Northlander's fate out on hold.

• Author: SITTER, KEN
• Position: Brief Article

Officials defend economic role of transportation commission

Just days after KPMG's report on the Ontario Northland Transportation Commission was released, Northern Development. Minister Tim Hudak announced plans to sell off the freight and passenger service. Beginning this summer, the Ontario government will explore what options are available to divest itself of the freight operation and determine alternative methods of continuing service of the Northlander, Little Bear and Polar Bear passenger service.

Northeastern Ontario municipal politicians and labour leaders found themselves thrust in a familiar position in December, defending the economic role of the Ontario Northland Transportation Commission in the region. They found themselves covering some new ground, however, as a consultant's report recommended not only ending Northlander passenger train service, a perennial issue, but virtually all other ONTO services in the region as well.

KPMG Consulting of Toronto, in a report ordered by the Ontario government, also recommended selling Ontario Northland's freight operations, as well as the successful and profitable ONTel.

Brian Stevens, president of the Ontario Northland General Chairperson's Association (GCA), an umbrella group representing unionized workers, blasts the report as unsubstantiated and reflecting the consultant's ideology. ONTO employs about 1,100. across the region, including 600 in North Bay, making it one of the city's largest employers. The provincial Crown corporation is also among the largest in other communities such as Cocbrane and Englehart.

The recommendations if followed through "will have a devastating effect on communities and residents of Northeastern Ontario," Stevens says.

North Bay Mayor Jack Burrows says the consultants failed to recognize that government will always have to subsidize some services for the benefit of the economy and citizens.

The Northeastern Ontario Municipal Association and the Northeastern Mayors Action Group held meetings within a week of the report's release to discuss and plan strategies.

Business official were also concerned, but less critical. Former North Bay and District Chamber of Commerce president and city Councillor Al McDonald says he is concerned about the possible loss of jobs.

Peter Minogue, chairman of North Bay's Economic Development Commission, agrees the proposed changes were a cloud on the city's economic forecast.

ONTC spokeswoman Judy Cardoni said the report...