SooToday.com has received the following copy of a letter sent today by Sault MPP David Orazietti to Ontario Premier Dalton McGuinty following the issuance of an Ontario Lottery and Gaming Corporation news release announcing a modernization plan.
Today's letter is followed by a similar one that Orazietti sent to McGuinty last month.
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March 12, 2012
The Honourable Dalton McGuintyPremier
Legislative Building·
Room 281
Queen's Park
Toronto ON M7A1A1
Dear Premier:
Re: Ontario Lottery and Gaming Modernization Announcement Today
It is imperative that as follow-up to my earlier letter dated February 17, 2012, immediately following the Drummond report's recommendation to close one of the major Ontario Lottery and Gaming (OLG) offices, that I reiterate the absolute necessity of keeping open the head office in Sault Ste. Marie.
I understand that difficult decisions need to be made in order to reduce the provincial deficit but it is essential that we proceed in a manner that has the least negative impact on workers and their families.
In my previous letter I emphasized that closing the OLG head office in my community would have a disproportionately negative impact on the city of Sault Ste. Marie and its residents when compared to the potential closure of the York Mills site in the Greater Toronto Area.
The differences are important and merit reinforcing:
• The province made a historic commitment to maintain the OLG head office in Sault Ste. Marie and that commitment must be maintained
• The impact of job losses in Sault Ste. Marie, which is a smaller centralized community, would be far greater than in the GTA
• The cost structure of the Sault Ste. Marie site with a publicly owned facility, in contrast to a much more costly GTA site, is better value for the provincial government and taxpayers
• Oversight of OLG operations can be more efficiently carried out from the Sault Ste. Marie head office
• There is no sound business model justifying incurring higher costs in the GTA to manage lottery and gaming in Ontario
It is absolutely essential to the economy of our community that the head office of the OLG be maintained in Sault Ste. Marie.
The OLG can increase revenues and become a more modern efficient organization without closing the Sault Ste. Marie head office.
If the province is truly concerned with managing costs, the Ministry of Finance should review the corporate GTA structure and associated costs because corporate services can be delivered more efficiently in the Sault.
I trust that you will fully consider all implications of modernizing the gaming sector in Ontario and in particular commit to maintaining the OLG head office in the City of Sault Ste. Marie.
- David Orazietti, MPP Sault Ste. Marie
c. Honourable Dwight Duncan, Minister of Finance
c. Rod Phillips, President and Chief Executive Officer, Ontario Lottery and Gaming
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February 17, 2012
The Honourable Dalton McGuinty
Premier
Legislative Building·
Room 281
Queen's Park
Toronto ON M7A1A1
Dear Premier McGuinty:
Re: Ontario Lottery and Gaming
As we work to reduce the provincial deficit and ultimately balance the budget in Ontario, it is essential that we do so in a manner that has the least negative impact possible on communities and public services.
While I support the overall objective to make government more efficient and effective, there is one particular recommendation contained in the Drummond report that if implemented has the potential to do tremendous harm to our community.
The possible closure of the Ontario Lottery and Gaming (OLG) head office in Sault Ste. Marie would have a disproportionate negative impact on the city and especially the workers and families who are employed at OLG.
You may be aware that former Premier David Peterson created the Northern Ontario Relocation Program, (NORP) which was announced in 1986 and determined that the location of the OLG head office would be in Sault Ste. Marie.
As part of the program, other Northern Ontario cities experienced similar job growth with the opening of various ministry offices that remain in place today.
The consolidated lottery and gaming operation has functioned well in Sault Ste. Marie and has supported provincial objectives in a cost-effective manner.
Under CEO Ron Barbaro, who was appointed by the Harris government, the evolution of a second major office took shape at the York Mills site in the GTA. This office leased from Cadillac Fairview has far higher operational costs than
that of the publicly owned Roberta Bondar Place in Sault Ste. Marie. Additionally, all of the key -functions of the operation can and have been carried out at the Sault Ste. Marie location.
There are very strong reasons to continue maintaining jobs at OLG in Sault Ste. Marie, including:
• The historic commitment to the community by the province regarding the corporate presence which should be maintained
• The impact of job losses centralized in one much smaller community than the GTA office results in a far greater negative economic impact to the City of Sault Ste. Marie
• The cost structure of the Sault Ste. Marie site with a publicly owned facility in contrast to a much more costly GTA site is better value for the provincial government and taxpayers
• As a result, operations in Sault Ste. Marie allow the province a greater return on investment to support key government priorities such as health care and education
• Oversight of OLG operations can be more efficiently carried out from the Sault Ste. Marie head office
• There is no rationale that is based on a sound business model that warrants incurring higher costs in the GTA to manage gaming in Ontario
In summary, it is absolutely essential to the economy of our community that the head office of the OLG be maintained in Sault Ste. Marie.
The OLG can increase revenues and become a more modern efficient organization without closing the Sault Ste. Marie head office.
If the province is truly concerned with managing costs, the Ministry of Finance should review the corporate GTA structure and associated costs.
Corporate services can be delivered more efficiently in the Sault.
I trust that you will fully consider all implications of modernizing the gaming sector in Ontario and in particular commit to maintaining the OLG head office in the City of Sault Ste. Marie.
- David Orazietti, MPP Sault Ste. Marie
c. Honourable Dwight Duncan, Minister of Finance
c. Rod Phillips, president and Chief Executive Officer, Ontario Lottery and Gaming
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Earlier SooToday.com coverage of this story
EDC writes to McGuinty. Says Sault is the only OLG headquarters location
Loss of OLGC would be devastating to the Sault: Amaroso to McGuinty
OPSEU reacts to Drummond report
Time to level with people about Ontario's finances - Northern MPP
Close one OLG head office - recommendation to government
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