North in the zone, province says.

• Author: Wareing, Andrew
• Position: Tax-incentive zone

MATTAWA -- It was the news that municipal leaders were hoping to hear and, when they did, it was greeted with cheers.

During the May 9 Federation of Northern Ontario Municipalities (FONOM) conference in Mattawa, Ontario Premier Ernie Eves announced that all of Northern Ontario would become a "tax incentive" zone. Under the plan, eligible businesses relocating to Northern Ontario and existing businesses with plans to expand would not be required to pay provincial business education tax, capital tax or employer health tax. The province is already planning on eradicating the capital tax with the first 10-per-cent cut on January 1, 2004.

The initiative takes effect starting January 1, 2004 and runs for 10 years.

*

"This initiative was the commitment that I made during my leadership campaign for the party, that I included in my first throne speech and in my speech to (the Association of Municipalities of Ontario) last August," Eves said. "It gives me great pride to announce this program to bring economic prosperity and growth to a part of the province close to my heart."

As part of the program, municipalities will also be asked to provide full municipal property tax relief for all eligible businesses. Eves said the province would be assisting municipalities in efforts to market their communities as tax incentive zones.

*

Municipalities that have identified a potential new investment will be required to submit a business case outlining the proposed business and an explanation of how the investment would benefit the local economy without hurting existing businesses.

Businesses would have to meet certain eligibility criteria, demonstrating that it will be economically beneficial to their community while not hurting existing businesses that are already established in the community. The minimum requirement is the hiring of at least five people with a minimum investment of $100,000.

*

"I am committed to tax-incentive zones. They are an idea whose time has come," said Eves. "I'm making Northern Ontario a beach head for this initiative because I believe that communities throughout Northern Ontario should be a places where people can find economic success and remain throughout their lives to enjoy the advantages that the North has to offer."

Eves said the economy of Northern Ontario has been focused primarily on harvesting the natural resources that...