Opposition questions $250M spending in welfare overhaul
Last Updated: Wednesday, April 17, 2002 | 12:18 PM ET
CBC News
A new report says the consulting company, Accenture, has been paid close to $250 million to overhaul Ontario's welfare system. But the report, commissioned by the provincial government, says the technological overhaul has saved $700 million so far. The opposition, however, is disputing those savings.
Accenture formerly Andersen Consulting is the private sector partner in the government's Business Transformation Project. The total cost of the project, according to the report, is $400 million, including the money Accenture received.
The government's report says that the expenditure was well worth it. The province says the overhaul has found $700 million in savings.
But the opposition at Queen's Park isn't buying the report's conclusions. And many municipalities are skeptical, as well.
The chair of Toronto's community services committee, Brad Duguid, says he has yet to see the savings.
"The province is absolutely jumping the gun when they are saying it is saving us hundreds of millions of dollars," he says. "I'd love to see those dollars. And believe me, Toronto could use them. I can assure you it is not, from our perspective. And if anything, it is costing us more in administration costs."
The Liberals at Queen's Park argue that savings are coming, but not because of technology changes introduced by Accenture. They say it's because welfare eligibility rules are stricter, so fewer people are able to obtain welfare in Ontario. They are calling for the auditor to take another look at the Accenture deal.
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