OTTAWA, Nov. 23, 2015 /CNW/ - Ontario Power Generation's (OPG) refurbishment of its Darlington Nuclear Generating Station is expected to boost Ontario's nominal gross domestic product (GDP) by a total of $14.9 billion from 2010 to 2026. In addition, economic activity linked to these investments would support an average of 8,800 jobs in the province over the same time period, according to a Conference Board of Canada report released today.
The Darlington Nuclear Generating Station meets about 20 per cent of Ontario's electricity needs and has been in operation since the early 1990s. The station is approaching the mid-point of its operating life and OPG is overseeing a $12.8-billion refurbishment project. The report, Refurbishment of the Darlington Nuclear Generating Station, calculates the impact associated with the refurbishment investment on Ontario's economy from 2010 to 2026.
"With approximately 96 per cent of the project's expenditures taking place in Ontario, the refurbishment of the Darlington station would support a significant number of jobs and economic activity in Ontario in a wide range of sectors, including electric power engineering, construction, manufacturing, transportation, and financial and insurances services," said Pedro Antunes, Deputy Chief Economist, The Conference Board of Canada.
- The refurbishment of the Darlington Station is expected to boost Ontario's GDP by $14.9 billion from 2010 to 2026.
- The project will increase employment in Ontario by an average of 8,800 jobs over the 17-year period.
- This would also result in higher wages, increased corporate profits and government tax revenues.
The analysis finds that every dollar invested in the refurbishment is expected to increase Ontario's GDP by $1.3 due to the project's low import content and heavy reliance on Ontario-based contractors. The refurbishment is also estimated to increase employment in Ontario by an average of 8,800 jobs from 2010 to 2026. The impact on jobs is expected to peak at roughly 11,800 from 2014 to 2023.
Increased employment and economic activity translate into increased household income and business profit. In fact, the project is expected to boost salaries and wages in Ontario by a total of $8.1 billion from 2010 to 2026. Similarly, the project is expected to raise pre-tax corporate profits by $2.8 billion. The higher wages and salaries will, in turn, support more household spending, which is expected to rise by an average of $439 million per year.
Federal and provincial governments also benefit from the resulting increase in economic activity, and higher labour income and corporate profits. Over the project's duration, federal, provincial, and municipal governments' tax revenues are boosted by a total of $5.4 billion. Of that total, $1.9 billion accrues to the federal government, $3.1 billion to the Ontario government (including interest payments made by OPG to the Ontario Electricity Financial Corporation), and $407 million to local municipalities.
The report was funded by Ontario Power Generation and is available from the Conference Board's e-Library.
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SOURCE Conference Board of Canada
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