Province to enforce "Buy Ontario" policy
Ontario municipalities could see their funding cut by the provincial government if they don’t comply with “Buy Ontario” directives handed down earlier this year.
That’s the strongly worded message contained in a letter which has been sent out to all heads of council in the province by Municipal Affairs and Housing Minister Robert Flack.
The Buy Ontario Act was enacted by the province last spring, establishing a framework to prioritize Ontario and Canadian goods and services in procurement across the public sector in response to American tariffs.
“As we continue working together to protect Ontario workers and communities from President Trump’s tariffs, I am writing to make clear our government’s expectation that municipalities fully comply with Ontario’s Buy Ontario policies, and maximize the use of Ontario and Canadian goods and services in municipal procurement,” Minister Flack states in his letter.
He goes on to point out that American tariffs and anti-trade actions are “causing uncertainty for thousands of Ontario businesses and millions of Ontario workers.”
“In response, Ontario has implemented strong procurement requirements which prioritize Ontario and Canadian goods and services in provincial and municipal requirement,” Flack states.
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“These requirements ensure that every possible dollar of Ontario’s more than $30 billion in procurement, as well as our $236 billion 10-year infrastructure plan, supports Ontario and Canadian workers.”
“Ontario taxpayers expect all municipalities to do the same,” Flack goes on to caution, noting that municipalities in the province spend more than $22 billion each year on goods and services.
“The Municipal Buy Ontario Procurement Directive requires municipalities, local boards and municipal service corporations to prioritize Ontario and Canadian products.
“In light of this latest round of tariffs and anti-trade actions against Canada, adherence to these requirements is not optional. It is an absolute must.
“Municipalities must use every available opportunity to prioritize Ontario and Canadian goods and services.
“Failure to comply with Buy Ontario requirements will force us to reconsider provincial funding made available to municipalities, in addition to other consequences under the Buy Ontario Act.”
Flack’s letter is on the agenda of this week’s Deep River council meeting, and the town actually got a head-start on the provincial government with regard to an elbows-up procurement policy.
Council passed a resolution drafted by Mayor Sue D’Eon last year, directing staff to amend the town’s procurement policy with a view to buying Canadian-made goods and services.
“As the mayor of Deep River, I believe we all want to express our deep disappointment with the recent tariff threats by the US government.
“These tariffs, if enacted, will have serious implications for our residents, local businesses and all Canadian citizens who depend on affordable goods and a stable economy,” D’Eon said.
“Following the lead of our Prime Minister and Premier, I believe all orders of government have a role to play in ensuring Canadian businesses are prioritized.”
Reeve Glenn Doncaster agreed, noting that, outside of tenders or requests for proposals, the town buys things such as cleaning products that are made in America.
“Stuff like that can be made in Canada, some of it can be made elsewhere,” Doncaster said.
“Just in our everyday purchases, we can make a difference.”
Renfrew County also updated its procurement policy as part of its response to tariffs levied by US President Donald Trump.
Under the new policy, the county will give preference to Ontario businesses, Canadian businesses, or businesses from a “Canadian trade partner country.”
An Ontario business is defined as one that “conducts its activities on a permanent basis in Ontario and either: has its headquarters or main office in Ontario, or has at least 250 full-time employees in Ontario at the time of (the) procurement process.”
A Canadian business is considered a “corporation of limited partnership” registered in any province, or an individual or partnership “which has a business address in Canada, and which has ongoing commercial activities in Canada.”
A “Canadian trade partner country” is one that has signed on to one of several international trade agreements, including the Comprehensive Economic and Trade Agreement (CETA); World Trade Organization’s Agreement on Government Procurement (WTO-GPA); Comprehensive and Progressive Agreement for Trans-Pacific Partnerships (CPTPP); or Canada-UK Trade Continuity Agreement (Canada-UK TCA).
Deep River included similar language in its updated procurement policy.
When it comes to items under $25,000, the policy says staff making “direct acquisitions” should give priority in the following order:
• Local business
• Ontario owned business
• Canadian owned business
• Canadian trade partner country.
“If direct acquisition purchases are required to be made, and a Canadian solution is not available, consideration should be given to alternative/substitute solutions or delaying/foregoing the purchase.”
