Service Ontario, the government-operated service provider in Ontario, has faced controversy after relocating nine of its centres to Staples Canada stores, following the conclusion of a contract with a private company. While the service itself remains under the name “Service Ontario,” the relocation of these centres has raised concerns about potential changes in the service environment and operations, as they are now integrated within Staples locations.
On January 15, the Financial Accountability Office of Ontario (FAO) reported that the move has resulted in an additional $1 million in costs, bringing the total to $11.7 million, higher than the initial estimate of $10.2 million. The FAO noted that the increase in costs was largely due to a 47.7% increase in operating hours at the new Staples-based Service Ontario locations, compared to the government’s original estimate of a 30% increase. Despite this, the cost increase was partially offset by a 30% reduction in the number of service desks.
The FAO analysis suggested that the contract with Staples would have been more expensive than continuing to operate Service Ontario centres under the previous contract, which would have cost around $10.9 million, resulting in an additional $800,000 in expenses.
However, a spokesperson for Public Enterprise Services Minister Todd McCarthy disagreed with the FAO’s analysis, claiming that the government had seen cost savings through the move. The spokesperson pointed out that the move resulted in a $1.2 million savings, provided 50% more service hours, and allowed approximately one-third of transactions to occur during extended hours.
Staples Canada will receive compensation for the setup and operational costs associated with the relocation of the Service Ontario centres. Minister McCarthy has defended the move as a tax-saving measure, expected to deliver $900,000 in savings over the next three years, primarily through reduced lease costs.