LTE: Mayor Tory Missing the Obvious


Liquor sales, licence plates among tax targets for Toronto’s city manager, Nov. 24

From road tolls to a new hotel tax, the mayor and Toronto city staff claim they’re laying out every option to defray a massive capital-funding shortfall. If that’s the case, why are they overlooking the obvious?

Toronto could realize millions in savings by changing the way construction projects are tendered. In a city that prides itself on being competitive, Toronto continues to tender taxpayer-funded infrastructure projects to companies with ties to select unions only.

There’s a growing body of research to show this lack of competition drives up construction costs by anywhere from 20 to 30 per cent. Apply that to the billions of dollars in work the city performs each year and it translates into major savings that could go a long way in expanding public transit.

Darrel Reid, VP, Policy and Advocacy, Progressive Contractors Association of Canada