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: Unlocking Value to Build Ontario Up

Backgrounder April 23, 2015

Ontario is moving ahead with its plan to unlock the value of certain public assets to help support unprecedented investments in transit, transportation and other priority infrastructure projects through the Moving Ontario Forward plan.

The government is expanding beer sales to up to an additional 450 locations across the province to give Ontarians more convenience and choice, and will also broaden the ownership of Hydro One to create lasting public benefits and ongoing public and ratepayer protections.

Increasing Consumer Convenience and Choice

Expanding beer sales to grocery stores provides consumers with more convenience, improved choice and better customer service while maintaining Ontario’s strong commitment to social responsibility.

QUICK FACTS:

These measures represent the most significant changes to the province’s alcohol retailing sector in nearly 90 years.

The Province will ensure the sale of alcohol is restricted to set hours and is in a designated section of each store, and that all staff selling alcohol in grocery stores are properly certified and fully trained to ensure Ontario’s standards for social responsibility are always met.

Ontarians will pay the same price for the same beer, regardless of where it is sold.

The LCBO will pilot the sale of 12-packs of beer in 10 stores across the province.

The government intends to introduce legislation that would, if passed, permit these changes to be implemented.

450 locations

Up to 450 locations will be authorized to sell beer across Ontario.

10-year agreement

A new 10-year agreement with the Beer Store will improve placement, shelf space and other marketing practices for small and craft brewers.

Beyond 2017

The Ontario Deposit Return Program will be extended beyond 2017.

$100 million

The Beer Store will spend $100 million in capital over the next four years to enhance the customer experience at their retail outlets.

The Trillium Trust

The Trillium Trust is a tool that supports the government’s assets plan. Net proceeds from the sale of qualifying provincial assets would be credited to the Trillium Trust, which, in turn, will be used to fund infrastructure projects that will create jobs and strengthen the economy to build Ontario up.

QUICK FACTS:

The net gain of broadening the ownership of Hydro One is estimated by the Premier’s Advisory Council on Government Assets at about $4 billion.

This contributes to the government’s increased asset optimization target of $5.7 billion.

This results in an additional $2.6 billion in dedicated funds from what was included in the 2014 Budget, which would be directed to Moving Ontario Forward, through the Trillium Trust, for a total of $31.5 billion over 10 years.

The Moving Ontario Forward plan is expected to support over 20,000 jobs per year, on average, in construction and related industries.

The Road to Maximizing Assets