Provincial budget sends 'right signals,' but Queen's Park needs to 'double down' support for the North, say municipal groups

(FONOM video screen grab)

MARATHON — The two regional municipal associations in Northern Ontario believe this week’s provincial budget sends all the right messages in positioning the area for growth during a time of tariff war uncertainty.

But they point out, Queen’s Park needs to invest more to improve things on the infrastructure side and support post-secondary institutions.

The Northwestern Ontario Municipal Association (NOMA) welcomed the province’s investments to expand the size of the Northern Ontario Heritage Fund and to fund new industrial mineral processing capacity in the North.

To NOMA, northwestern Ontario is poised to be “the economic hub for the new Ontario,” due to its natural resources, skilled talent and resilient people.

The government’s previously announced $500-million investment in the new Critical Minerals Processing Fund is called by NOMA has a “significant step” to help build the value-added industrial capacity that the North needs.

The $3-billion Indigenous Opportunities Financing Program is a “meaningful and long-overdue commitment” that will allow Indigenous communities to fully participate in, and benefit from major mining and energy developments. “True success” in advancing critical minerals depends on “meaningful collaboration” with Indigenous partners, municipalities and regional stakeholders,” the organization said.

Yet there are areas where the province needs to pay more attention, NOMA said. Ongoing investments are needed for Northern highways to improve public safety and regional mobility, especially in the Highway 11 and 17 corridors.

Keeping forestry and manufacturing jobs alive is also a persistent concern for NOMA, It urges the province to take a proactive and coordinated approach toward working with Ottawa to protect those foundational industries and keep the supply chains flowing.

More support is needed for colleges in rural and remote area to develop and sustain a locally trained workforce. While the $10 million proposed in the budget is a “positive step forward,” more long-term funding is needed. 

In an area that could boom with critical minerals activity, struggling post-secondary institutions are where the training takes places to fill the workforce pipeline, NOMA said.

While the budget contains a lot of positives, NOMA president Rick Dumas said there’s more to be done, especially through investments in “development-ready infrastructure” to protect the region from global trade uncertainty.”

“Now is the time to double down on supporting Northern industries, Northern institutions, and Northern communities,” said Dumas, who is also mayor of Marathon and was a candidate for Doug Ford's Progressive Conservatives in the 2025 provincial election. 

In the northeast, the 110-member Federation of Northern Ontario Municipalities (FONOM) is applauding the “tariff and Northern” approach taken by finance minister Peter Bethlenfalvy.

FONOM likes the funding bump in the Connecting Link Program, with a dedicated Pothole Fund set aside for small northern and rural communities. Ongoing land acquisition to finish the four-laning of Highway 69 is critical to improve Northern transportation.

However, FONOM mentions there are no construction dates announced for much-anticipated 2+1 highway initiative. 

Funding for GO Transit rail coach refurbishments is good news for rail shops in Thunder Bay and North Bay, FONOM said, and the continued investment in skilled trades that supports the region’s mining, forestry and industrial base is always welcomed. FONOM is particularly supportive that the District of Muskoka is now included in the provincial definition of Northern Ontario as there is plenty of “shared priorities that benefit the broader northern region.”

FONOM president Danny Whalen views the budget to sending the “right signals” to Northern communities with tangible investments in infrastructure, transportation, education, and economic development. While there's still work to be done—particularly on the 2+1 highway—this budget makes us optimistic."

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