THE TORONTO INDUSTRIAL NETWORK (TIN)

(2004-11-16)

THANK YOU VERY MUCH FOR THE KIND INTRODUCTION MIKE.

MAYOR MILLER, MEMBERS OF COUNCIL, LADIES AND GENTLEMEN: IT IS MY PLEASURE TO WELCOME YOU TO THE TORONTO INDUSTRY NETWORK LUNCH. MY COMPANY, AVENTIS PASTEUR LIMITED, IS A RELATIVELY NEW MEMBER OF THE T-I-N ORGANIZATION AND WE ARE DELIGHTED TO BE PART OF THIS FUNCTION TODAY, MEETING WITH YOU IN THE VERY HEART OF OUR CITY’S GOVERNMENT. OUR KEY OBJECTIVE IS TO FORGE CLOSER LINKS BETWEEN T-I-N, REPRESENTING THE CITY’S INDUSTRIAL MANUFACTURERS, AND YOU – THE DECISION-MAKERS AND LAW-MAKERS OF TORONTO. YOU MAY HAVE ALREADY MET SOME OF MY COLLEAGUES. IF NOT PLEASE DO SO.

THEY ARE THE SENIOR EXECUTIVES, EMPLOYEES AND ASSOCIATION REPRESENTATIVES WHO ARE PUTTING A FACE TO INDUSTRY IN TORONTO. WHILE YOU ARE HERE, PLEASE TAKE A LOOK AT THE WIDE GROUP OF PRODUCTS MADE IN TORONTO ON THE DISPLAY TABLE. IT IS QUITE AMAZING TO CONSIDER THE HUGE RANGE OF GOODS MADE BY THIS CITY’S INDUSTRIAL SECTOR.

ON BEHALF OF ALL THE MEMBERS OF T-I-N, I WANT TO ACKNOWLEDGE ALL THE HELP PROVIDED BY HEATHER MCCALLUM OF THE PROTOCOL OFFICE IN MAKING THIS EVENT POSSIBLE. THE T-I-N LEADERSHIP HAS APPRECIATED THE OPPORTUNITY TO INTERACT WITH VARIOUS CITY DEPARTMENTS, PARTICULARLY WITH THE STAFF AT ECONOMIC DEVELOPMENT AND FINANCE.

MY ORGANIZATION AVENTIS PASTEUR AND ITS PREDECESSOR, CONNAUGHT LABORATORIES, HAS BEEN A PART OF THIS CITY’S FABRIC FOR 90 YEARS. OURS IS A MULTINATIONAL COMPANY RESEARCHING, DEVELOPING AND PRODUCING VACCINES HERE IN TORONTO FOR DISTRIBUTION AROUND THE WORLD. WE HAVE MORE THAN 1,000 HIGHLY SKILLED SCIENTISTS AND TECHNICAL STAFF AT OUR NORTH YORK FACILITY WHICH, AS YOU MAY KNOW, IS IN DEPUTY MAYOR MIKE FELDMAN’S WARD.

OUR COMPANY’S RELATIONSHIP WITH DEPUTY MAYOR FELDMAN AND THE CITY HAS BEEN A VERY POSITIVE ONE FOR MANY YEARS. IN FACT, JUST THIS YEAR WE COMPLETED THE SECOND PHASE OF A MULTI-MILLION DOLLAR RENOVATION TO OUR 53 ACRE FACILITY AT STEELES AND DUFFERIN.

THIS INCLUDES OUR NEW HERITAGE SQUARE CELEBRATING OUR 90TH ANNIVERSARY OPERATING IN THE CITY.

WE WORKED WITH DEPUTY MAYOR FELDMAN AND CITY OFFICIALS ON EVERY STEP OF THIS PROJECT AND, AT THEIR REQUEST, WE RELOCATED THE MAIN ENTRANCE TO OUR SITE AND HELPED FUND NEW TRAFFIC LIGHTS AT THAT ENTRANCE. THIS HELPED THE CITY SOLVE A SERIOUS TRAFFIC ISSUE BUT WE FOUND IT COULD BE DONE WITHOUT A MAJOR DISRUPTION TO OUR OPERATONS. A WIN-WIN FOR EVERYONE.

AVENTIS PASTEUR, LIKE THE OTHER COMPANIES REPRESENTED BY THE T-I-N, IS IN A VERY COMPETITIVE BUSINESS. IN OUR CASE WE ALSO FACE STRICT REGULATION AND INTENSE INTERNATIONAL COMPETITION.

PART OF OUR CONTINUED SUCCESS RELIES ON THE ENVIRONMENT AND SYNERGIES THIS CITY PROVIDES. WE HIRE INDIVIDUALS FROM AROUND THE WORLD TO COME AND WORK HERE. THE QUALITY OF LIFE OFFERED BY THE CITY OF TORONTO IS AN IMPORTANT FACTOR IN MAINTAINING AND ATTRACTING THESE SKILLED HUMAN RESOURCES.

AVENTIS PASTEUR PARTNERS WITH OTHER ORGANIZATIONS SUCH AS THE UNIVERSITY OF TORONTO AND SUNNYBROOK HOSPITAL TO MAKE UP A GROWING BIOTECHNOLOGY “CLUSTER”. “CLUSTERS” ARE CRITICAL FOR THE CITY’S ECONOMIC FUTURE AND THEY DEPEND ON INDUSTRY, ACADEMIA AND GOVERNMENT WORKING TOGETHER TO CREATE THE SYNERGIES NECESSARY FOR A MODERN ECONOMY. PARTNERSHIP WITH SUNNYBROOK HOSPITAL HAS BEEN CRUCIAL FOR THE SUCCESS OF OUR CANCER VACCINE PROGRAM.

AN EXCITING NEW DEVELOPMENT IS THE MaRS FACILITIES RIGHT HERE IN DOWNTOWN TORONTO. MaRS WILL BE THE HUB OF BIOTECHNOLOGY AND RELATED SCIENCES FOR ESTABLISHED AND NEW COMPANIES LOOKING TO DEVELOP AND COMMERCIALIZE BIO-MEDICAL PRODUCTS.

I HAVE MENTIONED THE WORD “COMPETITIVE”. THAT WORD APPLIES TO ALL OF US HERE TODAY. THE TORONTO INDUSTRY NETWORK HAS JUST RELEASED A PAPER ON THE COMPETIVENESS OF THE CITY OF TORONTO AND ITS IMPACT ON INVESTMENT DECISIONS FACED BY MANY COMPANIES RESIDENT IN TORONTO OR LOOKING TO LOCATE HERE.

ACCORDING TO THE CITY’S OWN REPORTS, TORONTO EMPLOYS SOME 1.25 - MLLION PEOPLE, OF WHICH INDUSTRIAL MANUFACTURING ACCOUNTS FOR MORE THAN 170,000 JOBS. IN THE PAST FOUR YEARS, THE CITY HAS LOST SLIGHTLY MORE THAN 38,000 JOBS - 20,000 OF WHICH WERE IN MANUFACTURING. THIS HAS HAPPENED WHILE OUR POPULATION CONTINES TO GROW AND CERTAINLY THIS IS A TREND WE ALL WOULD LIKE TO SEE REVERSED.

TORONTO OFFERS A POSITIVE CRITICAL MASS OF LOCATION, A GOOD WORK FORCE, AND AN INFRASTRUCTURE THAT, FOR THE MOST PART, FUNCTIONS REASONABLY WELL. BUT SO DO OTHER JURISDICTIONS IN THE GTA. LET’S TAKE A LOOK AT SEVERAL KEY FACTORS THAT THE T-I-N THINKS COULD HELP TORONTO’S ABILITY TO COMPETE.

FIRST, CONTINUING TO MAINTAIN STRONG EMPLOYMENT LEVELS IS EXTREMELY IMPORTANT. LOSING INDUSTRIAL JOBS – TO THE NEIGHBOURING AREAS AND ELSEWHERE- IMPACTS BOTH THE TAX BASE AND OUR QUALITY OF LIFE. T-I-N HOPES THAT THE CITY’S ECONOMIC EFFORTS WILL SEE MORE JOBS IN TORONTO SO MORE PEOPLE CAN BOTH LIVE AND WORK HERE .

SECOND, THE TAX RATES FOR INDUSTRY IN TORONTO ARE NOT IN LINE WITH TAXES LEVIED IN MANY OTHER JURISDICTIONS, INCLUDING OTHERS IN THE GTA. THERE ARE OF COURSE ALL SORTS OF REASONS FOR THIS. BUT THE REAL ISSUE IS ONE OF VALUE. IS THE INDUSTRIAL SECTOR GETTING VALUE FOR TAXES PAID RELATIVE TO THE CITY’S COMPETITION? FOR EXAMPLE, MOST INDUSTRIAL COMPANIES IN TORONTO USE RELATIVELY FEW MUNICIPAL SERVICES, MOST OF WHICH ARE PAID FOR DIRECTLY. T-I-N SUGGESTS THAT IMPLEMENTING MORE COMPETITIVE LOWER INDUSTRIAL TAXES WILL HELP RETAIN EXISTING COMPANIES AND PROVIDE A CRITICAL TOOL TO ATTRACT NEW ONES.

THIRD, INVESTING IN IMPROVED TRANSPORTATION IS A VITAL COMPONENT IN MAKING TORONTO MORE COMPETITIVE. FOR EXAMPLE, ONE OF THE T-I-N MEMBERS REPORTS THAT 20 YEARS AGO, A TRUCK DELIVERING TO CUSTOMERS IN THE WEST END FROM HIS EAST SCARBOROUGH PLANT COULD MAKE THREE DELIVERIES IN ONE DAY. NOW IT CAN ONLY MANAGE ONE DELIVERY A DAY BECAUSE OF OUR CONGESTED ROADS. THE T-I-N BELIEVES THE CITY’S TRANSPORTATION PLANS SHOULD ENCOURAGE MORE RAIL TRANSPORT AND INCREASED INDUSTRIAL USE OF THE PORTLANDS SINCE BOTH RAIL AND WATER ARE EFFICIENT AND ENVIRONMENTALLY FRIENDLY TRANSPORTATION MODES. FURTHER, IT IS VERY IMPORTANT THAT PEOPLE WORKING IN THE CITY’S INDUSTRIAL FACILITIES HAVE PUBLIC TRANSIT AS A VIABLE AND ATTRACTIVE OPTION FOR GETTING TO AND FROM WORK.

AND FINALLY, I URGE YOU TO CONSIDER HOW IMPORTANT IT IS TO HAVE STABILITY AND PREDICTABILITY IN THE POLICY AND REGULATORY ENVIRONMENT OF OUR MUNICIPAL GOVERNMENT. CHANGES IN POLICY WITHOUT CONSULTATION CAN CAUSE UNCERTAINTY AND CONCERN. THIS REALLY IMPACTS ON CRITICAL DECISIONS INDUSTRY HAS TO MAKE CONCERNING RE-INVESTMENT OR INITIAL INVESTMENT IN TORONTO.

THERE ARE POSITIVE SIGNS THAT WE ARE ON THE RIGHT TRACK WITH THESE ISSUES. T-I-N WAS VERY PLEASED WITH COUNCIL’S DECISION EARLIER THIS YEAR NOT TO LEVY DEVELOPMENT CHARGES ON NEW INDUSTRIAL CONSTRUCTION. THIS CERTAINLY HELPS EXISTING INDUSTRY AND IS AN IMPORTANT TOOL IN ATTRACTING NEW INDUSTRY. T-I-N WAS PART OF THE CONSULTATIVE PROCESS ON THIS ISSUE AND WAS PLEASED TO HAVE HAD THE OPPORTUNITY TO MAKE ITS MEMBERS’ VIEWS KNOWN.

THIS KIND OF CONSULTATION BETWEEN THE CITY AND ITS STAKEHOLDERS IS EXTREMELY IMPORTANT AS COUNCIL AND CITY STAFF SHAPES OUR FUTURE THROUGH POLICY DEVELOPMENT. AS YOU DEVELOP POLICY, T-I-N ENCOURAGES YOU TO ASK THE SIMPLE QUESTIONS, “WHAT WILL BE THE EFFECT ON INDUSTRY? HAS INDUSTRY BEEN CONSULTED”?

THE T-I-N CERTAINLY WANTS TO RECIPROCATE AND CONSULT WITH THE CITY BEFORE MAKING ANY DECISIONS AFFECTING THE CITY. REMEMBER THAT INDUSTRY HAS A GREAT DEAL OF EXPERTISE AND EXPERIENCE THAT WE ARE HAPPY TO SHARE WITH OUR CITY GOVERNMENT.

WE WANT TO WORK WITH YOU OUR CITY GOVERNMENT, AS PARTNERS, TO MAKE TORONTO A BETTER PLACE TO WORK AND TO LIVE - FOR ALL OF US, OUR EMPLOYEES AND OUR FAMILIES.

THANK YOU.