A salesman by trade, Ontario Minister of Economic Development, Job Creation and Trade Victor Fedeli believes the skills that he developed as an entrepreneur have served him very well in his mission to revive the province’s flagging economy.
"The premier (Doug Ford) and I are both lifelong entrepreneurs. We're more than politicians. We've written our own paychecks most of our lives. And so at heart, we're both salespeople," Fedeli told GMI POST.
Fedeli shed light on the ministry’s strategic approach to reverse the decline of the manufacturing sector when he and the premier took office five years ago. The minister boiled down his strategy to providing “customer delight.”
The “pivotal moment” came during negotiations with auto giant Volkswagen.
"To sit down and pen a $7 billion deal with Volkswagen has got to be one of the pinnacles of business success. We've also attracted $27 billion worth of EV business to the province in three years. We've landed $3 billion worth of life sciences business in three years. We've landed tens of billions of dollars of tech into Ontario in three years as well,” he said.
However, success did not come easy. When they assumed office, Ontario's manufacturing sector was in decline, a result of the previous government shifting its focus from manufacturing to the service sector, according to Fedeli.
In response, the premier and Fedeli unveiled the "Driving Prosperity" Plan, a strategy “to position Ontario as a North American leader in developing and building the car of the future through emerging technologies and advanced manufacturing processes.”
To achieve this, the ministry reduced the cost of workplace safety insurance (WSIA) by 50%, while simultaneously maintaining worker benefits. An accelerated capital cost allowance was introduced to write off the cost of new equipment within a year, which spurred technological upgrades.
Fedeli also highlighted the government’s commitment to cut the cost of electricity for industrial and commercial customers by 15%, resulting in $1.3 billion in savings for businesses. It also canceled all scheduled tax increases and slashed red tape, saving businesses around $900 million a year.
"We initially saw revenues down by $8 billion. While this may have seemed like a loss, what happened was that businesses decided to rehire and reopen because the new policies allowed them to save on costs. Eventually, our revenues soared and are up $40 billion after five years because of the investments that came back,” he said.
Having instituted business-friendly policies and rebuilt an investment-ready economy, Fedeli says Ontario is open to all businesses: “We build planes, trains, and automobiles here. We make everything from potato chips to microchips and everything in between.”
