Ontario Budget 2013 - Ontario Northland Transportation Commission

Opposition MPP's have already written off the 2013 Liberal budget because they say it has little for the north.  While I admit the budget is pretty vague with regard to the details regarding the way forward for ONTC, I think it is important to note the changes from the last budget, and in what is NOT being said now.  

There is no longer any reference to the act of divesting ONTC, nor is there any financial provision for cost avoidance.  There is a reference to the Advisory committee, who along with the Mayors of the five largest cities in Northern Ontario, have expressed support for ONTC and called for a halt to the divestiture process.

As painfully slow as the process is, it is important to note other areas where the provincial government has some issues.  In order to develop the Ring of Fire, it will be necessary for industry, the Federal Government and First Nations to all work together and support a common direction so the benefits can be fairly distributed.

The province is also seeking resolution to a number of First Nation land claims and developing a relationship that works for both parties.  Industrial investment, as a percent of real GDP, in this province has been at levels below that of the US,  in spite of a significant reduction in corporate income tax levels

There are a number of issues in the Federal Provincial relationship that need to be addressed and Stephen Harper is not exactly the model of a fair, open-minded, negotiator.

If one includes all these factors in the preparation of a budget, not to mention the further demands likely by the NDP, this version is probably as good as ONTC proponents could of hoped for, at this point in time.

One thing the government has learned from the gas plant cancellations, is that laying out your political agenda, before an organization such as the OPA negotiates what you are promising, sure puts a crimp in your bargaining power.

In this case there are many bargaining tables in many different arenas where the province wants to see some commitments from the others before making any of their own.

It is good to see the lessons from the gas plant cancellations have at least been learned, given the expense of them.

BUDGET 2013

 

Ontario Northland Transportation Commission

The Province currently owns and operates the Ontario Northland Transportation Commission (ONTC), which provides transportation services to northern Ontario. The ONTC has been operating at a deficit, spending more money on operations and capital repairs than it makes in revenue, and Provincial funding has been increasing over time.

The Province remains committed to ensuring that northern communities and industries benefit from viable, efficient and sustainable transportation and communications systems. As part of the process of addressing ONTC's ongoing shortfalls, while recognizing the transportation and communications needs of the north, the government has already:

·  ensured that every community served by the former Northlander train service continues to be served by ONTC motor-coach service;

·  moved forward on transferring the Niska I ferry, which runs between Moosonee and Moose Factory Island, to the Owen Sound Transportation Company, with no changes in service;

·  maintained the Polar Bear Express service; and

·  received submissions responding to a Request for Proposals for the Ontera telecommunication assets.

The government continues to transform the ONTC. The government will ensure that the voices of northern municipalities, Aboriginal communities, and key industry stakeholders are heard. In March 2013, the Minister of Northern Development and Mines established the ONTC Advisory Committee, which provides a collaborative opportunity for the exchange of ideas so that any decisions made will recognize the economic development value of transportation services in the north.

The government also recognizes the need to have a pan-northern transportation strategy and the path forward for ONTC will be considered as part of a broader review being conducted by the Ministry of Transportation on a Northern Ontario Multimodal Transportation Strategy.

BUDGET 2012

Ontario Northland Transportation Commission Divestment

The Province created and currently runs the Ontario Northland Transportation Commission (ONTC), which provides transportation services to northern Ontario. The ONTC’s business lines include the Polar Bear Express passenger rail service between Cochrane and Moosonee, the Northlander passenger rail service and bus service from Toronto to Cochrane, telecommunication services delivered by Ontera, and rail freight and refurbishment operations.

The ONTC has historically operated at a deficit, spending more money on operations and capital repairs than it makes in revenue. For example, ridership on the Northlander passenger rail is not commercially viable. The cost to the ONTC per passenger has been approximately $400 beyond the ticket price paid by passengers. Taxpayers can no longer maintain this subsidy, and the total funding provided to the ONTC has increased from $28 million in 2003–04 to $103 million in 2011–12 due to mounting operating and capital pressures.

As a result, the government will:

·  maintain the Polar Bear Express service;

·  divest commercially valuable assets such as rail freight, rail refurbishment operations and Ontera telecommunications;

·  tender bus services for other operators to service existing bus routes;

·  terminate the unsustainable Northlander passenger rail service; and

·  consolidate the ferry service between Moosonee and Moose Factory with other provincial ferry services.

Once implemented, this will result in annual savings and avoid costs of approximately $250 million over three years.

The government is committed to maintaining vital public services the ONTC delivers, particularly for isolated communities where no alternatives exist.