Ford government underestimated ServiceOntario deal with Staples: financial watchdog [Video]

The Ford government’s controversial decision to close some independent ServiceOntario locations and move them into big box stationary stores cost more than initially calculated, a new report from Ontario’s financial watchdog has found.

The Financial Accountability Officer of Ontario found that while the province underestimated the cost of the move, it also underestimated the benefits, which could be realized over time.

At the beginning of last year, the government announced it was closing nine ServiceOntario locations and moving them into Staples Canada stores as part of a three-year pilot.

The move meant paying Staples Canada $11.7 million over the course of the pilot to run the locations with more services and operating hours that would be almost 50 per cent higher than before, the FAO found.

The $11.7 million figure revealed by the FAO on Wednesday is $1.5 million higher than the cost the government initially calculated. The operating hours enabled by the move are also up by the …