By Christa Delaney
Centretown’s economic well-being has declined over the last decade, matching national trends, according to some community and business leaders.
A study released by Lars Osberg, a Dalhousie University economist, and Andrew Sharpe, Centre for the Study of Living Standards executive director, in October shows that, although Canada’s gross domestic product rose by 2.5 per cent in the last decade, economic well-being was down 8.7 per cent from a peak period in 1989.
GDP is the broadest measure of economic well-being. It is made up of income and expenditure components of four broad sectors: persons, businesses, governments, and non-residents.
Osberg and Sharpe’s new index to measure economic well-being looks at consumption, poverty and inequality, and economic security.
Centretown echoes the national well-being decline, says Gwen Toop, Somerset Heights Business Improvement Area executive director.
“We have definitely seen the same decrease in well-being here,” says Toop. “In Centretown over the last 10 years business has turned over at least twice.
“From what I see, it is much harder to make a living today, as a business owner. Your profit margin is narrow, you’re just trying to make ends meet and you have nothing left over to save.”
But Gerry LePage, Bank Street Promenade executive director, says the neighbourhood has performed well economically in the face of a late 1980s recession and government downsizing.
“The economy is stronger than you’d think,” says LePage. “There’s a lot of disposable income and people who saved when times were good have had something to lean on.”
LePage says business turnover in Centretown over the last five to 10 years is a result of changing retail dynamics, including competition from new suburban superstores and growing entrepreneurship in the Outaouais.
“Businesses had to readjust and some have failed,” he says. “But entrepreneurial spirit is still alive in Centretown.”
Unemployment has been a symptom of Centretown’s poor economic well-being at Centre 507 in McLeod-Stewarton United Church on Bank Street, a drop-in centre for the homeless and those who live in shelters.
Julie Nelson, the centre’s co-ordinator, says the centre has seen a dramatic increase in numbers since the province made a 21.6 per cent cut to general welfare in October 1995.
Since opening in 1983, Centre 507 has gone from operating one day a week to five days and some evenings. It provides services for 80 to 130 people a day.
Downstairs from the centre is a food bank, which is operated by the Centretown Church Social Action Committee. It serves 50 to 100 people a day.
Kerry Kaiser, the food centre co-ordinator, says the number of clients over the last decade has been stable. In the last year use of the food bank decreased by three to four per cent.
But need for the service won’t be disappearing any time soon, she says.
“Centretown will always need us because of housing and geography reasons,” says Kaiser. “We’re close to the Royal Ottawa (Hospital), the Y and the homeless population.”
Kaiser says the majority of the food centre’s clients in the ’90s have been single white Canadian males between the ages of 35 and 45 who have low employment skills.
Somerset ward Coun. Elisabeth Arnold says the distribution of waelth affects Centretown’s economic well-being.
“There is a growing gap between the wealthy and the poor,” says Arnold. “The case in Centretown is that we have a shrinking middle class.”
Toop agrees there is an imbalance.
“In this neighbourhood you can’t help but see a gap between the haves and the have-nots. You walk down one street and the houses are beautiful . . . then you walk down the next street and all you see are slums.”
Kaiser adds there is a relationship of support between some of Centretown’s haves and have-nots.
“Donations from Centretown individuals and churches provide the food centre with its $100,000 annual budget,” she says.
“At this point, though, I don’t see the local economy improving in a major way or going under any time soon.”