christiesplits
Senior Member
Drummond Report: Ontario to sell downtown LCBO warehouse and HQ
http://www.thestar.com/news/canada/politics/article/1130529--drummond-report-ontario-to-sell-downtown-lcbo-warehouse-and-hq
Ontario’s finance minister appears set to put the brakes on corporate tax cuts and accelerate sales of government assets by unloading the LCBO’s Toronto headquarters and warehouse on prime waterfront land.
Looking for ways out of a $16 billion deficit, Dwight Duncan gave his strongest hint yet that he’ll scrub plans to lower corporate tax cuts to 10 per cent by 2013.
“I’ve had an opportunity to speak to a number of corporate leaders who suggest that freezing the rate for a period of time given the fiscal situation probably is something worthy of consideration,” he said Monday after a speech to the Economic Club of Toronto.
His announcements came as the government girds for Wednesday’s release of a much-anticipated cost-cutting report by former TD Bank chief economist Don Drummond.
Duncan also unveiled plans to privatize more Service Ontario operations and warned subsidies totalling $345 million to the horse racing industry last year are “not sustainable.”
Those ideas were quickly branded “crumbs” by Progressive Conservative finance critic Peter Shurman (Thornhill) given the province’s fiscal problems.
“This is like trying to pay off your mortgage with a garage sale.”
Freezing the corporate tax rate at 11.5 per cent — in what Duncan called a “reasonable” NDP proposal — would keep $800 million a year in provincial coffers as the minority Liberal government scrambles to survive.
Selling the LCBO land in an area popular for condo development is expected to generate more than $200 million in net profit, Duncan said.
“Why would you a have a distribution warehouse on some of the most expensive real estate in the country?” he asked, promising a “flagship” liquor store would remain in the area with head office and warehouse operations likely moved.
He acknowledged the LCBO move is a “relatively small” example of an asset sale, the likes of which were ruled out in last year’s budget.
“I didn’t say forever,” Duncan explained. “We continually review all assets. I’m not suggesting we’re going to have a big one in the window.”
He didn’t provide a figure on how much could be saved by privatizing the remaining one-third of Service Ontario but said doing online transactions for things like birth certificates costs $1, about five times lower than in-person service.
Service Ontario reports improved customer satisfaction levels rising but New Democrat finance critic Michael Prue (Beaches-East York) predicted that won’t last.
“You only have to look at ORNGE, you only have to look at the 407 to know that, at the end, consumers are going to get hosed.”
The horse racing subsidies are from an Ontario Lottery and Gaming Corporation program that channels 20 per cent of gross revenue from slot machines at race tracks to track operators and horse people.
Those payouts have totalled $3.4 billion since the previous Conservative government implemented them in 1998, and the money spent last year “would pay for over 9 million hours of home care,” Duncan noted.
Cutting the program would be a “death knell” for the horse racing industry, Prue predicted
http://www.thestar.com/news/canada/politics/article/1130529--drummond-report-ontario-to-sell-downtown-lcbo-warehouse-and-hq
Ontario’s finance minister appears set to put the brakes on corporate tax cuts and accelerate sales of government assets by unloading the LCBO’s Toronto headquarters and warehouse on prime waterfront land.
Looking for ways out of a $16 billion deficit, Dwight Duncan gave his strongest hint yet that he’ll scrub plans to lower corporate tax cuts to 10 per cent by 2013.
“I’ve had an opportunity to speak to a number of corporate leaders who suggest that freezing the rate for a period of time given the fiscal situation probably is something worthy of consideration,” he said Monday after a speech to the Economic Club of Toronto.
His announcements came as the government girds for Wednesday’s release of a much-anticipated cost-cutting report by former TD Bank chief economist Don Drummond.
Duncan also unveiled plans to privatize more Service Ontario operations and warned subsidies totalling $345 million to the horse racing industry last year are “not sustainable.”
Those ideas were quickly branded “crumbs” by Progressive Conservative finance critic Peter Shurman (Thornhill) given the province’s fiscal problems.
“This is like trying to pay off your mortgage with a garage sale.”
Freezing the corporate tax rate at 11.5 per cent — in what Duncan called a “reasonable” NDP proposal — would keep $800 million a year in provincial coffers as the minority Liberal government scrambles to survive.
Selling the LCBO land in an area popular for condo development is expected to generate more than $200 million in net profit, Duncan said.
“Why would you a have a distribution warehouse on some of the most expensive real estate in the country?” he asked, promising a “flagship” liquor store would remain in the area with head office and warehouse operations likely moved.
He acknowledged the LCBO move is a “relatively small” example of an asset sale, the likes of which were ruled out in last year’s budget.
“I didn’t say forever,” Duncan explained. “We continually review all assets. I’m not suggesting we’re going to have a big one in the window.”
He didn’t provide a figure on how much could be saved by privatizing the remaining one-third of Service Ontario but said doing online transactions for things like birth certificates costs $1, about five times lower than in-person service.
Service Ontario reports improved customer satisfaction levels rising but New Democrat finance critic Michael Prue (Beaches-East York) predicted that won’t last.
“You only have to look at ORNGE, you only have to look at the 407 to know that, at the end, consumers are going to get hosed.”
The horse racing subsidies are from an Ontario Lottery and Gaming Corporation program that channels 20 per cent of gross revenue from slot machines at race tracks to track operators and horse people.
Those payouts have totalled $3.4 billion since the previous Conservative government implemented them in 1998, and the money spent last year “would pay for over 9 million hours of home care,” Duncan noted.
Cutting the program would be a “death knell” for the horse racing industry, Prue predicted
Last edited: