Provincial election 2025: Eastern Ontario businesses poised for growth but facing barriers

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Across the province, businesses are calling for tax relief, municipalities are demanding infrastructure investments, and industries are looking for protection from trade disputes that could shake the province’s economic foundation. 

Ahead of Thursday’s provincial election, the Eastern Ontario Business Journal reached out to business groups and candidates across Eastern Ontario, asking them to respond to questions about business, labour and investment.

A region poised for growth but facing barriers

The Eastern Ontario Wardens’ Caucus (EOWC), which represents 103 small-urban and rural municipalities, points to an infrastructure deficit exceeding $6 billion, a housing crisis preventing workers from staying in the region, and a fragile health-care system that makes economic expansion difficult.

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Bonnie Clark, warden of Peterborough County and chair of the EOWC, said municipal leaders have done everything they can to build up their local economies but without provincial support, growth will remain stunted.

“Our municipalities are already driving progress and we are ready to do even more for the region,” she said. “We need provincial leaders who are ready to work with us to tackle issues around infrastructure, housing, health care and the economy.”

The EOWC has called on the next government to work directly with municipalities to mitigate the impact of U.S. tariffs, expand funding for community paramedicine programs, and introduce policies that enable municipalities to give preference to local businesses in procurement contracts.

According to the Canadian Federation of Independent Business, Ontario has the highest small business tax rate in the country and small business owners are struggling to keep up.

“Businesses need tax relief and certainty, especially as we brace for the fallout from potential U.S. tariffs,” the CFIB’s election platform states. 

The organization has called for an immediate reduction of the small business tax rate from 3.2 per cent to two per cent, along with an increase in the employer health tax exemption threshold and the elimination of restrictions preventing municipalities from offering direct financial support to struggling businesses.

The group has also urged candidates to commit to reducing regulatory red tape, arguing that excessive bureaucracy has slowed growth and made it harder for businesses to compete.

‘We need to rebuild the foundations of Eastern Ontario’

Lorna Jean Edmonds, the Ontario Liberal candidate for Leeds-Grenville-Thousand Islands and Rideau Lakes, paints a grim picture of the region’s economic state. She points to Brockville’s struggling downtown, empty storefronts, and an increasing number of residents relying on food banks.

“I strongly believe that rural Ontario has been abandoned by our government,” Edmonds said. “They had seven years to say they were going to get it done and fix all the problems of previous governments and particularly for Eastern Ontario; they have done virtually nothing.”

Edmonds said the Liberals will put infrastructure, housing and health care at the centre of their platform. Expanding public transit in rural and small-urban areas is one of her key priorities, as she argues that transportation is essential for economic growth.

“We need reliable transit, better roads and broadband expansion if we want businesses to invest in our region,” she said. “Without these basic services, we will always be playing catch-up.”

Edmonds said a Liberal government would introduce low-interest loans for rural businesses, tax credits for businesses that invest in modernizing their operations, and new funding for businesses transitioning to digital operations. 

“We need to take bold steps to ensure that our region can compete,” she said. “This isn’t just about Eastern Ontario keeping up, it’s about Eastern Ontario leading.”

‘The PC plan is working’

John Jordan, the incumbent PC MPP for Lanark-Frontenac-Kingston, dismissed criticism that the current government has failed Eastern Ontario, arguing that his government’s policies have made it easier to do business in the region.

“Our Open for Business strategy is cutting red tape and streamlining processes to support our entrepreneurial spirit,” Jordan said.

He pointed to billions of dollars in strategic investments secured in partnership with municipalities since 2018, along with new funding streams for manufacturing, food production and technology sectors. He also said that workforce shortages have been addressed through major investments in training programs and health-care recruitment.

‘Eastern Ontario needs a government that backs working people’

Jeremy Rose, the Ontario NDP candidate for Stormont-Dundas-Glengarry, is framing the election as a choice between the status quo and a government that actively invests in workers, businesses and local industries. He argues that, for too long, Eastern Ontario has been treated as an afterthought when it comes to economic planning.

“Our NDP government will establish an Eastern Ontario economic development fund to support infrastructure projects and attract industries such as green energy, technology and advanced manufacturing,” he said.

Rose also sees labour shortages as a major issue holding the region back, particularly in skilled trades and health care. He said an NDP government would introduce tuition-free college for skilled trades and expand incentives to bring health-care workers to underserved areas. 

“We can’t afford to have businesses struggling to fill positions while people are looking for work,” he said.

For small businesses, Rose spoke of the creation of a rural business recovery grant program to help businesses access low-interest loans and subsidies, as well as funding for co-op education partnerships to bring students into the workforce.

‘The PCs have put Ontario back on track’

Billy Denault, the Progressive Conservative candidate for Renfrew-Nipissing-Pembroke, is making the case that the current government’s economic record speaks for itself. 

“Only Doug Ford and the Ontario PCs have a plan to protect Ontario and, if elected, I will continue to build on the progress we have achieved to grow our economy, create new jobs, protect livelihoods and keep us competitive, not just for a week or a month, but for years to come,” Denault said.

Denault highlighted the province’s $200-billion commitment to infrastructure investment, which includes roads, highways and transit, as a key driver of economic growth. He also pointed to the province’s $2.5-billion plan to train more than a million workers in skilled trades, saying that it will help fill job vacancies and improve wages.

On the threat of U.S. tariffs, Denault said: “We will do whatever is necessary to protect people’s livelihoods.”

The Eastern Ontario Business Journal reached out to all election candidates in the region who had a clear means of communicating with their campaign. While some declined to answer, others did not respond to our request for comment in time for publication.

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