Ontario hopes to cut red tape to support job creation in auto sector
Published Wednesday, June 12, 2019 10:42AM EDT
Last Updated Wednesday, June 12, 2019 5:40PM EDT
Officials with the Ontario government say they are removing regulatory roadblocks to create and protect jobs in the auto sector.
In February, the government launched its Driving Prosperity auto plan aimed at addressing challenges in the sector around competitiveness, innovation and talent.
Government officials say they made it a priority to reduce red tape and restore Ontario’s competitive advantage and on Wednesday they are delivering on that promise.
“Every piece of red tape we get rid of is another dollar saved and another job created,” said Todd Smith, Ontario’s Minister of Economic Development, Job Creation and Trade. “Our government is reducing red tape because when our job creators spend less time filling out paperwork, they spend more time creating and protecting jobs for Ontario families.”
Ontario is making a series of regulatory changes to get government out of the way of job creators in the auto sector and other manufacturing sectors.
Smith says this includes tackling a costly and burdensome regulatory irritant in the auto sector.
Currently, automakers who put a few litres of gas into a vehicle fresh off the assembly line to drive it to a distribution centre must apply for an exemption from having their plant regulated as if it were a gas station. The proposed change would exempt all auto plants from this unnecessary requirement.
“We’re making it faster, easier and cheaper for companies to comply with the regulations that we do need, while at the same time removing regulations that do nothing to protect workers’ health and safety,” said Smith. “With less red tape, Ontario will see more investment. That means we need shovel-ready land to help attract the next Honda, Toyota, Fiat Chrysler, GM or Ford. And that’s why our government announced a Job Site Challenge to identify job sites ready for the next auto assembler.”
The government will launch the Job Site Challenge later this summer, outlining site criteria and inviting municipalities and private land developers to bring forward site proposals.
“The steps being taken today by Ontario will reduce duplicative and inefficient regulation, while at the same time introducing certain amendments that more accurately reflect the current business environment in which the auto industry operates,” said Mark Nantais, president of the Canadian Vehicle Manufacturers’ Association. “These actions will help manufacturing become more cost-effective and competitive in a global market.”
The sites will be evaluated, and those that are deemed workable will be internationally certified by site-selection professionals.
The first certified sites should be available to investors in the fall of 2020. They will then go through a rapid approvals process for the licences, permits and environmental approvals required to build or expand a plant.