Economy
Taxpayers Federation: Canada’s largest city overpaying for construction $350 million a year

From the Canadian Taxpayers Federation
Author: Jay Goldberg
Favouring unions costs taxpayers dearly
They say less is more, especially when it comes to budgeting. Apparently, Toronto Mayor Olivia Chow never got the memo.
Canada’s largest city keeps overpaying on construction projects, to the tune of $350 million a year. The reason, in many cases, is that only union-affiliated firms need apply.
With modest construction contracting reform, Toronto could save a bundle and see property taxes frozen for 2025.
Over the past two years, Toronto politicians voted to increase property taxes by a whopping 18 per cent. Last year’s increase alone was 9.5 per cent.
Because of these massive property tax increases, many families were pushed to the brink.
Property tax bills for most Torontonians soared by hundreds of dollars over the past two years.
Yet so much of this pain could have been avoided with a little common-sense policymaking.
Would you refuse to even consider quotes from a non-unionized company? Or would you get quotes from everyone and then make your decision?
To nearly everyone on the planet other than Toronto’s zany politicians, the choice is obvious.
But when you’re a Toronto politician spending other people’s money, apparently open competition to find the best deal isn’t a priority.
Right now, Toronto uses a closed-tendering approach to award contracts for some of the city’s most expensive construction projects. That means only a handful of companies associated with a small group of unions can bid on those jobs.
Cardus, a non-partisan thinktank, released a report last year projecting Toronto was poised to award $1.7 billion in construction projects through a closed tendering process in 2023. Because Toronto only allows a small number of unionized construction companies to bid on those jobs, the cost goes up.
In fact, Cardus estimated Toronto taxpayers were set to overpay on construction projects in 2023 to the tune of $350 million due to a lack of competition.
Closed tendering used to be the norm in Ontario. Every city across the province overpaid on construction projects to cater to big unions.
That all changed in 2019, when the Ford government passed legislation allowing municipalities to open up the construction contracting process to real competition.
Sadly, Toronto has thus far chosen not to take advantage of the Ford government’s legislative reforms to save a boatload of cash.
But nearby cities sure have.
Consider the example of Hamilton.
Hamilton was one of the first cities in Ontario to take advantage of the Ford government’s reforms. Cardus estimates Hamilton is saving 21 per cent on its construction projects because the city opened up its contracting process. This single reform did a great deal to improve the city’s bottom line.
Yet Toronto politicians appear stuck in the past. During last year’s mayoral by-election, only two candidates, Councillor Brad Bradford and Anthony Furey, pledged to follow Hamilton in reforming construction contracts.
There has been no indication from Chow, who won that by-election, that this common-sense reform is even on the table.
Last year, Chow and council increased property taxes by 9.5 per cent, the highest property tax hike in Toronto’s history.
Had Chow implemented construction reform and saved the $350 million Cardus pointed to, last year’s property tax increase could have been wiped out entirely.
Think about that. Chow had a choice: save money through competitive bidding or hammer taxpayers with a huge tax hike.
The mayor picked the tax hike.
To break the cycle of massive property tax hikes, it’s high time Toronto looked at construction contract reform.
Taxpayers shouldn’t put up with politicians overpaying on construction contracts to the tune of hundreds of millions of dollars a year, only to see those same politicians turn around and impose record property tax hikes.
This isn’t just a problem restricted to Toronto: taxpayers from British Columbia to Quebec themselves face similar anti-competitive policies at the provincial level.
It’s time for politicians to put taxpayers, not unions, first.
Chow should implement common-sense construction contracting reforms to head off a massive property tax increase in 2025.
2025 Federal Election
Fight against carbon taxes not over yet

As the federal government removes the consumer carbon tax, the Canadian Taxpayers Federation is calling on all party leaders to oppose all carbon taxes, including the hidden tax on business.
“Canadians fought hard to force Ottawa to back down on its consumer carbon tax and now the fight moves to stopping the hidden carbon tax on business,” said Franco Terrazzano, CTF Federal Director. “Canadians can’t afford a carbon tax on business that pushes up prices at the gas station and makes it harder for our businesses to compete while they’re already struggling with a trade war.”
Today, the federal government cut the consumer carbon tax rate to $0. This will reduce taxes by about 17 cents per litre of gasoline, 21 cents per litre of diesel and 15 cents per cubic metre of natural gas.
The federal government still imposes an industrial carbon tax on oil and gas, steel and fertilizer businesses, among others.
During the Liberal Party leadership race, Prime Minister Mark Carney said he would “improve and tighten” the industrial carbon tax and “extend the framework to 2035.”
Just 12 per cent of Canadians believe businesses pay most of the cost of the industrial carbon tax, according to a Leger poll commissioned by the CTF. Meanwhile, 70 per cent said businesses would pass most or some carbon tax costs on to consumers.
Conservative Party Leader Pierre Poilievre said he will “repeal the entire carbon tax law, including the tax on Canadian businesses and industries.”
“Carbon taxes on refineries make gas more expensive, carbon taxes on utilities make home heating more expensive and carbon taxes on fertilizer plants increase costs for farmers and that makes groceries more expensive,” Terrazzano said. “Canadians know Poilievre will end all carbon taxes and Canadians know Carney’s carbon tax costs won’t be zero.
“Carney owes Canadians a clear answer: How much will your carbon tax cost?”
2025 Federal Election
Poilievre, Conservatives receive election endorsement from large Canadian trade union

From LifeSiteNews
The International Brotherhood of Boilermakers said Conservative prime minister candidate Pierre Poilievre ‘understands that the surest and most sustainable route to providing a cleaner environment is through technology, not dismantling our energy sectors, raising taxes, importing energy from other nations, and shipping Canadian jobs abroad.’
Conservative Party of Canada (CPC) leader Pierre Poilievre gained the support of one of Canada’s largest trade unions to become the nation’s next Prime Minister in what is an unprecedented show of favor to the conservatives.
An open letter statement published March 24 by the Arnie Stadnick, the International Brotherhood of Boilermakers’ vice president, stated that it is in its “interest” to announce its “endorsement for Pierre Poilievre and all the conservative candidates across Canada in this federal election.”
“Pierre gets it. He knows and understands that the surest and most sustainable route to providing a cleaner environment is through technology, not dismantling our energy sectors, raising taxes, importing energy from other nations, and shipping Canadian jobs abroad,” Stadnick wrote.
The Boilermakers, who represent about 12,000 skilled trades workers in many industries such as shipbuilding, manufacturing, and energy, said it supports Poilievre’s “Boots not Suits” policy that looks to expand training for tradespeople in the nation and increase grants.
“This plan is designed to strengthen the workforce and reduce reliance on foreign labour, adding 350,000 Canadian workers to job sites over five years,” the Boilermakers’ union noted.
“We believe that Pierre Poilievre is the man best equipped to support all of us in the work that we do.”
The Coalition of Concerned Manufacturers and Businesses of Canada also endorsed the Conservative leader with a statement last week, saying it “strongly supports the election of Pierre Poilievre as the next Prime Minister of Canada.”
Canada will hold its next federal election on April 28 after Prime Minister Mark Carney, who took over from Justin Trudeau a few weeks ago, triggered it a week ago.
Poilievre has blasted Carney as an “establishment” Liberal politician who was “installed” by “Justin Trudeau’s insiders.”
Carney thus far appears to not have gained the favor of Canada’s trade workers, as could be seen from a recent incident involving a Canadian construction worker. A video of this worker went viral online after the worker “vowed” not to “shake the hand” of Carney at a recent press conference in Alberta.
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