Ontario Budget Reflects Strategy for the Knowledge Based Economy

OTTAWA - The Honourable Dwight Duncan, Ontario Minister of Finance delivered a budget that asserts the Province's determination to build a strong knowledge based economy and provide an attractive environment for investment by knowledge based enterprises. It also helps lay the foundation for a strong information and communications technology strategy for Ontario.

"The budget highlights the importance of collaboration and partnerships to promote and support new business investment," said Bernard Courtois, President and CEO of the Information Technology Association of Canada (ITAC).

"We have been in just such a partnership for a year now, in close consultation with the Ministry of Economic Development and Trade and other departments to strengthen the attractiveness of Ontario as a place for ICT companies to do business. The budget reflects a serious commitment to engage strategically on the issues of innovation, talent and productivity identified in this collaboration."

"The key measure to foster an innovation intensive economy has already been announced. The Next Generation Jobs Fund will provide a $1.5 billion impetus for job growth particularly in knowledge intensive sectors like ICT," Mr. Courtois said. "But the budget contains a number of other innovative measures to bolster innovation."

For example, the government is offering a ten year income tax holiday for new corporations that commercialize intellectual property developed in Canadian Universities and Colleges and research institutes. It also promises to enhance the Ontario Innovation Tax Credit.

"The availability of highly skilled men and women is critical to the success of any knowledge-based economy," Mr. Courtois said. "A cornerstone of this budget is the $1.5 billion Skills to Jobs Action Plan. This builds on previous steps the government has taken to ensure that the Province is distinguished by the highly skilled quality of its workforce." The plan aims to renew the infrastructure of Ontario's educational campuses. It will bolster Ontario's exemplary apprenticeship program (which is the only one in Canada that includes ICT workers among eligible apprentices) and it earmarks $355 million for retraining unemployed workers.

"Our consultations on talent have underscored the need to encourage more young people to pursue studies in science and math," said Courtois, "So we were pleased to see worthy programs like Let's Talk Science, Youth Science Foundation Canada and the MITACs Accelerate Ontario program given valuable support. Our consultations also addressed the need for better integration of immigrant workers into our economy and the budget makes provision for that."

"Improving the productivity of all Ontario's enterprises is critically important to the success of our 21st century economy," Mr. Courtois said. "ITAC has advocated the need to improve productivity through the wise use of ICT investments across all sectors including small and medium sized businesses. This budget contains a meaningful initiative that affirms and supports this priority."

ITAC, in its consultations with MEDT, and in work with Ministry of Government and Consumer Services has also advocated the need to build Ontario's broadband infrastructure to all parts of the Province. The budget allocates $30 million to enhance broadband access in southern Ontario to grow and improve access to e-learning, e-commerce, and e-health.

"In summary I would say it's clear the government shares our commitment to maintaining a strong, innovative ICT sector in Ontario. And it's clear that they are listening to the ICT industry's suggestions on how to do that."

The Information Technology Association of Canada (ITAC) is the voice of the Canadian information and communications technology (ICT) industry in all sectors including telecommunications and Internet services, ICT consulting services, hardware, microelectronics, software and electronic content. ITAC's network of companies accounts for more than 70 per cent of the 589,000 jobs, $137.6 billion in revenue, $5.2 billion in R&D investment, $22.6 billion in exports and $11.5 billion in capital expenditures that the industry contributes annually to the Canadian economy.