FAO RELEASES REPORT ON COST OF SERVICEONTARIO RELOCATIONS
TORONTO, January 15, 2025 – Today, the Financial Accountability Office of Ontario (FAO) released a report that examines the Province’s plan to relocate nine ServiceOntario centres into Staples Canada stores. The report provides an overview of the agreement between the Province and Staples Canada, outlines the costs associated with this agreement and compares these costs against retaining the original operators under two alternative scenarios.
In January 2024, the Province announced an agreement with Staples Canada to move nine privately operated ServiceOntario centres into Staples Canada stores for a three-year pilot program. The new ServiceOntario centres in Staples Canada stores will expand service levels by increasing operating hours by 47.7 per cent and providing some additional services compared to the ServiceOntario centres run by the previous operators. This will be partially offset by a 30 per cent reduction in the number of service desks.
The FAO estimates that the cost to relocate and operate the nine ServiceOntario centres in Staples Canada stores will total $11.7 million over the duration of the Staples Canada agreement to January 31, 2027. To estimate the net financial impact to the Province, the FAO estimated the cost of retaining the nine ServiceOntario centres with the original operators under two scenarios.
In Scenario A, the FAO estimates the cost of retaining the original operators based on the terms of their previous agreements, which is the scenario used by the Province in its own cost estimate comparison released on January 29, 2024. Under Scenario A, the FAO estimates that retaining the original operators would have cost the Province a total of $10.9 million. Compared to Scenario A, the $11.7 million cost of the Staples Canada agreement results in an additional cost of $0.8 million.
In Scenario B, the FAO estimates the cost of retaining the original operators with expanded service levels, consistent with changes implemented at other privately operated ServiceOntario locations in 2024. This scenario also incorporates the impact of upcoming changes to the compensation structure of private ServiceOntario operators in 2025. Under Scenario B, the FAO estimates that retaining the original operators would have cost the Province a total of $12.9 million. Compared to Scenario B, the $11.7 million cost of the Staples Canada agreement results in net savings of $1.2 million.
For more information, read the full report here.
Quick Facts:
- In 2023-24, the Province spent $298.9 million to support the operation of ServiceOntario telephone contact centres, online services and 276 in-person service centres throughout the province, of which 81 (29.3 per cent) were publicly operated and 195 (70.7 per cent) were privately operated.
About the FAO:
Established by the Financial Accountability Officer Act, 2013, the Financial Accountability Office of Ontario (FAO) provides independent analysis on the state of the Province’s finances, trends in the provincial economy and related matters important to the Legislative Assembly of Ontario.
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For further information, please contact:
Sophia Zhu | 416 931 5498 | SZhu@fao-on.org | fao-on.org