Ask Queen's Park for money first, federal minister tells Toronto

Queen's Park must be the first stop in Toronto's search for a solution to its billion dollar deficit, Canada's innovation minister says.

François-Philippe Champagne made the comments Monday at a City Hall press conference where he was flanked by local Liberal MPs and Mayor Olivia Chow. The federal minister weighed-in on Toronto's troubled finances less than a week after council adopted new taxes and fees to head off what city staff call an "unprecedented financial crisis."

Council also adopted resolutions that called on both the federal and provincial government to pitch-in financially and negotiate a new fiscal framework. Thus far, both governments have been noncommittal about the city council requests, which include a request for a cut of the harmonized sale tax (HST) or the introduction of a municipal sales tax.

"We are listening, but also we need to be fair," Champagne said. "There's a door you need to knock [on] first and I think this first door is at Queen's Park."

Champagne was at City Hall to announce that all riders on Toronto's subway system will have cellphone service starting Oct. 3. The minister did not rule out further support for Toronto, but stressed that Ottawa does not have "primary" responsibility for municipalities and their funding.

"I think that the message overall is that in issues like that of primary jurisdiction, jurisdiction of the province, people should turn first to Queen's Park," he said. "But in terms of listening, I can tell you we've been doing that all summer."

The message echoes a letter sent to Chow by Deputy Prime Minister Chrystia Freeland in July, rejecting a call from the city for financial help. At the time, Freeland said the federal government had contributed over $6 billion to the city since being elected in 2015. And if further help was needed, Toronto should either pull money from its reserve accounts or approach Premier Doug Ford's provincial government.

Speaking on CBC Radio's Metro Morning on Monday, Chow said the city will have to campaign for the new revenue tools it needs.

"I am now relying on the good citizens and residents of Toronto," she said. "When you see a local provincial member of Parliament and federal member of Parliament, talk to them about the needs of local parks starting to look a bit scruffy. And all of those things."

Toronto city staff have said the city's mounting fiscal problems grew worse over the pandemic as transit fare revenue dried up and the demand for shelter beds grew. Earlier this summer, the city and federal government were locked in a public fight over funding to shelter refugee claimants and asylum seekers. That resulted in hundreds of people being forced to sleep on the street when they were turned away from the city's full shelter system. 

In July, the federal government agreed to provide $97 million and the province and city each pledged additional money to free up shelter spaces. The city has said it still needs more funding to help meet shelter demand for asylum seekers and that immigration is a federal responsibility. 

Toronto MP Rob Oliphant, who is the parliamentary secretary to the Minister of Foreign Affairs, said the federal government can and will do more on the file. 

"Have we done enough? I would be very clear as one Torontonian, one Toronto MP, saying no," he said. "We will continue to need to discuss with the City of Toronto, with the people of Toronto, how it is we solved the problem." 

Councillor Chris Moise (Ward 13 - Toronto Centre) expressed frustration about Champagne's comments. The city needs cooperation from upper levels of government, who he says have an interest in seeing Canada's largest city succeed.

"Should the federal government be doing more? Absolutely," he said. "They're punting the responsibility. It's not only a federal responsibility or provincial responsibility, it's both levels of government coming to the table."

Asked for comment Monday, a spokesperson for Premier Doug Ford's office referred CBC Toronto to a statement it issued in July, after Freeland rejected Chow's initial request for funding.

At that time, Ford's office said the Ontario government has provided billions in funding to help the city address its budget shortfall.

"We hope the federal government and Toronto can work together to find a solution," Caitlin Clark said in the July statement.