Amazon would save $1.5B a year in salaries if new HQ in Toronto area: Ed Clark

Ed Clark, the man heading up Ontario's bid to lure Amazon to the province, says the tech giant would save $1.5 billion a year in lower salaries for tech workers by locating in the Greater Toronto area.

Cities have Thursday deadline to apply to host tech giant's planned 2nd headquarters

Ed Clark, the former head of TD Bank and now a business adviser to Ontario Premier Kathleen Wynne, says the Greater Toronto Area offers highly-trained talent at a savings when compared to most U.S. jurisdictions. (Chris Young/The Canadian Press)

Setting up its second headquarters in the Greater Toronto Area would save Amazon $1.5 billion a year, the man heading up Ontario's bid for the project said Wednesday, as the deadline loomed for cities in North America to make their pitch.

Ed Clark, a business adviser to Premier Kathleen Wynne, said the region offers highly trained talent at a savings when compared to most U.S. jurisdictions — a software programmer in Ontario costs 34 to 38 per cent less than in Boston or New York — and corporate taxes in the province are lower than south of the border.

"What is Ontario's core advantage?" Clark said. "Great talent at a very competitive cost. That's an edge the government is determined not only to maintain but to sharpen."

Other reasons for the lower salaries include the employees' access to social programs like universal health care, and a strong U.S. dollar compared to the loonie.

Immigration is another key advantage, Clark said, adding that the province could supplement its homegrown talent with a supply of skilled workers from other countries.

"So, let's also be clear then what's not on the table," Clark said. "The Ontario government is not offering any new financial incentives for Amazon."

Could bring thousands of jobs

The online retail giant announced last month that it is hunting for a second North American office, saying it would spend $5 billion US to build the new headquarters to house as many as 50,000 employees.

The company said it wants to be near a metropolitan area with more than a million people; be able to attract top technical talent; be within 45 minutes of an international airport; have direct access to mass transit; and be able to expand that headquarters to more than 740,000 square metres in the next decade.

More than 100 cities in the U.S. and Canada, including Toronto, Halifax, Vancouver, Montreal and Edmonton, have since expressed their interest in pursuing the project, but it is unclear how many will submit a bid by Thursday — Amazon's deadline for proposals.

Clark said the province plans to ramp up training for students in technology and science disciplines that will help Ontario even if it doesn't land Amazon. The government plan, announced Wednesday morning, would increase the number of students graduating by 25 per cent over the next five years — boosting the number of graduates from 40,000 to 50,000 a year.

"The government's moves do not depend on what Amazon decides," Clark said. "These changes will take place whether the company comes to Ontario or not. We believe the best thing we can do for our future is bet big on education and talent."

Construction cranes fill a block across from an Amazon building in Seattle in this photo taken Oct. 11, 2017. Many cities are aiming to play host to the company's planned second headquarters. (Elaine Thompson/Associated Press)

Economic Development Minister Brad Duguid said bids from Ontario cities will focus on growing the pool of available talent, not financial incentives. But he acknowledged that Amazon would have the same access to the province's business supports as any other firm in Ontario if it qualified.

"We're not going to buy Amazon to come here," he said. "We don't need to buy Amazon to come here. We have the competitiveness and the best talent base anywhere in North America today. That's what's going to draw companies like Amazon here."

Amazon has said it will make a final decision on the second headquarters next year.