A Better Way to Manage Government Real Estate for Real Savings

Peter Bethlenfalvy is MPP for Pickering — Uxbridge and President of the Treasury Board of Ontario. This blog is one instalment in a series on the Ontario government’s Smart Initiatives, aimed at generating savings and improving user experience through innovative approaches to government. Read his previous blog here.

It may surprise you to know, but currently the government of Ontario owns hundreds of unused properties (from office buildings to empty lots) across the province. These properties aren’t in use and they don’t generate any value for Ontarians. Instead, through maintenance costs and property taxes, these unused properties actually cost the people of Ontario almost $10 million every year.

That’s $10 million that is currently generating no value for the people of Ontario. It could otherwise be spent to support front-line workers, invested in hospitals or schools, or returned to the people through tax cuts.

These properties can be put to better use. Community entrepreneurs, for one, could use these properties for new businesses or redevelopment. In the same way, our government has committed to ensuring, where possible and practical, we identify appropriate properties for the development of affordable housing and long-term care spaces. Through this plan, not only would we eliminate nearly $10 million in yearly costs from the government’s books, but we could generate an estimated $105-$135 million.

Building a smarter government requires more than just changing the way we utilize unused government properties. The province of Ontario currently rents a significant amount of real estate for Ministry offices. Similarly, we help fund properties owned by the broader public sector (hospitals, school board, colleges and universities). Our government is undertaking a comprehensive inventory and review of properties we own and rent.

By doing this, our government can ensure we’re putting these properties to better use. It may make more sense to consolidate office space where there are many rentals across several buildings. Likewise, it may make sense for a school’s administrative staff to make use of unused offices already owned or rented by hospital administrators.

None of this was possible under the previous system. Until now, each Ministry was responsible for these decisions independently. That meant, in effect, that decisions were siloed and lacked a coordinate, efficient approach. Under our plan, the needs of all Ministries will be clear, allowing a comprehensive understanding of exactly how many staff need how much space and where that space needs to be.

By coordinating real estate across Ministries, putting unused government properties to use, and better managing the office space we own and rent, we can save millions in ongoing costs while also generating new revenue for the province. Those savings represent additional tax dollars that don’t need to be taken from the people of Ontario, and additional services that don’t need to see their funding reduced.

It’s just one way we’re building smarter government for the people of Ontario. Stay tuned to this page and my Twitter, Facebook, and LinkedIn accounts to stay up-to-date on our government’s Smart Initiatives.