July 12, 2002
Hon. Ernie Eves
Premier of Ontario
Legislative Bldg.
Queen’s Park
Toronto, ON M7A 1A1
Dear Sir,
I share the dismay of many at your government's proposal to sell-off the Province of Ontario Savings Office (POSO). This privatization is a counterproductive measure to sell an extremely well-run bank, punish loyal depositors, and take a continuing source of capital away from the province. Employees who provide us with
such friendly, efficient service are being bashed by a big bully in the form of short-term greed.
It is a sad commentary on this government's blind commitment to its ideology that it considers selling the POSO, an institution founded by the Farmer-Labour government in 1922 to provide capital generated by Ontario depositors to fund our public infrastructure. Instead of using the $2.8 billion currently on deposit to
build our great province, the Conservatives want these funds to be used to increase the profits of their friends in the private banks.
The POSO does not have to make a profit for shareholders and as a result its interest rates on deposits and GIC are generally better than those paid by private banks. Furthermore, its deposits represent billions of dollars the government would otherwise have to borrow on international markets.
The POSO also serves numerous small towns in rural Ontario that may or may not have a bank. Would these locations even interest a bank? The Tory sell-off does not make sense. The POSO represents not only an alternative to for-profit banks with their service fees, it is a way for citizens to invest in their own province.
If the POSO depositors wanted to deal with a bank for their deposits, most of them would be doing so already. This government is missing the big picture; it is POSO staff and consumers who know the real value of the Province of Ontario Savings Office.
I say that this decision by you doesn't make sense for staff, consumers or for Ontario. Please act swiftly to reverse your decision to sell off this unique public institution.
Sincerely,
Peter Kormos, MPP
Niagara Centre
