BPS Sectors Health Care University OPAC Teranet ORC Developmental Srvcs Children's Aid      Ontario Public Service Collective Agreement Ministry Information CERC Report Bargaining 2001   Colleges CAAT (A) CAAT (S)

The Ontario government is set to contract out the management and maintenance of all of its approximately 5,500 government buildings across the province, a total of 47 million square feet, at a greater cost to the taxpayers, the Ontario Public Service Employees Union charged today.

An OPSEU analysis of the government's figures shows that the province will pay about $242,438,000 to contract out the buildings, compared to the $187,260,000 it now costs to operate them with government maintenance staff.

"This just doesn't make economic sense," said OPSEU President Leah Casselman. "The government will hand over in excess of $200 million to the large private sector companies, then spend $50 million to lay off 600 workers in every town and city. In the end, not only will taxpayers get absolutely no savings, they will have to pay more."

The Ontario Realty Corporation, a Crown agency that owns and operates the government buildings, originally estimated that the government would save $80 million by turning them over to private sector real estate companies.

The savings estimate was obtained through two successive studies by consulting firms Price Waterhouse and Coopers Lybrand. However, the government has kept these reports secret from Freedom of Information requests, claiming they are "confidential Cabinet documents."

Casselman called on the Harris government to put its plan on hold and release the consultants' reports so that there can be full public disclosure of the proposed deal. "These may be the start of some of the largest private contracts by this government, and Mike Harris must be held fully and publicly accountable for them," she said.

The ORC issued tenders for the buildings last August, dividing the province into four large regions and allowing only the large real estate companies to submit bids for managing and maintaining thousands of buildings in each region. The bids closed in October, but the government has yet to announce the winning tenders.

Sources indicate that the bidders’ quotes are far in excess of the original government estimates. Cabinet has yet to decide what to do with the situation.

-30-

FOR FURTHER INFORMATION:

Leah Casselman:     416/443-8888 Ext. 300
Pierre Floréa:         416/448-7442, c. 416/258-1231

Return to TOP of Page | Return to 1999 Press Release Listing