Ontario threatens to withhold funds from municipalities that ignore Buy Ontario rules
The provincial government warned Ontario towns and cities that non-compliance with the Buy Ontario procurement directive could result in reduced provincial funding.
Ontario’s government has issued a formal notice to municipal councils, indicating that failure to follow the Buy Ontario Procurement Directive may lead to cuts in provincial funding. Rob Flack, the Minister of Municipal Affairs and Housing, emphasized that the policy is mandatory, especially amid recent trade measures against Canada, and that municipalities must give preference to local products and services. He warned that non-compliant towns or cities would trigger a reassessment of the financial support they receive from the province.
The Association of Municipalities of Ontario responded, claiming that over 98 % of non-construction procurement already comes from Canadian businesses and that the new rules increase time, cost, and complexity. The association also noted that municipalities have several months of experience with the requirements and are reporting implementation challenges.
Why it matters
Provincial funding could be reduced for municipalities that do not prioritize local suppliers, affecting local services and budgets.
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