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Commission on the Reform of Ontario's Public Services

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In a number <strong>of</strong> areas, efficiencies already introduced in <strong>the</strong> OPS should be extended to<br />

<strong>the</strong> BPS. Am<strong>on</strong>g <strong>the</strong>se:<br />

� Shared services for back-<strong>of</strong>fice functi<strong>on</strong>s (e.g., payroll, financial transacti<strong>on</strong>s, procurement,<br />

collecti<strong>on</strong>s and insurance) and comm<strong>on</strong> administrative services (e.g., printing, mail,<br />

translati<strong>on</strong>s and asset management) can save m<strong>on</strong>ey;<br />

� The c<strong>on</strong>solidati<strong>on</strong> <strong>of</strong> I&IT services in <strong>the</strong> OPS saved $100 milli<strong>on</strong> per year; savings would<br />

be greater if this were pushed out to <strong>the</strong> BPS;<br />

� A standardized framework would enable <strong>the</strong> BPS to leverage its immense purchasing<br />

power through collaborative purchasing, standardizati<strong>on</strong> <strong>of</strong> products and processes,<br />

and back-<strong>of</strong>fice c<strong>on</strong>solidati<strong>on</strong>; and<br />

� Centralized maintenance practices already established in <strong>the</strong> OPS should be extended<br />

to <strong>the</strong> BPS.<br />

Transfer payment and grant programs in <strong>the</strong> OPS are ripe to deliver centralized efficiencies.<br />

Because many organizati<strong>on</strong>s are funded by several ministries, <strong>the</strong> government has trouble<br />

assessing <strong>the</strong> overall picture and recipient organizati<strong>on</strong>s are frustrated at dealing with multiple<br />

requirements. A new enterprise grants management system, developed by two ministries to<br />

overcome <strong>the</strong>se problems, is set to launch shortly; expanding it to <strong>the</strong> entire OPS would<br />

spread its costs across more ministries.<br />

Government Business Enterprises<br />

The government <strong>of</strong> Ontario owns four government business enterprises (GBEs): <strong>the</strong> Liquor<br />

C<strong>on</strong>trol Board <strong>of</strong> Ontario (LCBO), Ontario Lottery and Gaming Corporati<strong>on</strong> (OLG), Ontario<br />

Power Generati<strong>on</strong> (OPG) and Hydro One. They c<strong>on</strong>tribute substantial sums to <strong>the</strong> provincial<br />

treasury — $4.6 billi<strong>on</strong> in 2010–11 al<strong>on</strong>e. Toge<strong>the</strong>r, <strong>the</strong>ir net assets amounted to $17.6 billi<strong>on</strong><br />

at <strong>the</strong> end <strong>of</strong> last fiscal year.<br />

We looked at two distinct approaches to generating fur<strong>the</strong>r value from <strong>the</strong>m: <strong>the</strong> government<br />

could sell all or part <strong>of</strong> each business; or it could improve business efficiencies while retaining<br />

full government ownership.<br />

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