the future, including
our ability to save money for our retirement or our children’s education compared to 6 months ago. And
looking ahead at the next 6 months we’re less likely to believe that they, someone in their family, or
someone else they know will personally lose their job. 11%, only 11%. You want to go back to 1993,
1994, you know what that number was? 36. So thinking of the last 6 months we personally know less
people who have lost their job as well, than in the United States.

So what more do we bring to the table in Durham beyond better attitude and outlook? What more do we
bring? We bring certainty. And that is something, as an ingredient, I think people sometimes overlook. We
have stable government, we have a stable and optimistic group of people, we have a hardy group of
people who are realistic about challenges south of the border that they have to face here. And those are
ingredients to offer the rest of the world, in comparison. Thank you very much.

<Applause>
Dianne Buckner – Conference Moderator, CBC Dragons’ Den
Alright, next, our other panelist that we haven’t heard from yet is Richard Marceau. He is the Provost of
the University of Ontario Institute of Technology, and a little bit of background on him: he obtained his
Bachelor of Engineering from McGill University in 1977 and began his engineering career with
MONENCO Inc. in January of 1976. He obtained his Masters in Electrical Engineering from École
Polytechnique de Montréal and his Ph.D from McGill. On January 1st 2005, he assumed the position of
Provost at the University of Ontario Institute of Technology. His research over the years has been
centered primarily on power system security.

Let’s hear what Richard Marceau has to say.

<Applause>

Richard Marceau – Provost, University of Ontario Institute of Technology (UOIT)
Thank you very much. You know, the only other honorary Colonel of the Ontario Regiment whose name I
know is Col. Sam McLaughlin, and I have to say that it’s an honor to share the podium with you, John,
today.

We live in transformative times. We are leaving an era where we had the luxury of prevalent technologies
which evolved only very slowly over many decades at a time, and entering into an era where the
technology cycle is not only rapid, it’s accelerating. In so many areas that touch Durham Region to the
                                                                                                        32
core, from energy to vehicles to fuels, there is growing uncertainty over what the next prevalent
technologies will be. Except perhaps that, in the immediate future, there will be a greater mix of
competing technologies more than ever before. Let’s consider a simple example. What will be the
prevalent fuel for powering land transportation vehicles in the near future? Is it still going to be just
gasoline and diesel? Will we include biodiesel? Ethanol? Electricity? Natural gas? Hydrogen? And many
different mixtures of the above, that are possible? We don’t know yet. And if there’s such a great potential
for a variety of energy currencies in the consumer market, what impact does that have on the vehicles
themselves? Their design, their manufacturing, the certainty of access to services for these new
technologies? Yes, we’re in a period of uncertainty, of transition.

So how do you future-proof yourself? Well, it’s a tall order and I’m just going to give you some very
personal ideas on how that could happen, if it can happen at all. I believe that, to begin, Durham should
aim to develop far more linkages between its key assets – that are already strengths in the region, its
agricultural sector, its energy sector, and its industrial sector – and aim to expand into and develop a new
food biomass and chemical industry cluster. And here’s why:

First, Durham’s agricultural industry can provide valuable feedstock for food biomass and chemical
process industry cluster, which in turn fuels fundamental human and societal needs. For example, why
not connect a Durham biomass supply chain to the OPG thermal generating plants that are transitioning
from coal to biomass fuels? Electricity generation provides economic stability through long-term market
commitments, and also contributes to environmental sustainability.

Second, a food biomass and chemical process industry cluster builds on similar types of highly qualified
human capital that we find in advanced vehicle manufacturing and nuclear power plants, both of which
are already significant Durham Region strengths.

Third, Durham College can graduate the highly skilled technical personnel, which can build and maintain
this type of cluster.

Fourth, UOIT can graduate the types of highly qualified personnel that can design and operate this type of
technological cluster.

And finally, UOIT is developing significant capacity in key areas that could support new technology
development and such clusters, for example the sustainable production of hydrogen.

Thank you very much for your kind attention.



Interactive Panel Discussion —
Positioning Durham Region in the Global Economy
Panel # 2

Dianne Buckner – Conference Moderator, CBC Dragons’ Den
Alright, we’re going to play some musical chairs now. Thank you so much, that was excellent. We have
another panel before lunch on the same topic, still “Positioning Durham Region in the Global Economy”.
John Tory, Derek Holt, George Hanus, and Brigit Matthiesen please come to the stage.

Alright, so same as last time, we’ve heard 2 of our panelists speak already this morning. But there are 2
mystery men here that we haven’t heard from. Not a mystery who they are, but what are they going to
say? So let me introduce both John Tory and George Hanus to you. Let’s start out with John Tory.

He is, as you probably well know, a Canadian businessman, philanthropist, political activist and radio
broadcaster. He’s a Corporate Director of Rogers Communications. From 1995 to 1999, John was the
President and CEO of Rogers Media Inc., Rogers Cable and Rogers Communications Inc., and then
Senior VP of Cable Communications of RCI. He, of course, has had a very active political life. Many of
you probably remember his years of that. In 2009, he announced that he was leaving politics to return to
his first love, broadcasting, to host a Sunday evening phone-in show on Toronto talk radio station CFRB.
In the fall of 2009, CFRB moved John to its Monday to Friday afternoon slot, for a brand new show,

So ladies and Gentlemen, direct from “Live Drive with John Tory”. Mr. John Tory.
                                                                                                        33
John H. Tory – Newstalk 1010
I’ll stay here, it just saves time.

Dianne Buckner – Conference Moderator, CBC Dragons’ Den
Sure, go ahead.

John H. Tory – Newstalk 1010
First of all, thank you for including me. I guess I am under the disadvantage and the advantage of not
having heard anything. I was giving a speech to a group concerned with the arts in Toronto this morning,
so if I say something that’s duplicative I suppose that’s good maybe. And if I say something stupid, that’s
just par for the course. I will tell any of you that are looking for good therapy, regardless of whether your
frustrations come from politics or business, having a talk show is super because you basically control the
whole show with the mouse in your hand, as you do with lots of things in life now. And if people are
irritating you, it takes only the slightest bit of energy to use your finger like that and they’re gone, just gone
entirely. And so I just recommend it to you most highly.

Let me say this about Durham. Because I had the chance to be a provincial politician, it meant that I
travelled the province a lot; it meant I was in Durham a lot. We had the good fortune to have a number of
the seats here, and we had a by-election year that I helped Christine Elliot to win. And so I spent a lot of
time here relative to the total time that I spent in provincial politics, and I came to understand a lot of the
advantages that Durham has. And I think that it may have been the case that it was easier to ignore
Durham in times gone by, and the question we’re looking at is how we can sort of have Durham play its
proper role in the global economic context. But I don’t think it’s so anymore. In days gone by, the
population growth seemed to be going West. The political centre of gravity seemed to be West, if you
looked at—you had sort of Bill Davis, Premier; Hazel McCallion and even Ernie Eves represented (as I
did) a riding that was to the West; Greg Sorbara, the Finance Minister of a period of time in the last
number of years was to the West. The public institution centre of gravity seemed to be West, whether it
was Waterloo University, whether it was RIM and its great successes, whether it was Sheridan College
which seemed to get a lot of write-ups and so on. And what happened was the public investment pattern
followed, and a lot of the attention followed. And you had transportation if you think about, I think I
remember citing as a provincial politician and referring to the ‘rip-off’ that happened with respect to the
area East of Toronto. That you had, I think, 4 times as many lanes built for example on the 401 to the
West as you did to the East. You had the airport, Toronto Airport, which had massive investment which
happened to be to the West. Nobody built it there, I mean, in the last number of years. Same with
healthcare, autos, education… there was a lot of activity that sort of gravitated to the West.

But I think that has changed. Not to the point where I think there’s going to be some big bonanza now,
because quite frankly government investment in some respects is going to play the least role in making
positive things happen for Durham and for the GTA Region. But I think there’s an opportunity to catch the
wave now. And I think Durham is ideally positioned to do that. The stars, I think, have aligned in such a
way that it is the hour for Durham to come forward. And the question I’m going to pose at the end is
whether this region – and look, I say this as a person who comes from Toronto. I am, however, the head
of the Toronto City Summit Alliance, which is a voluntary position I took on which is very much about
region building. But I’m from Toronto so you can discount what I’m going to say about whether this region
acts like a region, and whether it’s going to be prepared to be a part of the bigger city region that’s going
to count globally or not. But I think that’s the fundamental question that’s in front of me. But if you go to
the question of whether the stars are aligning or not, if you look now at where our population growth is as
likely to happen if not more so than to the West, its going to be for a whole bunch of reasons. Whether it’s
the Green Belt or any number of things. It’s going to be as much East as it is West.

If you look at the political centre of gravity, and somebody mentioned this a few moments ago, just the
presence alone of Jim Flaherty as the Federal Finance Minister and somebody who’s very active on the
international scene has meant a big shift in that political centre of gravity. This region has two Federal
Cabinet Ministers which many other regions or areas like this don’t have and would love to have. In terms
of public institutions, you’ve got the UOIT and Durham College and Trent Oshawa. 2 of those 3 I think I’m
right in saying didn’t even exist a number of years ago, and certainly Durham College has very much
come into its own during that period of time. So you’ve got a fabulous educational infrastructure that really
wasn’t there in many respects a number of years ago. You’ve got the Cancer Centre. And then you’ve got
other public investment that’s hopefully pending, it’s got to be confirmed and it’s got to be made real and
that is where governments do have a role to play. Whether it’s the 407 East, and I want you to know I
                                                                                                              34
stood at least 4 or 5 times as the opposition leader beside the sign on Brock Road where it ends and
said, “we’ve got to get on with this. We should have years ago.” We’ve got other public transportation that
will be invested in. We’ve got a lot of potential in terms of solving some of our needs with respect to air
transportation and marine transportation – with, for example, the airports and the deep-water port, both of
which are in Oshawa. We’ve got an incredible energy infrastructure here that is going to be a part of this
province’s future, again, if people suck it up and get on with the decisions we know have to be made and
should have been made years ago if it wasn’t for a lack of political courage. To say, “nuclear is part of our
future and it’s here,” because that’s just a reality.

And so, to use the expression, “build it and they will come.” And I think what we’ve got here is some of it’s
built, and I think we’ve got to do a better job – we, I’m speaking on your behalf as a region – to promote
what’s here. I think a lot of people don’t know that UOIT exists. They don’t know what it is; they don’t
know what mandate it serves, and so on. And I think some of it’s to come, and that’s the stuff I was just
mentioning where we’ve got to get that confirmed.

So, how to make that happen? Well the first thing – and this is the part where you can react with being
affronted if you wish, I just try and come and speak the truth. I’m used to doing that now on the radio
where you can say whatever you want.

Act like a region. This region has been, I think, the worst in the GTA in terms of actually acting like a
region. And it’s shown. I described it in a television interview I did outside, it’s kind of for some reason the
                                                                           rd
brother or sister who only gets invited to Christmas dinner every 3 year for some reason, and only
                             rd
seems to be there every 3 year. And I think it’s because in some respects if you don’t act like a region
and get together and say, “Look, we’re going to put forward the great assets this region has” then you’ll
be treated accordingly. And it’s easier to kind of dismiss Durham if it doesn’t act like a region. I would also
say that once it’s acting like a region, and it has to do so in a way that leverages the strengths that I’ve
talked about within the context of a broader region. Economic competition, economic development is
happening today around the world, and some others may have talked about this already, in the context of
                                                                                                 rd
city regions. And that doesn’t mean you have to cow-tow to Toronto or be some kind of 3 class player. It
just means you’ve got to be at the table with York, with Peel, with Toronto, with Halton, and saying, “we
are together going to take the best of what we have and use that as a magnet to attract investment.” And
I think then we’ve got to sell, sell, sell. You know, there’s the population to sell, the educational
infrastructure, the industrial infrastructure, the energy expertise that was mentioned a moment ago in the
infrastructure, there’s some transportation infrastructure, and we’ve got to build on those strengths.

So to me, I mean, the lessons are not complicated. They are: Act like a region. Then join as a full partner
in the broader region. Because this business of a regional unit, a city region, that consists of Toronto,
Peel, York, Durham, Halton, so on, is going to be crucial to our success going forward if we’re going to
have the investment in jobs that we need to both power the economy but also pay for everything else that
we need to pay for.

Dianne Buckner – Conference Moderator, CBC Dragons’ Den
Okay, thank you John Tory. A lot of excellent points there.

So let me tell you a little about our fourth panelist. George Hanus is the President and Chief Operating
Officer of the Greater Toronto Marketing Alliance. He just joined GTMA this year, but prior to that, he
worked for 2½ years at the Toronto Region Research Alliance Director, TRRA. And that’s where he was
the Director of ICT and Advanced Manufacturing in Investment Attraction. Now, before TRRA he spent
over 25 years in economic development and investment attraction for Ontario's Ministry of Economic
Development and Trade and most recently, he was posted to Munich, Germany from ’02 to’06 where he
opened the Ontario International Marketing Centre as Consul of Economic Affairs for Ontario. And
previous to that, early in the 90s he was posted to Frankfurt, Germany. So he has quite a perspective on
all of this.

Ladies and gentlemen, George Hanus.

George Hanus – President & COO, Greater Toronto Marketing Alliance (GTMA)
Good morning, ladies and gentlemen, and thank you, Dianne. Very opportune way of segueing from John
Tory’s comments about regional economic development. The Greater Toronto Marketing Alliance is the
lead marketing agency for the Greater Toronto Area involved with foreign direct investment. We are a
non-profit, public-private partnership that brings together the municipalities and regions of the Greater
                                                                                                            35
Toronto Area. The Provincial Government is also involved with us, and Federal Government. We are also
supported by numerous leading private sector corporations. And we work cooperatively to achieve our
mission statement which is to expand the economy of the Greater Toronto Area by raising the profile of
the region internationally to attract new investment thereby creating new jobs and more employment.

The GTMA has been active in the attraction of Foreign Direct Investment for over 12 years – it’s getting
on to 13 years now – representing the Greater Toronto Area in foreign markets such as the United States
(and when we say the U.S. really we’re talking about the West Coast and the East Coast predominantly).
In Europe as well, the major economies of England and France, Germany, we’ve also done some work in
Scandinavia, and projects from Italy and elsewhere, and increasingly in Asia, particularly in India.

And this work has resulted, roughly over the last 10 years, in contacts with hundreds of companies.
Hundreds of meetings have taken place. And over 70 companies have located in the GTA. We are
currently carrying out an internal study to find out the job impact of those employers that have located
here.

Durham Region is one of the 7 funding regional and municipal partners of the GTMA. And worth noting
that Mayor David Ryan, who was here earlier, is on the GTMA Board of Directors. And Dr. Pamela Ritchie
with UOIT is also on our Board of Directors. And I’d like to point out Lou Milrad who is our Chairman and
CEO, who is attending the session today as well.

The sectors that we focus on in Foreign Direct Investment – we can’t cover the whole gamut of possible
Industrial sectors so we’ve had to pick and choose those we feel have the greatest potential for
investment attraction. We’re very active in the area of Information and Communication Technology with
focus on digital media. We’re also active, just recently in fact, a colleague came back from the trip, flew in
last night, but he was last week in Europe looking at the Information and Communication Technologies for
the financial services sector at a trade show, which was happening in Europe. That particular trade show
is going to be happening here next year. And we’re going to be following up on the leads that were
generated at that show. We’ve been very active in renewable energy with a particular focus on wind and
solar energy projects. And we’ve also done some work in advanced manufacturing.

So effectively, aligning our sectors with those that are of importance to the Durham Region. Next year
we’re going to continue in these sectors. ICT for digital media and for financial services. Renewable
energy. But we are going to be exploring two new sectors for us. One will be food processing. You may or
may not be aware that the Toronto Region is the number 2 food processing region in North America.
Tremendous infrastructure here and we see that as a great source of potential additional attraction of
Foreign Direct Investment into food processing. And we have an initiative already under way with
OMAFRA and the University of Guelph to develop our role in that area and the GTMA is going to be
leading the Foreign Direct Investment aspect of that sector initiative.

We’re also going to be looking at nuclear energy. We think that is an area that has been discussed
already this morning. A tremendous future, tremendous potential, as long as certain decisions are taken
at more senior levels of government.

In the past few years the GTMA has been introducing companies to the Durham Region and has worked
closely with regional and municipal economic development offices and officers, as well as the DSEA (the
Durham Strategic Energy Alliance) in raising the profile of Durham Region in the target sectors that I
mentioned and especially in the energy sector.

The DSEA is an example of what a region needs to do to differentiate itself from other municipalities or
other regions, other provinces, even other states South of us – chose a sector of competitive advantage,
form an alliance of like minded municipal and regional, public and private sector supporters and
cooperate in making a region’s expertise and infrastructure known to potential investors

The GTMA can then work with the collective information about the strengths of a region, using the DSEA
as an example, and promote this concentration of contacts and expertise to potential investors

As I mentioned earlier, a new area for the GTMA, which will be of particular interest to Durham Region,
will be in nuclear technology.



                                                                                                          36
Durham Region also has educational institutions – already mentioned, Durham College and UOIT, and
then this faculty from Trent University – that are the first 2, Durham College and UOIT; we’ve worked very
closely with these institutions. They are very active in supporting us in certain target sectors. Their
location in the region also provides the source of skilled labour that potential investors are looking for

The GTMA has worked with UOIT in the digital media area when potential investors visited the Greater
Toronto Area and we’re looking for sources of skilled labour in the area of video gaming, for example.
This type of introduction of potential investors will continue with all of the educational institutions that we
work with in the GTA.

The GTMA exists to support the economy of Durham Region through ongoing and sector-targeted
initiatives in international foreign direct investment

As an immediate example of that, this evening/this afternoon, my colleague Gerry Pisarzowski is leaving
with a delegation of representatives from the GTA on our first investigation of a new market force, which
is Brazil. He’s taking 6 representatives, including Liisa Ikavalko from the Durham Region Economic
Development Department, to São Paulo and Rio de Janeiro to meet with companies to talk about their
interest in investing in the Greater Toronto Area, digital media, and clean-tech. They’ll be meeting also
with the Federal Government representatives and the Consulates and various Brazilian associations, and
we’re going to be testing that market to see what is the potential of getting a closer working relationship
with that country and companies from that region.

Also in concluding, I’d like to mention another partnership. The GTMA is a partnership of 29 municipalities
and regional governments. We are also connected to another partnership that I’d like to say, it’s a
collaboration of competitors called the Ontario Technology Corridor, which is made up of the GTMA and
OCRI (the Ottawa Region), CTT (Canada’s Technology Triangle), London and also Niagara. The Ontario
Technology Corridor focuses on ICT and digital media. Fundamentally these regions are competing but
when it comes to international foreign direct investment we collaborate, and work various shows, trade
shows over seas, share the leads that come from those initiatives, and when we come back again to
home base we compete. We’re applying this model to clean-tech sector, to the food sector, and are
talking to other regions about the automotive sector. So, collaboration as well as competition, and that
makes us all, I think, (building on John Tory’s comments about needing to work as a region), that I think is
one message that I’d like to leave with you. Thank you very much for your attention.



Panel #1 – Q & Session                                     Q: Dianne Buckner
                                                           The topic here is positioning Durham Region in
                                                           the global economy. You know, you’ve been
Dianne Buckner – Conference Moderator, CBC
                                                           listening to everybody else as well. And you
     Dragons’ Den
                                                           know that out of this is coming a report, you
                                                           know, trying to say, “here’s what needs to
Alright, so, now we’re hoping you will have some
                                                           happen, here are some recommendations and
questions. I have some questions for you. One
                                                           where we think the Region needs to go in terms
question that I’m hoping every one of you will
                                                           of the global economy. So if each of you had to
answer. But just to let you know, you can either
                                                           come up with just one thing that you want to put
walk up to the mic and ask your own question,
                                                           as a top priority that’s going to go in that report
or if you prefer you can write down your question
                                                           of what you think has to happen, doesn’t
and give it to either Bob Malcolmson, Dave Hare
                                                           necessarily have to be related to your own
or John Williams. They’re going to be circulating,
                                                           expertise. Of course, we’re all self-interested,
and they’re happy to read out a question if
                                                           you all have your own individual agendas of
maybe it’s one you don’t want to put your face
                                                           what you want to see happen. But if you’re
to, I don’t know. But I wanted to start off, I guess
                                                           thinking about Durham Region and the type of
my impression of today as we’ve really heard so
                                                           both challenges and opportunities that we’ve
much really interesting information, some new
                                                           heard described here today, what would you
stuff, some confirmation of things maybe we
                                                           pick to put (as I say) at the top of the agenda?
knew already. And I’m hoping each one of you
                                                           We’ll start at the end of the table with you, Jay.
would give an answer on this question.
                                                           What would you say is sort of the number one
                                                           thing that you think this area would need to be
                                                           addressing and really highlighting in this report,
                                                           and perhaps coming up with action plans
                                                           etcetera to go forth with?
                                                                                                           37
                                                       Cement has found one way. It uses the CO2
A: Jayson Myers – President, Canadian                  that it generates with waste heat that it
       Manufacturers & Exporters                       generates, and through an algae-based process
I think it would be a focus looking 5, 10 years        produces biodiesel. Some people use CO2 from
down the road – looking for potential customers;       petrochemical refineries, pumps it into a
who they’ll be; and opportunities following on         greenhouses, and produce peppers with them.
from that. Because I’m convinced that jobs are         And if you’ve seen the peppers that are
not created by governments, jobs are not               produced, the pepper plants are as high as this
created by business. Jobs are created by               room, and the rate of production of peppers is
customers, and businesses naturally provide            actually so greatly accelerated that they
those customers with a solution. So we’ve had a        basically harvest every day. So CO2 is not a
good discussion today about where some of that         problem, it’s a tremendous opportunity whether
new customer demand will come from, and then           it’s through nanotechnology, whether it’s through
that should drive (in my mind), with good              bioprocesses,      or   biochemical     industrial
consultation across the business sector here, a        processes; if we could focus on transforming
good idea of where businesses and where other          CO2 into value-added products it not only
organizations in Durham Region should be               sequesters it, it actually is a good business
aligning themselves to take over some of those         proposition.
new opportunities.
                                                       Dianne Buckner – Conference Moderator, CBC
Dianne Buckner – Conference Moderator, CBC                    Dragons’ Den
       Dragons’ Den                                    Interesting. Okay, so what about you, Neil?
Okay. What about you, Richard? And by the
way, the others — feel like jumping — if you get       A: Dr. Neil Alexander – President, Organization
inspired and you want to comment on                    of CANDU Industries (OCI)
something, anyone else is saying — any 1 of 4          I’m first of all going to agree with Richard, who’s
of you can jump in. But what would you say to          absolutely spot on. It’s that kind of visionary
that question, Richard? What is the most               thinking that we need to get on as we move
pressing issue?                                        forward and try and deal with some of the
                                                       world’s issues. I’m not a visionary, I’m very
A: Richard Marceau – Provost, University of            focused on my own industry’s issues, and they
        Ontario Institute of Technology (UOIT)         are very important to the Region, so I’m going to
Well, I’ve already given you my idea of where          come back to that. There are a number of
we ought to be trying to develop industry, the         barriers that we have to get over in order to get
type of industry, but I’ll throw something out         nuclear power plants built. We know we need
there that’s radically different. It’s a radically     them, but we’ve got to get over those barriers
different idea; it’s a radically different area. And   and then to use them appropriately for our
that is based on the idea, on the foundation that      strategic benefit to create manufacturing
where there lies great challenge there also lies       opportunities for decades to come. There’s one
great opportunity. Now, take CO2. CO2 is               big issue and that is that nuclear power plants
produced by a lot of industries, by a lot of           are very large, they’re very strategic, and they’re
processes, by a lot of people in fact. And CO2         very long term, and they need commitment. We
may not be the real issue in climate change. I         need our federal government, who have part of
believe that we do need to address it as a             the jigsaw puzzle in their hands, and our
civilization. But the problem with CO2 is not          provincial government to work together to get
CO2, the problem with CO2 is using the                 the issues sorted out for the benefit of
atmosphere as a sewer. So CO2 may actually             Canadians. I am a new Canadian. I find it
be one of the most important feedstocks for            absolutely stunning that one of the largest
value-added product generation that humanity           producing provinces and its federal government
can think of. In fact, the whole biosphere works       cannot get along to get strategic issues sorted
on the basis of CO2. Sequestering CO2 can be           out. As a new Canadian, that is now Canadian, I
done in far more imaginative ways than just            find it unacceptable that they cannot get along
storing it, you know, stuffing it into the ground      and get these issues sorted out. Clearly I’m not
and hoping it will stay there. So, taking CO2,         a politician, and I think it’s time that I stood out
using it a feedstock for value-added product,          and said that they should work together on
actually sequester CO2. For instance, wood             issues of such great importance.
sequesters CO2. Every one of us here who’s a
living breathing human being sequesters CO2.           <Applause>
Carbon is the foundation of the future economy.
What we’ve got to do is find the way to transform      Dianne Buckner – Conference Moderator, CBC
CO2 into value-added products. St. Mary’s                   Dragons’ Den
                                                                                                       38
John?                                                  Dianne Buckner – Conference Moderator, CBC
A: John Wright – Senior Vice President, Ipsos-               Dragons’ Den
                  Reid Corporation                     Very good. Okay. So, anybody going to step up
I guess they’re starting. We saw Brad Wall and         here? We have one brave soul.
the Prime-Minister kill the Potash deal earlier
this week, so at least they’re getting along in            Q: Patrick Olive - Innovative Solutions Inc.
certain areas. I think that there’s an issue which         Hi, my name is Patrick Olive. Most of you
supersedes a lot of the specific parts, and that’s         know me through my formal life, where the
the brand. I think Oshawa has a real opportunity,          well being of this community was in my
Ajax, Pickering; Durham to brand itself. The               bailiwick actually. And I don’t know whether
question is who you’re branding it to. If you’re           these people can answer my question, but
branding it to the world, or you’re branding it            first off I’d like to commend the Chamber.
inside, I think you have to take a look and see            The Chamber took this initiative 6 years ago,
what you’ve got, which I point to the University           and the department that I ran partnered with
being a hub. Which is an exceptional production            Bob (Malcolmson) and his Chamber to
of brain power, energy sector, aircraft sector,            actually bring this forum to you. Just look
engineering technology. A premium on                       around at the people that are here. They’re
innovation, and really if you go back to Colonel           people that care. They’re people that really
Sam McLaughlin and go through this, what’s                 want to make this Region the most
happened is that we’ve seen the beginnings of              prosperous region in Canada and the world.
that innovation, we now have taken it to the               So it’s an important area, it’s full of
nuclear age. And also, we also have to                     innovation, and what’s up? The program
recognize that what is seen outside of Oshawa              today has been absolutely phenomenal. I
is the car industry here is not what is reflective         think it’s the best we’ve ever done.
here. So I think the first thing is to understand
what the brand is and the positioning and who              The first thing that I’d like to talk about was a
you want to talk to. So, externally, if you’re going       couple of comments earlier. Jay, you said
to offer the world something, I think you’ve got           “vision without money is hallucination.” The
all the ingredients. It’s not just nuclear, its not        most important thing that everybody goes
just energy, it’s not just this-or-that. It’s a            with is partnerships. I’ve lived, breathed,
combination of pieces to form a platform so that           operated under that. We have great partners
you, the mayors, and others can go forward with            in this region, the University, College, GTMA,
a common message. Because I don’t think that               better provincial governments, all of the
message exists at the moment.                              wards and Chambers, the businesses,
                                                           everything. We’ve got to pull together. I’m
Secondly, internally, I think there’s one other            pretty direct in my attention to the politicians,
thing you can do, and that is look at change in a          particularly Garth right now. You got to walk
different way. We’ve had circumstances in                  the talk, you got to be there, and
Durham where daycare centers, in fact, because             unfortunately the direction and vision of this
of the closing, because of the kindergarten                region has been pushed off to one side for a
circumstance, are going to be changed. And                 long time. We’re complete silos. The
people will lament that. On the other hand, we             government is silos, the local community is
have a growing and aging population. We have               mostly silos, but we can bring that together.
elder care, which is absolutely necessary. We              We have to have a commitment to actually
have a university close by. We have links with             bring together a vision, a strategic plan, that
hospitals. We can position ourselves as a center           has an action plan attached to it so that we
of excellence, and doing things differently. So            can go forward and innovate and become
it’s a matter of transitioning what could be               world leading. We are there already, but we
lamented about, but turning it into something              just have to bring everybody together to
else. And all this comes down to one word.                 make sure. Last time this happened was
Innovation. So it’s not just innovation in                 DREDAC, the Durham Region Economic
engineering, its social innovation as well. so, I          Development Advisory Committee. And there
think the one piece I’d offer is I’m not sure what         we had a strategic plan that was truly
the brand for Durham is, and I think sometimes             community orientated. If the politician doesn’t
it’s divided into different locales. I think when          see fit to bring the resources to bear on
you put that all together the positioning for not          developing a strategic plan that shows the
only Durham but also the world, it’s a great               paths to prosperity in this region, then we’re
opportunity.                                               going to flounder

                                                       .

                                                                                                          39
Dianne Buckner – Conference Moderator, CBC
      Dragons’ Den                                     Q: Harmail Basi – Merlin General Corporation
Are you leading to a question?                         My name is Harmail Basi, and I’m from the
                                                       Waterloo Region, but I love coming to the
                                                       Durham Region and this particular conference
Q: Patrick Olive – Innovative Solutions Inc.           has, you know, it’s been inspirational. I’ve been
Yeah, I am, but I had to preface this.                 to a number of these now. First of all, I wanted
                                                       to thank you John for providing your unique
Where are we in actually bringing a community          public insight into the Canadian optimism in
strategic plan to this community? And I ask the        relation to the U.S., but also the staggering
politicians that, and I don’t know whether the         optimism of the break countries. What role do
panelists could answer that. That’s the bottom         you expect an educated workforce, meaning
line, that’s the be-all and end-all. Thanks.           post-secondary, plays to this optimism? And
                                                       certainly Durham Region like my region,
                                                       Waterloo Region, is a hotbed of post-secondary
Dianne Buckner – Conference Moderator, CBC             education. Is there a linkage between a growing
      Dragons’ Den                                     educated workforce and the optimism?
Could any of you speak to that? Go for it.

                                                       A: John Wright – Senior Vice President, Ipsos-
A: John Wright – Senior Vice President, Ipsos-                Reid Corporation
                 Reid Corporation                      Well, I’d like to answer that a couple of ways.
I’ll just make one comment, and I think it goes to     First of all, just because we’re more educated
the branding issue, and some other things. But I       doesn’t mean we’re more optimistic. I look
know that there are probably close to 300 ridings      around my office and I see a very different
across this country that would envy the position       workforce for kids who are 22-25 year olds than
that you’re in. And that is that most Saturday         I ever was. It seems to me that I always thought
mornings the Finance Minister happens to wake          that by the time I got to my age of having past
up in a place not too far from here. Canada            half a century; I’d actually be going home at
chairs the G20. It is the most respected country       night at 5 o’clock with a very slim book. My
pretty much on the face of the earth for its           colleagues and I are the ones who are staying
banking and financial management, and I can’t          until 8 o’clock and go home with heavy satchels
think of any other place where you could walk          when the rest of the place clears out at 5. I
into a constituency office on a Saturday morning       mean, there’s a very different expectation in
and find one of the most powerful financial            terms of, you know, what they have and their
advisors and representatives in the world today.       place of entitlement. I think it’s all relative. If you
So I think, to your point, you have to take a bit of   go out onto the streets and you talk to people
a scope as to the resources that you have and          about how they see this country, they complain
pull together into that vision or branding. And I      a lot about some things but they don’t have it in
would agree that, you know, by themselves              perspective. So that’s the only way to get this, is
they’re disparate kind of silos. But there’s a         perspective.
wealth of opportunity here and a wealth of
influence, and you never know how long it’s            I think that the education is an opportunity; I’ll
going to be around for. So take advantage of it,       give you one example, my colleague Darryl
and maybe have the Finance Minister or                 Bricker was in Seoul, South Korea two weeks
somebody else co-chair some event in this area         ago and had an appendicitis attack, and was on
for Durham. Look to them to, you know, reach           the emergency table to be operated on, and the
out and look for innovative market people to           hospital administrator came down and said, “hi,
come in here. Those are the sort of things that        nice to meet you. I live in Toronto.” And the
you have at your doorstep and I just hope you          surgeon came down and said, “Here’s my
take advantage of it.                                  drivers license from Toronto, I was last working
                                                       at Toronto General Hospital.” In the middle of
                                                       nowhere.
Dianne Buckner – Conference Moderator, CBC
      Dragons’ Den                                     I think the opportunity and the optimism is not
Okay, we have another question.                        just how they see the world around them and
                                                       have some perspective, but its also in the
                                                       opportunity to go anywhere you want in the
                                                       world, to be educated, to go outside, to say “I
                                                       have a son who just finished a year at a chef
                                                       college, a private chef college, that cost about
                                                                                                          40
as much as it cost for 4 years for him to go to        Let me maybe start off here, and the answer is
your university as it did for him to go to chef        absolutely not. We do have a lot of commerce of
college, and he still doesn’t make food. Well, he      course that goes across Canada, but there are
doesn’t make food at home or clean up his              some particular barriers that have become even
dishes either.”                                        more important now, I think, as companies have
                                                       found their business in the United States not as
And I just said to him, “you have an incredible        strong and looking at alternative markets. Many
opportunity to get on a plane for $1200 round-         of those markets may be elsewhere in Canada,
trip and go to Italy and basically work anywhere       particularly in the energy sector. We’ve been
you want, and live off of that.” I think the           very involved in a number of companies here in
optimism, to a degree right now, is because it is      Durham have joined us in looking at
better than other places.                              opportunities. For example, in Alberta, take
                                                       advantage of the oil sands. Keep in mind that oil
And secondly, because there are more                   sands investment last year, which was a slow
opportunities given our education system, to           year, it was still $45 billion worth of investment in
simply pick up and go somewhere and travel.            new project development and maintenance that
And I want to be clear, and I will leave it to other   was taken place in Northern Alberta. So this was
people, I even look at our own company. We’ve          a tremendous source of new business
gone from $4.5 million worth of billing out, to        opportunity for companies in structural steel and
$200 million, and we have gone from 11                 metal fabricating and machining, pressure
employees when I started, to 10 000 around the         vessels and tubes and pipes and environmental
world. And I have kids of my own, (I call them         technology and processing technology and
kids) 25 year olds, 27 year olds, who have             services, business services. But try to make the
trained with me for 2 years and are now in             connection, try to take product out to Alberta,
London, Paris, Brussels and Dubai. And they’re         and what you find is that you’re immediately hit
Canadians, and they’re leaving to get                  with different trucking regulations, so you can’t
experience and then they’re going to come back.        truck in a consistent way across this country.
And I think that provides great perspective but        You’re hit with different restrictions on labour
also great optimism.                                   mobility. It’s fine to have put in place or
                                                       manufactured a piece of metal equipment, but
Dianne Buckner – Conference Moderator, CBC             you couldn’t weld that in Alberta without making
      Dragons’ Den                                     sure that you’re using welders with an Alberta
Optimism to get out of town, I don’t know…             certification for welding. Many companies have
                                                       that. But things like that don’t make sense today.
A: John Wright – Senior Vice President, Ipsos-
      Reid Corporation                                 We’re trying to leverage up as much opportunity
Dubai!                                                 as possible in the Canadian market here, and I
                                                       think you’re absolutely right. We look at, for a
Dianne Buckner – Conference Moderator, CBC             long time we’ve had pretty good business
       Dragons’ Den                                    conditions North-South, the flow has been
Alright, this gentleman…                               North-South. Maybe we’ve taken our eyes off of
                                                       the opportunities across the country. But maybe
                                                       this is the opportunity right now, on the other
Q: John Williams – John Williams, C.A.                 hand, to put that right. And certainly I think that
Thank you. My name is John Williams, I’m a             for the first time in 142 years, we got agreement
chartered accountant practicing in Oshawa, and         3 times last year on the ‘Buy America’ provisions
apparently, Neil, chartered accountants have the       where the provinces came together and said,
highest divorce rate among the profession.             “Look, this doesn’t make sense. We’ve got to
Anyways, I think my question is more directed to       keep our markets open and do a deal with the
perhaps Jayson and John. We’ve talked a lot            United States.” Which also opens up opportunity
this morning about barriers and potential barriers     across the country in procurement markets.
to trade, more so of Canada/U.S. Have we done
enough in this country in the last 10 to 15 years      So maybe there’s some hope here as a result of
to break down the interprovincial barriers to          the economic problems that we’re facing.
trade? Because a number of them exist and
obviously, are we maximizing, as a nation, our
internal markets?                                      Dianne Buckner – Conference Moderator, CBC
                                                              Dragons’ Den
                                                       Okay, we’ve got about 12 minutes left in this
A:   Jayson Myers – President, Canadian                session, I’ll just mention. I see more questions
      Manufacturers & Exporters (CME)                  waiting here, but I know Richard wanted to say
                                                                                                        41
something and he also addressed that last              disappearing. Some of us have enjoyed a
question to you, Neil, so go ahead.                    second career, as I have, and are looking
                                                       forward to continuing that for quite some time. I
A: Richard Marceau – Provost, University of            think the idea of retiring at 65 is gradually and
        Ontario Institute of Technology (UOIT)         perhaps in some cases by necessity out of
Yes. Jay, you’re absolutely right. There are           range. But if I look at my son, and my children’s
tremendous barriers to goods flowing across            generation of 30 to early 40s, they have a totally
provincial barriers, and it seems to provincial        different view of life and they don’t expect to
borders. But it seems that the flow of goods and       retire. They don’t expect to stop working; they
energy currencies is North-South, more easy to         expect to balance their life and their work. And it
go North-South than East-West. And another             seems to me in Durham you have a classic case
example of what could be a tremendous source           of being able to really leverage that, because
of opportunity for Canada, and to drive down our       you’ve got skilled jobs of a variety of natures.
carbon footprint at the same time, is simply to        You’ve got good educational backgrounds.
facilitate the flow of electricity across provincial
borders. We don’t have one Canadian electric           I’d like, first of all, your comments about whether
system; we have far more than 12 balkanized            you think there are such changes happening,
systems because we have a lot of isolated              and what kinds of things you folks might suggest
systems. But if we were to facilitate the flow of      that the Durham Region do to leverage that and
electricity across provincial borders, this would      encourage it.
not only facilitate the flow of renewable energy
and drive down the carbon footprint of
Canadians, it would give us the opportunity to
build the expertise. To design and deliver the         A: John Wright – Senior Vice President, Ipsos-
products that would enable us to create a truly               Reid Corporation
continental electric grid, which is something that     For the last 17 years we’ve done a major study
doesn’t exist yet in the world. It’s a tremendous      every year on the aging population. It’s been
opportunity. Could be done, we could seize it.         publicly released. So I’ve just got 2 comments to
But the constitutional barriers to this are what       make. Number one is that when we asked
keep people from trying to address it. I think you     people 5 years ago when they felt that
don’t need to address the constitutional barriers.     retirement starts (and this was 55+) when does
I think the utilities themselves could sign an         retirement start, 85% said when the activity
agreement to make it work, but you need that           stops. So the whole idea of retiring at a set date
level of vision of wanting to get renewables into      is simply not. And you’re absolutely right, more
the     system,     increase     their  penetration    and more people are going through and doing 2
throughout Canada, and drive down the carbon           things.
footprint in those areas of Canada where you
have high penetration of thermal fossil                One is that they’re having second careers where
generating plants.                                     they go off and do what they wanted to do, but
                                                       the other is that they’re taking their skill set from
Dianne Buckner – Conference Moderator, CBC             one company and going to the competitor and
      Dragons’ Den                                     working on a contract over there. And you can
Okay, lets move on to another question.                go to different places after, you know, whatever
                                                       you want to do.

Q: Jim Farmilo – Isowater Corporation –                And the second thing is that what it does do –
Nuclear Industry                                       the work/life balance in this community – it’s not
Thank you, my name is Jim Farmilo. I work with         just the balance but it’s access from everything
a company called Isowater Nuclear Industry. I’d        from water to transportation to Lakeridge to
like to address the issue of skilled employees,        hospitals to facilities. You know, people look at
and I think several of you brought that up in your     these and take them for granted. In other parts
conversations. The fact that the skilled               of the world, it’s simply not existed. So I think
employees are getting older, that pretty soon          that’s all part of the branding experience and
we’re all going to be retired to nursing homes         showing that people can continue to have this
and have to be looked after. I think you also          life well on into the future.
mentioned that—one of you folks mentioned that
the young folks in the workforce seem to have a
different view of work than we did in our youth.       Dianne Buckner – Conference Moderator, CBC
There is a contra-opinion about retirement. I                  Dragons’ Den
think our vision of sitting on the lakeshore and       I think it’s the turn of that microphone.
watching the sun set every night is perhaps            Go for it.
                                                                                                        42
 Q: Andrew Scuse - Corporate Training                 Dianne Buckner – Conference Moderator, CBC
        Division of Durham College                         Dragons’ Den
 Good morning. My name is Andrew Scuse.               Go ahead.
 I’m here representing the Corporate Training
 Division of Durham College. My question is
 for Dr. Alexander. This morning we heard
 that businesses can’t stand still. We can’t          Q: Peter Stasiuk – Professor of Economics,
 operate the way we’ve been doing it for the          Durham College
 last 5 years, if we’re going to continue to be       Peter Stasiuk, I teach economics at Durham
 successful. What are some of the specific            College, and I’m not sure who would address my
 skilled areas that your business is going to         question. It might be Jayson or Richard, it might
 require in order to be successful?                   be Neil; I’m not sure.

                                                      The environmental concerns are often viewed as
                                                      a threat to economic growth, and economic
A: Dr. Neil Alexander – President, Organization       growth is viewed as an environment killer by
      of CANDU Industries (OCI)                       some people. How do we, in this area, look at
Thank you, that’s a very good question. Actually,     what I think will be a growing environmental
I’ve been desperate to comment on John’s              concern, I mean that continued pressure on
comments earlier so I’m going to do that first. I’m   environmental issues and meeting some
quite surprised by his statistics. I couldn’t work    demands? How do we take that as an
out who chartered accountants were finding to         opportunity for Durham Region going forward
marry in the first place.                             and be able to still create economic growth while
                                                      addressing environmental issues?
<laughter>

It’s a very serious question about resources. The
nuclear industry’s a very skilled industry. We
                                                      A:   Jayson Myers – President, Canadian
need people across the board. We need skilled
                                                            Manufacturers & Exporters (CME)
business people at the one end. We need skilled
                                                      Maybe I can start off very quickly by saying that I
nuclear operators who understand how the
                                                      began to address that with respect to climate
plants operate. If we’re going to stay in the
                                                      change. And I think that where the win-win is in
business and the future of selling reactors to the
                                                      environment and economic growth is the
rest of the world, and I sincerely hope we do, we
                                                      development of the technologies and new
need this type of scientists and engineers that
                                                      businesses practices there that are both more
can look at new ideas and take us to the next
                                                      environmentally sustainable deliberately, the
level. Because we have to be moving forward.
                                                      impacts on environment that we want to see in
We need very skilled trades people. The work
                                                      terms of lower emissions in that case, less use
that’s carried out on nuclear plants is carried out
                                                      of waste, or recycling of electronics, or
to very high standards, and is checked very,
                                                      whatever. This tremendous business opportunity
very carefully. So we need to train people for
                                                      behind that I think. And as Neil was saying in
that. We do have a very substantive
                                                      nuclear, especially here in Durham Region. And
demographic problem, because a lot of people
                                                      in Durham, I think with the College, leads to
joined the industry before me and have stayed
                                                      technology with the industrial base and business
with it throughout, and so are looking at
                                                      base that you have is particularly well positioned
retirement. We need to look to replacing those
                                                      to support that. That type of technology, that
people. The thing we desperately need at the
                                                      type of skills that are necessary to do it. But
moment is certainty. In fact, we’re dealing with a
                                                      focus it on those areas for their greatest
                                                      potential, I think.
challenge at the moment because we thought
we would be building the new Darlington
                                                      A: Richard Marceau – Provost, University of
reactors, and the delay has meant that a number
                                                              Ontario Institute of Technology (UOIT)
of people were trained up and now don’t have
                                                      It’s a key question, and there are so many things
jobs. There’s only so many times we can do that
                                                      going through my mind as you were asking the
before they get fed up. And so, it is really quite
                                                      question. I was in a conference yesterday with
important that we do get a plan, that we work in
                                                      the Minister of the Environment, Honorable John
the long term and we train people for that plan.
                                                      Wilkinson, and he was saying yesterday that for
And the uncertainty where, you know, “it’s this
                                                      our society to be sustainable we have to
idea, that idea, where are we going?” is really
                                                      remember that a few hundred years ago we
very damaging both to the industry and to the
                                                      were sustainable. But you have to look at the
people within it.
                                                      number of human beings alive at that time, and
                                                                                                     43
how that society was in balance at that time with     Panel # 2
all the things that could sustain humanity. He        Dianne Buckner – Conference Moderator, CBC
also noted that the notion of trash is a modern             Dragons’ Den
notion. In a sustainable community, there is no       Okay, we’re quickly running out of time. Lunch is
trash. Its sort of like everything is conserved,      going to be served shortly. So if you’ve got some
everything is recycled; everything just keeps         questions, please step up to the microphone.
going around and around. But what really, really
struck home yesterday was when the Director of
the Royal Bank of Canada was saying that her
                                                      Q: Dianne Buckner
definition of sustainability is that you don’t eat
                                                      I thought I’d give one quick one though, just to
away at the principle. She applied business
                                                      start off, to you Birgit. Interested in the whole
concepts      to   notions      of   environmental
                                                      ‘Buy American’ provisions. Of course, people
sustainability. And she showed a slide where
                                                      are very, very concerned about that. Initially we
she said, “presently, we are eating away at the
                                                      heard some media reports that, you know,
Earth’s resources at about one and a half times
                                                      there’d been some success on the part of
the Earth can sustain a living breathing and
                                                      Canadians of trying to mitigate some of that.
ongoing humanity. Coming from a banker, I
                                                      Where does that stand now? Is there a way to
thought that was a very powerful statement. So I
                                                      measure that?
think that what we have to do whether it’s
individually or collectively, we have to identify
the problems we can solve at our level and start
working on them. And some of these problems           A: Birgit Matthiesen – Senior Advisor to the
are tremendous business opportunities. If we                 President, US Government Relations,
identify    problems       that    are    business           Washington and CEO of the Canadian
opportunities, that enable a business proposition            Manufacturers and Exporters Association
to solve (as Jay was saying not so long ago)          The Canadian government did enter into
bringing a solution to somebody, well that’s what     negotiations with the United States trade
we have to be doing. And it is equally valid in the   representative. We do have an agreement; it
environmental climate change agenda as it is for      ends at the end of 2011, which is when all the
business. When the two converge, it’s great for       money will be spent. It addresses 6 funding
everybody.                                            projects under the 2009 Stimulus Package, only
                                                      6. Most of that money’s been already spent, so
Dianne Buckner – Conference Moderator, CBC            its yesterday’s news. More importantly to your
        Dragons’ Den                                  question though, I was talking to you about the
Okay, we’re out of time, but thank you so much        lame duck session in my presentation earlier this
to all our distinguished panelists here! Let’s give   morning. There are 3 authorization bills pending
them a hand.                                          action in the House and the Senate as we
                                                      speak, which might see some legislative action
<Applause>                                            before Congress steps down. And those are the
                                                      3 re-authorization of waste and waste-water
                                                      projects. A gazillion dollars of investment
                                                      projects in the United States. These are not
                                                      Stimulus money projects, but because they have
                                                      some money under the era, even $1 of a billion-
                                                      dollar infrastructure will taint that project in terms
                                                      of Buy America.

                                                      Anyways, so we have 3 pieces of legislation on
                                                      the Hill that contains cut-and-paste Buy America
                                                      that we saw in 2009. And so if they see action
                                                      and if they are passed and signed by the
                                                      President, we will be shut out of, I think its $360
                                                      billion over 5 years, of waste and waste-water.
                                                      And talk about opportunity and innovation, that’s
                                                      in that sector. And just to repeat, it ain’t over.
                                                      We’ll see more of this, that’s my prediction.

                                                      Dianne Buckner – Conference Moderator, CBC
                                                             Dragons’ Den
                                                      Interesting. Not very encouraging, but good to
                                                      know. Sir?

                                                                                                        44
                                                       foreign direct investment, we see that as an
Q: Michael Angemeer – Veridian Corporation             opportunity, a business opportunity, for
Thank you. My name is Michael Angemeer, I’m            companies to approach them internationally.
the CEO of the Veridian Corporation. I’m also
the past Chair and founding Chair of the DSEA.         Europe has a certain amount of expertise in this
I’m also on the board of governors for UOIT. So        area as well, so we’re going to be exploring that
I’d like to compliment the organizers of this,         next year to see which companies are already
putting this together, and the quality of the          active in this space and which ones have the
panelists and the speakers and the ideas so far.       technology that they could bring here, set up a
                                                       business, and start to sell their products into the
I just wanted to pick up on a couple of things         market place.
that I noticed. This idea that we have to get our
messages straight, and work as a region. I think       Dianne Buckner – Conference Moderator, CBC
that’s one of the key foundations is being able to          Dragons’ Den
put the messages together in a clear way. I’ll         Anyone else want to comment?
take an example that’s near and dear to my             Yes?
heart, electric vehicles. We have at least 6
things that are going on in this region in regards     A: John H. Tory – Newstalk 1010
to electric vehicles. That would be a great story,     I think there are two marketing (I think that’s the
but we really haven’t told that story very well to     word you used) two marketing missions that
the rest of the world.                                 have to be undertaken. One is internal. When I
                                                       say internal I mean internal within the GTA,
What I’d like to ask the panel is, once we have        internal to Ontario, and internal to Canada.
those stories straight on these various key areas      Because those 6 initiatives first have to be
that we have to tell the stories about, what’s the     known within the context of where Durham fits in
best way to get that information out to the world?     all the 6 things you mentioned that are going on
And more importantly, what’s the best way for          with electric cars in this country. And we’ve got
the people out there in the rest of the world to       to accept the fact that in the broader GTA and in
understand what we have here? So that people           Canada, elsewhere, there are other things going
who are looking for jobs and the companies that        on that compliment or perhaps even compete
are looking to locate here, they’re going out and      with those. We’ve got to figure out a way to put
they’re Googling and they’re going on the              Canada’s story—because to me, I mean, again
internet – what kind of things do we need to do        we’re a small country. And we’re very
differently to be able to attract those people and     prosperous and we’re lucky with the size of our
companies to Durham Region?                            economy, but we’re still small up against huge
                                                       competition, and we’ve got to sort of decide,
                                                       alright, ‘how’re we going to put our best foot
                                                       forward?’ I look first to the City/Region to do
Dianne Buckner – Conference Moderator, CBC             that, and then perhaps sometimes even within
     Dragons’ Den                                      the national context. So I think we’ve got to do
                                                       that.
Anybody up for that question?
                                                       And then the second thing we have to do is
A: George Hanus – President & COO, Greater             decide we’re part of a one-voice competition for
Toronto Marketing Alliance (GTMA)                      investment internationally. I just see this notion
I’ll take that one. Thanks, Michael, for the           of the Durham Economic Development
question. The area – one of the initiatives that       Community and Peel and Toronto – I mean,
we have at the GTMA is a task-force on energy,         Toronto made a terrible mistake in my view,
and we had a meeting of the key participants on        which I hope Rob Ford will undo, in setting up
that just a few days ago. One of the guests that       the Invest Toronto thing as a thing that’s by-and-
was invited from a law firm talked about wind          large focused on attracting investment to
energy and solar energy, and so forth, which is        Toronto, as opposed to saying, “we’ll put money
all very fine, but he felt the area that would be of   to something that’s going to do that on a
particular interest for the Region would be to         regional basis.” Because in the end, we need to
look at the Smart Grid issue. The technology           leverage all of the strengths across this whole
currently exists, the Smart Meters and so forth,       Region, from Hamilton to Oshawa, and make
but a lot more technology is needed to integrate       sure that we attract investment. And I’ll see it as
the whole grid, make it more efficient. And in a       a big win for Toronto if we get a big investment
way that could then measure or feed the electric       in Durham. Because in the end, you know that
cars that at some point will eventually be used.       the lawyers or the accountants or who-knows-
So from our very narrow focus perspective on           what, but something benefits Toronto and
                                                                                                      45
something even benefits Peel – I did a speech          lot of other countries out there. Our net-debt to
not long ago to the Mississauga Job Summit,            GPD ratio, for all levels of government
and I actually broke down an entrepreneur in           combined, we’re projecting not much further
Oakville, and where the people just live to work       North than about 36% of GDP. There are many
for that company. And more of them lived,              European economies that would kill in order to
frankly, in Durham, Markham and Toronto than           have ratios anywhere close to that, let alone the
lived in Peel. They had a terrible commute to go       United States and very much prevalent
all the way over to Oakville to work, but that’s       throughout the developed world. And I think that
where they lived! And so even that, by itself,         gives us a significant competitive advantage. It
proves that the benefit is spread right across the     shifts the debate we were having years ago
GTA if you act as a region and attract                 where we thought that perhaps we had to
investment. So I think that’s – I don’t want to        aggressively pay down absolute debt levels to
sound like a one trick pony but I mean, to me, its     rock-bottom levels on a percentage of GDP, and
an internal marketing job to do to both those 6        now all we have to do is look relatively better off
things and then you’ve got to act like a broader       from a relative standpoint compared to problems
region to put forward the Canada’s face to the         else where in the world and build upon the
world in terms of how we can be a magnet for           advantages we have constructed for ourselves.
electric vehicles, if that’s something we want to      Simply by virtue of the fact, going back to my
focus on.                                              presentation, we did our de-leveraging in the
                                                       1990s ahead of everyone else.
Dianne Buckner – Conference Moderator, CBC
      Dragons’ Den                                     At the Provincial levels, it varies. Though we
Okay, we have a question from the floor here,          have some tremendous bright spots, some
and we’ve only got about 5 minutes left. So            tremendous natural resource riches that are
maybe we can get a couple quick answers. I’m           reshaping Provincial government finances in
sure Derek, you might want to field this one, and      provinces like Saskatchewan or Newfoundland,
maybe someone else as well.                            and I think that they have a very bright long-run
                                                       future. I worry in some other provinces, without
                                                       pointing fingers, about the sustainable rate of
Q: from the floor                                      growth in their program spending which is
The question is, “are the current fiscal policies of   frankly a little out of control for an extended
the     Federal    and     Ontario    governments      period of time. I’m particularly focused on
appropriate given what the Canadian economy            healthcare, where half of every program-
is facing over the next 3 to 5 years?”                 spending dollar that goes towards healthcare
                                                       without necessarily the best set of checks and
                                                       balances in terms of whether or not we’re getting
A: Derek Holt – Vice President Economics,              maximum bang for the buck out of that
      Scotia Capital                                   spending. In an environment in which bond
Oh, look at the time…                                  yields are dramatically low as they are right now,
                                                       that delays the needed adjustments and it’s an
Dianne Buckner – Conference Moderator, CBC             opportunity for Provincial governments to take
       Dragons’ Den                                    advantage of that in order to restructure their
In 30 seconds or less.                                 finances and pull in the purse-strings a little bit
                                                       more for the longer term. I fear that they won’t
A: Derek Holt – Vice President Economics,              do that, I fear that they’ll get addicted to low
Scotia Capital                                         interest rates and be fooled that this is a
My goodness, darn. Ah. From an economist’s             permanent feature of the future fiscal landscape.
standpoint, I will dodge a bit of the appropriate
angle and just comment on where we see things          Going off into the future, given our shop’s view
going. I think that the Federal fiscal policy is       that bonds are one of the worst investments you
definitely turning towards retrenchment over the       could be making at this juncture, they’re going to
course of the next couple of years and that will       get snapped back on their interest costs over the
drag on economic growth in Canada. Probably            longer term, and they’ll see their interest bill rise
knock, by our estimates from a Scotia economic         proportionately as we go forward 5 years from
standpoint, maybe 1.5 to 2 percentage points off       now. This is just riding the gravy train on the
of annual economic growth through that effect.         bond markets right now, but that story won’t last
That’s going to mean all of you, the private           forever. When we hit that point, rising interest
sector, are going to have to do more of the            expense is going to crowd out some of those
heavy lifting in terms of keeping the ship righted.    program spending gains, and that’s going to I
However, in the global context I think we’re the       think bring a different day of reckoning for some
poster child of global fiscal health compared to a     of those Provincial governments that have been
                                                                                                        46
very aggressively driving program spending. So         that’s a discussion we’re really having at any
we don’t have the U.S. problems, however, just         level of government right now.
in closing. At least, the U.S. has the far bigger
problems over the longer term. The lowest gas
taxes, no national sales tax, among the world’s        Dianne Buckner – Conference Moderator, CBC
lowest personal income tax. Those things are all             Dragons’ Den
historical footnotes and they’ll be changing           Derek, were you shaking your head in
profoundly over the course of the next 20 years.       agreement or disagreement?
So at least we have relative advantages, but I
think its still going to shift the fiscal landscape    A: Derek Holt – Vice President Economics,
across different levels of government in Canada.              Scotia Capital
                                                       I think John’s right to flag some of the risks and
Dianne Buckner – Conference Moderator, CBC             we have to make sure we don’t get addicted to
     Dragons’ Den                                      low bond yields and we sow the seeds for longer
Okay we’ve got 3 minutes for John Tory to say          term gains and government finances. But the
something.                                             comparisons to Greece made, and some of the
                                                       problems in Europe, are totally 100% off base.
A: John H. Tory – Newstalk 1010                        The debt to GDP ratio in most countries are all
I’ll be very brief. I say this on the radio, those     tripping 100% or well North of that. They’re
who listen all the time—I mean, I think its rare       dealing with ripping up decades worth of social
that a Red Tory like me can be more                    contracts that were fundamentally unsustainable
conservative than a banker, but I think for all the    where a country like Canada, we reformed our
relatively good position that we can talk about in     national pension plans long ago. Canada
terms of our fiscal situation, the present course      Pension Plan is among the most solid in the
and speed we’re on today at the Federal,               world. We raised the contribution rates,
Provincial and Municipal levels is not                 diversified the investment classes in which they
sustainable. And we are not having an honest           can target over a decade ago, and that puts us
discussion about some of the things that loom          far, far ahead of the United States with their
for us down the road in terms of the healthcare        social security problems that they haven’t even
system and its sustainability given simple             begun to address. I’ll meet in the middle on this
demographic changes that are going to take             one. I see the need for addressing some of the
place in this country. We’re not having a              sustainability issues, but I still emphatically
discussion about pensions, we’re not having a          believe that compared to developed economies,
discussion in an adult sort of way (to use that        we’re right up there near the top of the heap with
expression that’s used) about public sector            among the strongest balance sheets in the
compensation and benefits and so on, and it’s          world.
got to be had. Because if we just sort of assume
that because we’re better off and somehow              Dianne Buckner – Conference Moderator, CBC
things are going to skate themselves on-side,                 Dragons’ Den
they’re not. And I think that’s, as I will say in my   So John, is it true then that becoming part of the
brief comments I’ll make at lunch on the subject       media means you’re hyping things the way we
of what happened in the Toronto election, that’s       do in the media?
what it was really about. It wasn’t so much about
free metro passes and that sort of thing, it was       A: John H. Tory – Newstalk 1010
about people recognizing we’ve got to change           Just encouraging adult conversation. We’re
the way government is run or else we’re Greece.        maybe well off today, but we want to make sure
Or we’re the United Kingdom. I played about 12         we stay that way tomorrow.
times, one afternoon on my radio show, the
quote of the Chancellor of the Exchequer               Dianne Buckner – Conference Moderator, CBC
standing up in Parliament and saying, “today’s                Dragons’ Den
the day that Britain steps back from the brink of      Alright, well more debate at lunch perhaps.
the abyss.” And I said, “do we ever want to get        Thank you so much to all of our panelists. What
to that day where somebody stands up in                a wonderful conversation!
Canada and has to say that?” and if not, then we
can’t just say that we’re in great shape today         <Applause>
and hallelujah. We’ve got to really have a
discussion about how we’re going to make sure
we don’t ever get there. And I just don’t think




                                                                                                     47
Dave Hare – Chair, Durham Economic Prosperity Conference
It’s indeed unfortunate that our timelines are so tight, but they are and that’s the way it is. But we’ve had a
great morning, and we owe that to first of all Dianne Buckner who did a great job moderating for us today.

<Applause>

And secondly I’d like to acknowledge the professionalism and knowledge and the inter-activeness of our
panelists, all of them did a great job. And as is our custom, the Conference Committee will be making
donations to a charity of their choices as a thank you.

<Applause>
                                            rd
And thirdly, I’d like to acknowledge the 3 year multimedia design students from Durham College who
worked with us this morning, and their professor Mark Johnson, thank you very much and we look forward
to seeing the results of your work here this morning.

Now, John is on a very, very tight timeline today. He’s going to be addressing us during lunch, so that
means that we’ve got exactly 5 minutes (to get to) lunch next door. So be quick, and we’ll see you there.
Thank you.


Networking Lunch – The Next 4 Years Municipally in the GTA!

Keynote Speaker John H. Tory – Newstalk 1010

Dave Hare – Chair, Durham Economic Prosperity Conference (DEPC) Committee
Ladies and gentlemen, I would like to take this opportunity just once again to welcome John Tory. He’s
here to speak to us for the next ten minutes to give us his perspective on the next 4 years in the GTA,
drawing on his experience as Principal Secretary to the Premier of Ontario and Associate Secretary of the
Ontario Cabinet in the 80’s to Member of Provincial Parliament from 2004 to 2009 and as the Leader of
the Ontario Progressive Conservative Party.
Ladies and Gentlemen, John Tory

<Applause>

John H. Tory – Newstalk 1010
Hello, ladies and gentlemen. I’ve been asked to address in this segment of the program—I apologize that
I’m getting up and speaking so soon, and I’ll be sure I’m not eating and running, but when you do these
radio shows everybody gets you to sit down and talk, but you actually do have to prepare, I know that
doesn’t sound like it, and I apologize for that, but you do have to prepare, and I find I need one hour of
preparation for every hour that I spend talking and today I will be cutting that a bit short. You can’t just
show up half an hour before and expect to sound like you know anything about the 5 or 6 different
subjects that you’re covering so that’s why I have to go.

I was asked to talk about what happens in the Toronto elections and what’s going to happen within the
context of, obviously, Durham as a partner in this city region that I talked about on the panel. First of all,
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I’d like to start by talking about what I do not think happened, or what didn’t happen, on October the 27 .
What didn’t happen in Toronto was some sort of Conservative sweep that really changed the face of the
entire city government. What you in fact got, if you examined the results of the council elections taken
together with the election of mayor, was the election of a mayor on a very conservative platform,
especially obviously fiscal conservatism. But when you look at what happened with the council, while
there were a fair number of changes including the defeat of some incumbents, in some respects it had
less to do with ideology than it did to do with some incumbents just being swept out because it was time.
And in other cases, in fact, you had people who were more conservative being in fact replaced by people
who were less. And I don’t think there was a particular rhyme or reason. The overall council took some
shift towards the conservative side of the spectrum, but not an asset and not to the point where Mr. Ford,
for example, has an easy working majority of 45 seats total including his own, where he has an automatic
30 votes that he can count on to put his agenda forward. In fact when you break it down, he’s actually
lucky if he counts the people who are kind of “leaners” to his type of position, where he has 23 on his best
day but probably less. So he’s going to have to work with all the regional chairs, the mayors, and that is
huge to build that kind of daily coalition in municipal politics. And then gets through it when he gets
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through it, but it also means that everything he wants to do won’t get done, because there will be some
where he won’t be able to build that coalition.

I have said in some talks that I give in Toronto to groups about elections and looking ahead to Toronto
specifically, that if he can say “I got a lot done on my agenda in four years,” that’ll be pretty good going
and people will appreciate that because I don’t think he’s going to be able to stand up and say “I did
absolutely everything that I said I would do.” Because some of these things just aren’t going to happen.
So, it wasn’t a conservative sweep, and it also wasn’t; and I spoke a little bit to this Arts group that I
mentioned this morning—it wasn’t a kind of an election that will result in the certain closure of Toronto
City Hall or the winding down of City government that did nothing in a short period of time, or anything like
that. I mean it was the voters I think sending a message. And what the message was about, to me, in
terms of moving to what did happen. And I think its germane to everybody, and I think it really reflects
something that people are going to expect to see happen. And I know there was a fair bit of turnover in
this region as well. I think, I pointed it out many times during and after the campaign in some of the
analysis I was doing as a media commentator, that people in Toronto, who looked at the polling did not
reject the city, they didn’t think the city was itself in bad shape or in need of some sort of a fundamental
overhaul. What they rejected was the form and substance of city government that they where getting. I
think there’s a big difference between the two. They saw the raw materials that we have to work with, and
I think its true here in Durham, as I said this morning, the raw materials are terrific. It’s the government
that they felt they were getting or not getting that was in the way of that, in some effects, in the way of
achieving that potential and in the way of people being assured they were receiving a value for money.
And so I think what people did in the election in Toronto and I think it is well understood by people in other
parts of the region, because I think given the way the media works it will infect, if it hasn’t already, the rest
of the region in terms of people being very focused on these things and they rejected the old way of
managing local government. And a lot of that in Toronto anyway had to do with the fact that they
understand people, because they’re paying for it, that are spending an increase of 43% over 7 years can’t
be sustained. Because they know they were paying for it through various means whether its property tax
increases, water rate increases, transit barrier increases, and of course borrowing. Which, they, I think
have come to understand better, is not the answer either. They understand that wage and benefits can’t
be increased 47% over 7 years and that that can’t be sustained. They understand that staffing levels can’t
be increased 20% over 7 years, and that that’s not sustainable either. And so I think the message—and I
think the message that I hope we can adopt as a city region and sort of find ways we can work with each
other to accomplish a better way to manage city government.

You know if you think about it, it’s not confined to the GTA. I mean, this is a problem of factors (I was
saying in that little tape that Derek and I had on the podium, and you know I don’t think, well—he did say
we do meet in the middle, and I exaggerated what I was saying a little bit to make a point about
something) but I think the bottom line is that, around the world, certainly here in North America there’s a
day of reckoning coming to the United States, there’s a day of reckoning that’s I think coming here, not
withstanding how well off we’re positioned, it’s a day of reckoning that’s arrived elsewhere. But to me, it’s
just a matter of time. All of us have to find ways to manage better, because people are saying we can’t go
on paying more and paying more, and frankly its not in the best interests of our economic development in
this region and in this country that we should see government consuming more and more and more over
time of the pot. That wealth is needed to invest to create new jobs. The government doesn’t create new
jobs or create wealth; it consumes wealth. All governments. All the time, that’s all they do. They create a
little bit of wealth I guess in a funny sort of way, that they’ll pay people in the public service who, in turn,
do pay taxes. But that’s about it.

So I think the wake-up call is an issue, interestingly enough upon this occasion, by the voters. And often
the voters aren’t the ones who issue wake-up calls. Sometimes its banks, or sometimes its international
bodies, or its an event that occurs. In this case the voters in Toronto, rarely, but they have in this case
issued a wake-up call and it gives us a chance I think for a change, to control events to a certain degree
and not be controlled by them. So if I’m standing here in Durham and saying in light of all that that’s
what’s gone on in Toronto, what the message was, and what the change was that people were looking to
see take place – and that I think that Rob Ford by the way and the people around him are very committed
to delivering on it as best as they can—it is first of all to say get aboard. Get aboard. We have as much to
learn from Durham Region in terms of things that you have done well over time, things where you have
advanced practices above and beyond whatever Toronto might be doing. Toronto’s way bigger but it
doesn’t mean it’s better. I would think its better at some things, but Durham’s going to be better at others.
And you have a respected government here in the Region, you have respected city governments and
very good people, you’ve got a Chairman who’s well known and well listened to by other people in the
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region and in the province. So you can teach, but I think you can also learn by some of the experiences
that are going to unfold in Toronto as they come to grips with some of these problems. We are long past
the point—and I guess that’s why I talk about the strength of the city region and where its going (in my
view) anyway—where we can afford to keep our best practices to ourselves and not bother to look
elsewhere and see if we can do something better. And I think that there are, again, lessons to be learned
by Toronto from Durham and by Durham from Toronto and all the regional players, with respect to how to
manage government better and how to address this fundamental conclusion the voters reached, which is
that we can’t go on this way. You know, they mentioned on the radio the other day (I think it was to some
extent) that people get wound up about the free golf passes and the free metro passes. That isn’t really
the issue. That’s the stuff that makes them say, “I’m mad as hell and I’m not gonna take it any more.”
Because they think that that’s what the money’s being used for, in fact you see the worst of that but they
tend to focus on those kinds of things. I think we have to— If I was sitting in Durham I would be looking
for ways—as part of just managing government better, getting more for the money we’ve all got, maybe
more progressive adopting of best practices—to look for ways we can have greater cooperation
regionally. And by that I mean the GTA region taken as a whole.

In areas like housing, I was fascinated to have met a couple weeks ago, as part of my job as the head of
the City Summit Alliance, with all of the housing advocates in the Toronto area. And as you would know,
they are people who tend to be on the more progressive end of the scale. They’re people who look for
government to take a much greater role, where as I would certainly say, look, governments help, but its
really up to the private sector to deal with all of our housing needs in the final analysis. But the one thing I
didn’t expect to hear them say is how much they think we need to have a regional housing strategy. It
can’t be anymore that Toronto has one and maybe it’s supported by the other governments and maybe it
isn’t, and Durham has one and Peel has one. They were the ones saying this to me, and I’m a great
advocate of regional, you know, planning now in a number of these different areas. But it’s the housing
people who’re saying we need to look bigger than Toronto and I think they’re right.

I mean, transit, it’s already heading that way with MetroLinx. What we need to have is real buy-in by
people to say, “Look, we’re going to do this together.” Because the reality is that the people who are
going back and forth to work—and they’re going both ways, there’s many people coming out here to go to
work as there are going the other way—that they don’t care about the borders, they don’t care about the
jurisdiction, they just care for as-seamless-as-possible a transit system as is affordable and convenient as
possible to get them where they need to go. So in that sense, part of managing government better is to
say, “stop caring about yourselves and start caring about me. I’m the taxpayer, I’m the commuter, I’m the
person that needs a job, I’m the student, I’m this. I’m that. Stop caring about your own fiefdom, or your
own ad campaign or your own economic development office.”

Economic development. I think again, I believe very strongly that the reality is that we’re going to compete
for jobs and investment as a region. So that UOIT and Sheridan College and U of T Mississauga and
York University are all as much a part of that as any one part. And that we can no longer have the city
above Toronto (being Vaughan) running its own show, or having separate trade missions being sent off to
Frankfurt (as much as we think that’s perhaps valuable). Because all we’re going to be doing is stretching
over each other and wasting valuable resources, instead of going as one team saying we’re going to go
together. And that’s part of changing how you run a government. So I think about looking for collaboration
and partnership, and I heard the expression used about ‘vision without money’. And the fact is that we’re
past the point frankly where all this money’s going to come from government anyway. I think that’s
another part of the message in Toronto. The government can’t afford anymore to be doing everything,
because people can’t afford to pay for it. What that does mean though, in the end, I know that the tax
payers and the customers end up paying for it all anyway, but if you could use the ingenuity and the
financial resources of the private sector and do that together, I think that’s again part of the message
that’s coming is “don’t try, in government, to be all things to all people, because you can’t do it, we can’t
afford to have you try to do it and we need to see you working together on this.”

The second main point I want to make is that the agenda that Rob Ford got elected on and that some
people didn’t believe in preoccupying the city of Toronto with was a very important one, but it was actually
also a very thin one. And so I think if you said, “If I was sitting in Durham what would I see from this?” I
would see a big opportunity to actually take some of the issues that really weren’t part of that agenda,
where there is no pre-prescribed sense of where the city government’s going to go, and use that as a
opportunity to try and direct that as an important player in the region. What issues weren’t really
addressed? Well, regional transportation wasn’t. Look at Rob Ford’s platform on transit, it goes from
talking about, as some others we’re doing, and MetroLinx was trying to do, a kind of regional strategy, to
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just saying he’s going to take all the money that Dalton McGuinty allocated to Toronto and build two
subway extensions, neither of which have much to do with the other regions of the GTA. So what that
says to me is, the broader issue of regional transportation, which I think is the big one, is largely
unaddressed.

Economic development? I mean, it pains me that this wasn’t discussed at all, because I look at a healthy
economy and a growing economy as being central to accomplishing anything. You know, that’s where the
prosperity comes from – the finances, all governments and all initiatives, is real private sector wealth
creation which means attracting investment and jobs. And there was no strategy discussed, no plan
discussed, there is no plan. And that’s deeply disturbing, I mean, for the economic centre of the country.
By that I mean this whole region.

The environment wasn’t really discussed. They put some good initiatives on the table by the past
administration, I’ll give credit where it’s due. But I think again in terms of looking at kind of a regional
strategy where we should stop having 5 or 6 different ones. And Durham again has shown some real
leadership here. And that leads me to mention waste. I know it’s controversial within this region. I ran for
Mayor of Toronto in 2003 on the platform of saying that I believe ‘energy from waste’ was part of the
answer; a necessary part of the answer that’s been adopted in every other part of the world except here.
And it is in Peel to some extent. We seem to be afraid of it. But at the end of the day I was going to say,
“well okay, you make your own decision about what to do with it here.” But I think there is an opportunity
for you to teach Toronto something about that and to be a partner with Toronto in addressing a waste
problem they think they’ve resolved. But you know, as soon as that dump in London is full, the province
will be here again. And, you know, so I think there’s a real opportunity there.

Immigrant settlement. It’s a regional issue, not addressed during the election campaign. But the fact is
that Rob Ford can say what he wants about immigration, I’m not being critical, I’m just saying he can say
what he wants about how many people are coming and how we can cope with them. They’re coming, we
need them, and the fact is that even if we built a wall around the Toronto Region that we don’t believe in
this country in telling people where they can go and so forth. They’re coming. So the challenge is to going
to be get the best out of them in terms of integrating them as fully and completely and quickly as possible
into every aspect of life in the GTA region, economically, culturally, socially, and so on. As opposed to
today’s situation where we have a lot of people marginalized who are newcomers to this country, because
we haven’t made proper preparations to integrate them completely when we invite them to come here.
Let’s make no mistake, we invite these people to come to Canada after they apply and go through a
rigorous process. It’s not like they just show up and we say, “oh, fancy seeing you here.” It’s no surprise
that they were coming, they wait 2 or 3 years to come, then they arrive and we’re not ready for them in
terms of taking full advantage of everything they bring. And they bring with them a higher level of
education than the population they’ve joined. That’s a fact. And so it’s up to us to do that, and I think to do
that, briefly, I mentioned how to.

Change does not mean that Toronto City Hall that these issues that didn’t get addressed at all and where
there is no part in Rob Ford’s platform, for example, that really addresses most of that. Change doesn’t
mean those issues don’t need to be addressed. As the public officials in this room know, as well as the
Chairman does, those issues still need to be addressed even if the Mayor’s platform didn’t make any
reference to them. So there’s a bit of opportunity there I think for Durham Region working with Toronto to
be a part of that. And so, my advice on that point? Help lead the way. Don’t wait around for Toronto. I
think a lot of the time people waited around for Toronto, Durham has an awful lot to offer. You’ve got huge
assets to bring to the table in terms of expertise on a lot of these kinds of things that I think can be an
important part of GTA governments in building up the region and helping Toronto to change the way
government is delivered to people, which is a fundamental mandate which I think Rob Ford has. And in
doing so, don’t assume a rigid ideological doctrine or straight jacket. The world has changed. There’s no
question about that, I think we all know that in our heart of hearts that it changed in the last couple of
years in a very profound way that we haven’t fully experienced here in Canada yet. But it did change, and
I think its up to us to sort of get on board with what happened in Toronto, which may have been a more
visible sign of people saying, “you know what? We think the world has changed, but you folks running the
government haven’t quite figured that out yet, and you better figure it out or we’re going to send you a
message to tell you to do so.”

Finally I would just say that some form of more structured regional cooperation is coming. Some form—of
course, by regional I mean the bigger region—it’s coming. Look at MetroLinx as an example. That is set
up by the province, quite deliberately, and there’s going to be more like it, in my view, on economic
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development, on housing. Once again, I know something many of you don’t, but I’m just looking and
saying to myself a lot of these issues are issues that affect the region as a whole and are best dealt with
in terms of efficient, productive, results-oriented government, in a way that is going to be done, in some
respect, across the region. At least getting people at the same table to cooperate. And so I’d say rather
than wait around for the province to sort of decide what it wants to do, or for some other part of the region
to take the lead. You know, look at Hazel (McCallion). Hazel, she got re-elected, she’s turning 90 years
old, but she’s never hesitated to go forward and say, “This is the way I think it should be done.” And half
the time, if not better, she gets her way. You have strong people like your Chairman and others who’ve
been elected, new and incumbent that can help to make sure Durham is leading the way in some of these
areas. And you’ve got the resources and the expertise to back that up. I mean, part of this new way of
governing that is going to take account of the strength of this city region, how we’re going to be world
leaders.

I will conclude, and…I was the one that made Bob promise to get me out of here by 1, but, okay, I’m
doing well. But, the traffic was okay on the way out here, it’s just, as you all know, they didn’t build
enough lanes.
 <Laughter>

You know, we talked a lot about the election in Toronto, you know, and unfortunately—when I say
unfortunately the lead is such that even when I tried to do some debates involving some of the candidates
in other elections they’d end up talking far more than they should, and CTV and City and Global all talk
about Toronto incessantly, and of course Durham and Peel and so on, get kind of relegated to less
attention. And while there’s a vibrant local media here, those big media outlets don’t pay any attention.
And of course the Toronto elections, despite the negatives, and certain experiences in many respects, I
certainly found them negative, and I was glad in that respect, not to be a part of it, because I just don’t
thrive on negative policies [and with the article in the Globe this morning by Neil Reynolds, some of
you’ve read it, it was very a interesting read, about the environment we’ve sort of sunk to in North
America, in terms of policies.

But, having said that, with the focus having been on our problems and our challenges, we are so blessed
in this region. If you think about it in terms of the people we have, the location we have, the strengths we
have, industrially, socially, the diversity we have (which to me is one of the greatest blessings and we can
take full advantage of it, we can fully integrate people and make sure nobody is falling through the
cracks), we have everything going for us in this region. It is, I think, the best place in the entire world in
which to live. I don’t just believe that because I live here, I mean you’ve all, many of you have travelled,
some of you have come from other countries. Name a place that overall we’d be better off than we are in
the overall sense. The challenge for us is to find a new way to do government together, to make sure we
avoid having a Day of Reckoning at any point in time, and to start to work together. Because the greatest
thing that I think we don’t measure up to as Canadians is that we sort of end up in these fiefdoms and
these turf-wars and turf-areas and, you know, business doesn’t do that. Business can’t afford to. You’re
competitors for business, but you can’t afford within a company to have little fiefdoms and have the whole
thing sort of break down into silos, and so on, because the company goes out of business.

Then, in government, there hasn’t been the discipline of us saying, “Look, we’re not better, we’re going to
cooperate with each other, we’re going to take the best each other has to offer. Because we know the
real competitors aren’t here, they’re out there, somewhere else.” And they’re in a lot of places we never
expected them to be in our lifetime, China and India and all kinds of places, you name it, Brazil and so on.
So I just think if we sort of adopt this mandate that says, “Here, act like a region. Inside Durham, decide
that what’s good for everybody is good for each little locale that makes up Durham, and to say in the GTA
as a whole, what’s good for the whole region is going to be good for Durham. And in Canada as a whole,
say, look, what’s good for Ontario and Alberta and BC and Quebec and New Brunswick is good for
Canada.” And that that’s going to be an approach that’ll take us a lot further than where we have been,
which is that we thought we could afford to kind of have this, “oh well, we’ll all be okay, we can all kind of
ignore each other most of the time” and I think we tend to do so.

And I think that’s why I focused so much today on my message on the panel, about acting like a Region.
Getting behind the team here, and deciding where to put our investment forward, and then acting like a
Region as far as the GTA’s as a whole and I think if we do that, I think that there’ll be no great lesson.
We’ll look back in 4 years and say, “well what came out of this whole election in Toronto? You know, the
one that was focused on as being this sort of big revolution.”

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I don’t think it’ll be much of a revolution in terms of seeing institutions burned down and people lying in the
streets and you know widows and orphans being pushed out. You know, all the things that people do, but
we’ve found a better way to do things that said, “we’re going to focus on value for money, we’re going to
focus on delivering results to people.” Those people don’t really care which government did it, or which
boundary it came across, they just want results. They want a transit system that works; they want a
government that delivers with value. They want a job. They don’t really care which trade produced the
job; they just want a job. So I didn’t get into the sort of minutia of the election because its probably time
we moved on from that. I’ve kind of discussed it at the level I’d try to discuss it. That’s the message that
people have for politicians, and I’m going to say keep ranting and raving about it on the radio every day.
I’m afraid that maybe somebody one day will listen, not that they should listen to me, but you just sort of
try to advocate this kind of thing on the basis, that I think, as a public resource, has to go.
Thank you for including me, thank you very much, folks.

<Applause>

Closing Remarks
Dave Hare – Chair, Durham Economic Prosperity Conference (DEPC) Committee

John, thank you very much for your comments and for joining us today; you gave us much to think about.
It was a great way to wrap up the day!

Ladies and gentlemen we owe a big thank you to our Prosperity Conference sponsors. I would like to
once again, take a moment to recognize and thank them. Region of Durham Economic Development,
UOIT, Durham College, Greater Oshawa Chamber of Commerce John Williams CA, Ontario Power
Generation, Gerdau Ameristeel, the Ajax Convention Centre, Via Rail Canada, the Organization of
CANDU Industries, Innovative Solutions, Enbridge Gas, Town of Ajax, the City of Pickering, Durham
Business Times and Stagevision. Thank you very much. Without your support this event would not be
possible.

Thank you also to the group of third-year Multimedia Design students from Durham College filming the
conference today. We look forward to seeing the final production of the work you did here today.

Thank you to all who have attended, we hope you have enjoyed your morning and leave here today with
new information that you can build on to help Durham Region move forward together.

Now, the chef is waiting to serve lunch, so please enjoy lunch, and take this opportunity to network and
make connections.




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