HomeMy WebLinkAbout1987-02-16 #2-87MEETING:
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TOWN OF NEWCASTLE
REPORT File #�J�n—�.
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By -Law # Al--g'l
GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
FEBRUARY 16TH, 1987
REPORT #: MAYORS #2-87 FILE #:
SUBJECT' INDUSTRIAL AND REGIONAL DEVELOPMENT PROGRAM
RECOMMENDATIONS:
That the General Purpose and Administration Committee
respectfully recommend to Council:
1. That this report be received; and
2. That the letter from the Honourable Allan Lawrence regarding
the Industrial and Regional Development Program, along with
that of the Honourable Michel Cote be referred to the Hydro
-Liaison Committee, for consideration.
BACKGROUND AND COMMENTS:
On December 8th, 1986, I wrote to Mr. Allan Lawrence asking him to
investigate the possibility of having the Town of Newcastle designated a
Special Tier I zone under the I.R.D.P. Program, to address the possible
short term economic downturns as a result of the reduction of the workforce
at the Darlington Generating Station.
From his letter, Mr. Cote refers to unemployment statistics of the Regional
Municipality of Durham. I believe that our circumstances are somewhat
unique due to the magnitude of the hydro project and a closer review is
warranted.
submitted,
, Mayor
HOUSE O F COMMONS Constituency Office:
Hon. Allan Lawrence, Q.C., M.P. 'Federal Bldg.
Durham -Northumberland CANADA 67 John Street
Ottawa, K1A DAB (613) 992-8756 Part Hope, Ont L1A 2Z4
(416) 885-2044
'from all other constituency
areas phone Zenith 9-6130
OTTAWA
January 30, 1987
Mayor John Winters
The Corporation of the Town of Newcastle
40 Temperance Street
Bowmanville, Ontario
L1C 3A6
Dear John;
Re: Industrial and Regional Development Program (IRDP)
Following your letter of December 8 last in which you were request-
ing me to seek a possible realigning of the boundaries for the
IRDP to include Bowmanville, or in the alternative, to request
that the Minister change the classification of the Town of
Newcastle so that it would be a special Tier I zone to address
possible short-term economic down -turns in view of the construction
phases of the Darlington Hydro Project soon coming to an end, this
is to advise you that I have spoken personally to the Minister and
as well as you know I have written to him and I have sent a copy of
your letter to him.
I have just now received an answer dated January 27 in reply and
you will see in the middle paragraph of page 2 that he indicates
that Durham Region Municipality is not likely to qualify as a
Tier I site in the near future.
I think it unfortunate that the Town of Newcastle isbeing lumped in
together with the whole of the Regional Municipality of Durham in
respect of this matter, but the Minister has assured me that he
has gone into this question personally and has come to the
conclusion he has only after giving it very serious consideration.
With the warmest personal regards,
Yours very truly,
Allan La ence, M.P.
Durham -Northumberland
C
Minister of Regional %; Ministre de I'Expansion
Industrial Expansion. industrielle regionale
CANADA
The Honourable L'honorable
Michel Cote
JAN Z 7 1987
The Honourable Allan Lawrence, M.P.
Durham -Northumberland
House of Commons, Room 546-5
Ottawa, Ontario
K1A OA6
Dear Allan:
Thank you for your letter dated December 18, 1986
concerning the tier classification of the Town of
Newcastle for purposes of the Industrial and Regional
Development Program (IRDP).
The IRDP is a national program intended to implement,
as far as possible, an impartial system of selective
regional support to industry across the country.
Regional targetting of financial support under IRDP is
done by means of a classification system of four Tier
Groups based on a Development Index which applies at
the level of districts (census divisions.). The
essential elements of tier designation under the
program are provided for in the Industrial and Regional
Development Act and Regulations. Thus, the Act
specifies for example that Tier IV shall consist of
districts with not more than 5% of the total population
requiring the greatest assistance in creating
opportunities for economic growth, and so on. The
Regulations define the Development Index as a weighted
composite of an employment measurement (50%), an income
measurement (40%) and a revenue measurement (10%) in
each census district.
../2
Ottawa, Canada KtA OH5
-2 -
The Industrial and Regional Development Act further
specifies that an update of the tier groups shall be
done on or before July 1 of each year. As a result,
tier designations are reviewed once a year for possible
adjustment in light of changing economic conditions,
using the latest annual data available in each census
division. The revised tier classification reflects the
ranking of the 260 +census -divisions in Canada on the
basis of their relative economic conditions.
The Tier I Special provision is introduced to address
possible short-term economic downturns in Tier I
districts where assistance to facility projects is not
available. Under this provision, Tier II assistance
would be provided to such projects for one year when
the average ratio of unemployment insurance
beneficiaries to working -age population in a Tier I
district exceeds, by one percentage point, the national
average for any consecutive six months. The data for
Tier I Special designation are reviewed on a monthly
basis. An examination of relevant statistics suggests
that the Durham Regional Municipality is not likely to
qualify as a Tier I Special in the near future.
Because the procedure of tier classification, the
requirement for an annual update or review of the
Development Index and the Tier I Special provision are
specified in the Act and Regulations, there is no
ministerial discretion with respect to the resulting
tier classification.
Finally and in direct response to your concern, I can
tell you that the IRDP and the tier approach to
designation are now under review by the Department.
Although IRDP is expected to remain in effect until
expiry in 1988, the intention of this conceptual review
is to determine if improvements could be made to
produce a fairer and more objective method of measuring
regional disparity and need for purposes of future
programs of assistance.
Again, thank you for writing on the tier system of the
IRDP.
Yours sincerely,
Ii.
D�VQ
Michel Cote