26 July 2004

70,000 jobs at risk, says border study

The following article is excerpted from the “Toronto Star”edition of 24 July 2004.

Political inertia in dealing with truck-traffic gridlock at Ontario's border crossings is costing the economies of both Canada and the United States $13.6 billion a year and putting at risk up to 70,000 Ontario jobs, according to a new study.

Ontario alone absorbs $5.2 billion of that economic loss — which is due largely to extra costs associated with late deliveries, additional diesel and labour for trucks, and a loss of business — said Len Crispino, president of the Ontario Chamber of Commerce, who likened the shortfall to a hidden tax of approximately $1,000 per taxpayer.

"People have to understand it hurts their pocketbooks," said Crispino. …

Crispino was presenting a study produced by his group at an Ontario Chamber of Commerce forum in Toronto yesterday that was raising awareness of border delays that are increasingly hindering the $1 billion in goods traded daily between the two countries.

While Ontario Transportation Minister Harinder Takhar lauded his government's plan to relieve truck gridlock at the border by widening highways and helping finance other technology-based initiatives, other panel members blasted Ottawa, Queen's Park and even local councils for in-fighting and red tape that have slowed down border crossing improvements.

"It was two years ago that the governments of Canada and Ontario announced a $300 million short-term fix, recognizing there was also going to be a long-term fix," said David Bradley, president of the Ontario Trucking Association.

"Here we are two years later, we have spent a grand total of $93 million strictly on local issues, on nothing that is going to have (an) appreciative impact on moving goods across the border….

Chatham recently lost out on 600 jobs to Michigan when auto-parts manufacturer Dr. Schneider Systems Inc. decided to set up shop in the United States, fearing costly border-crossing delays.

"We were working on it six, eight months," said Diane Gagner, mayor of Chatham-Kent. There was a lot of pressure put on by the major company they were supplying to because of the border issue."

Gagner said some states are using border delays as a bargaining wedge to try to convince companies not to open businesses in Ontario. …

This year, an environmental assessment will finally get under way to look at creating a new border crossing at Windsor, the most important link between Canada and the United States.

The Detroit-Windsor border is said to be the world's busiest border crossing, with $128 billion in annual trade crossing in both directions.

An average of 10,000 trucks a day cross the bridge both ways. "Our government recognizes ... that our border crossings are key to this province's economy," said Takhar. "We intend to continue the work we've started."

Bradley says that since the short-term solutions for Windsor are slow in coming, he's worried the long-term solution of a new crossing will be even longer off than the forecast of 10 years.

"At Fort Erie, they've been arguing about a second span for the Peace Bridge for 15, 20 years. We can't afford to wait another 15, 20 years," he said.

The panellists said they were disappointed that no member of Prime Minister Paul Martin's cabinet was given the responsibility for border trade, and took it as an indication the problems faced by importers and exporters are a low priority in Ottawa. Bradley said that's discouraging, given that so much of our economy is dependent upon trade with one country.

"Things are still very disjointed. It's not clear which minister has ultimate authority. I believe we need a border czar, someone who can deal with the issues in a concrete, comprehensive way," said Bradley. "We don't have that right now."