Toronto urged to hand contract for subway cars to Ontario company
The Ford government is pushing the province's largest city to consider handing a major subway contract to an Ontario company, bypassing the competitive bidding process, amid tariff threats from the United States.
Toronto is currently in the midst of an urgent procurement process to buy 55 desperately needed new cars to run on its Bloor-Danforth subway line, an expense both the federal and provincial governments are helping to pay.
The city had been planning to open up bidding for the contract to all qualified companies, but Transportation Minister Prabmeet Sarkaria has now written to the local government asking them to change course.
'I am requesting that the City of Toronto recognize this historic opportunity and consider a sole-source procurement with Alstom, which would support Ontario workers in Thunder Bay and across our province,' Sarkaria said in a letter.
The letter is part of a broader push by the provincial government to cut U.S. companies out of the supply chain in response to tariffs and threats of further economic sanctions from President Donald Trump.
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When the now months-long tariff battle with the United States began in the spring, Ontario Premier Doug Ford announced that his government would cancel a contract with Elon Musk's Starlink company, remove U.S. alcohol from the shelves of the LCBO and ban American companies from provincial government contracts.
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At the time, he urged cities to do the same. He repeated the request on Thursday after a speech in downtown Toronto.
'If we're gonna buy trains, to the best of our ability, let's buy here in Canada and preferably right here in Ontario,' he said.
The provincial suggestion hasn't been welcomed with open arms by leaders at city hall, who pointed out the request for proposals had already closed. They said changing course could cost more.
'Of course, we'd love to keep the work in Ontario, but then we'd need the provincial government to step up and pay the extra,' Coun. Dianne Sax, who sits on the TTC board, said.
'The whole point about sole-sourcing is it tends to get you not the best deal. It's competition that gets the best deal.'
Coun. Josh Matlow, who has been a fierce critic of the Ford government, said it was hypocritical for Ford to make the suggestion.
'He's always admonished (anyone) who might consider a sole-sourced contract,' he said. 'Now, when it comes to rails, he's demanding it.'
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Long before the tariff threat, in 2022, the Ford government opted not to give the contract to build trains for its Ontario Line to Alstom in Thunder Bay, opting for Hitachi instead.
Alstom confirmed to Global News that its bid to build Ontario Line trains was unsuccessful.
Toronto Mayor Olivia Chow offered little insight into what she thought of the idea of sole-sourcing subway cars as a tariff response.
'We will work collaboratively with the province and assess the feasibility of their request,' she said in a statement.
— With files from Global News' Matthew Bingley
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