New Commission should have New Mandate

The recent announcement of a new Commission for ONTC is a positive step in the tortuously, long process of turning around government direction. We have come a long way from the March 2012 announcement of total liquidation to creating a sustainable corporation, able to deliver and define its value to the region.

The make-up of the Commission has been expanded to include Northerners who appear to be well suited to understanding how the company can fit into government policy and return to making a positive contribution.  However, that contribution should not be limited to dumping cash into the provincial coffers.  As the Auditor General noted in her report, "there may well be socio-economic benefits to justify subsidizing the ONTC".

There is still room on the Commission for more stakeholder representation, such as the First Nations, but the nucleus is there to finally give meaningful input as to what Northerners expect from ONTC, in relation to what the government can deliver.

One of the issues that should be high on the list of things to do, would be a renewed Memorandum of Understanding between MNDM and ONTC.  The last version publicly available and in effect March 2012, still reflects the initial focus of divestment.  Apparently that was modified in Dec 2013 to include and prioritize transformation as the way forward for ONTC.  But with the commitment to keep ONTC in public hands (and hopefully as a stand alone agency) the corporate role needs much better definition.

One of the problems with the current structure is the requirement for Motor Coach services to operate on a break-even basis.  That in itself is a tall order for a transportation provider operating in an area of low population density, as evidenced by Greyhound's call for subsidy.  Greyhound is a large North American company with access to many routes that are in high volume and profitable areas, giving it huge economies of scale, but still is facing challenges operating in Northern Ontario.   

ONTC is further hampered by a government directive that it not offer any charter services.  The ability to offer charters and thereby boost asset utilization for a fleet that is required to protect a large weekend and holiday ridership driven primarily by post-secondary students runs counter to the demand that Motor Coach service operate without a loss.

There is a larger picture to be looked at, with how a regulated industry such a motor coach service fits into a non-existent provincial and federal transportation policy where passenger rail can contribute, but first the government's insistence that motor coach operate on a break-even basis needs to be addressed.

I hope ONTC is given a new mandate, including economic development, that will enable the Commission to deliver on the expectations Northerners have for them.  The issue of political interference needs to be addressed quickly, or they will be unable to even create a transformed ONTC that is sustainable.