National Post (National Edition)

FRED LAZAR …

No downside to Porter’s plans.

- FRED LAZAR Fred Lazar is an economist at Schulich School of Business, York University.

Porter Airlines has announced its intention to acquire up to 30 new Bombardier C-series jets to serve a number of longer-haul destinatio­ns across North American. But before Porter can move down this path, it needs the approval of the federal government, the Toronto Port Authority and the city of Toronto to allow jets to operate at Billy Bishop Toronto City Airport and to extend the runway by 168 metres on both ends.

The federal government likely will support the requests because of the pro-competitiv­e impacts this will have in the Toronto market. The port authority also will approve because of the revenue potential. This leaves the city.

I remember in a very cold February, 11 years ago, standing proudly beside Bob Deluce on that tarmac at what was then known as the Toronto City Centre Airport, as Mr. Deluce announced his plans to start up an airline at this airport. Despite the efforts of a former mayor and his council to stop the airline, Porter took flight in October 2006.

Porter Airlines has met and even exceeded the original promises

The opposition claimed that the airline was pie in the sky. It would never succeed. And worse yet, it would destroy the waterfront. Of course, what the opponents at City Hall and elsewhere never pointed out was that the biggest opponents were developers who stood to make hundreds of millions by shutting down this airport.

Now, almost seven years after its startup, Porter Airlines has met and even exceeded the original promises. The airline has created 1,400 jobs; serves 16 destinatio­ns, most of them in Canada, on a regular basis and three others on a seasonal basis; carried almost two million passengers last year; built a new terminal; created $2-billion in economic value for Toronto; and made its first profit-sharing payments to its employees. The naysayers have disappeare­d.

What have been the negative impacts? Condos continue to sprout in the Fort York, Liberty Village and Distillery districts of the city. Passenger traffic continues to grow rapidly each year. Only the weather appears to have stopped boaters on the lake. And the islands are still a major attraction during the summer months. The only casualty along the waterfront has been Ontario Place, and this is the result of the inability of the provincial and municipal government­s to get their acts together.

What about the leadership at City Hall since mayor David Miller was first elected in 2003? The residents of Toronto endured a seven-week strike by the outside workers until the mayor capitulate­d to the strikers’ demands. The Gardiner Expressway is falling apart more rapidly. Public transit becomes more of a joke every day, as the city, the province and Ottawa argue over funding. To quote a former U.S. president, can residents of Toronto claim that they feel safer in their city today than they did in 2003? I doubt it.

Where is the leadership? Worldclass cities have outstandin­g transporta­tion networks, great entertainm­ent and cultural venues, effective social programs and safety nets, and safe streets.

There has not been any progress in any of these areas in the city since 2003. City council fights about mundane matters and fears making the bold decisions necessary to take Toronto to the next level.

Porter now wants to expand its operations — to create another 1,000 jobs; help Canada’s only aerospace manufactur­er; provide increased competitio­n; and make it easier for more people to get to the heart of Toronto. The company’s new plans likely will create an additional $2-billion in economic benefits for the city.

And what is the downside this time? There is none, except in the minds of some of the Luddites that populate city council.

The slow pace of redevelopm­ent of the waterfront east of Yonge Street reflects a lack of leadership at City Hall. This debate has been going on for 40 years or more. During that time, the city of London has completely redevelope­d the south bank of the Thames and chunks of land along the Thames between the Tower and Canary Wharf. Melbourne has completely redevelope­d the south bank of the Yarra and most of the Docklands.

Leadership matters. The last fight involving Porter is over. Everyone has won, except for some developers and a privileged few. It is time to move on and for city council to support Toronto entreprene­urs who can help make this a better city. Porter Airlines Q400 planes stand on the tarmac at Billy Bishop Toronto City Centre Airport.

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NORM BETTS / BLOOMBERG NEWS FILES

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