Minister dodges questions on cost to retrofit ServiceOntario outlets into Staples, Walmart locations

The Ford government continues to dodge questions as to how much it is costing taxpayers to retrofit 11 ServiceOntario outlets into Staples Canada and Walmart locations across the province.

In an interview with Rogers TV Durham, MPP Todd McCarthy – the minister responsible for the pilot project – reiterated the cost savings to Ontarians as a result of the government partnership with the retail stores.

“So on the retrofit, we’ve factored that into the $1 million in cost savings, so even factoring in the retrofit costs, we’re still seeing a savings of $1 million over three years,” said McCarthy, noting that the government always pays because the branding and modelling have to be controlled.

“We’ve factored in those costs and still have come up with $1 million in savings.”

To date, the Ministry has not provided a business case to substantiate the $1 million savings.

Staples Canada got a three-year sole-sourced deal to open ServiceOntario locations inside some of its Ontario office supply stores after what McCarthy said was part of a lengthy consultation process that involved “dozens” of potential retail partners, adding it is expanding a model that has been in existence for decades.

“The retail partnerships – Canadian Tire, IDA and Home Hardware – have proven so successful over the last 15 years, my ministry looked at adding to that model and it certainly works in the urban centres in southern Ontario.”

McCarthy went on to echo Premier Doug Ford’s remarks earlier this week that the move into Staples and Walmart would provide greater convenience for Ontarians when it comes to longer hours, ample parking and the convenience of accessing ServiceOntario locations and products.

“The great thing about the Staples Canada partnership is it’s now one of four retail partners that can provide longer hours,” explained McCarthy. “So you can interact with the government, be in and out within 15 minutes.”

Many of the shuttered locations have been family-owned businesses for decades and those owners say they were given just 70 days’ notice that their business was being closed. When asked about those owners whose businesses have been terminated by the move into the retail stores, McCarthy said any business – big or small – will have a lifespan to their contract when it comes to their relationship with the government.

“Nobody ever gets a contract in perpetuity, that wouldn’t be good government,” he said. “The day anyone signs a contract with the government of Ontario – whether it’s two or three years – is the day they know when that contract is going to expire. There are no contracts in perpetuity for anyone, that wouldn’t be fair to the taxpayers of Ontario.”

The minister failed to mention the 99-year lease the Ford government recently handed to Austrian spa company Theme as part of the Ontario Place reimagination project. 

McCarthy says the retrofitted ServiceOntario kiosks are expected to open “in the coming weeks” and that they would be looking to add to the retail partnership model if everything goes well.