Local MPP Ted Arnott is taking the government to task on its decision to justify the halt to the Slots at Racetracks program, claiming the Liberals decided to end the program without a formal study of the economic impact it will have on the equine industry.
Both Arnott and Perth-Wellington MPP Randy Pettapiece filed and received a Freedom of Information request on the timing of the budget decision to end the program and when the findings of a study were released.
“That document, released today by MPPs Arnott and Pettapiece, offered confidential advice to cabinet on the economic impact of ending the Slots at Racetracks Program,” the two MPPs said in a press release. “That report is dated March 14, 2012 – two days after finance minister Dwight Duncan announced he was ending the partnership between the Ontario Lottery and Gaming Corporation (OLG) and the province’s racetracks.”
The program provided some $345 million to the industry derived from casino profits.
The study, conducted by ministry of finance staff, claims the province would benefit from redirecting the funds to health and education.
“Re-allocation of the $345 million SARP subsidy to health and education, in addition to benefiting the long-term sustainable prosperity of Ontario, would have a positive net impact on jobs and economic growth in the short term,” a portion of the report stated.
Redirecting the money to health and education would see a “$360 million to $380 million boost to Ontario’s (Gross Domestic Product) GDP (based on 2010 dollars) annually (with) annual employment gains of 5,700 to 6,700,” the study also found.
The Liberal government has been looking at ways to reduce the province’s $15 billion deficit.
In Wellington County the equine industry has voiced strong concerns about the loss of the program. The county itself hosted a public meeting in late May and recently released a five-minute documentary on the economic impact the program loss will have on the local economy. The county video was expected to be sent to all MPPs in a bid to influence the government to reverse its decision to cut the program. It is also being provided to municipal politicians attending the upcoming Association of Municipalities of Ontario (AMO) convention.
The government established a cross-party transition team with a budget of $50 million in a bid to reduce the economic impact the decision will have on the equine industry. The team is comprised of three former cabinet ministers, Elmer Buchanan, NDP, Liberal John Wilkinson and Conservative John Snobelen. The team is charged with providing recommendations to the government on how to divide up transition money.
It’s anticipated locally the loss of the program would result in thousands of jobs lost along with millions in revenue.
The Grand River Racetrack in Elora generates some $33 million annually into the local economy.
At a public screening of the county documentary on July 31, county warden Chris White said he believed there is enough opposition to the government’s decision and enough information on its impact to persuade the Liberals to reverse the budget decision.
“This report exposes the sheer arrogance of this Liberal government toward the horse racing industry – not to mention thousands of people whose jobs are on the line,” Pettapiece said in the joint News release. “It’s as if they just cooked up this report after the fact to try and defend a decision they had already made.”
Arnott agreed, while questioning the legitimacy of the report’s findings.
“To the extent that they studied the economic impact, it was superficial and flawed in many respects. Their numbers are highly questionable, and likely won’t hold up under scrutiny.”
“It looks like it was done on the back of a napkin,” Arnott added. “The report dramatically understates the potential job losses, completely overlooking the true economic spin-offs the equine industry creates throughout rural Ontario.”
Arnott said he “respects” the transition team and hopes they will eventually throw support behind the equine industry.
He expects the team might hold a press conference later this month, but would not speculate on what the team might report.
