Thank immigrants for real estate gains

Lawrence Solomon
National Post
September 25, 2004

If Canada’s politicians want to protect the homes and property of Canadian citizens, Job No. 1 is opening Canada’s doors to immigrants.

Population growth is by far the largest driver of real estate appreciation – several times as important as interest rates and other economic fundamentals, reports the IMF in a release this week. Yet most Western countries, Canada included, have birth rates too low to sustain their existing population, and depend on immigration to prevent population decline. Without past immigration, our properties – typically our most important assets – would today be worth much less. With more open immigration, our properties would appreciate faster still.

The IMF’s findings, contained in its forthcoming World Economic Outlook, analyzed prices in an 18-country study covering more than three decades. It found that for every 0.25% increase in population growth, house prices appreciate by 1%. For Canada, which increases its population through one of the world’s highest immigration targets– the government aims to bring in about 300,000 immigrants a year, or 1% of our population – immigration alone could represent a hefty 4% appreciation in the value of our homes.

If the government were to aim higher and bring in 600,000 immigrants a year, our real estate values could be up by 8% a year due to immigration. Other factors that boost real estate – growing affluence and growth in credit – could appreciate our property further.

The benefits to Canadians’ property values from immigration are not felt evenly across the country, however. Most immigrants to Canada– about 75% of them – settle in just three cities, Montreal, Toronto, and Vancouver, giving homeowners there a real estate windfall.

Not so in many smaller cities, which have trouble attracting fresh blood and are in danger of stagnating. And not so in most small towns and rural areas, which don’t just stagnate – with their young leaving for larger centres, their old no longer reproducing, and outsiders no longer coming in, farmers often can’t find the help they need, communities are often in severe decline, and properties are often entirely unmarketable.

The federal immigration target is based on bureaucratic estimates of how many immigrants Canada can comfortably integrate into our economy. This target, because it is an average that in practice applies nowhere in Canada, is irrelevant. Some cities easily exceed the 1% target – the Toronto metropolitan area receives twice the national target – while most cities receive a small fraction of Canada’s immigrants and most towns and rural areas none at all. To add to the target’s irrelevancy, the cities that exceed the immigrant targets thrive while many that fall short suffer.

The government tells us that immigrants to Canada favour our cities because cities have more jobs, cities have more services, and cities have other immigrants to whom newcomers can relate. All this is true, but this explanation ignores the overriding reason immigrants to Canada avoid rural regions: Our government through its immigration point system discriminates in favour of affluent, well-educated immigrants who would tend to settle in urban areas.

The point system effectively bans rural workers – poor, uneducated farmers from Africa and Asia, for example – from entry to Canada. If Ottawa didn’t exclude those who would naturally seek out farm employment, Canada’s rural areas could be bolstered with immigrant workers for farmers who have seen their children leave, and can’t find affordable help.

Those poor, uneducated immigrant farm hands would soon acquire their own patch of land, build their own homes and become the next generation of farm owners, just as past generations of farmers helped build this country. In the process of looking after themselves, rural immigrants would benefit their neighbours by creating a market for rural land – raising rural land values just as urban immigrants raise urban land values.

By opening the door to immigrants of all occupational backgrounds, low skilled and high skilled alike, the federal government would be doing more than providing a boost to property values coast to coast. It would also be providing us with an insurance policy.

The IMF, in its recent report, found that some 40% of house-price movements stem from global factors, such as interest rates and changes in stock market values. If real estate is now overpriced, as the IMF warns, and a global correction takes place, Canada’s real estate, and the Canadian economy, would take a hit.

The hit would be cushioned, however, and perhaps entirely negated, if the government allowed more open immigration to protect our home and property.

BACKGROUND SOURCES


A reader responds

Poor, uneducated immigrants can’t take on our farms

October 1, 2004

Re: Lawrence Solomon, “Thank immigrants for real estate gains,” Sept. 25. Mr. Solomon’s notion of allowing poor, uneducated farmers from Africa and Asia to immigrate to Canada in order to work on farms is a clear example of how little he understands the farming industry.

Modern farming requires both education and access to financial resources in order to maintain the operation, the two criteria Solomon is willing to waive. The small family farm has in many cases ceased to be a viable economic unit, hence the exodus of the sons and daughters from these farms. It hardly seems possible, then, that they could now support an immigrant family, as Solomon suggests.

In my part of eastern Ontario, hundred-acre farms and buildings typically sell for $300,000 plus. Dairy farms, if you can find them, can fetch a million and more. It would be interesting to know Solomon’s economic plan for a immigrant who would be working for minimum wage, and then magically they would, in Solomon’s words, “soon acquire their own patch of land.”

In the future Solomon might consider doing a little research before committing ideas to print.

Jeff Spooner, Kinburn, Ont.

Related articles and speeches:
Thank immigrants for real estate gains

The key to rural immigration in New Brunswick
Remitter revolution
Elitist immigration policy bars poor, unskilled workers
New immigrants enrich Canadian cities
Adding immigrants will improve the environment
Mongrel nations
The next great power
Give us your healthy, your wealthy, your wise

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How immigrants improve our economy and environment

Lawrence Solomon

September 25, 2004

A Workshop at the 17th Annual Conference of the Association of Treasurers of Religious Institutes

“Hope In an Unfinished World”

Courtyard Marriott–Downtown Toronto

September 25, 2004

I’m delighted to be here today. Some of you will know the foundation I work for, Energy Probe Research Foundation, and particularly its international division, Probe International. Several Religious Institutes have very generously supported our foundation’s work over the last 25 years.

You’ve supported our work to protect the public from the dangers of radioactivity, which especially affect the very old and the very young, including the unborn. You’ve supported our work to protect people in the Third World from being flooded off their land by large hydro dams. You’ve supported our research showing that there is no problem of overpopulation, that the world has resources enough for all of us, and for future generations, too, if we only use our resources intelligently.

Today, the subject is immigration but in some ways the subject is no different from some of the ones I have just mentioned. It is still about denying rights to those most vulnerable in our society, rights that others enjoy. It is still about the fear that we have a shortage of natural resources, and a surplus of humans, and that the only way to protect resources from humans is to limit the number of humans.

We’re here to discuss how immigrants improve the environment and the economy. I will often discuss these together, because the environment and the economy work hand in hand.

I’d like to start by discussing how immigrants affect the environment, and the environmental arguments against immigration. It helps, in understanding some of these arguments, to keep in mind that many environmentalists view humans as somehow apart from the environment, or as having no special status on this earth. They see humans as just another animal, to be managed for their own good. In some countries, for example, western environmental organizations work with the World Bank and the national government to establish conservation reserves that will protect an ecosystem from undue exploitation. The plans sometimes involve forcibly relocating the region’s indigenous tribes, in order to protect the local flora and fauna. These environmentalists reason that the rights of humans shouldn’t trump the rights of animals, and that the tribes will be better off elsewhere, but not the animals. If you view humans as not being special, as just another animal, and an inherently rapacious animal at that, it is easy to think this way.

One of the chief environmental arguments against increased immigration to Canada is that immigration will lead to the loss of our wilderness. This is a plausible sounding argument. The more that people will come here, the more land will be taken up by housing developments, the more pressure there will be to expand our settlements further and further out, the more pressure there will be to exploit our forests, minerals and other natural resources.

This sounds plausible but it flies in the face of reality. Almost all immigrants to Canada settle in cities, and predominantly to just three cities. Almost half of immigrants settle in the Toronto area, and another 25% settle in Montreal and Vancouver. In smaller numbers, they go to Edmonton, Calgary and Winnipeg.

Immigrants settle in cities because the cities have jobs, the cities have services, and the cities have other immigrants with whom they can relate. Cities are highly efficient – the most resource efficient type of settlement. People consume less fuel per capita in cities than in either suburbs or rural areas, for example, because distances are relatively short. People can walk to neighbourhood shops, children don’t need to be bussed, public transit is available. City industries are also resource efficient. People make their living by providing services, high-tech as well as low-tech services, not by clear-cutting forests or open-pit mining.

The more people settle in cities, the greater the service economy becomes, the fewer raw resources we need per capita to earn our living. Cities have become so efficient, in fact, that most of the rural resource industries have become redundant, and uneconomic. We chop down most of British Columbia’s coastal forests at a loss, for example. We keep chopping it down only to keep forest industries alive, so that forest towns don’t become ghost towns.

Immigrants don’t cause the exploitation of our wilderness. The wilderness would be exploited at the same rate, with or without immigrants, because they are exploited for political reasons, not for economic reasons. Immigrants act mainly to make our cities work better. One reason is that the larger the urban population, the better that public transit works, the more efficient that all urban infrastructure can be used – our water works, our garbage collection, our street cleaning, our fire stations – they’re all more economical and less resource intensive when they service compact, well populated cities.

One of the great myths in our society, one that became especially prominent in the last few decades, is that people prefer to live in the suburbs, in low-density surroundings. This is why we have sprawl, the myth says. I am now finishing a book on sprawl – it is a short history of sprawl in the Toronto area – and I can report to you that people have never favoured sprawling settlements in the Toronto region. We have sprawling settlements because government policies act to disperse the population, not because most people would rather spread out in low-density communities.

I began my research by looking at Toronto’s earliest settlers – the Iroquois who moved here some 1000 years. They lived in dense semi-permanent settlements, in villages of about 2.5 acres in size, populated with about 300 people each. The density of those communities of old far exceeded that of any of today’s North American communities, including Manhattan, the densest urban area in the U.S., and Toronto’s Annex, one of Canada’s densest community.

As Indians became better organized politically, villages increased in size. Many of them doubled, to five acres, and some reached 15 acres, with a population of 2000 people or more. Although they spanned a larger geographic area, however, the population density of these communities, if anything, increased.

When the white man came to North America, the first communities were also dense, and as they evolved, they remained dense. Manhattan became the densest city on the continent, with more than 100,000 per square mile at the turn of the last century. Toronto was also dense, with about 20,000 people per square mile. Manhattan is still dense today, although not half as dense, at about 40,000 or 45,000 per square mile. Toronto, without its newly amalgamated suburbs, remains close to its historic density of about 20,000 people per square mile. In both cities, some of the densest neighbourhoods – Greenwich Village in New York, the Annex in Toronto – are also among the most desirable to live in.

Manhattan and Toronto are great vibrant, immigrant cities that remain dense despite efforts by government to disperse the population. Garden suburbs were once fashionable in government circles, for example, so governments tried to promote them by clearing slums from the downtowns of cities, and relocating people on the outskirts. Parts of Toronto were decimated this way, including highly populated areas just a few blocks south of this hotel, as well as areas of what we call Cabbagetown. The dense old areas of Cabbagetown have become gentrified and are now one of the city’s most ch-chi neighbourhoods. The part that the government cleared, in order to build idyllic lower density housing, has become a true city slum, crime-ridden and undesirable to live in.

This has been the great, untold story. People organize themselves in very tight, dense communities, when left to themselves. While people also enjoy getting out of the city, to campgrounds, to their cottages and to other retreats, most people have no tendency to sprawl. If they can afford it, they prefer compact, elegant surroundings. Just a few blocks north of us is Yorkville, one of Toronto’s toniest districts. The Governor General has her private home there, as do many others that we consider the rich and famous. Yorkville is a very dense neighbourhood – small lots, homes built tight next to each other, lots of commercial establishments.

There is nothing to the belief that people, left to themselves, will build ever more sprawling communities, to the environment’s detriment. Left to themselves, without government interceding, such as to keep unviable remote communities alive, or to subsidize the development of suburbs, most people will naturally gravitate to cities, to be among one another. With more countries becoming free around the world, and with our own governments interfering less today in people’s settlement decisions, we are seeing a worldwide movement of people to cities, not just to cities in the Third World but to cities in the western countries. The immigrants who are coming to Canada are part of this historic movement, and we should be grateful that they are coming. They are helping to make our cities function better both economically and environmentally.

Some worry that too many immigrants are coming to Canada’s cities, that the result will be slums and crime and an unmanageable morass. But there is no plausible scenario in which we will receive more immigrants than our cities can comfortably integrate. To give you an extreme example, if the Toronto area became as dense as Manhattan today, Toronto alone could accommodate a population much greater than that of all of Canada’s.

Before opening up this gathering to a discussion, I’d like to mention one other environmental argument against immigrants. It is a population explosion argument, a moral argument of sorts. People in the Third World breed too much, this argument goes. This breeding is unsustainable, leading to poverty and hunger and the migration of humans from the Third World to the West. If we accept these migrants, we not only invite similar problems here but – and this is where the morality comes in – we act as a pressure valve for Third World governments. Much better to keep the immigrants out and force the Third World governments to take the population control measures needed to keep their people in check.

The problem with this argument, of course, is that people don’t leave their homelands because of population pressures. They leave because of repressive governments at home, or better economic opportunities abroad. When then Irish came to the cities of North America, they were leaving a low-population country. Africa has a relatively low population density. African migrants moving to Western countries often find themselves in a higher population-density society.

There are problems with many, many other arguments, too, that people make, to justify keeping immigrants out. Let’s now discuss these other arguments, as well as the ones I’ve just raised, all together, in our workshop.

Related articles and speeches:
Thank immigrants for real estate gains
The key to rural immigration in New Brunswick
Remitter revolution
Elitist immigration policy bars poor, unskilled workers
New immigrants enrich Canadian cities
Adding immigrants will improve the environment
Mongrel nations
The next great power
Give us your healthy, your wealthy, your wise

Posted in Immigration | Leave a comment

Chapter II: Three current policy issues

Marco Terrones ( with assistance from Christopher Otrok and Nathalie Carcenac)
IMF World Economic Outlook (WEO)
September 22/2004
This essay studies house price fluctuations in industrial countries, paying particular attention to the current house price boom.Click here to view PDF

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Beggars’ summit

Lawrence Solomon
National Post
September 18, 2004

Canada’s cities must “work together to make sure we all have the tools and resources we need to thrive,” an inspired Toronto Mayor David Miller said earlier this week, in anticipation of this weekend’s City Summit of mayors in Toronto. Uninspiringly, the resources the cities crave are more tax revenues; the tools they wave a tin cup and a begging bowl.

This latest summit is only the second one to be held among Canada’s so-called “hub cities” – 10 cities that are economic hubs of their regions. The first summit, held in January of this year and also in Toronto, proclaimed that cities are the engines of the economy. A joint communique then begged senior levels of government for more taxing power, more regulatory power, more federal and provincial subsidy programs, and a share of the federal and provincial gas taxes to rescue city economies.

The Hub-10 cities grew from the C5 – Canada’s Big Five Cities – “to address the looming crisis of urban Canada.” The C5’s first meeting in Winnipeg in 2001 won plaudits for waking Canadians up to the realization that our big cities – Montreal, Toronto, Winnipeg, Calgary and Vancouver – were economic basket cases suffering from inadequate taxing power. The plaudits were drowned out by the protests of smaller cities that feared their own cries for more grants would be drowned out. The C5 became the Hub 10.

The cities do have some legitimate points. The property tax that they rely on is unfair – not just outdated, as the mayors state, but positively harmful because the tax falls most on intensively used land, discouraging compact developments, and least on marginal lands, encouraging sprawl. The mayors also are right to demand more freedom in their operations, such as the right to earn a profit from services that they run, as private sector businesses do.

But the mayors don’t put the powers that they already have to intelligent use – just the opposite. In the case of the property tax, for example, they magnify the perversity of disproportionately taxing compact developments by heaping surtaxes on apartment buildings, office towers and other high-value uses. These intensive uses, in fact, require less water main, road surface, power line, and other infrastructure per occupant, making them generally much cheaper to service. In the case of municipally owned businesses such as public transit and garbage collection, the mayors already have the right to run on a break-even basis. Yet they prefer to see huge operating losses rather than run disciplined operations.

Canada’s Hub-10 cities point to U.S. cities as exemplars because U.S. cities, which have more autonomy than Canadian cities, receive more federal funding, have more taxing options, and rely less on property taxes. What the Hub-10 don’t tell us is that federal funding of municipalities is trivial in both the U.S. and Canada (3.3% versus 1.3%) while U.S. states provide muncipalities much less funding than do Canadian provinces (4.5% versus 17.3% ). What the Hub-10 especially don’t want us to know is the real source of autonomy in U.S. cities: user fees. U.S. muncipalities meet fully one-third of their budgets from user fees; Canadian muncipalities just one-fifth.

For the real urban exemplar, however, look not to the U.S. but to the U.K., where privatizations in electric power and other sectors generated windfalls for governments and lower rates for residents. In the U.K., most public transit routes now run on a for-profit basis, competing well against the automobile and thriving as modern, consumer-oriented businesses. Most of all, look to London and its courageous hard-left Mayor Ken Livingstone, who charges cars and trucks for the use of downtown roads. Soon London vehicles will be paying for the use of all city streets, as will vehicles in other large U.K. cities. Some 100 cities around the world, in fact, are now planning to introduce road tolls – Stockholm city council voted to start tolling in spring of 2005 – thanks to Livingstone’s leadership. None of those 100 cities are in Canada.

In truth, while our cities do have some legitimate gripes, they can easily acquire the wherewithal to look after themselves – they need only charge residents for the services they consume. Our city mayors don’t lack fiscal tools so much as they lack the courage to use the tools they have. Those who won’t help themselves have no moral claim to more money from the government purse.

At the last Hub-10 meeting, Toronto Mayor David Miller stated: “I don’t think it’s an exaggeration to say that the absence of adequate investment in our cities – in everything from public transit, to affordable housing, to child care, to infrastructure – is reaching a crisis point. Speaking as Toronto’s mayor, I will tell you that our city government does not currently have the capacity to avert the crisis.”

You can tell that to the other Hub-10 mayors, Mr. Miller, and to others in municipal backwaters. Just don’t tell it on the other side of the pond, or to mayors with convictions around the world who know nonsense when they hear it.

Lawrence Solomon is executive director of Urban Renaissance Institute and Consumer Policy Institute, divisions of Energy Probe Research Foundation.

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Remarks by Dalton McGuinty, Premier of Ontario

Address To The Big City Mayors Summit   September 17 2004

“Toronto means a great deal to Ontario. And to Canada. That’s why it needs a new deal. As a first step, I am announcing this evening that the province and the city will undertake a joint review of the City of Toronto Act.”

“Thank you for that kind introduction.

I am delighted to be with you this evening.

I want to particularly welcome all the mayors here tonight, from across Canada and across Ontario.

I hope you are enjoying your visit to Canada’s largest city.

We all know that the City of Toronto is an economic colossus, an international home of commerce, media and the arts . . . a site for world-class science and medical research . . . and a great place to live, too.

In this past week alone, you could see the world’s most famous filmmakers and movie stars here, or catch the world’s greatest hockey players, or just down the road, in Oakville, rub shoulders with the greatest golfers on the planet.

I want to thank Mayor Miller for hosting such a valuable meeting.

I’m proud to be working with David, and all the other Ontario mayors here tonight, to renew urban life in our province.

That work is part of the mature new partnership our government is building with Ontario’s cities.

We’re building strong communities today – and far into the future.

Because when our communities are stronger, our province is stronger.

In the past few years, the 92 per cent of Canadians who live in urban areas have pushed their concerns onto the national stage.

That’s because, while we’re proud of our country, and we identify with our province, we actually live in cities.

And while no two Canadian cities are alike, Canadians who live in cities share many things in common.

From coast to coast, Canadians want cities that work.

They want cities in which they can live, dream and put down roots.

They share a desire for clean air and water, greenspace and stress-free commuting.

They want livable downtowns, great neighbourhoods, fabulous arts and culture, and ample parks and recreation.

They seek quality public transit, affordable and decent housing, social diversity and civic tolerance.

They want great public schools, colleges and universities, accessible health care and plenty of economic opportunity.

And they expect governments at all levels to work together to provide reliable local public services.

Above all, each generation that rediscovers our cities wants the creative and social buzz that goes with being at the heart of the action.

It wasn’t always this way.

A deep aversion to city life runs through history and popular literature right into the 20th century.

In Victorian times, cities were deemed to be cesspools of corruption, greed and temptation.

The English poet William Cowper said in 1785 that “God made the country, and man the city.”

Now, the vast majority of us call the city home.

We are an urban people. And we know that the most innovative and thriving economies are found in cities where there is a rich diversity of people, skills and knowledge.

The result is that our cities are driving our economy – and they are doing so in competition with a continent of worthy rivals.

For the first time in our history, our cities are firmly in the economic driver’s seat.

And Canada, and the provinces, will only do well if our big cities are doing well.

Our government came to office firmly conscious of this new dynamic.

Our commitment to build strong communities tapped into our people’s desire to ensure Ontario’s cities have everything they need to compete.

And it reflects a growing desire among our people for an improved urban experience.

Over the last 10 years, Ontarians watched their cities grow with a mixture of fascination and concern.

With growth has come gridlock.

With rising property values came urban sprawl.

With more housing starts came a lack of affordable housing and a need for infrastructure.

Ontarians decided they want growth, but not sprawl.

The kind of growth that respects the environment, preserves greenspace, builds on what we have, attracts new investment, spreads prosperity and improves quality of life.

No level of government can deliver everything on that list.

And none of us can even start to tackle that list on our own.

That’s what our mature new partnership with municipalities is all about.

It recognizes that only by working together can we make our cities even greater places to live, work and enjoy.

That’s why, when the federal government gave municipalities a GST rebate earlier this year, we were quick to say we would not claw it back.

It’s why we scrapped the backward plan that would have required municipalities to hold a referendum before raising new revenue.

It’s why we gave municipalities greater flexibility last year to determine tax rates for homeowners and businesses.

It’s why we’re giving them more funds to meet increased recycling and diversion targets.

And it’s why, by 2007, we’ll fund 75 per cent of municipal public health costs, up from 50 per cent.

That’s a $127-million upload.

When we talk about partnership, we’re not just talking the talk.

We’re walking the walk.

We’re providing up to $965 million in low-cost, longer-term loans to help 90 municipalities renew their public infrastructure.

And, we’re meeting one of the most pressing issues in our cities by helping them build affordable housing.

Since last October, we’ve announced funding to create more than 2,300 units of affordable housing.

That’s eight times more funding in our first year than the previous government committed in eight-and-a-half years.

We’re determined to tackle pollution, reduce commuting times, and unlock some of the gridlock that frustrates our people and stalls our economy.

With the help of leading municipal politicians we’re creating a greenbelt across the Golden Horseshoe.

And beginning this fall, we’ll start delivering on our commitment to make two cents of the existing provincial gas tax available to cities for public transit.

We will begin with one cent this October, increasing to one-and-a-half cents in October 2005 and two cents in October 2006.

That represents a potential total transfer of up to $700 million over the next three years to support transit in Ontario cities.

And that’s on top of the $448 million we’re spending on transit in our cities this year.

These are some of the things we’re taking action on now.

But if we want to make sure the next 30 years in our big cities are not like the last 10, we’ve got more work to do.

That’s why since taking office we’ve been planning for the next wave of growth in the Greater Golden Horseshoe.

We’re asking the tough questions about transit, infrastructure, housing, development and investment now, rather than scrambling to catch up later.

And we’ve put it all together in a draft plan entitled Places To Grow: Better Choices. Brighter Future.

We’re planning for growth.

Not managing growth. Not limiting growth. Not stunting growth.

But planning for growth – not just reacting to it.

The Greater Golden Horseshoe is one of the fastest growing regions on the entire continent.

Over the next 30 years, almost four million people will move to Ontario . . . most into central Ontario.

That’s like having every single person in Vancouver, Edmonton, Winnipeg and Halifax load up the truck and head this way.

This is good news.

People are coming here because of the economic opportunities and quality of life we offer.

That makes Toronto stronger. And it makes Canada and Ontario stronger, too.

But it’s bad news if we don’t plan for it.

By 2031, at the rate we’re going, average automobile travel times would increase by 44 percent due to congestion. Greenhouse gas emissions would increase by 42 percent.

New development will consume more than 1,000 square kilometres of valuable farmland . . . that’s almost double the size of Toronto.

Our goal is to take control of the steering wheel and direct this growth – instead of allowing it to steamroller us.

At the heart of the Greater Golden Horseshoe lies the City of Toronto.

Home to more than 2.5 million people from all corners of the world, living in harmony, pursuing incredible opportunities.

A city with a mighty downtown, and mighty neighbourhoods.

Toronto is the source of more than 46 per cent of provincial GDP and almost 20 per cent of national GDP.

It’s an international centre of finance and insurance, law, media and publishing.

It’s home to world renowned health care, universities and colleges carrying out ground breaking research in life sciences and bio-technology and other emerging fields.

Toronto is the engine of economic growth in Ontario and much of Canada.

Its continued economic prosperity and quality of life has to be a priority for all of us.

It’s a miracle it has delivered prosperity for so long and to so many – despite living in a legislative and fiscal straightjacket that would baffle Houdini.

Toronto sets the pace in so many ways, yet it can’t set the size of its own city council, or in many cases, its own speed limits.

It lacks the power to establish a code of conduct, appoint an integrity commissioner, create a lobbyist registry or enhance the powers of its auditor general.

And a city that hosts the largest public film festival in the world has to first get permission from Queen’s Park to offer extended bar and hospitality hours.

Toronto means a great deal to Ontario. And to Canada.

That’s why it needs a new deal.

As a first step, I am announcing this evening that the province and the city will undertake a joint review of the City of Toronto Act.

The object of this review is to:

  • Make the City of Toronto more fiscally sustainable, autonomous and accountable.
  • Give it the tools it needs to thrive in the global economy and
  • Reshape the relationship between Ontario and its capital city.A modernized City of Toronto Act could be introduced at Queen’s Park by the end of next year.

    We have come a long way together, in less than a year.

    But there is so much more we can and must do, together, in the years ahead.

    Even in a strong and productive partnership, we can’t do it all alone.

    We need the federal government’s help.

    Because we can strengthen this new partnership between Queen’s Park and our cities, but it will only be strong enough when it fully includes the federal government.

    On this front, too, there are encouraging signs.

    This year, the Martin government joined us in making major funding announcements for the TTC in Toronto, and for GO Transit across the Golden Horseshoe.

    And we’re looking forward to working with them on new projects in Ottawa and Kitchener-Waterloo.

    It’s a good start.

    But these have to be just the beginning.

    Instead of clinging to old jurisdictional boundaries, we need to look for new ideas.

    If the U.S. enthusiastically supports urban renewal projects, then so can Canada.

    If Washington can help revive a brownfield in Cleveland or Portland, Ottawa can certainly consider the same sort of project in Toronto or Windsor or Guelph.

    At the very least, we can ensure that cities are at the table when we’re discussing national changes that affect them.

    Because the best way to achieve positive change – to get results – is by working together.

    If we are united – whether we sit in Queen’s Park, Parliament or local council . . .

    If we are focused – on the challenges facing urban Canada today . . .

    If we truly build our partnership, with dialogue and respect and understanding …

    Then we can have cities, provinces and Ottawa truly working together.

    And we can truly do our best job of serving the people who sent us here.

    The people of Ontario – the people of Canada – deserve to live in cities that are strong and safe and solid.

    People who deserve a quality of life that is second to none.

    Thank you very much.”

 

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