Bartolucci and Fedeli discuss ONTC divestment

NDM Minister Rick Bartolucci
News Release

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Minister Bartolucci met for the second time today (Tuesday) with Vic Fedeli at which time the Nipissing MPP was advised of the following:

• All pension obligations will be met.

• Infrastructure Ontario has thus far received over 25 expressions of interest from private sector companies with regard to the ONTC business lines.

• Divestment decisions will be based on best value for Ontario taxpayers which include factors like levels of service, impact on employees and economic impact for Northerners – including jobs.

• There will be substantial savings to Ontario taxpayers given the fact the current subsidy to ONTC is $100 million this year and is expected to rise.

• The government will not deal in hypothetical situations and imaginary scenarios as presented to Minister Bartolucci by Mr. Fedeli as to how it would evaluate bids. IO is working carefully to ensure best value - not only in terms of dollars, but jobs and a long-term, viable transportation system for the north.
Minister Bartolucci asked Mister Fedeli where he stood on divestment. Fedeli said he didn’t agree with the government and he didn’t agree with the unions but wouldn’t state his own position, nor would he say what he would do.

As a matter of record, Mr. Fedeli has at no time asked that our government reverse the decision to divest the ONTC.

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Nipissing MPP Vic Fedeli
News Release

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Dalton McGuinty’s fire sale of the Ontario Northland Transportation Commission (ONTC) will achieve no real savings, Nipissing MPP Vic Fedeli said today.

Fedeli met with Northern Development and Mines Minister Rick Bartolucci, ONTC Chair Ted Hargreaves and Jonathan Weisstub of Infrastructure Ontario, which is overseeing
the dismantling of Ontario Northland.

Face-to-face, Fedeli told Bartolucci he does not support his plans for divestiture of Ontario Northland, and outlined his reasons why.

“The Minister acknowledged the $100 million-plus unfunded pension liability at Ontario Northland will have to be paid for by the government,” said Fedeli, who also learned
there are environmental liabilities that exist as well.

It was also confirmed at the meeting that “large” subsidies will continue to ensure bus service into smaller communities and for the Polar Bear Express, Fedeli added.

“When you add all this up and consider the historic average annual expenditure for the ONTC is about $44 million, I’m convinced there are no savings to be realized,” said Fedeli.

“So that being said, the question becomes why proceed with the Ontario Northland sale if you can’t achieve your original objective?”

Bartolucci also confirmed the government intends to complete the sale of all ONTC assets by the end of this fiscal year – March 31, 2013.

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