Tuesday, February 27, 2007

Hershey's closure announcement

The people of Smiths Falls have had it rough. For a town of less than 10,000 people, the announced closures of the Hershey chocolate plant and the Rideau Regional Centre represent a loss of over 1,000 jobs and an end to operations for the largest and second-largest employers in the community.

We talk about the up front costs - lost wages - but you really have to factor in a great deal more - lost business for suppliers, lost tax revenue for all three levels of government, and the hit on the bottom line for every local business who depends upon these workers as their own clientele.

The work of the local union leadership, Mayor Dennis Staples, MP Scott Reid and MPP Norm Sterling in lobbying Hershey executives to reconsider their position has been a mark of local leadership. Even the efforts of Premier McGuinty should be praised - after all, this is not about Liberal versus PC, but about the economic future of a community.

So what can be done for the people of Smiths Falls?

In terms of the Hershey plant, barring a reconsideration of the company's decision, now may be the time to approach other companies - both Hershey's competitors as well as other food manufacturers - about taking over the facility. Another chocolate manufacturer, such as Cadbury Schweppes or Nestle, or possibly companies such as Unilever Best Foods, might be interested in operating a modern facility, centrally placed in the most populated region of Canada, and with an experienced and educated workforce. Some thought should be given to this, and political leaders of all levels and all stripes should embrace this challenge.

Another answer is much easier for the Ontario government to undertake - indefinitely postpone the closure of the Rideau Regional Centre, and explore options for locating other government operations on the Centre's campus.

In light of Hershey's decision, and pending any resolution to the plant's fate, the decision to close the Rideau Regional Centre is unwise, badly timed, and will only serve to deepen the economic ills of Smiths Falls and her citizens.