Ministry of Finance
April 2008

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LEGISLATION

The following is a list of the legislation for which the Ministry of Finance has primary legislative or administrative responsibility, sorted by the core business and the item or sub-item.

Tax Policy, Budget and Revenue Operations

Item 1202-1:  Budget and Taxation Policy

Crown Foundations Act, 1996
Estate Administration Tax Act, 1998 (shared with Ministry of Revenue)
Ministry of Revenue Act (shared with Ministry of Revenue)
Taxpayer Protection Act, 1999
Pension Benefits Act, 1990 (joint with the Financial Services Commission of Ontario)
Commercial Concentration Tax Act (shared with Ministry of Revenue)
Community Small Business Investment Funds Act (shared with Ministry of Revenue)
Corporations Tax Act (shared with Ministry of Revenue)
Employer Health Tax Act (shared with Ministry of Revenue)
Fuel Tax Act (shared with Ministry of Revenue)
Gasoline Tax Act (shared with Ministry of Revenue)
Highway Traffic Act (only specified provisions) (shared with Ministry of Revenue)
Land Transfer Tax Act (shared with Ministry of Revenue)
Mining Tax Act (shared with Ministry of Revenue)
Race Tracks Tax Act (shared with Ministry of Revenue)
Retail Sales Tax Act (shared with Ministry of Revenue)
Tobacco Tax Act (shared with Ministry of Revenue)
Ontario Guaranteed Annual Income Act (shared with Ministry of Revenue)
Income Tax Act (Ontario) (shared with Ministry of Revenue)
City of Toronto Act, 2006 (joint)
Ontario Home Ownership Savings Plan Act (shared with Ministry of Revenue)
Succession Duty Act Supplementary Provisions Act, 1980 (shared with Ministry of Revenue)
Small Business Development Corporations Act (shared with Ministry of Revenue)
Taxation Act, 2007 (shared with Ministry of Revenue)

Economic, Fiscal and Financial Policy

Item 1203-1: Economic Policy

Statistics Act

Item 1203-5 Provincial-Local Finance Division

Assessment Act
City of Toronto Act, 2006 (joint)
Municipal Property Assessment Corporation Act, 1997
Municipal Act, 2001 (joint)
Education Act (joint)
Provincial Land Tax Act (joint) (shared with Ministry of Revenue)
Provincial Land Tax Act, (2006) (in force on January 1, 2009) (shared with Ministry of Revenue)
Electricity Act, 1998 (only specific provisions)
Tax Incentive Zone Act (Pilot Projects), 2002
Tax Increment Financing Act, 2006

Item 1203-8 Treasury Board Office     

Auditor General Act
Capital Investment Plan Act, 1993 (joint)
Financial Administration Act (joint)
Fiscal Transparency and Accountability Act, 2004
Interim Appropriation Acts
Ministry of Treasury and Economics Act
Public Sector Salary Disclosure Act, 1996
Supply Act
Treasury Board Act, 1991

     

Financial Services Industry Regulation

Item 1204-1: Financial Services Commission of Ontario

Automobile Insurance Rate Stabilization Act, 2003
Compulsory Automobile Insurance Act
Co-operative Corporations Act
Credit Unions and Caisses Populaires Act, 1994
Financial Services Commission of Ontario Act, 1997
Insurance Act
Loan and Trust Corporations Act
Marine Insurance Act
Mortgage Brokers Act
Mortgage Brokerages, Lenders and Administrators Act, 2006
Pension Benefits Act
Prepaid Hospital and Medical Services Act
Registered Insurance Brokers Act

Item 1204-2: Motor Vehicle Accident Claims Fund

Motor Vehicle Accident Claims Act

Securities Regulation

Commodity Futures Act
Securities Act
Toronto Futures Exchange Act
Toronto Stock Exchange Act
Canadian Public Accountability Board Act (Ontario), 2006
Trust Beneficiaries’ Liability Act, 2004

Treasury

Statutory Item: Interest on Debt for Provincial Purposes

Capital Investment Plan Act, 1993 (joint)
Financial Administration Act (joint)
Ontario Loan Acts
Electricity Act, 1998 (joint)

Other

Province of Ontario Savings Office Act, 1990
Province of Ontario Savings Office Privatization Act, 2002
Skydome Act (Bus Parking), 2002
Unclaimed Intangible Property Act, 1990
MPPs Pension Act, 1996
Social Contract Act, 1993      

SUMMARY FINANCIAL INFORMATION

Table 1: Ministry Planned Expenditures 2008/09($M)

	Ministry Planned Expenditures 2008/09
Operating	9,986
Capital	-

 

Table2: Operating and Capital Summary by Vote

Votes/Programs	Estimates 2008/09 $	Change from 2007/08 Estimates $	%	Estimates 2007/08 $	Interim Actuals 2007/08 $	Actuals 2006/07 $
OPERATING AND CAPITAL
Ministry Administration	138,856,200	(8,584,800)	(5.8)	147,441,000	129,592,500	120,222,562
Tax Policy and Budget Operations	69,454,100	56,404,900	432.2	13,049,200	13,747,400	121,718,899
Economic, Fiscal and Financial Policy	1,964,646,500	(548,824,100)	(21.8)	2,513,470,600	1,442,230,700	943,897,831
Financial Service Industry Regulation	8,401,000	1,900,000	29.2	6,501,000	6,500,100	215,896
Results Office	-	(3,117,200)	(100.0)	3,117,200	3,117,200	660,000
Investing In Ontario	1,000	(1,999,999,000)	(100.0)	2,000,000,000
Total Including Special Warrants	2,181,358,800	(2,502,220,200)	(53.4)	4,683,579,000	1,595,187,900	1,186,715,188
Less: Special Warrants	-	(429,300,000)	(100.0)	429,300,000	-	-
Total to be Voted	2,181,358,800	(2,072,920,200)	(48.7)	4,254,279,000	1,595,187,900	1,186,715,188
Special Warrants	-	(429,300,000)	(100.0)	429,300,000	-	-
Statutory Appropriations
Treasury Program	7,803,600,000	(122,400,000)	(1.5)	7,926,000,000	7,672,258,722	7,667,111,613
Other Statutory Appropriations	67,014	2,315	3.6	64,699	63,699	662,821
Ministry Total Operating	9,985,025,814	(2,624,617,885)	(20.8)	12,609,643,699	9,267,510,321	8,854,489,622
ASSETS
Economic, Fiscal and Financial Policy	1,000	1,000		-	-	-
Total Assets to be Voted	1,000	1,000		-	-	-

*Includes Contingency Fund of $420 million.

Appendix I: 2007-08 Annual Report
Ministry of Finance

2007/08 Achievements

The Ministry of Finance is responsible for the delivery of a multi-faceted range of strategic roles and activities in support of the Ontario Government’s key priorities.  These are some highlights of the ministry’s 2007-08 achievements.

Office of the Budget and Taxation

• Ontario Child Benefit – Designed and developed the Ontario Child Benefit (OCB) that fundamentally reforms the system of cash benefits for low income families with children. The OCB is a signature initiative for the Government. Implemented the OCB down payment in July 2007, fulfilling a key 2007 Budget commitment to reform cash benefits for all low-income families with children.
• Enhancing Ontario’s Competitiveness – Designed various corporate tax initiatives to better support Ontario businesses. These measures included proposed cuts to the capital tax for all corporations and elimination of the tax for manufacturing and resource companies, and proposed increases in tax support for film, television and digital media productions, small businesses and innovation.
• Enhancing Tax Support for Innovation – A new and unique tax incentive was proposed in the 2008 Budget to support the commercialization of research in priority areas such as clean technologies and advanced health technologies. New corporations that commercialize research by Canadian universities, colleges and research institutes would be exempt from Ontario corporate income tax for 10 years.
• Protecting the Environment – Developed initiatives in support of the government’s climate change plan, which included a retail sales tax exemption for energy efficient appliances.
• Coordinating Government Analysis of City of Toronto Act Tax Issues – Led an inter-ministerial working group providing analysis and leadership for City of Toronto Act tax issues.
• Streamlining Legislation – Consolidated the Income Tax Act and the Corporations Tax Act into the Taxation Act, 2007, which cuts the volume of personal and corporate tax legislation and regulations by more than 50 per cent. In collaboration with the Ministry of Revenue, will provide legislative support for the proposed Taxes Administration Act, announced in the 2008 Budget, which would combine common provincial tax administration rules.
• Locked-in Funds – Enacted regulations that fulfilled the government's 2007 Budget commitment to introduce a new life income fund (LIF) that provides more flexible incomes for seniors in retirement and permits up to 25 per cent of the funds to be unlocked. The new LIF provides seniors who hold locked-in retirement savings transferred from employment pension plans increased flexibility in managing their retirement income. The regulations permitting the new LIF were enacted in July 2007, introducing the new LIF effective January 1, 2008.
• Legislating Tax Measures – Legislated 2007 Budget tax measures through Bill 187. Introduced legislation (Bill 24 and Bill 44) to implement tax measures proposed in the 2007 Economic Outlook and Fiscal Review and the 2008 Budget.
• Providing Information to Taxpayers – Prepared third annual report of the estimated cost of expenditures made through the tax system.

Office of Economic Policy

• Pre Election Report – Played a key role in producing first-ever Pre Election Report on Ontario’s Finances and facilitated the Auditor General’s successful review of the report that concluded the fiscal plan presented in the 2007 Ontario Budget was a reasonable basis for planning.
• Release of Quarterly Ontario Economic Accounts – Released Quarterly Ontario Economic Accounts within the timelines required by the Fiscal Transparency and Accountability Act, 2004 (FTAA).
• Analysis of Unexpected Market Developments – Conducted analysis of unexpected developments in the economic environment including: financial market instability, the softening U.S. economy, record-high oil prices and the stronger Canadian dollar.
• 2007 Economic Outlook and Fiscal Review – Delivered the 2007 Economic Outlook and Fiscal Review required by FTAA. (This document is also known as the Fall Economic Statement)
• Amendments to Legislation Governing the Financial Sector in Ontario – Significant amendments were made in 2007 to the Credit Unions and Caisses Populaires Act, 1994 that will modernize the business powers of these community-based financial institutions and streamline regulatory requirements. The licensing provisions of the new Mortgage Brokerages, Lenders and Administrators Act, 2006 came into force on March 1, 2008 and the act will be fully proclaimed on July 1, 2008.  The supporting licensing regulations which also came into effect on March 1, 2008 were developed as a result of continued robust consultation with the industry.
• Supporting the Government’s Five Point Economic Plan – Supported the implementation of the government's five point economic plan by providing expert analysis and advice on effective policy and program design for the 2007 Fall Economic Statement and the 2008 Budget, e.g., the Skills-to-Jobs Action Plan, investments in innovation and key sectors, such as manufacturing, forestry, agriculture and the entertainment and creative cluster.  

Provincial-Local Finance

• Upload of Ontario Drug Benefit and Ontario Disability Support Programs – Announcement of the upload of the municipal share of costs for the Ontario Drug Benefit (ODB) program (completed in January 2008) and the Ontario Disability Support Program (ODSP), which will reduce municipal costs by 2011 by over $900 million annually.
• Phase-out of GTA Pooling – Partnering with other ministries to phase-out the Greater Toronto Area (GTA) pooling.  The plan will eliminate a $200 million burden from the municipal property tax bases of contributing GTA municipalities.  Under this plan, the Province will also take responsibility for social assistance and social housing costs currently funded under the program.
• Reducing Business Education Tax (BET) Rates – Initiating a $540 million cut to high Business Education Tax rates over seven years and announcement of accelerated reductions for northern businesses.
• Changes to the Property Assessment Appeal System – The government intends to introduce legislation to implement changes to the assessment appeal system announced in the 2007 Budget — changes designed to create a more streamlined and transparent appeal system. These measures are proposed to take effect for the 2009 taxation year. Details about the proposed new appeal procedures and deadlines will be communicated to property owners in the coming months, prior to the 2009 implementation date.  

Fiscal Strategy and Coordination

• Providing Leadership in Fiscal and Financial Planning – Led the coordination and monitoring of the Province’s fiscal plan and outlook and played a key role in developing the 2008 Budget, 2007 Economic Outlook and Fiscal Review, and quarterly updates of the Province’s finances.  Also provided support to the Ontario Auditor General in the review of the Province’s 2007 Pre-election Report.
• Supporting Strategic Decision-making – Provided advice and analysis to the Minister, Priorities and Planning Board, Treasury Board, Management Board of Cabinet and other committees of Cabinet on government fiscal policy and specific program expenditures by reviewing ministry submissions and monitoring expenditures and non-tax revenues.
• Enhancing Transparency and Accountability through Cross-ministry Consultation and Communication of Best Practices – Developed and published the Program Evaluation Reference and Resource Guide for the Ontario Public Service (OPS) incorporating seven types of program evaluation methodologies and the OPS Evaluation Framework.  Established a Vendor of Record arrangement with twenty-nine vendors for program evaluation and performance measurement services across the Province.
• Developing Focused and Clear Service Relationships with Ministries –Provided financial, economic, risk and strategic policy analysis and advice by assisting ministries in developing their multi-year results-based plans and in-year Treasury Board/Management Board of Cabinet submissions.  In addition, the division’s portfolio units promoted effective partnerships with other ministries and agencies to support sound, timely decisions, the delivery of priorities that are in line with the fiscal plan and to improve their performance measures.
• Building Federal/Provincial Partnerships – Contributed to securing equitable treatment in federal funding arrangements under the Canada Social Transfer by achieving a resolution with respect to funding under the Canada-Ontario Agreement, and finalizing a labour market agreement with the federal government.
• Managing and Providing Operational and Administrative Support to Treasury Board and Management Board of Cabinet – Developing focused and clear service relationships with ministries by assisting management in making policy and program and operational decisions and providing financial and fiscal advice in planning, managing and controlling a ministry’s activities and resources. 
• Modernizing Ontario’s Supply Process – Developed options and recommendations, in consultation with the ministry’s Legal Services Branch, resulting in the introduction of the Interim Appropriation Act 2007, authorizing government expenditures prior to the beginning of the new fiscal year – a first in Ontario. 

Office of the Provincial Controller

• Efficient and Effective Reporting – Delivered in a timely manner the 2006-07 Annual Report and Consolidated Financial Statements; the 2007 Pre-Election Report on Ontario’s Finances; the Disclosure for 2007 under the Public Sector Salary Disclosure Act, 1996 report; and the 2007 Economic Outlook and Fiscal Review and Quarterly financial reports required by the Fiscal Transparency and Accountability Act (FTAA).
• Strengthening Accountability – Worked with the Auditor General to ensure significant provisions of the new Transfer Payment Accountability Directive were applied to year-end transfer payments without compromising their accounting treatment.  In addition, improved timelines of the Province’s financial reporting were established when the 2008 Budget was tabled prior to the beginning of the 2008-09 fiscal year.

Broader Public Sector – Supply Chain Secretariat

• Hospital Regional Supply Chains – Seventy-five hospitals representing 70 per cent of the sector have received funding from OntarioBuys to help modernize and streamline their systems for ordering, storing and paying for supplies.  Hospitals that received early funding are already experiencing lower unit costs, reduced inventory levels with fewer stockouts and less time spent by nurses searching for supplies.  Once fully implemented across the hospital sector, savings of more than $50 million annually are expected, with improved productivity and internal service quality.  Annual savings already exceed $10 million and internal service levels have been improved.
• e-Supply Chain Project – The OntarioBuys e-Supply Chain Project accelerated the adoption of e-commerce tools and processes by 46 facilities comprising 30 per cent of the hospital system.  Completed during 2007-08, this two-year project was a resounding success with clear patient benefits, improved supply chain effectiveness and lower hospital costs.  A one-time investment of $13 million has yielded annual savings of $7 million, which have been redirected towards patient care and other valuable activities.  A detailed report and “roadmap” was released at the Ontario Hospital Association (OHA) November 2007 convention.
• Hospital Supply Chain Performance Metrics and Standards Initiative – Phase 2 – The Hospital Supply Chain Performance Metrics Working Group, sponsored by OntarioBuys, published its Phase 1 report in November 2006 which identified 48 supply chain metrics and 21 standards.  During 2007, the Working Group undertook a Phase II mandate to refine the initial list of standards and metrics.  In addition, the Working Group recommended a subset list of metrics and standards prioritized by ease of implementation and importance.  By summer of 2008, the Working Group expects to publish the Phase II report to support BPS adoption of common supply chain metrics and standards for the Ontario Hospital sector which spends over $2 billion in goods and services annually.
• Ontario Education Collaborative Marketplace (OECM) – The Ontario Education Collaborative Marketplace (OECM) has been established to facilitate group purchasing and introduce an integrated electronic marketplace.  Once implemented, savings and productivity gains are expected to exceed $250 million over five years and will be redirected to supplies, equipment and other student needs.
• Electronic Books and Ontario Data Extraction and Infrastructure Service – Ontario Council of University Libraries received funding in 2007-08 to scan 50,000 books and make them available online to university students.  Within 12 months, 100,000 books had been scanned – creating jobs for students and providing 24/7 access to materials for students across Ontario.
• Operating Room Supply Chain (ORSC) Initiative – In 2005, the Ministry of Health and Long Term Care (MOHLTC) Surgical Process Analysis and Improvement Expert Panel recommended a plan to improve surgical efficiencies in Ontario’s hospitals and identified eight supply chain best practices targets.  Working in close partnership with MOHLTC and the OHA, in October 2007 the BPS Supply Chain Secretariat organized a well attended ORSC Conference and launched the ORSC pilot program.  Funding was provided to eight hospitals at the end of 2007/08, assisting them to identify and achieve benefits that can be realized through ORSC improvements over the next 15 months.  With an investment under $3 million, the program is expected to yield an annual savings of almost $1.0 million and a one-time inventory savings of close to $0.9 million.

Ministry Administration

• Corporate Tax Harmonization – Delivered electronic access to enable the Ontario and Federal governments to share corporate tax information as part of the intergovernmental initiative on corporate tax harmonization.
• Modernizing Ontario Systems for Tax Administration Project – Implemented the first phase of the Modernizing Ontario system for Tax Administration project, which replaced the outdated Retail Sales Tax system.  This initiative positions the Ministry of Revenue to apply other changes to address tax clients’ needs for simpler ways to do business with the Ontario government.
• Developed Information Technology Solutions – Developed information technology solutions to support initiatives from the 2007 Ontario Budget including the Ontario Child Benefit, Rental Opportunities for Ontario Families and Corporate Minimum Tax.
• Maximizing Cash Management – Revenue Operations and Client Services Branch (ROCSB) deposits and reports on multiple streams of revenue that are due to the Province of Ontario on the same day that they are received, maximizing the Ontario Financing Authority’s cash management/investment potential.
• Modernizing Image-based Payment Processing Technology – In 2007/08 ROCSB’s image-based payment processing technology infrastructure was modernized to ensure the sustainability of this core government service over the next 10 years.
• More Efficient Revenue Processing – In 2007/08 ROCSB established partnerships with the Federal Government to enable ROCSB to electronically process all federal transfer payments to the Province.  In addition, a partnership was established with the Ministry of Government and Consumer Services, Ontario Shared Services to enable ROCSB to process all provincial Accounts receivable.

Financial Services Commission of Ontario

• New Legislation for the Mortgage Broker Industry – Worked to implement the new Mortgage Brokerages, Lenders and Administrators Act, 2006.  The new act will provide better protection for consumers as it imposes new licensing requirements on the entire industry.  The new act also requires members of the industry to meet strict education requirements as well as Standards of Practice.
• Protecting Investors – Completed a consultation with members of the financial services sector as well as investors, on a framework for disclosing information about mutual funds and segregated funds to investors at the time of purchase.  The consultation was done with the Joint Forum. 
• Model Pension Law – Developed the principles for a model pension law that federal and provincial governments could take into consideration when making amendments to pension legislation.  The principles were drafted as part of the work done by the Canadian Association of Pension Supervisory Authorities and relate to registration and basic pension entitlements. 
• Risk Based Regulation – Developed proposed best practices for risk-based market conduct regulation in the insurance industry.  The best practices were drafted as part of the work done by the Canadian Council of Insurance Regulators.
• Streamlining Legislation – Developed a plan to implement amendments to the Credit Unions and Caisses Populaires Act, 1994, once proclaimed; developed amendments to the Co-operative Corporations Act and regulations and developed proposals for the implementation of “prudent portfolio” rules to provide increased flexibility to insurers in their investment decisions.
• Improving Auto Insurance Sector – Developed a framework for a five year review of the auto insurance system to facilitate updates and improvements to the current system. 
• Protecting Consumers – Worked to transfer the responsibility for oversight of Statutory Accident Benefits representatives (paralegals) to the Law Society of Upper Canada.
• Enhanced Data Collection – Adopted improved methods of collecting insurance company complaint data together with other regulators. The goal is to create a national complaint report data system.

Agencies, Boards and Commissions

• Protection for Investors – The Ontario Securities Commission (OSC) created a specialized multi-disciplinary enforcement unit to provide protection to investors against frauds and scams.
• Modernization of Prospectus Requirements – The OSC implemented new rules to harmonize and modernize prospectus requirements for all issuers with other Canadian jurisdictions.
• Harmonization of Take-over Bid and Issuer Bid Requirements – Achieved harmonization with new take-over bid and issuer bid requirements to provide greater certainty and clarity to this area of securities regulation.
• Completed the Province’s Borrowing Requirements – The Ontario Financing Authority (OFA) met the Province’s borrowing requirements of $18 billion, of which 86% was completed in the domestic market, including the Ontario Savings Bonds Program.
• Flexible and Diversified Approach to Borrowing – The OFA maintained a flexible and diversified approach to borrowing, through monitoring of international capital markets, to minimize debt service costs.
• Centralized Framework for Financing Public Bodies – The OFA developed a centralized framework for financing public bodies.
• Completed the Implemented Results of Tenders – The OFA completed and implemented results of new tenders for banking, cash management and card services.
• Monitoring the Ontario Electricity Financial Corporation (OEFC) – Monitored the operating results of OEFC in reducing stranded hydro debt by almost $1.1 billion.
• Lending to the Ontario Power Generation (OPG) – Committed to lend Ontario Power Generation (OPG) up to $500 million for general corporate purposes and up to $950 million to refinance existing debt maturities up to December 31, 2009.
• Ontario Nuclear Funds Agreement – Provided analysis of OPG’s submission to the Canadian Nuclear Safety Commission related to the Province’s guarantee under the Ontario Nuclear Funds Agreement of $760 million.

Table 1: Ministry Expenditures and Staff Strength 2007/08

	Ministry Interim Actual Expenditures * 2007/08 ($M except Staff Strength)
Operating	465.7
Ontario Municipal Partnership Fund	916.7
Operating Contingency Fund	50.0
Power Purchases	831.0
Interest on Debt	8,966.0
Capital	0.0
Staff Strength (as of March 31, 2008)	1,929.4

*Refer to page 119 & 120 2008 Ontario Budget.

ISSN # 1718-6579