Ontario Realty Corporation, which manages one of Canada’s largest real estate portfolios, will merge with Infrastructure Ontario, should the McGuinty Government’s newly proposed legislation pass.
Ontario Realty Corporation manages approximately 6,400 buildings and structures and approximately 50 million square feet of space throughout the province.
The Government estimates $5 million in savings from the move.
Merging Ontario Realty Corporation with Infrastructure Ontario is the latest proposed measured in the government's commitment to reduce the number of agencies by five per cent. Currently, there are 250 government agencies in Ontario.
"This is another step we are taking to find savings and to get more value out of every taxpayer dollar,” said Dwight Duncan, Minister of Finance.
“These savings are being redirected from the back office to front lines of the schools and hospitals Ontario families depend on. In lean times, we must all refocus our priorities."
Critics argue the move signals that the Government will soon sell off the properties in the Ontario Realty Corporation portfolio, sacrificing long term value for short term revenue generation.
A merged Ontario Realty Corporation and Infrastructure Ontario would be responsible for provincial building projects, financial assistance and asset management.
It’s unclear whether the merger makes a property selloff a foregone conclusion. However, merging Ontario Realty Corporation and Infrastructure Ontario will lead to a much larger corporation. A larger corporation with a larger budget will make it easier for politicians to reason selling off assets.
"Across Ontario we are building new schools, new hospitals and fixing the roads and bridges that get us to work or school and back,” said Bob Chiarelli, Minister of Infrastructure.
“Becoming more efficient can only help us improve the way we deliver services for families across the province."
Critics will no doubt oppose the move as a shortsighted cost cutting maneuver while the McGuinty Government will certainly tout the Ontario Realty Corporation merger as a step toward cutting the massive deficit.
Ontario Realty Corporation manages approximately 6,400 buildings and structures and approximately 50 million square feet of space throughout the province.
The Government estimates $5 million in savings from the move.
Merging Ontario Realty Corporation with Infrastructure Ontario is the latest proposed measured in the government's commitment to reduce the number of agencies by five per cent. Currently, there are 250 government agencies in Ontario.
"This is another step we are taking to find savings and to get more value out of every taxpayer dollar,” said Dwight Duncan, Minister of Finance.
“These savings are being redirected from the back office to front lines of the schools and hospitals Ontario families depend on. In lean times, we must all refocus our priorities."
Critics argue the move signals that the Government will soon sell off the properties in the Ontario Realty Corporation portfolio, sacrificing long term value for short term revenue generation.
A merged Ontario Realty Corporation and Infrastructure Ontario would be responsible for provincial building projects, financial assistance and asset management.
It’s unclear whether the merger makes a property selloff a foregone conclusion. However, merging Ontario Realty Corporation and Infrastructure Ontario will lead to a much larger corporation. A larger corporation with a larger budget will make it easier for politicians to reason selling off assets.
"Across Ontario we are building new schools, new hospitals and fixing the roads and bridges that get us to work or school and back,” said Bob Chiarelli, Minister of Infrastructure.
“Becoming more efficient can only help us improve the way we deliver services for families across the province."
Critics will no doubt oppose the move as a shortsighted cost cutting maneuver while the McGuinty Government will certainly tout the Ontario Realty Corporation merger as a step toward cutting the massive deficit.
