Ontario Update – Week of April 15, 2024

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The Backdrop

The Ford government tabled its omnibus spring Red Tape Reduction legislation, a federal housing accelerator fund – with strings attached, and the latest poll numbers in Ontario. 

Latest provincial polling

On the heels of Finance Minister Bethlenfalvy tabling the Ontario Spring Budget, Liaison Strategies released its latest poll. Doug Ford’s PC’s retain a substantial lead at 35%, with the Liberals at 25% and the NDP at 15%. These results show the NDP slipping since before Bonnie Crombie was elected leader of the Liberal Party last December and could explain why Ford and his party continue to focus their attacks on Crombie while all but ignoring NDP leader Marit Stiles.

When looking only at ‘Decided’ and ‘Leaning’ voters, the scenario improves for the NDP and gets even stronger for the PC’s: 41% PC, 24% Lib, 24% NDP. These numbers demonstrate that Ford’s PC’s haven’t suffered significant fall-out from the various controversies of 2023. 

The poll also included asked Ontarians’ perceptions of the carbon tax. The results could explain why Crombie’s Liberals (and even the federal NDP?) are distancing themselves from a consumer carbon tax.

54% of respondents ranked affordability as ‘more important than the environment’ while 25% said the opposite. Nearly half (49%) of respondents said they would abolish the carbon tax, while 24% said they would keep it. 

Fourplexes at centre of federal funding

Fourplexes at the centre of federal funding: As part of its string of pre-budget announcements, the federal government announced a conditional $5 billion housing infrastructure fund that would only be distributed to provinces that implement a range of initiatives including the requirement for municipalities to adopt as-of-right policies for fourplexes. Premier Ford has railed against blanket as-of-right zoning for fourplexes in the past, creating an opportunity for the feds to create a wedge issue on housing.

Municipal Affairs and Housing Minister sent a letter to the Mayors of all 444 Ontario municipalities, encouraging a united “team Ontario” front against the stipulation on receiving the federal money. Calandra believes municipalities are best positioned to determine whether fourplex as-of-right zoning should be allowed in their jurisdictions, versus the Ontario implementing province-wide blanket zoning. 

Federal housing Minister Sean Fraser said his office is looking for blanket fourplex policies from premiers and isn’t willing to budge. When asked about the funding last week, Prime Minister Trudeau said he is willing to cut the provinces out of the process and fund municipalities directly. “The money is going to flow. The only question Ontario has to ask is whether Ontario wants the money to flow through the province to municipalities or whether it flows directly to the municipalities.”

Red Tape Bill focuses on housing

This is the latest installment of the Ford government’s red tape reduction legislation. As always, it encompasses many Ministries but this time the bill has a particular focus on housing, including:

Building more student housing: The bill proposes to exempt publicly-assisted universities from the Planning Act to accelerate the building of new student housing.

“Use it or lose it” Provision: Municipalities would be enabled to allocate wastewater and water servicing so that developments ready to proceed encounter fewer barriers and delays to construction. It would also allow for a three-year time frame for conditions to be met on draft subdivision approvals, or the approval would expire or lapse.
 
Eliminating parking minimums: The requirement to have a minimum amount of parking spaces for developments in certain areas near most major transit stations would be removed. This could save up to $50 million for a 500-unit development and make it cheaper to build and purchase new homes near transit.
 
Development Charges: The five-year phase-in of development charge rates would be eliminated. The period when the development charge rate is frozen would be reduced from 24 to 18 months. Exemptions and discounts would be introduced for affordable residential units to provide incentives for the development of affordable housing.

Removing independents from standing committees

The Liberal Party is objecting after several Independent MPPs were removed from standing committees. The Liberals do not have ‘Recognized Party’ status and as a result do not automatically receive speaking time during debates or guaranteed opportunities to ask questions during Question Period. They also receive less public funding to establish caucus offices to help with research and organization. The Motion was moved by Stan Cho and resulting in the following MPP’s being removed from committee:

  • Independent Vincent Ke removed from Standing Committee on Public Accounts
  • Liberal Stephanie Bowman removed from Standing Committee on Finance and Economic Affairs
  • Liberal Stephen Blais removed from Standing Committee on Justice Policy
  • Liberal Adil Shamji and Independent Bobbi Ann Brady removed from Standing Committee on Social Policy
  • Liberal John Fraser removed from Standing Committee on Government Agencies

Ontario gets and spends less per person than other provinces

The Financial Accountability Office of Ontario released its report that compares Ontario government spending, revenues, budget balance and net debt with other Canadian provinces. According to the report, Ontario health care spending per capita in 2022-2023 was $4,889, the lowest in Canada. It was $876 (15%) below the average of the other provinces. Health care spending includes spending on hospital and outpatient services, public health services, and medical equipment and products. Ontario’s net debt per capita is $19,436 – 105% higher than the Canadian average.

Opposition parties were quick to criticize the government, saying it has been negligent and is failing Ontarians. Green Party leader Mike Schreiner said “despite having one of the highest budget deficits on record, the Ford government has repeatedly failed to put forward solutions that make Ontarians’ lives easier and more affordable.”

Health Minister Sylvia Jones’ office responded saying the government’s investment in health care is equivalent to “the health-care budget of nearly every single province and territory of nearly every single province and territory combined. As always, the FAO report does not take into account the full project expenditure and is only a snapshot in time. Accurate, comprehensive and updated figures will be reported in estimates.”