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September
1997 Newsletter
Current
Regional Data Disproves the Economic Arguments
The
"improve the local economy" argument revolves around access
to industrial parks. In the 1970s, Hamilton-Wentworth appeared
to have a severe shortage of attractive industrial land.
In 1978, an "Action Plan for Economic Growth" was prepared
for the regional government by Currie, Coopers & Lybrand.
It calculated that only 130 acres were available at that
time for industrial expansion and concluded this "shortage"
was the major economic problem facing the Region.
In the next six years, the Region acquired and serviced
a string of new business parks including two adjacent to
the 403 in Ancaster and one in Stoney Creek alongside the
QEW. The expenditure on the Stoney Creek business park alone
was $16 million. East Mountain and Glanbrook business parks
were also established in this period and promptly became
the "reason" why the cross-mountain and Red Hill Valley
expressways had to be built. In 1984, Currie, Coopers &
Lybrand was asked by the Region to explain the economic
reasons for the expressways. Their report was prepared for
the Consolidated Board Hearings in 1984-85. It argued that
the East Mountain and Glanbrook business parks could only
be counted as available if they were serviced by expressways.
They estimated industrial lands in the Region would be consumed
at a rate of 100 to 150 acres per year, and concluded that
without these two areas, the Region would soon run short.
They also predicted the expressways would stimulate private
investment of $500-700 million in the business parks, creating
9,340 to 12,425 permanent jobs. The construction activity
alone was supposed to generate $800 million to $1.1 billion,
pump $224 to $298 million a year into the local economy,
and increase annual business tax revenue by $107 to $144
million. This was how the expressways were supposed to pay
for themselves and bring economic prosperity to Hamilton.
The silliness of these predictions is shown by the fact
that the total regional general tax levy on both businesses
and homes was only $140 million in 1995.
The prediction on the consumption of available industrial
land was even more absurd. It wrongly assumed that industrial
growth would accelerate in Hamilton, even though by 1984
it was clear that the opposite was taking place all across
Canada. Today there are over 3,200 acres of available industrial/commercial
land in Hamilton-Wentworth's business parks. This does not
include the Bayfront area where hundreds more acres are
unused but not officially for sale. Over 500 acres are available
along the QEW in Stoney Creek. Another 650 more are empty
on the 403 in Ancaster at Duff's Corners and the Meadowlands.
Between 1991 and 1995, only 18 acres were used up! At that
rate of consumption, the Region currently has 709 years
worth of available industrial lands!
With the imminent opening of the east-west mountain expressway,
even the Mountain and Glanbrook industrial parks will have
immediate access to an expressway, although there is almost
no industrial development in those areas. The expressway
proponents are now reduced to the hope that building the
valley expressway may attract companies that otherwise would
have located in one of the other Regional business parks
already serviced by the QEW or 403. This of course provides
no net economic benefit to the region. In any case, it is
clear that if any new industries or businesses can be attracted
by easy access to an expressway, the Region is fully able
to meet those needs already, without spending another $200
million on another expressway. This is why Terry Cooke and
others don't want any more debate about the valley expressway.
Destroying the last large park in Hamilton (and the largest
urban park in Ontario) will send a clear message to the
rest of the world that Hamilton is determined to continue
to degrade its environment. Indeed, the road project will
send exactly the same message as the Plastimet fire. Replacing
thousands of trees with pavement and vehicles will have
a dramatic effect on local air quality. Companies seeking
a good quality of life will not consider Hamilton. Knowledge-based,
high-tech, medical and service sectors will continue to
find other centres more attractive.
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