Home FAQ Search Memberlist User Groups Register Login   

BloggingTories.ca Forum IndexBloggingTories.ca Forum Index
    Index     FAQ     Search     Register     Login         JOIN THE DISCUSSION - CLICK HERE      

*NEW* Login or register using your Facebook account.

Not a member? Join the fastest growing conservative community!
Membership is free and takes 15 seconds


CLICK HERE or use Facebook to login or register ----> Connect



  

Post new topic   Reply to topic Page 1 of 1
View previous topic :: View next topic  
Author Message
RCO





Joined: 02 Mar 2009
Posts: 6752
Reputation: 240.4
votes: 3
Location: Ontario

PostPosted: Tue Sep 27, 2016 8:41 am    Post subject: Ontario cancels OLG lottery sale to private sector Reply with quote

( hydro one is still for sale yet they decide that selling the OLG would make no sense and make virtually no money for the province in doing so ? )


Premier Wynne defends decision to cancel OLG selloff


Scratching the sale of the provincial lottery doesn’t mean the government will zap the Hydro One sell-off, says Premier Kathleen Wynne.


Premier Kathleen Wynne says OLG will continue to modernize.

Premier Kathleen Wynne says OLG will continue to modernize. (Steve Russell / Toronto Star file photo)



By Robert BenzieQueen's Park Bureau Chief

Mon., Sept. 26, 2016


Scratching the sale of the provincial lottery doesn’t mean the government will zap the Hydro One selloff, says Premier Kathleen Wynne.

In the wake of the Ontario Lottery and Gaming Corporation’s surprise decision to cancel the privatization of its lotto franchise, Wynne defended proceeding with the controversial share offering of the electricity transmission utility.

“We asked Ed Clark and his group to look at the assets in the province and they came back to us with advice,” the premier said, referring to the former TD Bank CEO who recommended selling up to 60 per cent of Hydro One to help bankroll transportation infrastructure.

“So we have followed that advice in terms of broadening the ownership of Hydro One in order to make those investments in transit and roads and bridges across the province,” she said.

“At the same time, OLG was in the process of modernization. That process will continue. They’ve made a decision around that particular aspect in terms of the sale, but there will be other changes that will happen at OLG.”



OLG spokesman Tony Bitonti said the government-owned gambling agency scrapped the sale of its lotto arm because it didn’t make good business sense.

“The original idea to procure was to see if we could do better and earn more money for the province by going with a third party to run the entire lottery business. The answer was no,” said Bitonti.

“OLG’s lottery business is already successful. Last year was a record year with sales of $3.8 billion. The information we received was that engaging a third party to run the entire lottery business would not lead to greater value for the province,” he said.




However, Bitonti said the two-year bidding process “provided us with substantial (insight) from the industry that will inform our next steps as we develop an adjusted approach to lottery modernization.”

Progressive Conservative Leader Patrick Brown welcomed OLG’s move.

“I’m glad they’ve backed off. I hope this sets a precedent, actually, for Hydro One,” said Brown, who opposes the utility’s privatization.

“If there’s ever been a reason to back down it’s on Hydro One,” he said.

NDP MPP Jagmeet Singh (Bramalea-Gore-Malton) wondered if the Liberals have “finally realized that Ontarians did not vote for privatization.”

“People are hopeful now that with the government’s intention to . . . stop the privatization of OLG, they might actually stop the sale of Hydro One,” said Singh.

“Privatizing OLG is a bad idea. The people of this province did not vote for it. Privatizing Hydro One is an even worse idea. The people didn’t vote for it, but they don’t have a choice. They have to turn on the lights and they don’t want their public system privatized,” he said.

Queen’s Park had hoped to reap a big windfall for a business than runs Lotto 6/49 and other games, but the international auction failed to generate much interest.

The Ontario Teachers’ Pension Plan — which owns Camelot Group, one of the world’s biggest operators with lotteries in the U.K. and Ireland — and GTEH-Scientific Games, a U.S.-Italian joint venture, were the only qualified bidders after Rogers Communications abandoned its first lotto gamble.

Now, OLG will develop its own modernization strategy with smartphone sales to attract younger players.


https://www.thestar.com/news/queenspark/2016/09/26/premier-wynne-defends-decision-to-cancel-olg-selloff.html
RCO





Joined: 02 Mar 2009
Posts: 6752
Reputation: 240.4
votes: 3
Location: Ontario

PostPosted: Tue Sep 27, 2016 8:42 am    Post subject: Reply with quote

Lottery privatization proves a bad bet: Editorial


Ontario is right to cancel a proposed sale of its lottery business after OLG officials determined it wouldn’t raise enough money.


Mon., Sept. 26, 2016


Ontario has pulled its multi-billion-dollar lottery business from the auction block, illustrating yet again that selling government assets is no sure way to a windfall.

It’s a point well worth heeding, by politicians and the public, as cash-strapped federal, provincial and municipal governments increasingly look to peddle their most valuable holdings. Corporations may be eager to buy but that doesn’t mean a sale is in the people’s interest.

Witness Queen’s Park’s plan to sell its $3.8-billion lottery business, including Lotto 6/49, Lotto Max and Lottario games.

The province’s Liberal government and the Ontario Lottery and Gaming Corp. had high hopes of a lucrative deal when a request for proposals was issued two years ago, seeking a “service provider” to assume day-to-day operation of the lottery trade.

Three qualified bidders emerged: Rogers Communications; a U.S. and Italian joint venture called GTEH-Scientific Games; and the Ontario Teachers’ Pension Plan, which owns Camelot Group, one of the world’s biggest lottery operators.


A decision was expected as early as last fall but no winner was declared. Then on Friday the lottery corporation announced it was cancelling the request for proposals. By way of an explanation, a news release was issued stating: “OLG has determined that the selection of a single service provider would not provide sufficient value for the province.”

In other words, revenue that would have been obtained through a sale wasn’t enough to compensate for losing the huge dividend produced each year by Ontario’s lotteries. That’s the problem with selling government assets: the private sector is interested in solid money-makers, and there’s a very real risk that surrendering these will eventually leave the province and its taxpayers considerably poorer.

Rather than cash in now on a deal that wouldn’t pay off over the long run, OLG officials, to their credit, cancelled the sale. The province hasn’t been as wise in the past, most notably when the Harris government handed the immensely profitable Highway 407 to an international toll operator at a fire-sale price. Ontario motorists and taxpayers appear to be stuck with that debacle until a 99-year lease with the company finally expires just before the turn of the next century.

While the right call was made on privatizing Ontario’s lotteries, the Wynne government seems determined to continue with its far more worrisome sale of up to 60 per cent of Hydro One.

Ontario’s financial accountability watchdog, Stephen LeClair, warned last fall that while an immediate windfall would result, over the long run “the province’s budget balance would be worse than it would have been without the sale.”

Ontarians are justifiably leery of this sell-off, but Premier Kathleen Wynne insists privatizing Hydro One is necessary to fund a much-needed expansion of public transit and other infrastructure. She reiterated that stand on Monday, and is hardly alone.

Prime Minister Justin Trudeau’s Liberal government is considering a sell-off of public holdings, an approach referred to as “asset recycling” in this year’s federal budget. And Toronto Mayor John Tory this past week raised the possibility of privatizing a minority share of Toronto Hydro.

They should proceed with extreme caution. As with Ontario’s lotteries, when a proposed sale becomes a bad bet, it needs to be taken off the table.


https://www.thestar.com/opinion/editorials/2016/09/26/lottery-privatization-proves-a-bad-bet-editorial.html
Bugs





Joined: 16 Dec 2009
Posts: 4393
Reputation: 245.7
votes: 8

PostPosted: Tue Sep 27, 2016 5:32 pm    Post subject: Reply with quote

Do you want some German pension fund to control the lotteries?

Beware of spendthrift governments who cannot pay their bills, but which go on making promises ... they'll do terrible things to the public to save their asses.
RCO





Joined: 02 Mar 2009
Posts: 6752
Reputation: 240.4
votes: 3
Location: Ontario

PostPosted: Wed Sep 28, 2016 8:39 am    Post subject: Reply with quote

Bugs wrote:
Do you want some German pension fund to control the lotteries?

Beware of spendthrift governments who cannot pay their bills, but which go on making promises ... they'll do terrible things to the public to save their asses.



well I think its clear there was going to be no benefit to Ontario taxpayers from the sale of the OLG , it wouldn't raise enough money to be worth it and would of given control of the lottery to a private corporation only interested in making a large profit , so there was little reason to go ahead with it
cosmostein





Joined: 04 Oct 2006
Posts: 7528
Reputation: 301.2Reputation: 301.2
votes: 21
Location: The World

PostPosted: Fri Sep 30, 2016 10:57 am    Post subject: Reply with quote

Did the sale of the 407 teach governments nothing?

Long term cash generating assets are good things.

Thank goodness they are walking away from this.
Post new topic   Reply to topic Page 1 of 1

  


 
Jump to:  
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum
You cannot attach files in this forum
You cannot download files in this forum


Ontario cancels OLG lottery sale to private sector

phpBBCopyright 2001, 2005 phpBB