By: Sylene Argent, Local Journalism Initiative Reporter, Essex Free Press
Members of Essex Council received a report highlighting potential impacts of the Buy Ontario Act, compliance requirements, and implementation measures necessary to ensure the Town’s procurement practices align with the provincial legislation.
In 2025, the Ontario government established the Buy Ontario Act. A year later, the Management Board of Cabinet issued the Municipal Buy Ontario procurement directive, providing binding procurement directives to public sector organizations. Jackson Tang, Assistant Manager of Business Services, explained to Essex Council at the June 15 meeting.
He said the purpose of the Buy Ontario Act is to promote Ontario business, strengthen the domestic supply chain, and support Ontario manufacturing and jobs. It also uses public sector procurement as an economic development tool.
He said there are a few exemptions, including if estimated costs exceed 25% of the Town’s approved budget. Emergency procurements are also exempt, as are those if there is any conflict with the federal government’s funding.
He spoke of the vehicle and capital infrastructure project cap. It only applies to light-duty vehicles, SUVs, and pickup trucks. The government provides clear instructions on what model can be purchased. It is a tiered approach, which will first give priority to Made in Ontario vehicles and then secondly, to vehicles from Ontario producers.
Tang does not see any issue with how the Town is proceeding with this, as current practices largely align with the requirements of the directive.
In terms of Capital Infrastructure, Tang said the Province requests municipalities to give preference to Ontario and Canadian-based suppliers first when it comes to Infrastructure construction projects and major goods and services for construction projects.
While the Act applies to all municipalities, there is no dollar threshold to exempt a purchase.
The directive requires that all supplies and services provide a Domestic Supply Chain Plan to demonstrate compliance with the requirements of the directive, his report adds.
The municipality still needs to be transparent and accountable during the procurement process, ensuring it remains fair and competitive.
The impacts to the Town include potential cost escalation, Tang said, as the lowest offer may not be the successful supplier. Other possible impacts include procurement delays, additional compliance reviews, longer evaluation periods, and fewer bids.
Consequences of not following the Buy Ontario Act, the government withholding funding, processes could be audited, and the potential for public reporting of non-compliance.
He said this is new to all municipalities. After six months, a look should be taken as to whether or not the Town’s Procurement By-Law should be revised.
The Town should keep a detailed audited-ready procurement document, Tang suggested. Staff also need to be trained to use the formula to give preference to Ontario and Canadian suppliers.
In answering Councillor Katie McGuire Blais’s question on how much of what Essex procures is from out of the Country, Tang explained the definition of Ontario Goods is 51% of the content. When the Town sends out a tender, that definition will be emphasized.
Her concern is that through this Act, building will take longer. Tang responded that the formula evaluation is just a few days as it can be calculated quite quickly. The market research at the beginning of the process would take more time.
CAO Kate Giurissevich said that is why the evaluation in six-months would be important, to determine if there are delays or additional costs. Then, Council can connect with the Ministry with any concerns, if there are any.
Mayor Sherry Bondy would like to hear from the public on the matter, if they would be okay with projects costing more or coming in slower. She suspects residents would support the cost of buying Ontario, but she was not sure. She’s like the Town to get the word out.