Toronto Star

Ford’s outlay in pandemic wasn’t wrong

- MARTIN REGG COHN

Bad things happen in pandemics. Not just the uncontroll­ed spread of a virus, but out-of-control cash flow.

As she does every December, in good times and COVID times, provincial auditor general Bonnie Lysyk has catalogued all the bad things Ontario does. Will any good come of it?

Let’s audit the auditor.

The big news, in more than 1,300 pages of detailed appraisals: The Progressiv­e Conservati­ve government sent more than $200 million to ineligible enterprise­s, and COVID relief exceeded business losses by some $714 million.

As expected, Doug Ford expressed dismay — what else would one say? But the premier also put it in the context of COVID, pointing out that his government cut red tape in the rush to get billions of dollars out the door. To be sure, his government could have shown more prudence — but should it have been tightfiste­d in a pandemic? Of Ford’s many sins, moving quickly in a crisis does not top my gotcha list.

In fact, critics have long faulted his government for not moving rapidly enough when people were hurting. What if the bureaucrat­s had held back the payments demanding tighter controls when businesses were at death’s door — or ordered their staff to come into the office before they were vaccinated, as Lysyk did to her own team of auditors last year.

In the annual hunt for hyperbole and headlines, the temptation is to paint a picture of a public sector spinning out of control. Not merely in a pandemic, but perenniall­y.

Yes, bad people bilk the treasury in bad times, and an auditor’s mission is to point out malfeasanc­e and incompeten­ce. But the challenge is to do so in a way that government­s will learn from past mistakes rather than duck for cover — or cover up.

That’s why, over the years, people have started to watch this watchdog more closely. A past report misstated a bridge mistake (implausibl­y claiming the truss was upside down, when another component was out of place), and she has overstated the provincial deficit (independen­t experts pointed out she had improperly discounted the value of a pension surplus).

This year, the auditor has reined in the exaggerati­ons, though the report tells us what we already know — not what we need to know (to do better). For example, the auditor painstakin­gly describes how personal protective equipment was purged from warehouses before the pandemic, a painful blunder that is by now old news.

The report reminds us what the media have long been telling us — that this government has been using and abusing the so-called Ministeria­l Zoning Orders (MZOs) to circumvent the land-use planning process. What was once a rarity is now routine, leading to “criticisms of conflict of interest and unfairness,” which fairly echoes what you read in the newspapers.

It is now old school to say that colleges are hugely dependent on high tuition from internatio­nal students, which makes up more than two-thirds of all revenues. The auditor notes that this leaves colleges exposed to external events — a little late in the day, given that Saudi Arabia has already recalled its students in a diplomatic spat, and the large number of Chinese foreign students leaves us vulnerable if bilateral relations deteriorat­e further.

The trouble with these audits is that they aren’t just about auditors tallying sums or looking at ledgers. They are so-called “value for money” assessment­s that are highly dependent on the values of the auditor doing the auditing.

When Lysyk raises questions about colleges being too dependent on foreign tuition revenues, is the answer to boost government funding? Should the government go deeper into debt, or raise taxes to make up the difference?

Much of her report is taken up with Ontario’s growing debt burden, which might seem like an obvious accounting question until you look closely at how this auditor analyses it: “To put this in perspectiv­e, the amount of net debt owed by each resident of Ontario … was $25,334.”

Yet that’s not a perspectiv­e serious economists would take seriously. Personal debt and government debt are different — they are accrued and assessed differentl­y, the latter in the context of economic growth and tax capacity.

Elsewhere, the auditor lumps in borrowings by Ottawa and municipali­ties to overstate Ontario’s true indebtedne­ss — only to admit her analysis is not “consistent with debt-measuremen­t methodolog­ies used by most jurisdicti­ons.” Just as she oversteps on debt, the auditor exceeds her authority in other areas.

The previous Dalton McGuinty Liberals empowered the auditor to review provincial advertisin­g for partisan excesses. Under Kathleen Wynne, the Liberals streamline­d that authority (noting the auditor had lapsed into nitpicking), but Lysyk has refused to back down, even with Ford’s Tories.

Bizarrely, she has taken it upon to herself to continue critiquing any advertisin­g she believes might be too partisan — without any legal mandate to so do. This might sound arcane, but as a servant of the legislatur­e, on what authority does she defy the will of two elected government­s, one Liberal and one Progressiv­e Conservati­ve?

Some might cheer her personal obsessions. But to whom is she accountabl­e, if not the legislatur­e? At the end of the day, voters have the final say and MPPs get their democratic way — until they go down to defeat. In our system, we rely on unelected auditors for their accounting vigilance, not their values.

In our system, we rely on unelected auditors for their accounting vigilance, not their values

 ?? FRANK GUNN THE CANADIAN PRESS ?? Bonnie Lysyk, Ontario’s auditor general, has catalogued all the bad things Ontario does, writes Martin Regg Cohn. Will any good come of it?
FRANK GUNN THE CANADIAN PRESS Bonnie Lysyk, Ontario’s auditor general, has catalogued all the bad things Ontario does, writes Martin Regg Cohn. Will any good come of it?
 ?? ??

Newspapers in English

Newspapers from Canada