The Thunder Bay Chamber of Commerce represents nearly 800 Member companies with over 20,000 employees in the Thunder Bay area. This year’s provincial budget comes at a critical juncture as Thunder Bay’s business community continues to grapple with the economic uncertainty that is being felt across the province.
Thunder Bay is on the cusp of significant growth as development proceeds on mining, infrastructure and manufacturing projects. We are encouraged by and grateful for recent announcements including:
• the “One Project, One Process, One Decision” agreement to unlock the Ring of Fire,
• the joint Federal and Provincial announcement to increase Canadian content in the 55 new subway trains for TTC to 55 per cent that will bring much needed work to our local Alstom plant, and
• the expansion of eligibility to include Thunder Bay organizations in the Rural Ontario Development Program application process.
In order to ensure we achieve our growth potential, there are additional steps that the Ontario Government can take in Budget 2026.
Financial Support for Post Secondary Institutions
Federal changes to immigration approvals for International Students are being felt across our local and regional workforce and impacting enrollment and associated revenues for our post-secondary institutions. Over the last decade, both Lakehead University and Confederation College were extremely successful in attracting International Students to offset declining enrollment by domestic students. Now, the reduction of international student enrollments is a significant financial burden that is reducing programming and jobs within our post-secondary institutions.
We urge the Provincial Government to provide stable, sustainable funding for Lakehead University and Confederation College that reflects the true cost of educating and training workers in Northern Ontario. Aligning investments with the province’s priorities—housing, health care, critical minerals, and economic growth—will ensure our institutions can continue developing the skilled workforce these sectors urgently require.
Immigration to address labour shortages
Labour shortages are being felt across the province, but particularly in Northern and Rural areas where population growth is limited. Northern Ontario specifically is experiencing a population decline that is fueled by natural aging, low fertility rates, a rising life expectancy, and an increase of out-migration. Population and migration trends to 2021, suggest that Northern Ontario needs 100,000 newcomers by 2041 to sustain current population levels
The recent decision by the federal government to backtrack on the incredibly damaging cuts made to the provincial nominee programs in 2025 offers the province of Ontario an opportunity for real, and rapid, change. We urge the Ontario Government to expand the Rural Economic Development through Immigration (REDI) pilot to include 400 spots each for the Districts of Kenora and Rainy River and an additional 200 spots for the District of Thunder Bay. Such a change would build on the earlier decision to expand REDI in Northwestern Ontario to include not just the City of Thunder Bay but the surrounding rural district as well.
Support for Forest Industry Resilience and Transition
Forestry remains a vital driver of our regional economy, providing thousands of direct and indirect jobs for hardworking men and women; however, the sector is facing significant challenges due to trade disruption and increasing input costs. Exciting new technologies and industries are emerging, positioning Ontario’s forests to play a central role in meeting ambitious housing targets and helping meet rising electricity demand. We fully support the Ontario Forest Industries Association’s budget recommendations, urging the Ontario Government to:
• Expand the use of Ontario wood through the Advanced Wood Construction Action Plan
• Continue funding and implementing the Biomass Action Plan beyond 2027
• Strengthen resilience against trade threats through critical funding programs
• Modernize processes and supports to attract future investment during this industry transition
Capitalize on Mining Opportunities
Northwestern Ontario is home to hundreds of active mining projects representing Billions in mineral value and will have a significant impact on the economy of the Northwest and the Province as a whole. The recent Ontario Chamber report “Mining 2030: Unearthing Ontario’s Potential” outlines several specific steps that the Province should take to ensure that we can capitalize on mining opportunities and ensure sustainable growth, including:
• Ontario should introduce an exploration tax credit that is stackable with the federal flow-through share rules to support more exploration activity and the development of new mines.
• Index the Northern Energy Advantage Program to the Consumer Price Index (CPI) and extend the program term beyond five years to give rate relief for mines and provide business certainty over the next decade.
• Develop a long-term northern infrastructure and workforce strategy – modelled on Quebec’s Plan Nord – to advance investments in housing, health care, childcare, and transportation (including Highways 69, 144, 11, and 17), alongside a province-wide campaign to attract talent to modern mining careers.
Healthy and Sustainable Communities
Thunder Bay’s economic success relies on healthy and sustainable communities. Local governments need tools and resources to address emerging challenges and enable connected, cohesive communities. Most notably, Ontario must work with municipalities to address the impact of the substance use crisis. The crisis poses long-term socioeconomic risks, requiring urgent public-private collaboration to improve access, address gaps and deliver meaningful solutions across Ontario. Equally important is to continue to address the housing crisis, which is crucial to attracting and retaining talent and ensuring sustainable growth for the future.
Retain the Lakehead Region Conservation Authority
We want to take this opportunity to again express our concerns regarding the proposal in Bill 68 to consolidate the Lakehead Region Conservation Authority (LRCA) into a region 1,500 kilometres from the Lakehead Watershed with 72 other southern Ontario municipalities. We believe that the Lakehead Region Conservation Authority should remain a standalone entity focused on Northwestern Ontario conservation issues.
Thank you for your consideration of our input.