A new campaign called “Solve the Crisis,” led by a group of Ontario Big City Mayors (OBCM) was presented at a conference in Ottawa, hosted by the Association of Municipalities of Ontario (AMO).

The conference included members from several caucuses and brought together some big names such as the minister of housing, mental health and addictions, and the minister of health. Those in attendance were Eastern Ontario Wardens’ Caucus (EOWC), Western Ontario Wardens’ Caucus (WOWC), and Eastern Ontario Mayors’ Caucus (EOMC). The three caucuses announced their collective support for the “Solve the Crisis” campaign.

On a local note, Mayor Jeff Leal accepted a municipal innovation award on behalf of the city of Peterborough from the AMO. The award recognizes the city of Peterborough's innovative modular housing community project which started in 2023. The project helped to end a tent encampment of people experiencing homelessness on Wolfe Street. According to a CBC report, the modular housing project has successfully housed 47 people out of 50 units.

A report by AMO in 2023, found there were at least 1400 homeless encampments in Ontario communities. The encampments were situated in communities of any size, urban, small town rural, and northern Ontario. This eye-opening statistic set in motion the call for urgency in this crisis.

The leading organization is the OBCM which includes mayors of 29 cities with a population of 100,000 or more that makes up about 70% of Ontario’s population. The OBCM thus advocates for issues and policies for Ontario’s largest cities.
At the conference the OBCM highlighted their demands for urgent action on homelessness and the opioid crisis, known as “Solve the Crisis.” The conference addressed the reality of an issue that continues to grow where municipalities do not have the sufficient resources and support to combat homelessness.

The campaign calls on specific demands from the provincial government and federal government. This involves creating a ministry responsible for overseeing housing needs and mental health supports, as well as a taskforce to develop an Ontario Action Plan. In addition, they’re asking for more funding, tools and resources to address homelessness.

During the conference, Health Minister the Hon. Sylvia Jones’ announced that the province would be investing $378 million into 19 new Homelessness and Addiction Recovery Treatment (HART) hubs which will add up to 375 supportive housing units. On top of this, the province has implemented a ban on consumption sites within 200 metres of a school or childcare centre. Several mayors from OBCM voiced their gratitude for further investment from the province. Mayor Patrick Brown of Brampton stating, “Grateful for the Ford government’s focus on treatment for addictions and not band-aid solutions. I share their concern about the proliferation of safe injection sites in area close to families and children. This needs to stop".

Looking ahead, the OBCM, and our own mayor, remain steadfast on tackling this crisis and collaborating with all levels of government. In an interview with the Peterborough examiner, Leal mentioned he has had productive conversations with the minister of Mental Health and Addictions, Micheal Tibollo’s to help address our local needs. Leal said, “we want to continue to impress upon the need to have additional funding, both from a treatment perspective and (for) supportive housing”.

The city of Peterborough has already received both federal and provincial funding for housing, drug supervision and treatment programs. These include the current supervised consumption site, affordable housing and a future residential treatment centre.

Locally, we met with Fourcast to get a better understanding of Peterborough’s Consumption and Treatment Services Site (CTS). Fourcast is the lead agency operating the CTS site here in Peterborough. The CTS which has been active since June 2022, has seen a large success in preventing overdoses according to their 2022-2023 report. While a CTS is controversial in recent news and from communities, Fourcast involves community perspectives from community and business leaders in their operations with a community committee. Therefore, any community concerns will be reviewed in the committee. If you would like to see the past year's report on the CTS, please click the following link.

While the AMO acknowledges there have been some positive steps towards action, more is needed to combat this growing problem. With the success from modular housing and our own supervised consumption site, it will be interesting to see which municipalities will have the HART hubs. Thanks to the OBCM and pressure from Chambers of Commerce and Boards of Trade across Canada, the homelessness crisis in Ontario is getting the attention it needs.
 

As global interest in Basic Income grows, Ontario's brief pilot offers insights and raises questions about the potential for more sustainable social assistance models.

This week on the VOB we are discussing Basic Income (BI) - a concept that proposes providing people with a livable income that helps improve housing and health outcomes. The brief pilot project in Ontario did not provide enough data to get a good idea of its impact. It’s time to look at alternatives to the current social assistance status quo and see if there are better models.

Basic income would be set at 75% of the median income in Canada. BI operates through a negative income tax (NIT), by assessing an individual’s tax return where their earned income would be reduced by 50 cents per dollar.  This would then determine the BI amount they could receive.

Ontario started its BI pilot project in the fall of 2017. BI aims to test how a livable income for couples and individuals would provide sustainability and how sustainability impacts employment, education, life, health, and financial security outcomes. An individual could receive up to $16,989 with an extra $500 monthly and couples could receive up to $24,000. Notably, BI would be a substitute for people on ODSP and OW.

The BI pilot project recruited 4,000 participants across three cities: Thunder Bay, Hamilton, and Lindsay. The pilot project was meant to last 3 years, but only lasted 18 months. The gross cost for the three years was $150 million.
Unfortunately, the pilot project was short-lived, and we could not fully analyze the impacts of the BI. These impacts could demonstrate labor market participation and healthcare use on BI.  Additionally, no data collection was done on the control group that did not receive BI, limiting our ability to compare and observe whether economic and life conditions improved without BI.

After the shutdown of the BI pilot project, recipients went back to our current social assistance, which are Ontario Works (OW) and the Ontario Disability Support Program (ODSP). OW currently supplies up to $733 monthly and ODSP supplies up to $1368 a month. For someone trying to re-enter the labor market, $733 is extremely difficult to live on when a rental for a one-bedroom apartment in Peterborough is $1,173. ODSP can cover rent but with very little left over.

As taxpayers, we are concerned with the costs of these projects. If these projects come to fruition, will the cost increase taxes? Will we see a decrease in labor market participation? These are valid concerns from both business owners and taxpayers.

For context, the Ontario Government is currently spending $3.7 billion less than required to fund existing programs and announced commitments on social assistance until 2026, and as of this year, our budget is short $0.7 billion. The 2024-2025 budget stands at $214.5 billion with social assistance covering 9.3% of the budget.

From a sample of 200 participants in Hamilton, there was 24% of people who were unemployed before and during the pilot. 11% were employed but became unemployed during the pilot. 6% were employed before the pilot but became unemployed to pursue a post-secondary education. 5% of participants found work while on the pilot project. In total, there were almost two-thirds of people worked with 54% of people working before and during the pilot excluding the 5% who found work while on the pilot. 35% of people in total did not work during or before the pilot. What is noteworthy is the 11% who were employed but became unemployed during the pilot.

The Ontario government spends $85 billion on healthcare annually. In the same survey, 33% of respondents reported a reduction in hospital emergency room visits, and 83% noted increased access to over-the-counter medications. With a third of participants reducing their hospital visits, this could alleviate the strain on our healthcare system and improve people’s standard of living by decreasing the frequency of visits from lower-income individuals. Such a shift could potentially lead to cost savings for taxpayers by reducing the need to service a higher volume of patients.

​Short-term results from the BI pilot project indicate potential cost savings for our healthcare system and the reduced effects from the rising cost of living. It’s time to look at all the options when it comes to assisting those living on the margins.

The Peterborough Irish Club, joined by the Irish Consul General, announces a new website dedicated to the historical Irish nine ships.

This past week, your local Chamber of Commerce hosted members of the Peterborough Irish Club (PIC)and Irish Consul General Janice McGann. Members of the PIC gathered to present their new website documenting the Peter Robinson nine ships' immigration to Canada in 1825. In attendance were guests who were descendants of the people of the nine ships from Ireland.

The voyage of the nine Irish ships to Canada departed on May 6th, 1825, from County Cork, Ireland. The ships carried 2,024 individuals who traversed the Atlantic Ocean to reach Canada for a new life. The nine ships would leave a legacy in founding Peterborough and many other communities in the surrounding areas.

The newly created website documents a detailed history of the nine ships led by Peter Robinson from start to finish. The website features information on the journey of the nine ships into the City of Peterborough, a biography of Peter Robinson, the ships, and even the ship’s list of travelers—the content of this website is derived in partnership from the local historians of Trent Valley Archives.

The launch of the Nine Ships website is also particularly important in the upcoming 200th anniversary next year. This celebration will host many activities such as boat cruises, tours, plays, and art displays. Local First Nations have also been invited to participate for the 200th anniversary. The commemoration will seek to honor the bravery and sacrifice of the immigrants from nine ships who immigrated from Ireland.

Several members of the PIC gave their own words on the importance of being a descendant of 9 ships and the pride of their ancestors who embraced the challenge of a new life in Canada. Some members from the PIC and McGann acknowledged the complex histories intertwined with local First Nations. This involved the local Anishinaabe people having to adjust to their new Irish Neighbors.

According to the Nine Ships website, the history of Peterborough credits the immigration of the Nine Ships to the founding of the city of Peterborough! After arriving in Cobourg, the Irish settlers transported their possessions up to Peterborough. Upon arrival in downtown Peterborough, they were then given directions to their land administrated by Peter Robinson, whose office was at Water and Simcoe Streets. From there, each family was scattered around Peterborough County working to build farms and communities.

The 200th anniversary hopes to celebrate the legacy left by the Irish settlers of the nine ships. The commemoration event will take place next August and will hope to attract visitors and descendants of the nine ships from as far away as Australia and the United States. This event will serve as a great information gateway for future visitors wanting to know more about the historical impact of the Irish people from these nine ships.

Irish Consul General expressed her support for the upcoming calendar of events and the launch of the new website. McGann highlighted that “immigration is an act of bravery and resilience, where there is no chance of going back. Canada offered hope for a better life and opportunity. Today we are blessed to have an Irish Community that thrives and continues to keep our heritage alive.” The meeting concluded with a gift to McGann from the Peterborough Irish Club thanking her for her visit to the city of Peterborough.

For all those interested, the website can be accessed at nineships1825.com.
 

​Exciting Visit by US Consul General to Peterborough 

The City of Peterborough and the Chamber recently hosted Baxter Hunt, the US Consul General, and his wife Deborah. The meeting took place at the newly opened Canoe Museum, marking the US Consul General’s first trip outside of the GTA.

The meeting was chaired by Sarah Budd, CEO of the Peterborough + Kawarthas Chamber of Commerce. In attendance were Mayor Jeff Leal, Warden Bonnie Clark, and CAO Jasbir Raina.  Several business owners and representatives from Trent University and Fleming College were also present.  

The meeting began with comments from Mayor Jeff Leal and Warden Bonnie Clark who expressed their gratitude to the Consul General for visiting Peterborough. Hunt reiterated the rich economic relationship between Canada and the US and stressed the need to continue strengthening business ties. Throughout the meeting, several businesses and organizations showcased their roles within the community.

Common themes discussed included ways to strengthen our cross-border relationship. Some businesses mentioned wanting to possibly expand into the US, while others noted their existing connections with US cities. Hunt added that 35 US states have Canada as their biggest trading partner, stressing the immense potential to strengthen our economic partnerships.

Leal highlighted Peterborough’s key water system as a valuable resource. Peterborough's geographical location, marked by rivers and lakes, offers abundant opportunities to explore in collaboration with our American neighbors. Trent and Fleming were also mentioned for their renowned water science programs that have attracted American students.

Hunt noted that businesses looking to expand into the US have a great point of reference in Toronto. The American Chamber of Commerce in Canada (AmCham) serves as a valuable resource for connecting partners from the US and discovering advantages in different US states. This would be a great resource for companies in Peterborough County looking to tap into US markets.

Hunt further encouraged businesses or organizations with questions about US visas, to reach out to the American Consulate General in Toronto. Moreover, he suggested that businesses or organizations looking to invest in the US market, should consider  SelectUSA, which hosts their annual summit in Washington DC that attracts 4,500 attendees from around the world to promote investment in the US.
​
To close the meeting, Hunt reciprocated the growing interest in strengthening the cross-border relationship, highlighting the abundant opportunities and attractions in Peterborough. This meeting marked the beginning of a great opportunity to enhance our cross-border relationship, with Hunt remarking “I’m already feeling bullish on Peterborough.”.
 

​City plans to hike property taxes on businesses in favour of lower taxes for residents hit a roadblock.
 
During last year’s 2025 budget talks, the city increased Peterborough commercial to industrial property tax to 1.65 times the residential rate, up from 1.5 times. This hike amounted to collecting approximately 22% more property taxes from local businesses, but thankfully this move was rejected by the provincial government. Currently the Municipal Act limits commercial and industrial property taxes to a 0.6-1.1 ratio.
 
To put it into perspective, as of 2023, Peterborough businesses paid 150% of what residents pay on industrial and commercial properties. Many municipalities are charging in excess of the mandated ratio of 0.6 - 1.1. For example, cities outside of the GTA pay on average commercial and industrial tax ratio of 1.81 - 2.32. Cities within the GTA such as Toronto, Richmond Hill, Mississauga, Brampton, and Markham, pay an average rate of 1.94 - 2.06 for commercial to industrial tax. It is evident cities all over Ontario, not just Peterborough, are operating outside the 0.6 - 1.1 tax ratio.
 
According to the Peterborough Examiner, the reason behind this tax increase for Peterborough derives from the 10.28% increase in costs. Included in these costs is $2.1 million more to cover salaries for municipal workers, $2.1 million more to cover salaries for worker benefits and $1 million more to run Peterborough Police Services.  Without this tax, this leaves the city with a $3.1 million shortfall. This means the city will need to look for other ways to generate revenue.
 
Our Chamber here in Peterborough and the Kawarthas actively participated in bringing this proposal to the provincial government. Joel Wiebe, Vice President of Operations & Government Relations, met with the Ministry of Municipal Affairs and Housing to advocate on behalf of businesses in Peterborough who are disappointed in this increase.
 
With the rejection from the ministry to increase the tax ratios, councilors need more time to work on creating a fair and equitable tax ratio for businesses in Peterborough. Increasing tax ratios is not a solution to reduce costs for the city. Businesses should not face the burden of reducing costs at times where widespread inflation is affecting everyone.
 
Mayor Jeff Leal reiterated a previous warning he made earlier, “People thought it was a hyperbole when I said we would hit the wall...there’s the wall. Right there.”. His statement highlighted the city’s dead-end in finding solutions to reduce costs. With the proposed tax hike rejected, Leal suggested gathering additional revenue from city partners. For instance, he hinted Trent University, as Trent is not required to pay property taxes to the city.
 
Furthermore, Leal proposed “it is time to have serious discussions with our partners, we can’t keep going like this” Leal said. With cost recoveries lagging, we need alternative solutions to help reduce future costs. This will require aid from local partners and generating revenue through other means, not businesses.
 
The city will have to make some tough decisions when it comes to next year’s budget. Costs to run the municipality are going up, but it cannot push off those increases by arbitrarily hiking taxes on businesses to minimize the impact on residential taxpayers.
 
Mayor Leal is committing to growing our local business base by increasing our commercial and industrial assessment base from 20 to 30 per cent and increasing our GDP growth rate from 15 – 30 per cent. This will benefit all taxpayers by growing our economic base, thereby generating more tax revenue for the city.
 

This week on the Voice of Business was a step in the right direction for the future growth and development of Peterborough. Siddhartha Nath, Consul General of India, held his first meeting outside of the GTA. Joel Wiebe, our VP of Operations & Government Relations and Sarah Budd, our President & CEO were present and led this open discussion.
Consul Nath was hosted by Mayor Jeff Leal and CAO Jasbir Raina on behalf of the City and Warden Bonnie Clark on behalf of the County. They were joined by a group of local businesses for a discussion on economic partnerships with India.

Our focus of this meeting was to foster the relationship between the consulate of India and Peterborough. There were many issues discussed at this meeting.  Several concerns were raised around the cap on international students and its impact on local postsecondary educational institutions as well as recruitment for local businesses, including long-term care homes. With a staffing shortage like this, we are risking the quality of service that goes into taking care of our growing elderly population.

The Chamber voiced the need for a strong relationship with India. Many businesses rely on bringing new Indo-Canadian workers to maintain their staffing numbers. Local businesses are relying on recruiting workers from India for roles like IT. With the shortage of international students, this could in turn lead to a staffing shortage.

After the concerns were voiced by local businesses, Mayor Jeff Leal and Bonnie Clarke voiced their proactive solutions to Siddhartha. Leal emphasized the need to increase the visibility of Peterborough and let others know about the advantages of Peterborough. Clark reiterated that we need to work more with the Indian government to show what Peterborough can offer and form more economic partnerships.
​
Nath responded to the Leal’s and Clarks comments stating that he would work within the consulate to address our community concerns and conduct further investment promotion for Peterborough. Nath also stated the importance of reaching out to the Indian Consulate if there were any more concerns. Finally, the echoing message was “If we want to see Peterborough grow, we need more investment and investment” said Leal and furthermore, a strong relationship with the consulate of India can help facilitate this.
 
 
 
 

An average of eight people die every day in Ontario from drug poisonings. That’s 3,000 people every year.
 
It’s an issue affecting communities across Ontario.
 
The Peterborough and the Kawarthas Chamber of Commerce is echoing the comments of the Ontario Chamber of Commerce (OCC) in its latest policy primer Beyond Emergency Declarations: Charting Ontario’s Course Through the Substance Use and Overdose Crisis.
 
In fact, our local chamber is leading a new Chamber working group under the OCC involving chambers of commerce and boards of trade from across the province to share best practices and find meaningful solutions to one of the biggest issues we’re dealing with.
 
In a press release about the new policy primer, OCC President and CEO Daniel Tisch says:
“Businesses across Ontario find themselves near the frontlines of an evolving social crisis that they are ill-equipped to manage. With rising security costs and dwindling customer traffic, they see risk to their employees, their customers, and their future. Our report also highlights high fatality rates in some sectors, such as construction. Without urgent action, our province faces devastating, long-term socio-economic harm.”
 
The goal as stated in the report is to frame the ongoing conversation about addiction management by simplifying the complex narrative surrounding substance use, bridging the knowledge gap among stakeholders and emphasizing the need for evidence-based, community-informed solutions that prioritize public health principles, prevent mortality, and improve recovery outcomes.
 
The report itself is only seven pages and packed with good information. It’s well worth a read, but I’ll pull out a few key points.
 
Peterborough is well above average in our number of opioid deaths. While Ontario averages 17.6 deaths per 100,000 people, Peterborough sits at 53.2. All of those with higher rates are in Northern Ontario in places like Thunder Bay, Timmins and Sudbury. The report notes that addictions issues are hitting northern, rural and First Nations communities particularly hard.
 
There is a lot of context when it comes to which communities are dealing with significant issues. For example, the issue in First Nations communities is magnified by the effects of colonization and residential schools as well as issues like inadequate housing and poor access to clean water. Access to healthcare and addictions services have a big impact on addictions and mental health issues, something that also creates more barriers in more rural communities.  
 
Seeing Peterborough with three times the opioid toxicity mortality rate of the provincial average is humbling. Our community is hurting. It’s hitting our families, our workplaces, and our friends.
 
Simranzeet Singh Vig, Senior Policy Analyst at the Ontario Chamber of Commerce, sums things up well:
“Collaboration between industry, government, healthcare leaders and community organizations is paramount. We believe that through improved data collection that enables direct comparisons of provincial outcomes, Ontario and other jurisdictions can learn from one another and mitigate the impacts on our communities.”
 
The report ends with three recommendations which are themselves merely the next steps in this discussion:
 
Ontario stands at a pivotal juncture in confronting the substance use and overdose crisis. While stakeholders welcomed provincial commitments in the Roadmap to Wellness Plan and additional investments in Ontario’s Addictions Recovery Fund, Ontario’s strategy must better engage and reflect the concerns of businesses and local communities, who find themselves at or near the frontlines of the crisis. Actions should include:
 
1. A review of the operating procedures and practices of existing interventions to reduce the unintended harm that can be caused to communities, while ensuring the crisis is managed through a public health approach that prevents mortality, improves recovery outcomes, reduces stigma and respects the dignity of all people.
 
2. Improved data collection that enables direct comparisons of provincial outcomes to ensure that Ontario and other jurisdictions can learn from one another.
 
3. Support for both a strategy and a culture of collaboration – with industry, government, healthcare, and community organizations working together to mitigate the impacts of this crisis on people and communities everywhere.
​

​Chambers of commerce are your local voice of business. We meet with businesses, non-profits, charities, governments, and local stakeholders to identify barriers to economic growth and opportunities and push for that change.
 
While the issues vary between chambers and the communities they serve, they are far more similar than different. As a result, we work well together to take local grassroots ideas and issues and amplify them as an advocacy effort to municipalities, the provincial and federal governments, as well as other industry associations.
 
Most of the 1,000 members of the Peterborough and the Kawarthas Chamber of Commerce do not have the resources to employ professional policy analysts and economists to research and draft effective policy proposals nor do they have the resources to hire government relations specialists and lobbyists to bring it to the attention of decision-makers.
 
That’s where the chamber network comes in. Across Canada there are more than 400 chambers and boards of trade working with 200,000 businesses to amplify the local issues that affect business across the country.
 
Recently, chambers from across Ontario met for our annual convention and policy debate. There we discussed, debated, and ultimately approved 28 new policy resolutions on behalf of businesses across the province, including three submitted by our chamber. This brings our total to 103 policy resolutions in our 2024-2027 compendium. If you want to see what chambers are advocating for, click the link! We have recommendations spanning everything from student housing to training people to work on electric vehicles to investments in life sciences. These policy resolutions are all topics we feel are relevant to businesses across Ontario. They are now a focal point for advocacy not just for the Ontario Chamber of Commerce, but all of us local chambers.
 
Here are the summaries of our additions to this year’s policy compendium:
 
Enforcing fair property tax ratios
 
Issue
Businesses in Ontario pay much higher property tax rates than residents, despite using fewer services. The Ontario Municipal Act requires municipalities to tax commercial and industrial properties at a ratio of 0.6 to 1.1, but many municipalities have no plans to comply.

 
Recommendations
 
That the Ontario Chamber of Commerce urge the Government of Ontario to:
 
Enforce existing property taxation ratios set out in the Ontario Municipal Act Reg. 386/98: Tax Matters – Allowable Ranges for Tax Ratios by withholding provincial support — including access to provincial funding streams — to municipalities that:

1. are not taxing commercial and industrial properties at the required rates or
2. are not actively transitioning to the required rates based on a plan that specifies gradual decreases on a timeline approved by the Province.

 
Making Ontario more competitive for permanent residency
 
Issue
Ontario is less competitive than other provinces when it comes to approving permanent residency for new Canadians. This impacts our ability to attract talent at a time when we desperately need to increase our workforce.
 
Recommendations
That the Ontario Chamber of Commerce urge the Government of Ontario to:
 
Make Ontario more competitive for securing permanent residency by:

1. Tailoring the Ontario Immigration Nominee Program to target candidates who fall outside the federal criteria with an emphasis on those already working in Ontario, including establishing a program for those with long-term work experience in Ontario as a pathway to residency.
2. Reducing employment criteria barriers, including:
   1. Providing clarity on what NOC codes will be invited in the future or eliminating the requirement to select a specific job or occupation from a list altogether.
   2. Lowering the revenue requirement and requirements for a specific number of employees for businesses to allow for smaller businesses to sponsor permanent residents.
3. Opening up the Student Job Offer Stream program to students in one-year programs.
4. Improving the functionality of the OINP website, providing a more up-to-date and user-friendly experience.

 
Maximizing Growth in Built Areas
 
Issue
Historic downtowns in cities across Ontario are full of underused mixed-use buildings. These multi-storey buildings have commercial space on the bottom and un- or under-used residential space in the upper floors. Inquiring about updating to once again have people living in these buildings can trigger expensive inspection processes on buildings that were built long before building, fire, and accessibility codes. Those that do try to develop these spaces are often met with unrealistic costs to meet heritage preservation and accessibility regulations, leaving empty housing in the heart of our towns and cities.
 
Recommendations
The Ontario Chamber of Commerce urges the Government of Ontario to:
 
1. Designate the Downtown Revitalization Program be used for a pilot project that allows private building owners and municipal officials to study and assess, using an independent consultant and without punitive action, the needs of a building or series of buildings in a downtown core.
 
2. Implement a policy for municipalities that will allow for the redevelopment of upper floors of aging mixed-use downtown buildings for use as residences that takes a fiscally responsible approach to heritage preservation and accessibility standards.

​There is a topic that is often not discussed or planned for until late in the process – succession.
 
Here at the Chamber of Commerce we often have conversations with businesses who are thinking about selling their business. It’s something that has hit them fairly recently. They’re tired. The last few years have been a lot. They want to look after their mental and physical health. They’re getting older and want to spend time traveling and hanging out with the grandkids. It’s all understandable and, frankly, they’ve earned it after years of long hours, high stress, and financial risks.
 
The problem is they’re tired right now. They’re hoping to get out some time in the next 12 months or so.
 
There’s a new report on this subject from the Northern Policy Institute in partnership with the Ontario Chamber of Commerce and Société Économique de l’Ontario called Taking Care of Business: The State of Business Succession and Planning in Ontario.
 
The report’s survey found that 73% of business owners do not have a succession plan in place, even though the leaders of many organizations plan to sell or retire soon. Most business owners report planning to sell or retire in the next 15 years.
 
From Taking Care of Business: The State of Business Succession and Planning in Ontario:
Business Owners’ Responses to “Do you have a succession plan in place?”
-I don’t know/prefer not to answer: 9%
-No, we do not have a succession plan in place nor have one in the process of being created: 44%
-No, but it is in the process of being created: 29%
-Yes, one is completed: 18%
 
The transition of business ownership represents both opportunity and risk. Established businesses provide a strong platform for someone to continue to grow. But poorly planned succession can be a mess.
 
The report notes that one-third of business owners who plan to sell or retire in the next five years do not have a succession plan in place or are in the process of creating one. Organizations who are not anticipating a change of leadership are far less prepared. Smaller businesses are typically less prepared, despite being more likely to undergo leadership change.
 
There is a cost to putting off planning for change, as stated in the report:
“Poorly managed succession can lead to worse organizational performance and lost business value. This can result in reduced economic growth, job losses for employees, and reduced options for consumers. Therefore, increasing the number of businesses that adequately plan for succession will be crucial to ensuring that Ontario’s successful existing businesses continue to provide employment opportunities, goods and services, and economic growth even as their current leadership departs.”
 
While we typically talk about succession planning as it relates to retirement, which is a big component of it, businesses change hands for multiple reasons. Some move on for a change of scenery, but there are also unexpected and unforeseen changes due to health issues, death, family needs, financial issues, business partnership breakdowns, etc. Having a plan on the books will go a long way to making that transition process go more smoothly.
 
Good planning will help preserve local businesses and create a stronger local economy. If you or your organization are interested in planning for changes in leadership and ownership, your local Chamber of Commerce can help make some recommendations on local businesses with succession expertise. The best time to plan for the future is now.

Guest Column by Daniel Tisch, President & CEO of the Ontario Chamber of Commerce
 
 
After 18 months as federal Conservative leader Pierre Poilievre spoke last week to a local Chamber of Commerce for the first time.
 
As he took the stage in Vancouver, he was eager to explain why it took him so long.
 
Poilievre began by noting that he had spoken more than 100 times on shop floors and to union locals. That was good to hear — even refreshing. He deserves credit for that effort.
 
But then he dropped the punchline, and it wasn’t kind to his hosts. The real reason he stays away from business audiences, he said, is because of “utterly useless” corporate lobbyists focused on “getting lunches with ministers” and “showing off their latest ESG brochure.”
 
Poilievre created a caricature of “politicians and CEOs working together for their own interest.”
 
He’s not alone.
 
In Ottawa, business-bashing is part of the populist playbook — right across the political spectrum. Liberal Prime Minister Justin Trudeau recently slammed a media company for its “garbage decision” to make cuts and layoffs after a $40 million operating loss. His government has imposed new taxes and costs on banks and tech companies because, well, they’re banks and tech companies.
 
New Democratic Party leader Jagmeet Singh routinely blames “corporate greed” for rising prices. He recently accused retailers of “ripping people off” — as if the high inflation, wage settlements and supply chain disruptions of recent years never happened.
 
Are concerns about high prices legitimate? Yes. Should business leaders be asked hard questions? Absolutely. Should their policy prescriptions be challenged and debated? Of course. Will anyone shed tears for big companies? No.
 
It’s a dangerous game, however, when political leaders traffic in anger, stereotyping and scapegoating of any group or institution. It might garner a few votes, but it won’t move us forward as a nation.
 
Canada has serious challenges: lagging productivity. Skills and labour shortages. An overloaded and disjointed health-care system. Insufficient investment in climate and clean technology infrastructure. And much more.
 
These challenges are too wicked for government to solve alone. While government’s job is to set the agenda and make the rules, it’s a huge error for political leaders not to engage the financial, human, intellectual and relationship capital of the private sector.
 
Does business want to be part of the solution? You bet. That, too, earned a rebuke from Mr. Poilievre. He criticized business leaders because “they want to get along with everybody” and urged them to “stop sucking up to the people who are doing the damage to our country.”
 
But it’s not the role of business leaders to get partisan, or to help opposition leaders get elected. Business leaders need to work with government — no matter who is in government.
 
This is particularly true today, in an era when none of the major federal party leaders have a business background. That’s not a criticism; they bring other skills and qualities to the table.
 
But it does mean business and political leaders need to reset their relationship, and to approach one another with fewer assumptions, and more humility; with less rhetoric, and more dialogue; and with less theatre, and more collaboration and co-creation.
 
In last week’s speech, Poilievre also told his audience that he favours a “bottom-up free enterprise agenda” — i.e., an agenda rooted in the needs of enterprising businesspeople, not politicians in Ottawa. He was wise to speak at a Chamber of Commerce, because there’s no more “bottom-up” business organization in our nation today. In every town, city or province in Canada, from heartland to hinterland, the vast majority of Chamber members are small businesses. They want their chambers to work with Poilievre, Trudeau and Singh — just as they do successfully with all our provincial leaders.
 
Canada needs political and business leaders to work together in a spirit of goodwill, reflecting the shared interests of businesses, workers and communities. It’s time to rebuild that spirit.