In bid to end string of scandals, Premier extends public-service spending restrictions to every agency in the province, including the LCBO, Hydro One and Ontario Power Generation.
Ontario Premier Dalton McGuinty is casting a wide net as he attempts to put an end to spending scandals that have dogged his government by ordering every agency in the province to adopt the public service’s rules for travel and entertainment.
Until now, more than half of the 615 agencies in Ontario were not included in a directive governing spending on meals, travel and hospitality, leaving them free to set their own rules. But in the wake of revelations of lavish spending on meals and booze at the Ontario Lottery and Gaming Corp., the government is putting every agency on notice that it must adhere to the public service rules imposing strict limits on wining and dining.
“They all have to comply,” said Sarbjit Kaur, a spokeswoman for Government Services Minister Harinder Takhar.
David Docherty, a professor of political science at Wilfrid Laurier University, said it would have been far more useful to have an all-party committee of MPPs review how government creates and manages its agencies.
It’s no easy task giving arms-length government agencies private-sector freedoms while keeping them on a public-sector leash, Prof. Docherty said.
“The problem is, from a governance perspective it’s not altogether clear who is responsible,” he said. “The government sees it has a problem on its hands reining in these arms-length agencies, and that, I think, signals a larger problem.”
Ontario has 282 classified agencies, boards and commissions – those deemed to need more oversight and which already follow the public service expense rules. Another 333 agencies are non-classified and operate with greater autonomy.
The province’s Integrity Commissioner and her staff of nine will take on the added responsibility of approving the expenses of 21 of the largest entities and their 44,000 employees, making them subject to the same oversight as cabinet ministers and their staff. It’s not clear what form the scrutiny will take.
Many of the province’s best-known agencies are among the 21, such as Ontario Power Generation, the largest with 12,000 employees, the lottery corporation, the Liquor Control Board of Ontario, Hydro One and eHealth Ontario.
However, a review by The Globe and Mail shows that several large agencies are not included, such as the Municipal Property Assessment Corp., the Ontario Securities Commission and the Niagara Parks Commission.
A financial services executive who asked not to be named questioned why the securities commission operates with greater autonomy than the Financial Services Commission of Ontario – even though both regulate the province’s financial markets. The OSC, like many other agencies on the list of 21, is not financed by taxpayers; its revenue comes from fees collected from the industry.
Jane Almeida, a spokeswoman for Mr. McGuinty, would not say how the 21 names were compiled. She said in an e-mail response that the securities commission was excluded because it has a “significant enforcement component to its mandate.
“It’s also in the unique position of being an agency we’ve long advocated eliminating and replacing with one national securities regulator.”
Mr. McGuinty warned last week there would be consequences for those who treat these entities like private corporations.
“If you doubt our commitment, take a look at the example … we are making of OLG,” he said, after firing the lottery corporation’s chief executive officer with cause and having the entire board resign.
Progressive Conservative Leader Tim Hudak said the spending scandals at the lottery corporation and eHealth call into question the McGuinty government’s stewardship over the province’s largest institutions after six years in office.
“What we saw at eHealth and OLG is definitely reflecting a culture of entitlement that has set in quite deep,” he said. “If a Liberal cabinet minister can’t ensure that the lunch money has been spent wisely, what confidence can Ontario taxpayers have in their ability to oversee the spending on hospitals, roads and schools?”














