Re.: Amend the Labour…

Re.: Amend the Labour Relations Act, 1995 to explicitly deem public bodies, including municipalities, school boards, hospitals, colleges and universities, as “non-construction employers”.

Amending the Labour Relations Act, 1995 to explicitly deem public bodies, including municipalities, school boards, hospitals, colleges and universities, as “non-construction employers”, will not result in the cost savings Ontarians require. Reform of public sector procurement policies and procedures of construction and maintenance services is required.

As Ontarians, we are burdened by unprecedented government debt, government deficits, personal debt and rising interest rates. By 2030, Healthcare is projected to comprise 80% of the Provincial budget, leaving little room for the remaining operational expenses. Debt servicing is the 3rd largest government expense and risks being moved up on the budget in the event of increased government debt and/or higher interest rates.

Whereas construction industry purchasers and suppliers can continue to navigate the complexity of the public construction procurement and delivery process, resulting in higher costs to public sector construction, it serves our collective interests to move forward upon a new path. The Ontario government ought to investigate and resolve the causes of the public sector allegedly paying 40% more for construction and maintenance services should the Ontario government want an easy win on the path to reducing red tape and reducing public expenditures.

There is much to be learned from countries such as Scotland that embarked upon a process to improve public sector procurement based on a collaborative partnership approach between public sector and business that has resulted in a transformed public sector landscape with procurement today a lever for economic change.

In March 2006, the Scottish Government published the Review of Public Procurement in Scotland (the McClelland report). This concluded that public sector structures, people and technology were not in place to improve procurement. The report identified the opportunity to achieve significant, recurring financial savings across the public sector. Since 2006, the Scottish Government and Scotland Excel have launched several initiatives to improve procurement.

“The Scottish Government, Scotland Excel and councils reported total procurement savings of £71 million in 2012/13.”

“Audit Scotland estimated that, by the end of 2007 - 2008, the reform programme had directly delivered £327 million worth of savings and benefits. The Scottish Government's annual efficiency figures showed that, by 2009 - 2010, that figure had risen to almost £800 million.”

Recognizing the potential long-term cost savings by way of assisting municipalities with the supply of consultants to harmonize policies and procedures for completion of Asset Management Plans, it would be entirely appropriate for the Ontario government to move forward with the reform of public sector procurement policies and procedures of construction and maintenance services to achieve significant, recurring financial savings across the public sector.