Press Release |
For Immediate Release February 23, 2010
KLEES: McGuinty Office Tower Latest Assault on Private Sector
(Queens’ Park) Official Opposition Infrastructure Critic, Frank Klees, MPP today called on the Premier to work with private sector landlords to house its expanding bureaucracy rather than proceed with its plans to construct a proposed new Bay Street office tower at taxpayers' expense.
"For the government to even consider getting into the business of building a new office tower in competition with private sector landlords, who are already struggling to cope with one of the highest vacancy rates in years, is unconscionable," said Klees. "With more than 11 million square feet of vacant office space and average net rental rates on a downward spiral, this is an ideal time for the government to work with the private sector, rather than compete against it.”
A recent Colliers International survey confirmed that the office vacancy rate in the GTA continued its upward trend reaching 6.1 per cent, or 11.3 million square feet at the end of 2009. This represents an increase of 20 per cent in vacancy levels compared to 2008.
"At a time when the government is dealing with a deficit in excess of $25 Billion, and is calling for spending constraints, to consider spending multi-millions of taxpayers' dollars to build a new office tower makes no sense whatsoever," said Klees.
Infrastructure Minister Brad Duguid attempted to justify the plans, claiming the Ontario Realty Corporation has a mandate to maximize the government's assets.
Klees called on the government to reconsider its plans and to direct the ORC to work with the private sector to meet its space requirements.
-30-
References: * Hansard attached
Frank Klees, MPP
PC Critic for Transportation & Infrastructure
416 509 8999
HANSARD, TUESDAY, FEBRUARY 23, 2010
Government spending
Mr. Frank Klees: My question is for the Premier, and it relates to his government’s plans for the construction of the new Dalton McGuinty office tower.
At a time when the city of Toronto has millions of square feet of empty office space, when leasing rates are on a downward spiral, we now learn that the government is making an application to construct a new office tower which will reportedly be one of the tallest buildings in the city of Toronto, all for the purpose of housing his expanding bureaucracy.
Can the Premier tell us why his government would feel compelled to go into competition with the private sector when commercial landlords are already on the ropes? Why would his government want to spend millions of dollars constructing a new office tower in competition with the private sector?
Hon. Dalton McGuinty: To the Minister of Energy and Infrastructure.
Hon. Brad Duguid: I’m pleased to respond to the question of the member opposite.
Indeed, ORC is responsible for the government’s assets. The member is somewhat correct; ORC has put forward a planning application to the city of Toronto to go through the process. What ORC does, on behalf of the taxpayers of this province, is to try and ensure they’re getting the highest and best use for whatever properties we have. That’s particularly important as we go through tough times—that we look to ORC to provide that kind of leadership to ensure that they’re getting the highest and best use out of our assets. That is what this is about. They are looking to get the highest and best use out of that asset.
I appreciate the question, and I’m pleased to have the opportunity to respond.
The Speaker (Hon. Steve Peters): Supplementary?
Mr. Frank Klees: The issue is not for the ORC to take leadership; that’s the responsibility of the government.
The question that I have, and perhaps the minister has missed the thrust of the question, is: At a time when we are in economic turmoil, when the government has a $25-billion deficit, when the word of the day is “fiscal constraint,” how can the government authorize the ORC to spend literally multimillions of taxpayers’ dollars, at this point in time, to build an office building that would be in direct competition with the private sector, where there are literally millions of square feet of empty office space? Could the government not, in fact, direct the ORC to work with the private sector to accommodate the government’s needs and not get into a competition with the private sector?
Hon. Brad Duguid: The member is jumping the gun a little bit here. The ORC is looking, as I said, to ensure that they have an opportunity to maximize the value of our assets on behalf of the taxpayers of this province. That’s what they’re doing here. There’s no decision on the part of this government that has been made to build anything at this point in time.
Certainly, though, we take the advice of the member seriously. We always want to make sure that our agencies are acting on behalf of the people of this province in the best possible way. We’ll continue to take a look at their actions, and we’ll continue to make sure that those actions are responsible when it comes to the management of the public assets.
I’ll certainly continue, as minister, to ensure that ORC is making these decisions in the best interests of Ontario taxpayers.