Trudeau government to participate in Toronto-Ontario finance talks

After several meetings among staff, and two high-profile sit-downs at Queen’s Park, the Trudeau government is on the cusp of announcing its participation in talks aimed at establishing a more stable footing for Toronto’s financial future.

Premier Doug Ford and Mayor Olivia Chow have agreed to form a working group to create a new deal for the city’s finances. Toronto has been dealing with ongoing budget problems since the pandemic, but the problem has existed much longer with costs downloaded from successive, upper levels of government.

At a Sept. 18 meeting, Ford who had long urged the city to make cuts, conceded the financial pressures were too much for the city to deal with by reducing services and required a more measured look. Both he and Chow urged the federal government to take part in the discussions, but six meetings in, Ottawa still hadn’t responded.

Ahead of their Monday meeting at Queen’s Park, Ford and Chow released a tandem letter to Prime Minister Justin Trudeau, again urging him to get his government involved.

“Our provincial and municipal governments are working constructively under this arrangement, but firmly believe that the federal government has an important role to play,” the pair said in the letter. “We both invite your government to come to the table as a partner and collaborator in this new-deal working group given the significant fiscal room the federal government has available.”

Late Monday afternoon, a source from the Trudeau Government, speaking on background, told Global News it will in fact take part in the talks. The federal deputy minister of finance, Chris Forbes, will be participating in the working group, said the source in an email.

Following Ford and Chow’s meeting, the Mayor’s Office released the terms of reference that will dictate how the talks proceed. While many aspects remain on the table, the working group is being directed to avoid recommendations that call for cuts to frontline workers or any new taxes or fees.

Toronto’s city manager, Paul Johnson, indicated that after nearly a month-and-a-half, the real work is about to begin, including talks regarding the potential upload of the city’s highways.

“We had a tremendous meeting with the premier. (He) and the mayor are clearly in sync and we have our marching orders now to put some specifics together,” Johnson said.

While the upload of the Gardiner and Don Valley Parkway has been floated by the Ford Government, the Mayor’s Office has been quick to point out that alone will do little to solve the city’s long-term financial problems.