SoVote

Decentralized Democracy

Hon. Kinga Surma

  • MPP
  • Member of Provincial Parliament
  • Etobicoke Centre
  • Progressive Conservative Party of Ontario
  • Ontario
  • Lloydmanor Shopping Centre Unit 102 201 Lloyd Manor Rd. Etobicoke, ON M9B 6H6 Kinga.Surmaco@pc.ola.org
  • tel: 416-234-2800
  • fax: 416-234-2276
  • Kinga.Surma@pc.ola.org

  • Government Page
  • Apr/24/23 9:00:00 a.m.
  • Re: Bill 69 

I am happy to rise for the third reading of Bill 69, the Reducing Inefficiencies Act (Infrastructure Statute Law Amendments), 2023. Today, I am sharing my time with David Piccini, Minister of the Environment, Conservation and Parks.

This bill, if passed and proclaimed into force, would make amendments to the Ministry of Infrastructure Act, 2011, complementary amendments to nine other acts and the Environmental Assessment Act.

Mr. Speaker, our government has a transformative plan to build Ontario now and for generations to come. It includes building roads, bridges and highways, connecting people to high-speed Internet, providing more transit options, ensuring our children have access to the education they deserve and providing quality of care for our seniors.

But our government knows that building Ontario for the future is much more than that. It also includes being fiscally prudent, transparent and responsible by making smarter and more effective decisions that will benefit Ontarians. This means respecting how tax dollars are being spent, modernizing outdated, burdensome regulations and cutting red tape by streamlining processes.

Mr. Speaker, the people across Ontario are expecting our government to build while also practising good governance. That’s why I am proud to say that our government is taking action to deliver on those expectations by bringing forward the Reducing Inefficiencies Act (Infrastructure Statute Law Amendments), 2023. If passed, our proposed measures would help enhance fiscal management, boost the economy, save taxpayer money and cut red tape.

This bill is just one of the many ways our government is continuing to take the necessary steps to unlock our province’s economic potential, create better jobs and save taxpayer dollars. It’s another meaningful step in our government’s plan to build Ontario for the future.

Madam Speaker, I’d like to start by giving everyone an overview of what this bill entails. Bill 69, the Reducing Inefficiencies Act (Infrastructure Statute Law Amendments), 2023, contains two initiatives. One of the proposed initiatives would streamline process to better maintain and manage real estate. The other initiative, if passed, would help bring much-needed efficiency to the Environmental Assessment Act, all while ensuring continued environmental oversight.

Today, I want to focus on our government’s plan to better maintain and manage real estate. Real estate is one of our government’s greatest resources, but currently, accountability for this portfolio is highly distributed among many entities and each of these entities have their own processes for decisions and transactions. Bill 69, if passed, would help our government make more strategic, holistic decisions that could have significant impacts in the long term for families and businesses across Ontario. If passed, the proposed measures in Bill 69 would establish a framework to remove or modify the real estate authority of 14 entities and provide the Minister of Infrastructure with control over real estate previously under the control of the prescribed entities.

Each of these 14 entities plays a critical role in the health, well-being and economic prosperity of our province. Their work impacts many different sectors that people in our province depend on daily, from education, economic development, finance, health care, the digital sector, human rights and equity, the skilled trades, arts, media, tourism, agriculture and fire safety. We know that these past few years have brought many different challenges to these industries, yet members within these 14 entities have shown great leadership by continuing to adapt to these challenges while ensuring that people of Ontario still have access to their work, programs and services.

These 14 entities include the Ontario Financing Authority; the Education Quality and Accountability Office; the Financial Services Regulatory Authority; the Ontario Financing Authority; the Ontario Securities Commission; the Human Rights Legal Support Centre; Intellectual Property Ontario; Skilled Trades Ontario; the Ontario Arts Council; Ontario Creates; Destination Ontario; the Ontario Trillium Foundation; Agricorp; and the fire safety council.

The bill, if passed, would amend the Ministry of Infrastructure Act, 2011, and would include complementary amendments to the following nine other acts: the AgriCorp Act, 1996; the Arts Council Act; the Building Opportunities in the Skilled Trades Act, 2021; the Capital Investment Plan Act, 1993; the Education Quality and Accountability Office Act, 1996; the Financial Services Regulatory Authority of Ontario Act, 2016; the Fire Protection and Prevention Act, 1997; the Human Rights Code; and the Securities Commission Act, 2021.

The legislative amendments that are being proposed today, if passed, would support the centralization of real estate, subject to any exceptions that would be determined through regulation.

Secondly, I also want to speak on the work at the Standing Committee on Heritage, Infrastructure and Cultural Policy, where Bill 69 was studied by members of all sides of the House, with whom I had the pleasure to deputize and speak on the bill. One of the key topics of Bill 69 that members expressed interest in are the amendments on the Environmental Assessment Act, giving the Minister of the Environment, Conservation and Parks the authority to waive or change the 30-day waiting period for infrastructure projects with routine and predictable effects, such as waste water or municipal roadworks.

Madam Speaker, I want to be clear, as I was in committee: This minor change to the Environmental Assessment Act will simply give the minister the discretion, should they feel it is necessary, to waive or amend the waiting period for minor infrastructure works that are important for municipalities. It does not in any way reduce or lower the standards of the environmental assessment process, but simply gives the minister the discretion to remove the 30-day waiting period, should the minister choose, when and if the class environmental standards have been met, there are no concerns from the community and the municipality wants to move forward with the project.

Projects that fall under this requirement are:

—the city of Brampton’s Clark Boulevard and Eastern Avenue project;

—the municipality of Chatham-Kent’s Ridgetown Stormwater Master Plan project;

—the city of Mississauga’s Carolyn Creek erosion control along Barbertown Road;

—the Sarnia Jail administration trailer project; and

—the region of Peel’s Front Street Wastewater Pumping Station and Wastewater Diversion project.

These projects are important for municipalities to complete. This bill, if passed, would accelerate the construction process, which is especially essential given that Ontario has a seasonal construction window. I know the Minister of the Environment, Conservation and Parks is ready to have a more in-depth presentation after the conclusion of my remarks.

Committee members also asked about the realty portion of this bill, specifically on the Auditor General’s report on Infrastructure Ontario’s role in this bill. I want to reiterate that the CBREA amendment in this bill does not apply to the realty authority for these 14 entities. This amendment simply gives the Minister of Infrastructure centralized control to evaluate and manage the 14 entities’ real estate portfolios and office space. If this bill is passed, this simply gives the Ministry of Infrastructure a direct line of sight on realty decisions so the government of Ontario can evaluate, consolidate, optimize and modernize agency real-estate decisions.

I want to thank the members of the standing committee of heritage, infrastructure and culture for their work in studying Bill 69 and for the opportunity to speak on this important bill that will save taxpayer dollars, cut red tape, optimize office space and enhance fiscal management.

Madam Speaker, I am also pleased to share that since 2020, the Ministry of Infrastructure has consulted with key stakeholders, including the 14 entities and their eight oversight ministries. We heard that our proposed initiatives are aligned with their ongoing initiatives to increase office efficiencies and optimize office space. This comes as no surprise to our government, Madam Speaker. The people of Ontario want and deserve a more responsible, efficient government. Bill 69 is one of the ways in which we are doing that.

Madam Speaker, this is because our government is a government of action. We are constantly reviewing policies to see what can be updated and completed more efficiently. The benefits of a more centralized real estate model are clear. For example, the 2017 Auditor General’s annual report identified that the Ministry of Infrastructure’s general real estate portfolio could be operated more efficiently through a centralized authority and decision-making process. The report noted that this would help ensure properties in Ontario are well-managed and maintained in an efficient manner that would enhance economic benefits.

The 2018 Ernst and Young line-by-line review of government spending, titled “Managing Transformation: A Modernization Action Plan for Ontario,” found that a centralized approach to the management of real estate property and a more effective asset management process had numerous benefits. These benefits included reducing overall spending across government, improving the alignment of policies and enhancing decision-making capabilities. In addition, PricewaterhouseCoopers identified in 2018 that a strategic and holistic approach to the government’s real estate portfolio could foster greater levels of transparency while improving decision-making capabilities and reporting.

The feedback doesn’t end there, Madam Speaker. The benefits of a streamlined real estate model are also recognized nationally and internationally. For example, in an article published in the Journal of Property Management in 2018, titled “Doing More than the Math,” the authors analyzed various real estate management firms in an effort to maximize operating efficiencies. This report found that firms that thoughtfully centralized and consolidated their real estate assets were in a better position to align real estate policies with their overall mandate, and as a result, they were able to hire staff with the necessary skills to fill knowledge gaps on the team.

Because organizations centralized real estate, they were able to gain insights into the entire workforce and better assess knowledge gaps; strategically plan ahead; produce better-quality work, resulting in happier clients; and increase efficiency through a more cohesive, holistic process.

In a recent article published just last year by J.P. Morgan, the authors found that decentralized real estate operations were more likely to experience issues like decreased visibility into financial operations and inefficiencies. This is because decentralized real estate models often have numerous players involved in real estate decision-making, resulting in an approach that is less aligned with overall goals.

Another study published by McKinsey and Co. found that centralized direction on real estate helped numerous companies navigate the uncertainties surrounding the COVID-19 pandemic. This helped organizations make cohesive decisions to protect the health and safety of all employees, tenants and end-users of the space.

Madam Speaker, I want to emphasize this case. This report found that a centralized real estate model went beyond cost savings and efficiency. A centralized real estate model helped support health and safety. This is because a centralized real estate model can give organizations and governments a holistic view and, as a result, it can help inform highly targeted and important decisions.

The evidence is right in front of us. We’ve looked at the research. Numerous reports have found that organizations and jurisdictions that move to a centralized real estate model have increased efficiency, transparency and accountability. We’ve taken these recommendations and considered the research and that’s why we’ve brought forward Bill 69.

If passed and proclaimed into force, Bill 69 has the potential to increase efficiency, cut red tape, enhance fiscal management and save taxpayer dollars. It would also help eliminate the duplication of responsibilities, ensure that real estate is used effectively and, as a result, could boost economic growth across Ontario.

If realty authority is centralized, it means that all real estate matters would be overseen by a single authority. This would reduce the need for multiple ministries and entities handling similar tasks and processes. Most importantly, it means that the 14 entities described earlier can focus on what matters most: protecting people in Ontario, providing important services and programs, and enriching the quality of life for Ontarians.

Madam Speaker, Bill 69, the Reducing Inefficiencies Act (Infrastructure Statute Law Amendments), 2023, if passed, has the potential to provide more efficiency and transparency. Our government is confident that this bill, if passed, would boost economic development opportunities across the province through cost savings that could be used for other purposes. This is all part of our government’s plan to work harder, smarter and more efficiently to make life better and more affordable for the people of Ontario.

I’d like to take a moment to acknowledge Ontario’s plan and the progress we’ve already made to date. Our government has already unlocked thousands of cost savings for taxpayers and businesses across our province. This is clearly outlined in our 2023 budget, Building a Strong Ontario, released last month by our Minister of Finance. For example, at a time when the cost of living is rising, our government stepped up and continues to step up to support those in need. That’s why we introduced legislation to extend the gas and fuel tax cuts by an additional 12 months to help families across the province with their household budgets. We eliminated licence plate renewal fees and licence plate stickers and refunded fees paid over a two-year period from March 2020 to March 2022 for eligible vehicles. We’ve also taken significant action to lower costs for businesses so Ontario can continue to attract investment and create more opportunities for the future.

Our government knows infrastructure is the backbone of a strong and healthy economy. That’s why our government is also delivering one of the most ambitious infrastructure plans, with an historic investment of $184 billion over 10 years. This plan is getting shovels in the ground to build much-needed hospitals, schools, highways, bridges and other critical assets that will lay the foundation for a stronger and more productive Ontario.

And that’s not all. We are investing nearly $4 billion to support our government’s bold plan to make high-speed Internet accessible in every community across the province by the end of 2025 because we know that access to high-speed Internet is essential in today’s economy. It allows families and workers to learn, start a business, access vital services like health care, and connect with loved ones and friends.

These projects are just a few examples of how we are investing in infrastructure for the people of Ontario. And we will not stop there. Madam Speaker, our government has a strong mandate to build Ontario for today and for generations to come, and we want the people of Ontario to know that we are delivering, and we will continue to deliver. Bill 69, the Reducing Inefficiencies Act (Infrastructure Statute Law Amendments), 2023, is the next step in our proposed plan.

I want to conclude with this: What improves the lives of Ontarians is when the government builds infrastructure. When the Ministry of Infrastructure helps to build a bridge or a hospital, it changes people’s lives. That infrastructure will be there for many years, people will rely on it, it will save lives, and it will help Ontarians live better.

Bill 69 affects projects such as waste water projects and municipal roads, which are smaller but no less important. In places such as Scarborough, Sarnia, Windsor, and even in my riding in Etobicoke Centre, homes have been flooded and families impacted due to the lack of stormwater management and delays. Bill 69, if passed, will accelerate the work on the stormwater and waste water projects for municipalities and could prevent a family’s home from being flooded.

Madam Speaker, people in Ontario are depending on our government to introduce innovative ideas and new approaches to work more efficiently, improve fiscal management and reduce regulatory burden. This bill, with the changes that we are proposing, if passed, will deliver on those expectations. Bill 69, if passed, will continue to help our government make good on our promise to the people of Ontario, and that is to be fiscally prudent, respect taxpayer dollars, cut red tape and practise good governance.

I will now turn it over to the Minister of the Environment, David Piccini. Thank you very much.

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