Speech: Ontario Finance Minsiter Dwight Duncan: Address to the Canadian Embassy in Riyadh, Saudi Arabia

OPENING

Good evening. Thank you, [name], for that welcoming introduction.

First off, I want to thank Chargé d’Affairs McKinnon and his staff for generously hosting this reception and dinner.

I know I echo sentiments from my Ministry of Finance colleagues when I say that this week has been an extreme success, in large part because of the efforts of this embassy’s staff.

You have all been instrumental in arranging everything in our itinerary as well as my meeting earlier today with Prince Al-Whaleed bin Talal.  Again, I thank you.

I’d also like to give special thanks to Senior Trade Commissioner Jeff Blackstock and Trade Commissioner Nuha Osman.

It has been a tremendous week of meetings and engagements in both the United Arab Emirates and Saudi Arabia.

As the week has progressed, it has been increasingly clear to me that Canada and Ontario have an excellent track record in the region and are respected partners.

The relationship between this region and Ontario is an important one, and I look forward to a deepening partnership as we move forward.

ONTARIO / SAUDI RELATIONSHIP

Saudi Arabia, Canada and Ontario have a longstanding relationship built on trade, investment and educational collaboration.

In 2008, exports of Ontario goods to Saudi Arabia were valued at nearly $231 million Canadian, while Ontario’s exports to the overall Middle East region were valued at
$1.4 billion Canadian.

To put this into perspective, Ontario accounts for about one quarter of Canada’s total exports to the Middle East.

In fact, many of the Ford Crown Victoria vehicles that are popular in Riyadh are built at Ford’s assembly plan in St. Thomas, Ontario.

Ontario city planners are involved in the initial planning of the King Abdullah Economic City – the ambitious plan to build a leading-edge urban metropolis in the Kingdom.

And, Ontario’s talented architects and consulting engineers will contribute to this project as it moves forward.

The Kingdom’s recent initiative to open an office of its Saudi Arabia General Investment Authority in Ontario is welcome news.

ONTARIO INVESTMENT ATTRIBUTES

Increasingly, investors in the Gulf region are looking to Ontario as a place to invest, and with good reason.

Ontario is Canada’s economic engine and the seventh-largest economic jurisdiction in North America.

The province’s GDP is greater than many countries – for instance, Belgium, Greece or Sweden.

Ontario is Canada’s business and financial services centre, with one of the soundest banking systems in the world, according to a recent report by the World Economic Forum.

We are home to the country’s leading information and communications technology and bio-industries.  Ontario is the home of the company Research in Motion, inventor of the revolutionary BlackBerry device.

We have an exceptionally well-educated and skilled labour force.  We are an export-oriented economy, an advantage given our prime location to major U.S. cities.

And that’s just the beginning.

RECENT GOVERNMENT INITIATIVES

Building a powerful Ontario economy is our top priority.

Through our most recent Budget, we took steps to enhance Ontario’s competitiveness and attractiveness for investment which will secure a strong economic future. 

We announced a $34 billion investment over the next two years to stimulate economic growth, representing 2.9 per cent of GDP.

In addition, we have also proposed a fundamental reform of Ontario’s tax system. Starting in 2010, we would move to a single, value-added sales tax, which would boost investment and productivity.

At the same time, the government is proposing $4.5 billion in business tax relief over three years, which includes reducing the corporate income tax rate to 10 per cent.

The comprehensive tax reform package proposed in the Budget, once fully implemented, would cut Ontario’s marginal effective tax rate on new business investment in half – making Ontario one of the most competitive jurisdictions in the industrialized world for new investment.

To put this in perspective, Ontario’s marginal effective tax rate on new business investment would be half the rate in the United States.  Also – at 18.6 per cent in 2010 – it would be lower than the OECD average of 21.8 per cent.

Ontario’s rate would fall even further, to 17.3 per cent in 2013 and down to 16.2 per cent in 2018.

ECONOMIC/FISCAL OUTLOOK

It’s no secret that Ontario has not been immune to the global economic downturn.

However, Ontario has a history of resilient economic growth, and we expect that to resume after the recession ends.
We expect growth to resume during the second half of 2009 and strengthen over the next few years.

CONCLUSION

Ontario is committed to becoming one of the most attractive and competitive jurisdictions for business investment.

As an overall investment proposition, we believe Ontario represents a value-added gateway to North American markets.

Our government continues to work across the economy to enhance Ontario’s investment strengths, and we are very enthusiastic about working with investors from across the Gulf region to explore how we can be part of your North American growth plans.

As the evening progresses, I look forward to meeting and speaking with as many of you as possible to learn more about your plans and what the Ontario government can do to help make them a success.

Thank you again to Charge d’Affairs McKinnon, his staff and all of you honoured and distinguished guests.

 

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