Responsible Care® Leadership Groups East & West

An Ontario Regional Update By

Norm Huebel October 1, 2, 2014

Triennial Triennial Plan focuses on increasing opportunity for investment and

competitiveness Strategies and strategy teams are focused on the federal, Quebec

Ontario and Alberta governments Ontario has been very active and the one page strategy document

has been effective in repositioning our sector and getting the focus of Government and opposition

CIAC Advocacy (pre-election)

Key messages of the Ontario strategy prior to the election have been: Chemistry industry is important to the economy of the province, to jobs and

to tackling fiscal problems We are investing We can invest even more if we get the policy environment right The policy environment can be improved in the following areas:

Electricity Regulatory reform Workforce and training Certificates of Approval Feedstock Buffer Zones

Another message that we have been sending very clearly relates to the economy: the debt and deficit are unsustainable and will erode business confidence.

Political Environment Despite most polls’ predictions, the Liberals won a majority

government on June 12, 2014 with most gained seats coming from the PCs. Leader of the PCs, Tim Hudak resigned.

Current standing by seats: Liberals- 58, PCs – 28, NDP – 21 Although it is now a majority government it still faces a number of

challenges: Sluggish economic growth Ambitious deficit reduction targets Serious spending restraints Activist agenda and emboldened caucus Disenfranchised and skeptical electorate

Ontario budget re-introduced on July 14th

CIAC Advocacy (post election) Our overall strategy and message remains the same:

The chemical industry is poised for significant growth in North America CIAC will work with the government to attract a growing portion of that

new investment to Ontario We need government to help remove barriers to investment We need government to recognize incentives offered by competing

jurisdictions We will include all aspects of the chemistry industry and value chain

(e.g. petrochemicals, speciality, bio based chemicals and bio hybrid cluster in Sarnia, South Western Ontario) in our quest for investment

Our advocacy target audience is primarily: the Ministries of Economic Development, Employment and

Infrastructure; Energy; Finance; Environment and the Premier’s office MPPs with member chemical facilities in their ridings

CIAC Advocacy Priorities We have divided our advocacy into two broad categories

CIAC Advocacy Priorities (Macro) – these are priorities that are critical in attracting new investment

CIAC Advocacy Priorities (Micro) – these are priorities that are designed to mesh with the government’s priorities and programs and require CIAC involvement to ensure that they get it right

CIAC Advocacy Priorities (Macro) Permanent enhanced depreciation allowance – We need a transition from

the temporary stimulus of the ACCA to a permanent enhanced depreciation allowance that at least matches what is available in the U.S.

Responsive and Flexible investment support - The government needs to participate with incentives to compete with other jurisdictions in attracting major new investments. The recently announced Jobs and Prosperity Fund could be that tool.

Electricity - High electricity costs are acting as a deterrent to investment. While the Incremental Electricity Incentive program can offer limited relief to new investments, it does not address the loss of competitiveness, and the erosion of investment attractiveness for existing operations.

Pipelines – Investment in Ontario’s chemistry industry will be predicated on the availability and costs of feedstock (and natural gas). The Province must be made aware of the implications of any delays or roadblocks to investments in existing or new infrastructure.

CIAC Advocacy Priorities (Micro) Climate change - The naming of the Ministry as Environment and Climate

Change, and the appointment of Glen Murray as Minister, foreshadow a more active government role in this area. Ontario & Quebec have agreed to set up a joint committee to deal with Climate Change

Waste Management – The government intends to make changes to the Waste Management Act and supporting regulations which could, if properly executed, provide enhanced and lower cost waste management options for the chemistry industry. On the other hand, additional stewardship initiatives are also planned and that, if not well constructed, could impose significant costs on the industry.

Environmental Approvals Reform – This process continues and will require CIAC involvement if we hope to have the Third Tier Implemented.

Reducing Red Tape – this initiative that was introduced before the election is being brought back by the new Minister of Economic Development, Employment and Infrastructure. It must be properly guided to ensure that it delivers the meaningful reduction of burden and does not become merely a numbers exercise.

CIAC Advocacy Priorities (Micro) Buffer Zones (Implementation of new Provincial Policy Statement )– the

new (April 2014) statement suggests policy directions long-advocated for by CIAC and its members. Additional work remains to fully implement this standard and ensure the industry’s objectives with respect to public safety and the ongoing viability of industrial installations are achieved

Technical Standards and Safety Authority – CIAC members have expressed concern regarding the lack of co-ordination and complexity across TSSA processes and have requested CIAC to engage provincial officials to reform this organization and ensure it does not act as an unintended barrier to investments

Queen’s Park Day CIAC attendees come to a downtown location (e.g. Park Hyatt Hotel).

9:00 – 9:30 Coffee and pastries

9:30 – 10:30 Responsible Care Leadership Group Joint Meeting

10:30 – 11:45 CIAC Open for Business & Investment Panel

What is potential for investment in Ontario? Potential panelists – economist, CIAC member, senior government official (MEDEI/finance) Target audience: Group???

11:45 –12:15 Break

12:15 – 1:45 CIAC Luncheon

Invitations to the Premier or relevant Minister (e.g. EDEI, Energy, Environment, Finance) Participants include members of the Leadership Groups, staff and any other CIAC member representatives Target audience: Group???

1:45 –2:15 Break

2:15 –3:30 CIAC Issues Panel

This session would feature a panel (up to 4) of elected or non-elected officials, addressing key issues that impact then performance of the industry such as the environment, energy, etc. Target audience: Group???

3:30 –4:00 Continuation of Responsible Care Leadership Group Meeting

 5:15 – 8:30 CIAC Networking Reception and Dinner

Queen’s Park Day 5:15 – 8:30 CIAC Networking Reception and Dinner This would be a small gathering numbering fifteen to twenty individuals

made up Liberal MPPs with facilities in their ridings, a key Minister (keynote address), member companies (link to the MPPs), , CIAC staff and Liberal staff with the Minister

Objectives: Overview of plant facilities and contribution to communities/riding. Members could provide a brief overview of their facilities; host a discussion on the current business environment – irritants, constraints/issues; roundtable discussion on how industry and government (MPPs) could work to address these issues and opportunities – possible explore the benefits of creating a liberal chemistry caucus

Queen’s Park Day Potential Date:

Monday March 30, 2014

Potential Target Audience Pools:

Group 1 Priority Liberal MPPs (13) with facilities in their ridings

Group 2 Chiefs of Staff and Senior Political Aides to Ministers in relevantportfolios (e.g. MEDEI, Finance, Environment, Energy)

Group 3 Liberal MPPs who are Parliamentary Assistants to Ministers as well and/or members on relevant committees (e.g. Finance and

Economic Affairs )

Group 4 Senior officials in relevant Ministries (e.g. MEDEI, Finance, Environment, Energy)

 

CIAC Advocacy Priorities(including Queen’s Park Day)

Have we got it right?

Have we missed anything?

Discussion!!!!

Note: Will comment on mandate letters.