Ontario Northland General Chairpersons’ Association
Representing members of
MoveOntario - “The 23 cent solution”
For Immediate Release April 4, 2011
North Bay- The General Chairpersons’ Association (GCA) which represents all unionized employees at Ontario Northland is increasingly frustrated by McGuinty’s abandonment of Northern Ontario to the benefit of Southern Ontario”
“In addition to providing services to Northern Ontario, the ONTC has a significant economic and social impact in not only the communities we serve but also in all of Ontario and we want to set the record straight for Ontario taxpayers” said Brian Kelly, GCA spokesperson.
“This past week in the Ontario Legislature, Premier McGuinty (as recorded in Hansard) has mislead Ontarians with his disingenuous statements and we feel it is incumbent on us to correct the record as best we can and to provide additional information to taxpayers of the province” added Kelly
Hon. Dalton McGuinty - …the ONTC … revenue has declined
*source Hansard March 27, 2012
“In 2003, the first year of the McGuinty Liberal government, ONTC net revenue (excluding government contributions) was $108.6M and in spite of the global economic downturn that affected every sector of the economy, the demise of the mining sector in Timmins and the forest industry across the North, ONTC net revenue for 2011/12 will be $116.2 M, an increase of 7% .
In 2005 and 2006 for instance, just prior to the economic collapse, ONTC net revenues were $143M and $125M respectively and a large part of that revenue stream came from Ontera and the GO Contract and we likely would have maintained that revenue stream had the McGuinty government not sent GO Transit work to CAD Rail in Montreal.”
Hon. Dalton McGuinty - …the ONTC… ridership has remained stagnant
* source Hansard March 27, 2012
“The truth is ridership has seen increases year over year in all passenger services. The Northlander ridership in 2009/10 was 31,746 and it increased by 10% in 2010/11 to 34,959. This year, ending March 31, ridership count is expected to jump an additional 16% to 40,552 riders. This certainly does not sound like a service that is in decline. The data indicates that all passenger services will see in increase in ridership;
Polar Bear up 0.5% with over 64,000 passengers,
Motor Coach up 4% on northern routes with over 71,000 passengers
Motor Coach up 5.5% on southern routes with over 158,000 passengers
Bus charter days up 43% to over 950 charters
* Rail passenger ridership surpasses VIA Rail’s on a per capita basis
Hon. Dalton McGuinty – the ONTC …subsidy levels have increased some 274%, from $27.6 million in 2003 to $103 million in 2011
*source Hansard March 27, 2012
Subsidy levels have increased, however Premier McGuinty is not providing the whole story that puts the uniqueness of 2011 subsidy and contributions in perspective. It includes;
$4.5M of the promised $10M to refurbish the Polar Bear passenger cars. That program is now scrapped and the MNDN is reclaiming that $4.5M.
The purchase of Sault Ste Marie PUC by the Ontario Government was financed through the ONTC at the amount of $3.5M.
Northlander subsidy remained at previous year level at $10.263M
Polar Bear subsidy remained at previous year level at $10,897M
Ferry Service subsidy remained at previous year level of $41,000
Capital costs and upgrades of $21.6M
Other monies were provided to offset costs due to economic downturn, assist in the Metrolinx bid and pay off lines of credit
2011 Pension Contribution of $27.7M to deal with the pension plan solvency as required by the pension regulators and Revenue Canada.
o It should be noted that in 2003/04 McGuinty Government withdrew $47.8M from the pension plan to assist in the restructuring through early retirements.
o There was no regulatory requirement for pension contributions (ONTC & employee) into the plan over a 10 year period ending in January 2011 totaling approximately $48M.
Since 2003, following subsidies have been provided to ONTC to help offset the costs of providing services that the Ontario Government mandates the ONTC to provide”
Northlander Service (2003-2011) - $86,741, 000
Polar Bear Service (2003-2011) - $89,741,000 (McGuinty to continuing this service)
Ferry Service (2003-2011) - $636,000
* Over the same period (2003-2011) the Federal Government has contributed $23,125,000 to Northlander service.
Hon. Dalton McGuinty – .. our record of support for ONTC, back to 2003 … $439 million
*source Hansard March 27, 2012
What Premier McGuinty is not telling you is the benefit gained to the province for that support;
ONTC Net Revenue earned = $1,069,983 Billion
Economic Impact (2.11 revenue multi) = $2,257,644 Billion
ONTC Wages paid = $527,132 million
Economic Impact (1.29 value added multi) = $680,000 million
Hon McGuinty - the ONTC … subsidy .. of some $400 per passenger .. we could no longer afford
Source – Hansard April 2,
“On June 15, 2007, Premier McGuinty announced the government's plan to fund 52 projects in Ontario to improve transit services. It should have been evident at that time that the Premier’s largeness with government support of transit projects would end 6 kilometers either side of the 401 highway corridor. With the introduction of the budget on Tuesday March 27, 2012, McGuinty demonstrated a significantly different treatment of the North (ONTC) versus his support for the South (Metrolinx)” Kelly
“What McGuinty said in the legislature is that Northerners simply can’t have it all like his cherished Southern Ontario taxpayers. For Northern Ontario, if taxpayers in the region want healthcare, education, highways, a new school of architecture and a new law school then McGuinty has no option but to chop the ONTC, contending that it is not affordable to do it all (hansard March 29, 2012). In Southern Ontario, taxpayers get all of those services and MORE” continued Kelly
In 2009/10 Metrolinx embarked on its largest capital investment program ever (source Annual Report). Investment in capital expenditure totaled $1.16 Billion compared to $861 million the previous year. An increase of 34% in capital investment alone in one year and an increase of 320% over 2005/06 support by McGuinty, and the money keeps rolling in for Metrolinx.
“The GCA proposes the “23 cent solution” in which all Ontario taxpayers, North and South will have equal support to provincially funded inter-city passenger services, without distinction. It involves a single stroke of the legislative pen that joins ONTC into Metrolinx where the economies of balance out the longer distances in the North with the population density of the South” concluded Kelly.
55,000,000 Metrolinx Passengers $10,263,000 Northlander Prov Subsidy
$5 Subsidy per passenger 40,552 Northlander Passengers
$275,000,000 Total Provincial Subsidy $253 Subsidy per passenger
By combining ridership and subsidy per passenger for Northlander and Metrolinx GO services we can then truly say that the Ontario Government is supporting the whole of Ontario.
$275,000,000 Metrolinx passenger subsidy
10,263,000 Northlander subsidy Province
2,500,000 Northlander subsidy Federal
$287,763,000 total subsidy provided
55,000,000 Metrolinx Passengers
40,552 Northlander Passengers
55,040,552 Intercity passengers
$ 287,763,000 total subsidy provided (2011/12)
55,040,552 total intercity passengers (2011/12)
$ 5.23 Subsidy per passenger
For more information please contact Brian Kelly at 705-471-5263
La CTON n'est PAS à vendre! ~ The ONTC is NOT for sale!
Une nouvelle province au Canada: le nord de l'Ontario.
A new province in Canada: Northern Ontario