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McCarthy: New Staples sites are part of a broad review of ServiceOntario

McCarthy: New Staples sites are part of a broad review of ServiceOntario

By Omayma othmani

Published: January 28, 2024

The Canadian press has learned that the plan to transfer nine ServiceOntario outlets to Staples Canada stores is part of a broader government campaign to consider new locations for all independent operations run by the private sector for the regional service provider.

Todd McCarthy, Minister of Public and Business Service Delivery, is scheduled to make an announcement on Monday, but details provided to the Canadian press in advance reveal a range of models the government is looking at through pilot projects.

With contracts for the remaining 134 ServiceOntario sites operated by the private sector nearing expiration, the government will review them to determine whether operations should continue in the same manner, or if they should be closed and moved to retail outlets, libraries, or municipal offices, for example.

McCarthy also said in an interview that no changes are being considered for more than 80 sites operated by the government at ServiceOntario, and some independent sites will remain part of this mix.

He added, "We have to look at Ontario, a province with a population of 15.4 million, as a whole and how different the communities are... It is not a one-size-fits-all."

Six of these independent sites will be closed and transferred to Staples Canada stores on February 1, while three other sites are scheduled to open later this year – plans that have already attracted significant public interest through CityNews reports.

Media also reported on Staples' job announcement for a Regional Services Manager at ServiceOntario, which stated that successful applicants are expected to "increase sales and profitability by converting ServiceOntario traffic."

McCarthy and officials said that using Staples locations is partly intended to save taxpayer money – an expected amount of $900,000 over three years mostly through not paying rent costs. The three-year deal with Staples is worth $10.2 million USD to cover operating, labor, and one-time upgrade costs.

McCarthy also said the plan aims to increase consumer convenience as Staples outlets remain open longer and on Saturdays, in addition to providing shopping opportunities.

CityNews also reported that the Staples deal was sole-sourced, which officials confirmed, saying the project received an exemption from government procurement rules partly due to time constraints. They said the ministry held discussions with about ten other retailers, but no one else met all the criteria such as "cost-effectiveness" and "scalability."

Some private sector operators whose businesses were closed told CityNews that they received a 70-day notice.

This setting of ServiceOntario sites in Staples stores – along with some sites located in Canadian Tire, Home Hardware, and IDA stores – is one of the pilot projects among six models the government is working on.

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