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Unlocking the Value of Provincial Assets
TheProvincehasawiderangeofvaluableassets,includinganextensivereal
estateportfolioandoperatingenterprises.MaintainingProvincialownership
formanyoftheseassetsremainsaprioritytodeliverkeyservicestothepublic.
Someassets,however,maynolongerserveapublicpolicypurposeandareof
particularinterestto,forexample,Ontarioslargepensionplansasgoodlong
terminvestments.
Unlockingthevalueoftheseassetsthroughoperationalimprovementsorasset
salesgivesthegovernmentaninnovativerevenuesourcetoreinvestbackintothe
economy.Netrevenuegainsfromthedivestmentofcertainassetswillbeinvested
inprovincialassetssuchasroads,bridgesandtransit.Theserevenueswillbeused
toinvestinpublicinfrastructuretoexpandOntarioseconomy,improveOntarios
competitiveness,boostproductivityandcreatejobs.
AnumberoftheProvincesassetsarenolongercriticaltodeliveringoncore
governmentprogramsorpriorities.TheseincludetheProvincesinterestin
GeneralMotorsshares,acquiredatthetimeoftheautoindustryrestructuring,
andanumberofprimelocatedrealestateassets.Thegovernmentwillnotsell
publicassetsforthepurposeofmeetingoperatingbudgetshortfalls.Instead,
netrevenuegainsfromtheseandcertainotherassetsalesareplannedtoflow
totheproposedTrilliumTrust,whichwouldhelptofundthebuildingofanew
generationofpublicinfrastructuretoimprovetheProvinceslongterm
competitivenessforthewellbeingofallOntarians.
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Asannouncedinthe2013OntarioEconomicOutlookandFiscalReview,
thegovernmenthasbeenexploringopportunitiestounlockeconomicvalue
fromLiquorControlBoardofOntarios(LCBO)headquartersandOntarioPower
Generations(OPG)headoffice.Thegovernmentwillnowmoveforwardon
divestingthoseassets.Otherrealestateassetsarebeingrevitalized,including
theformerLakeviewgeneratingstationpropertyinsoutheasternMississauga,
whichisexpectedtoseeabalancedmixofcommercial,residentialand
recreationaldevelopmentoverthenextdecade;andtheSeatonLandsin
Pickering,whereoneofthelargestnewurbancommunitiesinCanadawillbe
developedoverthenext20years.Thegovernmentwillexploreopportunitiesto
divesttheseassets.Itisalsoconsideringdivestingsomeofitsnoncoredowntown
Torontoassets,primarilyofficespace,locatedonprimecommercialland.Selling
theseandsimilarnoncoreassetsfreesupresourcestoinvestinnewpublic
infrastructure,buildingastrongerfoundationforincreasedeconomicgrowth.
TheProvincesvaluableassetsincludelargeandcomplexGovernmentBusiness
Enterprises(GBEs)suchastheLCBO,HydroOneandOPG.Toidentify
opportunitiestooptimizethefullvalueandperformanceofthesecoreassets,
thegovernmentwilllaunchanindepthreviewprocess.
ThePremiersAdvisoryCouncilonGovernmentAssetswillexaminehowtoget
themostoutofkeygovernmentassetstogeneratebetterreturnsandrevenues
forOntarians.TheCouncilwillreportdirectlytothePremierofOntarioandbe
supportedbyexistingresourceswithinthegovernment.TheCouncilhas
beengivenamandatetomaximizethevalueoftheseGBEstotheProvince,
includingsuchmeasuresasefficientgovernance,growthstrategies,
corporatereorganization,mergers,acquisitionsandpublicprivatepartnerships.
TheCouncilwillgivepreferencetocontinuedgovernmentownershipofall
corestrategicassets.
Thegovernmentiscommittedtostrengtheningtheaccountability,financial
management,andtransparencyofitsbusinessenterprises.TheCouncilwillreport
tothePremierontheLCBO,HydroOneandOPG,bytheendof2014inorderto
feedintothe2015Budgetprocess.
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Theconceptofassetrecyclingiscommonaroundtheworld,andwillhelpthe
governmentusescarceresourcestotheirbestpossibleeffectbuildingpublic
infrastructurethatwillimproveprivatesectorproductivityandOntarians
qualityoflife.
Inallitsactivities,thecouncilwillbeguidedbythreeprinciples:
Thepublicinterestremainsparamountandprotected;
DecisionsalignwithmaximizingvaluetoOntarians;and
Thedecisionprocessremainstransparent,professionaland
independentlyvalidated.
Finaldecisionswouldbemadebythegovernment.
Asset Recycling Globally
In 2014, the Australian government announced a plan to sell $130 billion (Australian
dollars) in government assets and use the proceeds to invest in new infrastructure
projects, potentially including a new International Airport in Sydney, that would create
jobs and grow the economy.
In 2010, the United Kingdom sold the high-speed train that connects London to the
Chunnel for 2.1 billion. The Ontario Municipal Employees Retirement System (OMERS)
and Ontario Teachers Pension Plan (OTPP) were the successful bidders on the 30-year
concession to operate the rail line. The U.K. government has since made significant
investments in transportation infrastructure including the Crossrail a new subway
line in London that is the largest project currently underway in Europe.
In 2013, the United Kingdom conducted an initial public offering of the British Royal
Mail, raising almost 2 billion for the British government.