The Canadian Taxpayers Federation (CTF) today called on the Ontario government to reign in losses at Ontario Northland Transportation Commission (ONTC) and further demanded for the release of its annual reports for the last five years. CTF Ontario Director, Kevin Gaudet said, "Santa doesn't get government subsidies for his reindeer and taxpayers shouldn't be on the hook for these services."
ONTC is an Ontario Crown Corporation providing telecommunications including high-speed internet and transportation services such as passenger rail services. It services Northern Ontario and Northwestern Quebec. ONTC has failed to issue an annual report since 2002. It has published audited financial statements only up to March 31, 2006. The results show losses of $1 million per month; $15 million for a 15 month period.
The results also show the Ontario Financing Authority effectively wrote off a $20.3 million loan for ONTC when it reclassified it as an investment in March 2005. As ONTC never earns positive income, taxpayers may never see a return on this investment. Taxpayers are also on the hook for an additional $20 million - an annual provincial subsidy of approximately $17.5 million plus a federal subsidy from Transport Canada of over $2.5 million.
Gaudet concluded, "the Ontario government should demand annual reports and end all subsidies to ONTC."
N.B. ONTC runs an annual train service they call 'The Santa Express'.
For more information please contact:
Kevin Gaudet at 416-203-0030 office or mobile 416-725-0501
