Ontario takes actions to eliminate deficit- LCBO headquarters for sale, will end public funding of horseracing

Ontario will end tax payers subsidy of horseracing and sell the LCBO headquarters in its efforts to combat the provinces deficit

Ontario’s newest actions to eliminate the deficit are critical to job creation and economic growth, says Minister of Finance Dwight Duncan. The Ontario government is moving forward with a responsible plan to eliminate the deficit so that more jobs are created and the economy continues to grow.

Since the introduction of the 2011 Budget, growth in the global economy has slowed. This means additional steps must be taken to slow down the rate of growth of government spending in order to keep the plan to eliminate the deficit on track.

Ontario Finance Minister Dwight Duncan outlined today the next steps in the government’s plan to eliminate the deficit. These steps will give Ontarians better value for money and lead to improved public services.

The LCBO headquarters, currently located on some of the most valuable, under-developed real estate in Canada, will be sold and redeveloped. A retail store will remain in the vicinity while the headquarters will be moved. The LCBO will realize ongoing savings and after the land is sold and a new, modern facility is built, it is expected to generate well over $200 million for taxpayers.

The government will move to greater involvement of the private sector in ServiceOntario through a strengthened public-private partnership. This will deliver better value for money and improve customer service for families.

Since 1998, Ontario taxpayers have been supporting horseracing with a subsidy of up to $345 million a year. The province will evaluate that subsidy given the need to continue to invest in health care and education.

Minister Duncan reiterated that the government is on track to meet its deficit target this year, and said these new measures will help ensure the government stays on track to eliminate the deficit by 2017–2018.

QUOTES
“Eliminating the deficit is essential to continued economic growth and job creation. A strong economy supports the schools and hospitals families rely on. Our plan will eliminate the deficit by 2017–2018.”
— Dwight Duncan, Minister of Finance

QUICK FACTS
 The LCBO property currently includes head office space and a large warehouse dating from 1954. It also contains a flagship store, which will be redeveloped nearby.
 About two-thirds of ServiceOntario’s in-person service locations are already operated by private sector partners.
 With 17 locations, Ontario has more racetracks and provides more public funding than any other place in North America. The cost of the current horseracing subsidy would pay for over 27,800 hip or knee replacement surgeries or provide over 9 million hours of home care.

LEARN MORE
Read about the revitalization of Ontario Place. Read http://www.ontario.ca/en/initiatives/progressreport2011/index.htm

FOR MEDIA INQUIRIES ONLY:
Aly Vitunski, Minister’s Office, 416-325-9819
Scott Blodgett, Ministry of Finance, 416-325-0324
www.ontario.ca/finance-news
*Disponible en français

Comments

One response to “Ontario takes actions to eliminate deficit- LCBO headquarters for sale, will end public funding of horseracing”

  1. Toby Barrett MPP Avatar
    Toby Barrett MPP

    A few weeks ago, my son Brett and I drove down to Lexington for the
    Opening Day at Keeneland. Kentucky is one state with a deep appreciation
    for Ontario’s horse racing industry – for example, there is a statue of
    Northern Dancer at the Kentucky Horse Park. And as we now know, I’ll
    Have Another, a Canadian horse, just won the Derby.

    There are something like 963,500 horses in Canada – 212,500 in Ontario.
    Approximately 45,000 horses are active in the horse racing sector – 58
    per cent in Ontario.

    However recent action is putting the industry, and the lives of horses
    themselves, in jeopardy. This in spite of horse racing’s key role in our
    economy. The benefits are felt not only in Ontario, but in every part of
    Canada. Throughout rural communities, and among those who work with and
    care for horses, or supply products and services to the horse racing
    industry, the benefits trickle down.

    It was 14 years ago, in 1998, the Mike Harris government approached
    racetracks with an agreement that if they built slot casinos they would
    keep 20 per cent of slot revenues to go back in to win purses, track
    promotions, and jobs. The shared contract agreement would see five per
    cent go to the area municipality and 75 per cent back to the government.
    The horse industry grew to become ‘world class’, with 60,000 people
    employed.

    OLG slots at tracks generate over $1.1 billion in net revenues for
    Ontario. But on March 12, 2012, Mr. McGuinty cancelled this contract
    with tracks. Within two days government closed down racetrack slots, and
    now seeks to build casinos in urban areas – without a referendum. And
    just like that, thousands of families in communities across the province
    discovered they were being forced out of work by government.

    Ontario Opposition Leader Tim Hudak, indicated that Dalton McGuinty is
    making the wrong decision. We believe the government should be focusing
    on creating jobs in Ontario, not putting more people out of work. As
    well, I feel this transfer of wealth from horsemen, farmers,
    veterinarians, breeders, trainers – the working people of the Sport of
    Kings – does nothing to decrease the size and cost of government.
    Ontario does not have a revenue problem, it has a spending problem.

    We suggest government can duplicate what is done in the United States
    and other provinces – play a regulatory role in gaming. If a private
    company wants to bid on a license at an existing facility, or partner
    with a track to net more revenue – great. If existing sites can make a
    go of it, great – but give them a shot.

    While government blames the Don Drummond report for the direction
    change, with regard to slots at tracks, he makes no mention of ending
    the revenue sharing-contract:
    “Re-evaluate, on a value for money basis, the practice of providing a
    portion of net slot revenues to the horse racing and breeding industry
    and municipalities in order to substantially reduce and better target
    that support.”

    Drummond does not call it a subsidy!

    This gamble to close down slots – jeopardizing racetracks, the future of
    breeding horses, a long list of jobs, and billions in investment – to
    relocate big casinos in urban areas is risky. A risky gamble with the
    Sport of Kings will have far-reaching impacts across Ontario.

    Haldimand-Norfolk MPP Toby Barrett

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