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Ontario Delivering Better Value For Taxpayers

McGuinty Government Banning Public Sector Perks, Reducing Agencies

Ministry of Finance

Ontario is eliminating waste and finding savings by proposing to ban public sector perks, eliminate unnecessary government agencies and cancelling awards.

The proposed ban on perks would eliminate funding throughout the broader public sector for things like golf memberships, season tickets to sporting events or lump sum payments for travel without receipts.  Proposed legislation would impact hospitals, universities and all government agencies.

The number of government agencies will also be reduced by 5 per cent.  Some agencies have functions that could be performed within government or cease to exist, and some have overlapping responsibilities or could be amalgamated.

The province will also discontinue both the Discovery and Catalyst Awards, saving taxpayers close to $2.5 million annually.

Ontario's projected deficit is 25 per cent lower than one year ago.  The government has taken other restraint measures including:

  • 3 year salary freeze for all MPPs
  • 2 year compensation freeze for non-bargaining broader public sector employees
  • Reducing the size of the Ontario Public Service by 5 per cent
  • Cut reliance on outside consultants by 50 per cent, so far

In the coming months the government will be announcing further measures to find savings that can be used to protect public services in schools and hospitals, and reduce the deficit.

Quick Facts

  • There are currently more than 250 agencies throughout the government of Ontario, some over a century old.
  • Since 2004, the McGuinty government has found over $915 million in annual savings through lower administrative costs, better use of technology and other initiatives.
  • $111 million was saved in the last five months of 2008-09 by slowing new spending and restraining government expenditures.
  • Earlier this year the government reduced the cost of generic prescription drugs by 50%, helping to reinvest$500 million per year into health care.
  • Streamlining corporate and retail sales tax collection through the federal government is saving taxpayers $440 million over 5 years.

Additional Resources


“Ontario families are managing responsibly, eliminating waste in their budget and focusing on priorities, and we are too. This is one example of how we're saving money to reduce the deficit and protect the gains we're making in our schools and health care.”

Dwight Duncan

Minister of Finance

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