SoVote

Decentralized Democracy

Ontario Assembly

43rd Parl. 1st Sess.
March 2, 2023 09:00AM
  • Mar/2/23 9:10:00 a.m.
  • Re: Bill 69 

My question to the member from Essex: How will the centralization of real estate under these agencies help the government achieve its priorities?

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  • Mar/2/23 9:10:00 a.m.
  • Re: Bill 69 

I thank the member for that question. I’d like to take this very brief opportunity to wish him a happy 27th wedding anniversary, as he mentioned it the other day. And now, answering his question--

Getting back to the question on building hospitals: There are several ways of building hospitals, and one is to put 100% of the cost on the shoulders of the taxpayer. That’s one way to do it. Another way to do it is to seek partners and perhaps shift some of that cost burden onto a non-government agency—and “non-government,” of course, means a “non-taxpayer” agency. So there are several ways to do these things, and several of these experiments and some of these have been tried over the years. There are a lot of government projects and non-government projects and hybrid government/non-government projects that have been tried over the various decades.

To his question: Centralizing the decision-making authority for real estate is actually a very good idea. As I stated in my impromptu remarks yesterday night, there are currently, to my surprise, at least 14 various agencies that are juggling real estate files for the government right now. I suspect that there are actually more than 14, but perhaps the Auditor General might have something to say about that. To have 14 different agencies juggling real estate files all at the same time is inefficient, so we are going to reduce that inefficiency by putting them all under one authority, which will now have the ability to fill empty spaces and move oversubscribed spaces over to empty spaces. That will be a good thing, because it will, as the title of the act says, reduce inefficiency and, consequently, save the taxpayer money. Of course, I have absolutely no hesitation whatsoever in saying that all 124 of us should be looking for ways to save taxpayer money.

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  • Mar/2/23 9:50:00 a.m.
  • Re: Bill 69 

The people of Ontario want a government that’s fiscally prudent, a government that saves taxpayer dollars cutting red tape and a government that’s practising good governance. That’s why our government is looking at new ways to access and upscale the real estate property that sits underused or empty, to better meet the needs of our province: for example, to optimize the existing funds in real estate to reinvest into addressing market inflation, to invest in capital repairs or rehabilitation.

That’s what we are focusing on in this bill. Why does the member from Guelph want to spend taxpayers’ money from Ontario?

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  • Mar/2/23 2:30:00 p.m.
  • Re: Bill 69 

Thank you to the member opposite for the question. I appreciate his kind words.

I certainly do believe there are times to centralize. Again, at the moment, I’m not particularly saying no to this. I think other members in the official opposition have asked, why these 14? Under the rationale you’ve just provided, you might say that all 34 agencies should be done this way. I would just like to understand the actual specific goals. For example, will this save a million dollars? Will this save $10 million? Where do those savings come from?

I’m open to learning more. I do hope to learn more from the minister next week, and I look forward to further debate on this.

I will point out to the member that in the news release—again, from the government—it mentions that they will manage the real estate portfolio more effectively through centralizing authority and decision-making. I might be mistaken, but I was not able to see those words in the Auditor General’s report.

Again, I think if we had some transparency around the number of dollars that this bill is planning to save for the taxpayers of Ontario, I think that would be great transparency, and I think that would then actually tell us exactly where those savings are going to be achieved, and that would be very helpful.

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  • Mar/2/23 2:30:00 p.m.
  • Re: Bill 69 

Thanks to the members opposite for their comments on the bill.

I want to follow up with the member for Don Valley West about real estate. I value her commercial experience and perspective on this.

Your perspective was, let’s let the agencies themselves manage the real estate under their mandate. You could equally argue, and I have sympathy for the argument that says, that if you’re in government—that means there are 14 or more different agencies, all with their own portfolios, all with their own objectives. That can result in conflicting approaches, inefficiencies, on and on and on. Gathering them together under one ministry, which undoubtedly will consult these agencies, seems to me a much more efficient and effective way to manage a portfolio.

I’m curious about the member’s thoughts on the real estate elements of this bill that you mentioned.

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  • Mar/2/23 3:50:00 p.m.
  • Re: Bill 69 

The question to the member from University–Rosedale is that the government claims that the bill is largely in response to an Auditor General report regarding its management of real estate services. In particular, the Auditor General cited that Infrastructure Ontario has not done a good job of managing real estate assets on behalf of the people of Ontario, in particular its management of private contractors and its uncompetitive bidding process, as well as the lack of managerial oversight of those private contracts.

Is there anything in the bill that actually addresses the concerns that the Auditor General raised, based on her 2017 report?

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  • Mar/2/23 4:10:00 p.m.
  • Re: Bill 69 

I just want to recognize Kevin Modeste. He’s come to visit us. Hi, Kevin, nice to see you here. He can’t stay away; it’s so exciting here.

My question is to the member for Spadina–Fort York. You’ve talked a lot about the environmental assessment process and, like you, I really wonder why you would want to get rid of that 30-day period just to read some of the comments that people give. They take their time to give them.

I also was wanting to ask your opinion on the second piece, which is really around consolidating real estate into the Ministry of Infrastructure. Why would they be doing that? Do you have any concerns about that?

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  • Mar/2/23 4:30:00 p.m.
  • Re: Bill 69 

Mr. Speaker, I had the opportunity to address this bill on an impromptu basis yesterday. I was really struck by the long list of different government agencies that had real-estate-making authority. In fact, the list was so long that somebody had to actually write it down for me and pass it to me so that I could read the list. It was so long I couldn’t remember it. There were 14 agencies on it, and it really struck me, gosh, that’s a lot of organizations, all that have real-estate-making authority for the government of the province of Ontario.

So my question to the member from Toronto–Danforth is the following: Is 14 different government agencies making real estate decisions too many, is it too few or is it just the right amount?

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  • Mar/2/23 4:30:00 p.m.
  • Re: Bill 69 

I thank the member from Toronto–Danforth for his comments today. This government has got quite the record on real estate holdings, and these are the holdings that actually belong to the people of this province.

We’ve seen them try to pave over the Duffins wetlands for a deal that they’ve made, apparently, with the developer, who’s going to be leasing it out to Walmart or Costco. Then there was another deal, the foundry. They’ve made a deal with the developer to demolish these heritage buildings at the foundry.

At Ontario Place, they’ve made a deal with two international private, for-profit companies that have nothing to do with Ontario, and they’ve committed Ontarians to spending an estimated $650 million to prepare the site, only to hand it over on a long-term lease to this private, for-profit company.

The second part of this bill actually consolidates the real estate holdings of the people of this province in one agency. Do you have confidence, based on their lack of stewardship of public property, that this will lead to better performance, that this will lead to actual proper stewardship of the land and the property that belongs to the people of this province?

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  • Mar/2/23 4:30:00 p.m.
  • Re: Bill 69 

I thank the member for Essex for the question. It’s a good one. I don’t know what the optimal number is. I do know that the agencies that are listed, generally speaking, have negligible holdings. And I do know Infrastructure Ontario in 2017 was the object of a scathing report by the Auditor General on poor practice.

So if you’re in fact moving real estate holdings, and maybe relatively small ones, to an agency that has been found—let’s be generous—wanting by the Auditor General, I have to ask, why on earth are you doing it? Why are you not taking steps in this bill to set standards for management of real estate so that we aren’t paying millions of dollars for vacant properties, so that we aren’t over-housing our workforce, so that we aren’t mixing our capital on our operating funds? If you were doing that, I think that would be a far more interesting debate. I don’t think 14 or 20 or five is the critical thing; I think the critical thing is, do you have good management practice? I have no assurance that, in fact, is what will come out of this bill.

You may well be aware, Speaker, that within the past few years, in New York City, a very severe storm caused about a dozen people to drown in their basement apartments. So if you do not actually pay attention to environmental standards, environmental issues, you put at risk life and property—and health, may I add. So undermining those protections that, over decades, we’ve built up makes no sense at all.

I’ll just note, again, if I have time, the recent example in East Palestine, Ohio, where the railroad disaster, in many cases, is being attributed to deregulations by the Trump administration. Environmental assessment, health and safety regulations are all part of the same package. If you neglect them, you put people’s lives, property and health at risk.

I was talking to a small landlord last night. He’s got a condo on Carlaw Avenue in my riding, and he can’t get a hearing at the Landlord and Tenant Board. Why is that? Because you guys didn’t appoint people at the level necessary to have proper functioning of that board. That’s not efficiency; that is neglect. That means tenants are getting beat up. That means that small landlords are getting beat up. That’s not efficiency. You know what that is: That’s chaos.

When you bring forward a bill that says that you’re going to sort out the real estate issues, do you actually have standards within the bill saying that you can’t have a huge portfolio of vacant buildings that we’re paying for? That we’re going to have a standard for space per employee that doesn’t mean we’re overhoused and, thus, wasting money—which is what you’re doing. You’re not setting a standard. You’re turning it all over to an agency that the Auditor General raked over the coals.

If you want efficiency, set smart standards and enforce them. When you actually start doing that, I might think that you’re trying to deal with efficiency. Right now, all you’re interested in is deregulation, and making some people incredibly wealthy and making other people eat that in terms of risk to their lives and property and in terms of their health.

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  • Mar/2/23 5:00:00 p.m.
  • Re: Bill 69 

My thanks to the member for Timiskaming–Cochrane for his participation this afternoon. I appreciated hearing from him with regard to some of the impetus behind his involvement in provincial politics. It’s always important to remember those anchoring moments and why we got involved.

I thought he spoke very well about some of his particular concerns or perspectives around different aspects of the legislation. I don’t think we would have some of the same experience or perspective on it.

I’m wondering if you could speak a little about the real estate management aspect of the legislation. I think it is an important part of it. I think having that management in place is key, so for the last 30 seconds, over to you to speak about the real estate part.

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