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
  • Dec/4/23 11:10:00 a.m.

I don’t know where to start. It was the NDP that’s been crying for months to make the business case public, and we have. And do you know what the business case says? That taxpayers will be saving $257 million over a 50-year span in today’s dollars, but $600 million over 50 years if you take into account inflation.

We are building a brand new science centre—one that will be modern; one with new exhibits, new technology, and one that will have 10,000 square feet more of exhibition space for the children to enjoy.

Now, I know what the NDP would like to do. They would like to just leave the building and let it continue to fall apart until they are forced to close it. What we would like to do, Mr. Speaker, is be responsible and provide a long-term solution. We want a science centre for the next 50 to 100 years, and we will have one at Ontario Place.

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  • Mar/1/23 9:10:00 a.m.
  • Re: Bill 69 

I’m happy to rise for second reading of Bill 69, the Reducing Inefficiencies Act (Infrastructure Statute Law Amendments), 2023. I would like to let the House know that I will be sharing my time with my parliamentary assistant Mr. Yakabuski the MPP from Renfrew–Nipissing–Pembroke. Thank you for his help.

First, I would like to acknowledge how far our province has come. The global pandemic tested each of us, but in the face of adversity, we persevered and continued building critical infrastructure to improve people’s quality of life. Madam Speaker, the progress we have made is remarkable. We have unlocked thousands of cost savings for taxpayers and businesses through actions such as:

—supporting a reduction in WSIB premiums and the WSIB rebate without reducing benefits;

—increasing the employer health tax exemption from $490,000 to $1 million;

—cutting the gas tax by 5.7 cents per litre and the fuel tax by 5.3 cents per litre beginning July 1, 2022; and

—introducing and temporarily enhancing the Regional Opportunities Investment Tax Credit to encourage investments in regions of Ontario that have lagged in employment growth.

We are also delivering one of the most ambitious infrastructure plans with a historic investment of more than $159 billion over 10 years. Through investing in the construction of new hospitals, schools and long-term-care homes, our government is ensuring people and their families are being cared for and that our communities are supported for decades to come.

We have created thousands of new jobs by investing millions of dollars in skilled trades to ensure that the current labour gap is filled with high-paying jobs for Ontarians and to create meaningful pathways for more secondary school students into rewarding careers. That’s thousands of new carpenters, electricians, ironworkers and mould makers across the province to help us build the critical infrastructure projects that the people in Ontario need most. My colleague Minister McNaughton at the Ministry of Labour is leading that charge with the creation of Skilled Trades Ontario.

We have also delivered more public transit across the province, from the return of the passenger rail service to northeastern Ontario to breaking ground on the historic Ontario Line. Our transit investments are getting people to and from work faster or to their families faster and more conveniently, with more commuting options, stations and seamless connections.

Our government was re-elected with an even stronger mandate to build Ontario for today and for generations to come—and we are delivering. We know that these are tough and challenging times worldwide. Our government is successfully working with our industry and construction sector partners to better understand the challenges they are facing—whether it be inflation or supply chain disruptions—to identify ways that our government can help. We are tackling the current economic environment head-on so that we can continue to build Ontario and deliver on our promise to the people.

That is why today I am putting forward the next step in Ontario’s plan by introducing Bill 69, the Reducing Inefficiencies Act (Infrastructure Statute Law Amendments), 2023, that, if passed, would cut red tape, save taxpayers’ money, enhance fiscal management and boost our economy. The bill contains two initiatives that are part of this plan. The first proposed initiative, if passed, would help our government better maintain and manage real estate, and the second initiative, if passed, would help bring much-needed efficiency to the Environmental Assessment Act, all while ensuring continued environmental oversight.

Today I want to highlight our government’s plan to better maintain and manage real estate. In order to understand the impact of this bill, I will first explain what these suggested amendments entail. Ontario’s real estate portfolio is one of the largest in Canada. Currently, there is not a streamlined process for this portfolio. And while real estate is one of our government’s greatest resources, a holistic approach to decision-making and real estate management is very much needed.

The Ministry of Infrastructure, through its realty agent Infrastructure Ontario, oversees the province’s general real estate portfolio of owned and leased properties. However, provincial oversight for Ontario’s portfolio is distributed through legislation among five ministries and 54 entities that operate under individual processes and protocols relating to real estate decision-making of this expansive portfolio. This is why a more holistic approach for real estate decision-making is needed.

Our government has a unique opportunity to improve governance and operate our real estate portfolio more efficiently by creating a framework for centralizing decision-making and management. Bill 69, the Reducing Inefficiencies Act (Infrastructure Statute Law Amendments), 2023, if passed, would establish that initial framework to modify the real estate authority of 14 entities and provide the Minister of Infrastructure with control of real estate property previously under the control of the prescribed entities. This would be the first step in allowing our government to increase operating and fiscal efficiency. It would also support our objective of saving taxpayers money through a holistic approach when it comes to overseeing and managing Ontario’s real estate portfolio.

I would like to take a few minutes to talk about the entities that are included in our proposed bill and acknowledge the important work they continue to do for our great province. If the bill is passed, our plan proposes that the entities to be prescribed are:

(1) Education Quality and Accountability Office: an arm’s-length government agency that is dedicated to enhancing the quality and accountability of Ontario’s publicly funded education system from kindergarten to grade 12. EQAO gives students the opportunity to reach their highest potential and uses credible evidence to empower students, teachers, parents, guardians, stakeholders and the public with the information needed to support and improve student learning and outcomes.

(2) Financial Services Regulatory Authority of Ontario: an independent regulatory agency created to improve consumer and pension plan beneficiary protections in Ontario. This organization plays a critical role in protecting Ontarians by regulating sectors like life and health insurance, credit unions, loan and trust companies, mortgage brokers, health service providers and financial planners and advisers to increase transparency, accountability and contribute to public confidence.

(3) Ontario Financing Authority: a crown agency that aims to meet the province’s financial requirements in a sound and cost-effective manner. The OFA manages the province’s debt and contributes to the government’s debt reduction efforts through prioritizing sound decision-making, efficiency, and safeguarding Ontario’s credit rating. The OFA also advises on financial policies and projects, executes all borrowing, investment and financial risk management activities, and much, much more.

(4) Ontario Securities Commission: an independent crown agency that provides protection to investors from unfair, improper or fraudulent practices to foster fair, efficient and competitive capital markets, and confidence in the capital markets. The OSC contributes to the health and performance of Ontario’s economy by regulating market participants like firms and individuals, and marketplaces like the Toronto Stock Exchange.

(5) Human Rights Legal Support Centre: which gives legal help to people who have experienced discrimination under the Ontario Human Rights Code, with services available in 140 languages. Ontario is a diverse province with residents from all walks of life, and our government understands how important it is to ensure everyone is treated equitably. The Human Rights Legal Support Centre helps people claim and protect their rights while preventing discrimination and harassment due to race, religion, gender, age, disability or marital status.

(6) Higher Education Quality Council of Ontario: which helps to ensure that Ontario’s colleges and universities are accessible, offer high-quality programs and are accountable to the people across Ontario. Through evidence-based research, this organization is committed to the continued improvement of Ontario’s post-secondary education system.

(7) Intellectual Property Ontario: an agency that will help the post-secondary education and research and innovation sectors generate, protect, manage and commercialize intellectual property. This is crucial in today’s digital society. Intellectual property and data have a direct impact on our province’s success, wealth and well-being. IPON was created to drive economic growth for businesses in Ontario, resulting in better, more secure jobs and a prosperous future for Ontario.

(8) Skilled Trades Ontario: an agency responsible for apprenticeship and skilled trades certification, dedicated to simplifying access to services for skilled trades professionals, promoting the skilled trades as a career and addressing the labour shortage in the industry. This government is committed to building our province, and we thank Skilled Trades Ontario for their partnership.

(9) Province of Ontario Council for the Arts, also known as the Ontario Arts Council: an agency that plays a pivotal role in promoting and assisting the development of the arts for the enjoyment and benefit of people in Ontario through grants, scholarships, loans and services, while also awarding Ontario residents for their outstanding accomplishments in the arts.

(10) Ontario Media Development Corp., also known as Ontario Creates: an agency whose mandate is to be a catalyst for our province’s economic development, investment and collaboration in Ontario’s creative industries, like music, book, magazine, film, TV and digital media. Through targeted programs and services, support for innovation and by leveraging public and private partnerships, Ontario Creates builds the capacity and competitiveness of the province’s creative industries to deliver award-winning content that is enjoyed by audiences across Ontario and around the world.

(11) Ontario Tourism Marketing Partnership Corp., also known as Destination Ontario: Ontario’s lead tourism marketing organization that helps inspire travellers to make Ontario a must-see destination and to return to the beauty of Ontario again and again and again. Destination Ontario plays an important role in contributing to Ontario’s provincial economic prosperity through impactful, inspiring marketing and investment partnerships.

(12) Ontario Trillium Foundation: an agency that builds healthy and vibrant communities throughout Ontario by investing in community-based initiatives, while strengthening the impact of Ontario’s non-profit sector. Support is provided to projects that drive positive change and work towards the well-being of people across Ontario.

(13) Agricorp: a provincial agency that provides financial and risk management programs and services to the agricultural industry while maintaining the highest standards of customer service, fiscal responsibility, transparency and accountability. Agricorp works closely with the farmers of Ontario to understand and respond to their needs and to provide excellence in delivery to help grow Ontario’s agriculture.

(14) The Fire Marshal’s Public Fire Safety Council: an agency that was established to promote fire prevention and public education through sponsorships and partnerships with various groups with an interest in public safety. The citizens of Ontario have a right to live in an environment safe from fire, and the Fire Marshal’s Public Fire Safety Council does important work to ensure people in Ontario have awareness of fire safety and access to high-quality programs.

Madam Speaker, each of these entities has a critical role in the health, well-being and economic prosperity of Ontario. The work they do matters—it matters to the people in our province who rely on them to provide programs, regulatory services, advice, funding and much more. Most importantly, they help us fulfill our promise to build Ontario, and as we’ve heard, their efforts impact many different sectors that we depend on daily, from schools, businesses, health care, the digital sector, human rights and equity, the skilled trades, arts, media, tourism, agriculture and fire safety.

So, Madam Speaker, I want to take a moment to acknowledge and thank each of these entities for their hard work. Some of these organizations have been established for decades, and some are new, but each of these entities contribute significantly to Ontario’s growth through their partnership, innovative ideas and dedicated, skilled workforce. They have helped our province build during one of the most uncertain times in history. I know we can count on all of them, moving forward, to help build Ontario now and for generations to come. To them, I offer my gratitude.

By creating a framework to centralize the real estate authority of these 14 entities as a first step, our government would be in a better position to reduce red tape, create more efficient processes and ensure that these entities can focus and invest more on their individual mandates, while continuing to provide the services that people across Ontario need and deserve.

The bill, if passed, would amend the Ministry of Infrastructure Act, 2011, and would include complementary amendments to the following nine other acts:

—AgriCorp Act, 1996;

—Arts Council Act;

—Building Opportunities in the Skilled Trades Act, 2021;

—Capital Investment Plan Act, 1993;

—Education Quality and Accountability Office Act, 1996;

—Financial Services Regulatory Authority of Ontario Act, 2016;

—Fire Protection and Prevention Act, 1997;

—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 by regulation. This is about good governance, which Ontarians expect from their government. It’s about strong leadership by constantly looking at ways we can take the burden off the taxpayers while we fulfill our mandate to build up this province.

Since 2020, the Ministry of Infrastructure has consulted with key stakeholders, including the 14 entities that I have already mentioned and their eight oversight ministries. Our government heard that the proposed amendments are aligned with ongoing initiatives to optimize office space and increase efficiencies. The oversight ministries for the 14 prescribed entities support centralization. Madam Speaker, that’s because the people of Ontario deserve a responsible, more efficient government.

The benefits of a more centralized real estate model have also been echoed in numerous third-party reviews. For example, in 2017, the Auditor General’s annual report outlined a series of recommendations to help ensure properties in Ontario are well managed and maintained in an efficient and economical manner. The Auditor General identified that the Ministry of Infrastructure’s general real estate portfolio could be operated more efficiently through centralized authority and decision-making.

We are a government of action. Through the leadership of Premier Doug Ford, I can assure you that we are constantly reviewing policies to see where they can be updated and where things can be done more efficiently. With these proposed changes, we continue to take action. We took those recommendations back and through these proposed legislative changes, we are responding.

The feedback we have received doesn’t end there. The 2018 Ernst and Young line-by-line review of government spending, titled Managing Transformation: A Modernization Action Plan for Ontario, found that the government could operate its real estate portfolio more efficiently, resulting in enhanced fiscal management. This report was conducted to ensure that the Ontario government was making good on its promise to restore trust and accountability, while improving value for the tax dollar. It’s a promise we take very seriously.

Key findings from that report found that a centralized approach to the management of real estate property and a more effective asset management process had numerous benefits, including:

—a significantly reduced overall spend across government;

—a more structured and effective asset management life cycle process; and

—improved alignment of policies, allowing for a more efficient enterprise-wide decision-making capability.

In addition, PricewaterhouseCoopers identified in 2018 that the operating model for government real estate is a barrier to transformation, particularly for office space, and could create confusion, duplication and overlap. This study found 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. It would also create a more integrated planning process with ministry programs. Madam Speaker, I agree.

In 2019, a Deloitte report also found that by centralizing real estate decision-making, it would likely improve strategic alignment for the management of provincial infrastructure and assets.

Madam Speaker, as you can see from the feedback I have just presented, the benefits of a streamlined real estate model make sense.

A review recently conducted by the Samuel Zell and Robert Lurie Real Estate Center in 2017 is interesting to share. This is a centre established by the Wharton School of the University of Pennsylvania, designed to promote excellence in real estate education and research. The review found that a decentralized framework often had high vacancy rates and that a siloed approach to assessing a real estate portfolio reduces efficiency, office optimization and fiscal management. So the evidence is right in front of us.

The report found that many organizations have adopted a centralized model to better measure and manage infrastructure, and these organizations are showing great success after implementing a central model to identify property types, geographical locations, standard policies and guidelines. For example, the ministry conducted an initial jurisdictional scan that identified best practices across governments, including the city of Toronto, Shared Services BC and Public Works and Government Services Canada. In all cases, we found that these jurisdictions moved to a centralized model—efficiency, transparency and accountability.

The research is clear: Our changes will help to increase efficiency, cut red tape, enhance fiscal management, save taxpayers’ dollars—and it’s just good governance.

The bill, if passed, would bring our government one step closer to reducing costs by eliminating duplication of responsibilities. By providing clear guidelines, it would improve the quality of services to the taxpayer. This bill is the first step towards reducing the number of people involved in making simple decisions on real estate. This bill, if passed, could also unlock future cost savings for the taxpayer and enhance fiscal management.

Our government’s proposed measures would move towards ensuring that real estate is utilized effectively. When realty authority is centralized, it means that all real estate matters would be overseen by a single authority, which would reduce the need for multiple ministries and entities handling similar tasks and processes. This would also lead to several other benefits such as reducing redundancies, eliminating duplication of efforts and reducing the need for multiple levels of review and approvals. This, in turn, would streamline processes and cut red tape, ultimately leading to cost savings.

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. This is all part of our government’s promise to make life better and more affordable for the people of Ontario by working harder, smarter and more efficiently.

As I mentioned earlier, our proposed real estate initiative would be the first step in optimizing Ontario’s real estate portfolio. Part of that long-term growth includes today’s measures that, if passed, would help address issues of regulatory burdens and red tape, while also helping to save time and money. That’s why we are proposing these important measures today.

Madam Speaker, this bill, with the changes that we are proposing, is important to the future of our province. The people are depending on innovative ideas and new approaches to reduce inefficiencies. They expect us to be fiscally prudent, respect taxpayer dollars, cut red tape and practise good governance. And this legislation, if passed, will deliver on those expectations.

I want to thank the Speaker for my time in the House today.

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  • Feb/28/23 11:00:00 a.m.

Thank you to the member for the question. The people of Ontario expect us to be good stewards of taxpayer dollars. That is why, yesterday, I introduced Bill 69, the Reducing Inefficiencies Act, 2023, that, if passed, would allow the province to improve the management of real estate which will reduce red tape, optimize office space, enhance fiscal management and save taxpayer dollars.

Currently, Ontario has one of the largest and most complex real estate portfolios in Canada and we have been working towards establishing a more holistic approach to managing provincial agency properties. As part of this legislation, a framework would be established to modify the real estate authority of 14 entities under eight ministries to just the Ministry of Infrastructure.

Mr. Speaker, we have an obligation to be fiscally prudent when managing government assets. It is my hope that the members opposite will support this legislation.

The Reducing Inefficiencies Act, 2023, if passed, will modernize an almost 50-year-old environmental assessment process that is outdated, slow and costly. We are living in a world with cost escalations. We need to be nimble, responsible and we need to do everything we can to continue to build up this province.

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