Ontario Province Of 18K Annual report (foreign governments) | SEC 21 Dec 10

Exhibit (d)

This description of the Province of Ontario is dated December 20, 2010 and appears as Exhibit (d) to the Province of Ontario’s Annual Report on Form 18-K to the U.S. Securities and Exchange Commission for the fiscal year ended March 31, 2010.

THE DELIVERY OF THIS DOCUMENT AT ANY TIME DOES NOT IMPLY THAT THE INFORMATION HEREIN IS CORRECT AS OF ANY TIME SUBSEQUENT TO ITS DATE. THIS DOCUMENT (OTHERWISE THAN AS PART OF A PROSPECTUS CONTAINED IN A REGISTRATION STATEMENT FILED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED) IS FOR INFORMATION PURPOSES ONLY AND IS NOT INTENDED TO BE USED OR RELIED UPON IN CONNECTION WITH THE PURCHASE OR SALE OF ANY SECURITIES OF THE PROVINCE OF ONTARIO, IS NOT A PROSPECTUS, INFORMATION MEMORANDUM OR SIMILAR DOCUMENT AND IS NOT AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES OF THE PROVINCE OF ONTARIO.

TABLE OF CONTENTS

In this document, unless otherwise specified or the context otherwise requires, all dollar amounts are expressed in Canadian dollars. All foreign currency conversions are reported at statement date exchange rates, unless otherwise specified. The noon exchange rate between the U.S. dollar and the Canadian dollar published by the Bank of Canada on December 20, 2010 was approximately $1.00 = U.S.$0.9825. See “4. Public Debt — (4) Selected Debt Statistics — The Canadian Dollar.”

In this document, statistics for the economy of the Province of Ontario (“Ontario” or the “Province”) are set forth on a calendar year basis at market prices, except as otherwise indicated. Economic statistics for recent years frequently are estimates or preliminary figures which are subject to adjustment. Financial statistics for the Province are set forth on a fiscal year basis (from April 1 to March 31 of the succeeding year), unless otherwise noted.

In this document, unless otherwise specified, references to average growth rates refer to the average annual compound rate of growth. This is computed by expressing the amount of growth during the period as a constant annual rate of growth compounded annually. The computational procedure used is the geometric average of the annual rates from the first to the last year’s observation of the variables.

This document appears as an exhibit to the Province’s Annual Report to the U.S. Securities and Exchange Commission (the “Commission”) on Form 18-K for the fiscal year ended March 31, 2010. Additional information with respect to the Province is available in such Annual Report and in amendments thereto. Such Annual Report, exhibits and amendments are available to the public on the Internet on the SEC’s web site located at http://www.sec.gov and can be read and copied at the public reference facilities maintained by the Commission at 100 F Street, N.E., Room 1580, Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for more information about the public reference room and the applicable copy charges. Copies of such documents may also be obtained without charge from the Province of Ontario, Ontario Financing Authority, Capital Markets Division, One Dundas Street West, 14th Floor, Toronto, Ontario M5G 1Z3, telephone (416) 325-8053.

PROVINCE OF ONTARIO SUMMARY INFORMATION

The following information is a summary only and is qualified in its entirety by the detailed information elsewhere in this document. Unless otherwise indicated, all dollar amounts are expressed in Canadian dollars.


	Year ended December 31,
	2005			2006			2007			2008			2009
	(in millions unless otherwise indicated)

Economy⁽¹⁾
Gross Domestic Product at Market Prices	$	537,383		$	560,576		$	583,946		$	584,460		$	578,183
Personal Income		419,457			442,736			466,051			478,696			477,641
Consumer Price Index (annual change)		2.2	%		1.8	%		1.8	%		2.3	%		0.4	%
Unemployment (average annual rate)		6.6	%		6.3	%		6.4	%		6.5	%		9.0	%


											Current
											Outlook
	2006-07		2007-08		2008-09			2009-10			2010-11⁽²⁾
	(in millions)

Government Finances
Revenue	$	96,640	$	103,579	$	96,933		$	95,793		$	107,656
Expense
Programs		85,540		94,065		94,776			106,336			115,896
Interest on Debt		8,831		8,914		8,566			8,719			9,715

Total Expense		94,371		102,979		103,342			115,055			125,611

Surplus/(Deficit) Before Reserve	$	2,269	$	600	$	(6,409	)	$	(19,262	)	$	(17,956	)
Reserve	$	—	$	—	$	—		$	—		$	700

Surplus/(Deficit)	$	2,269	$	600	$	(6,409	)	$	(19,262	)	$	(18,656	)
Net Debt⁽³⁾		153,742		156,616		169,585			193,589			219,462
Accumulated Deficit⁽⁴⁾	$	106,776	$	105,617	$	113,238		$	130,957		$	149,613


	As at March 31,
	2007		2008		2009		2010
	(in millions)

Public Sector Debt
Net Debt⁽³⁾⁽⁵⁾	$	153,742	$	156,616	$	169,585	$	193,589
Obligations Guaranteed		2,600		963		721		734
Other Public Sector Debt⁽⁵⁾		12,580		13,539		13,516		12,969

Total	$	168,922	$	171,118	$	183,822	$	207,292

Sources: Ontario Ministry of Finance and Statistics Canada.


(1)	See “2. Economy — (2) Recent Economic Developments” for the most recently available economic indicators.

(2)	Fiscal forecast as presented in the 2010 Ontario Economic Outlook and Fiscal Review.

(3)	Net Debt is calculated as the difference between liabilities and financial assets. Starting in 2009-10, Net Debt includes the net debt of hospitals, school boards and colleges (BPS) as a result of change in the method of consolidation. For comparative purposes, Net Debt has been restated from 2005-6 to 2008-9 to conform with this revised presentation. The annual change in Net Debt is equal to the surplus/deficit of the Province plus the change in tangible capital assets, and effective April 1, 2007, the change in the fair value of the Ontario Nuclear Funds.

(4)	Accumulated Deficit is calculated as the difference between liabilities and total assets, including tangible capital assets. The annual change in Accumulated Deficit is equal to the surplus/deficit plus, effective April 1, 2007, the change in the fair value of the Ontario Nuclear Funds. The change in the Accumulated Deficit in 2006-7 included an adjustment to the unfunded liabilities of the Ontario Electricity Financial Corporation, and in 2009-10 an adjustment to school boards minor capital assets.

(5)	Starting in 2009-10, net debt of hospitals, school boards and colleges are being consolidated in the Province’s financial statement on a line-by-line basis and as a result included in Net Debt. Other Public Sector Debt from 2006-07 to 2008-09 have been restated to conform with this presentation.

1. OVERVIEW

Area and Population

The Province of Ontario covers an area of approximately 1,076,395 square kilometres (415,598 square miles), about 10.8% of Canada, and is about 11.0% as large as the United States. The estimated population of Ontario on July 1, 2010 was 13.2 million, or 38.7% of Canada’s population of 34.1 million. Since 1992, the populations of Ontario and Canada have increased at average annual rates of 1.3% and 1.0%, respectively. Although it constitutes only 12% of the area of the Province, southern Ontario contains approximately 93.9% of its population (as of July 1, 2009). The population of the Greater Toronto Area, the largest metropolitan area in Canada, was estimated to be 6.1 million on July 1, 2009.

Government

Canada is a federation with a parliamentary system of government. Constitutional responsibilities are divided between the federal government, the 10 provinces and the 3 territories.

The Premier of the Province of Ontario (the “Premier”) is traditionally the leader of the political party with the greatest number of members elected to the Legislative Assembly. The Cabinet through the Lieutenant Governor, who represents the Crown, formally exercises executive power. Cabinet ministers are usually nominated from among members of the Premier’s party. The Legislative Assembly consists of 107 seats, each representing a specified territorial division of the Province, and is elected for a four-year term. A dissolution of the Legislative Assembly prior to the end of the four-year term may be requested by the Premier at the Premier’s own volition or if the government loses the confidence of the Legislative Assembly by being defeated on an important vote.

The last Provincial election was held on October 10, 2007. Present party standings in the Legislative Assembly are: Ontario Liberal Party, 72 seats; Progressive Conservative Party of Ontario, 25 seats and New Democratic Party of Ontario, 10 seats. The current government of the Province is formed by the Ontario Liberal Party.

Economic Setting

Gross Domestic Product (“GDP”) at current market prices in 2009 was $578,183 million, representing 37.9% of the Canadian GDP. Personal income per capita in 2009 was $36,559, 0.4% above the national average.

An indication of the Province’s importance in several areas of Canadian economic activity is illustrated below.

Ontario’s Share Of Canadian Economic Activity, 2008-2009


	Total				Total
	Canadian				Canadian
	Economic		Ontario’s Share of		Economic		Ontario’s Share of
	Activity		Canadian Total		Activity		Canadian Total
	(in millions)		(%)		(in millions)		(%)
	2008		2008		2009		2009

Gross Domestic Product	$	1,599,608		36.5	$	1,527,258		37.9
Business Investment		313,574		30.2		269,394		31.0
Exports		563,948		57.8		438,553		64.3
Consumption		890,351		39.1		898,728		38.9
Personal Income		1,224,653		39.1		1,228,407		38.9

Sources: Statistics Canada and Ontario Ministry of Finance.

The Provincial economy displays many of the characteristics of a mature economy, including substantial secondary and service sectors. In broad terms, the primary sector is composed of agriculture, mining and forestry, while manufacturing, utilities and construction form the secondary sector. The remaining categories, such as transportation, communication, wholesale and retail trade and business and public service, make up the service sector. Ontario shows a stronger concentration in manufacturing than both the United States and the whole of Canada.

Percentage Distribution of Real Gross Domestic Product By Industry, 2008-2009
(at 2002 Prices)


	Ontario				Canada				United States⁽¹⁾
	2008		2009		2008		2009		2008		2009
	(%)		(%)		(%)		(%)		(%)		(%)

Goods⁽²⁾		25.8		23.5		29.6		27.6		21.3		20.7
Of which: Primary		1.7		1.6		6.9		6.5		2.6		2.7
Manufacturing		16.6		14.6		13.9		12.6		12.7		12.2
Services		74.2		76.5		70.4		72.4		78.7		79.3

Total		100.0		100.0		100.0		100.0		100.0		100.0

Sources: Statistics Canada and the United States Bureau of Economic Analysis.


(1)	United States real Gross Domestic Product by industry is reported in 2005 prices.

(2)	Consists of primary, utilities, construction and manufacturing industries.

Foreign Relations

The Province has no direct diplomatic relations with foreign countries, but has developed a high degree of international activity in order to facilitate investment in Ontario.

2. ECONOMY


(1)	Major Economic Indicators

Overview

Ontario’s GDP at current market prices in 2009 was $578,183 million. GDP in constant 2002 dollars (“Real GDP”) was $509,421 million in 2009, a decrease of 3.6% from 2008. The five-year average annual growth rate of real GDP from 2005 to 2009 was 0.5%. Real GDP in 2009 increased at a quarterly rate of 0.4% in the third quarter and 1.7% in the fourth quarter. This followed declines of 1.9% and 0.9% in the first and second quarters of 2009 respectively.

Ontario’s economy contracted by 3.6% in 2009, following a decline of 0.9% in 2008. Consumer spending grew by 0.1% while housing construction declined 8.1%. Business investment in machinery and equipment fell by 19.0%. Real non-residential construction investment fell by 18.4%, following a 2.5% drop in 2008. Exports fell by 13.2% in 2009, following a 6.2% decline in 2008.

The following table provides a summary of major economic indicators for Ontario from 2005 to 2009. For the most recently available economic indicators, see “2. Economy — (2) Recent Economic Developments”.

Major Economic Indicators


														Average
														Annual
														Rate of
	Year ended December 31,													Growth
	2005		2006		2007			2008			2009			2005-2009
	(in millions unless otherwise indicated)													(%)

Personal Expenditure on Consumer Goods and Services	$	304,303	$	318,286	$	334,445		$	347,996		$	349,381			3.8
Government Expenditure on Goods and Services		112,008		120,401		127,429			136,330			146,364			6.6
Business Gross Fixed Capital Formation		85,261		90,783		93,767			94,550			83,477			0.9
Exports of Goods and Services		329,858		332,830		335,354			325,997			282,167			(2.8	)
Imports of Goods and Services		297,198		305,892		313,352			325,274			282,301			(0.3	)
Adjustment for Inventory Changes		2,738		3,852		6,773			4,881			(381	)		—
Statistical Discrepancy and Other Transactions		412		317		(473	)		(20	)		(525	)		—

Gross Domestic Product at Market Prices		537,383		560,576		583,946			584,460			578,183			2.3
Gross Domestic Product in Constant 2002 Prices		510,509		522,998		533,233			528,635			509,421			0.5
Gross Domestic Product Price Deflator (Index)		105.3		107.2		109.5			110.6			113.5			1.8
Personal Income (Ontario)		419,457		442,736		466,051			478,696			477,641			3.6
Personal Income (Canada)		1,035,586		1,106,832		1,174,683			1,224,653			1,228,407			4.5
Personal Income per Capita (July
Population):
Ontario (in dollars)		33,480		34,957		36,430			37,016			36,559			2.5
Canada (in dollars)		32,116		33,977		35,672			36,759			36,429			3.4
Population (as of July 1, in thousands)⁽¹⁾:
Ontario		12,528		12,665		12,793			12,932			13,065			1.1
Canada		32,245		32,576		32,930			33,316			33,720			1.1


	Year ended December 31,															Average
	2005			2006			2007			2008			2009			2005-2009

Consumer Price Index (annual Change):
Ontario		2.2	%		1.8	%		1.8	%		2.3	%		0.4	%		1.7	%
Canada		2.2	%		2.0	%		2.2	%		2.3	%		0.3	%		1.8	%
Unemployment (average annual Rate):
Ontario		6.6	%		6.3	%		6.4	%		6.5	%		9.0	%		7.0	%
Canada		6.8	%		6.3	%		6.0	%		6.1	%		8.3	%		6.7	%

Source: Ontario Ministry of Finance and Statistics Canada.

Totals may not add due to rounding.


(1)	The latest available population estimates are for July 1, 2010.

Personal Expenditure

In 2009, personal expenditure on consumer goods and services, the largest component of GDP, increased 0.4% over 2008. From 2005 through 2009, personal expenditure increased at an average annual rate of 3.8%.

Government Expenditure

Expenditure by the federal, provincial and municipal governments in Ontario (excluding transfer payments and subsidies) comprised 25.3% of provincial output in 2009.⁽¹⁾ From 2005 through 2009, government expenditure increased at an average annual rate of 6.6%.

Capital Expenditure

In 2009, total capital expenditure was $103,112 million, or 17.8% of GDP, down 7.5% from $111,496 million in 2008. The major sources of total capital expenditure were housing (30.1%), trade, finance, commercial and information and cultural industries (26.0%), institutional services and government departments (19.5%), manufacturing (6.0%), transportation, warehousing and utilities (12.7%), primary and construction industries (4.3%) and professional, scientific and technical services (1.4%). From 2005 through 2009, total capital expenditure increased at an average annual rate of 2.1%.

Business gross fixed capital formation in 2009 was $83,477 million. This accounted for 81.0% of total capital expenditure and 14.4% of GDP at current market prices.

Exports and Imports

In 2009, Ontario’s exports of goods and services totaled $282,167 million, the equivalent of 48.8% of Ontario’s nominal GDP, of which 61.7% were international exports and 38.3% were interprovincial exports. By comparison, Ontario international exports represented 39.7% of Canada’s total exports. Ontario’s imports of goods and services totalled $282,301 million in 2009, resulting in a negative overall trade balance of $134 million.

Ontario’s international goods exports include: motor vehicles and parts, which accounted for 29.9% of the total value of international merchandise exports in 2009; capital equipment such as machinery, electrical and electronic goods, and scientific and professional equipment, which accounted for 25.1%; industrial materials such as steel, chemicals, plastics and rubber, which accounted for 24.8%; agricultural, forestry, energy and mining-related products, which accounted for 10.6%; and consumer goods such as furniture, drugs and clothing, which accounted for 7.2%.

Ontario’s leading interprovincial exports include financial, insurance and real estate services, wholesale trade, professional, scientific and related services, motor vehicles, transportation equipment and parts, chemicals and pharmaceuticals.

(1) The National Income and Expenditure Accounts as produced by Statistics Canada defines government expenditure to exclude transfer payments and subsidies.

Under the Free Trade Agreement (“FTA”), which came into force on January 1, 1989, tariffs between the United States and Canada were phased out entirely on January 1, 1999. The North American Free Trade Agreement (“NAFTA”) between Canada, Mexico and the United States, which came into effect on January 1, 1994, liberalizes trade with Mexico and improves on many of the provisions of the FTA. A bilateral free-trade agreement between Canada and Chile came into force on July 5, 1997. Canada-Chile agreement, which provides for the liberalization of trade and investment between the two countries, was negotiated to serve as an interim step to bridge Chile’s accession to NAFTA. In addition, a new World Trade Organization Agreement (“WTO”) (formerly the General Agreement on Trade and Tariffs) was implemented on January 1, 1995. It has resulted in a 40% reduction in average tariffs worldwide and makes major advances in rules governing trade in agriculture, services and intellectual property.


(2)	Recent Economic Developments

Real output in the Ontario economy rose by 0.6% (2.4% annualized) in the second quarter of 2010, measured in chained 2002 dollars, after a 1.4% increase in the first quarter. In current dollars, nominal GDP rose by 0.8% to reach an annualized level of $595,515 billion.

Final domestic demand increased by 0.8% (3.1% annualized) in real terms in the second quarter of 2010.

Over the first eleven months of 2010, Ontario employment is up by 114,000 jobs or 1.7%, compared to the same period in 2009. The unemployment rate was 8.2% in November 2010.

In October 2010, the Ontario Consumer Price Index (“CPI”) increased 3.4% from a year earlier.

Ontario Economic Outlook: 2010 to 2013

The 2010 Ontario Economic Outlook and Fiscal Review, released on November 18, 2010, presented the forecast for the Ontario economy for 2010 to 2013. Like other jurisdictions around the world, the Ontario economy has been impacted by the global recession and financial crisis. For planning purposes, the Ministry of Finance is assuming real GDP growth of 3.2% in 2010, 2.2% in 2011, 2.5% in 2012 and 2.7% in 2013. These projections, finalized on November 10, 2010, were more conservative than the average private-sector forecast at that time. Ontario’s nominal GDP is expected to increase by 5.6% in 2010, 4.1% in 2011, 4.5% in 2012 and 4.6% in 2013.

Inflation is expected to remain subdued over the forecast horizon. Ontario’s CPI inflation rate is expected to be 2.3% in 2010, 2.1% in 2011 and 2.0% in 2012 and 2013.

External factors have a significant bearing on the performance of the Ontario economy and deviations from their projected path can cause the Province’s growth to be slower or faster. As a result, the forecast in the 2010 Ontario Economic Outlook and Fiscal Review is based on assumptions about key features of the external environment, particularly U.S. economic growth, the exchange rate, interest rates and oil prices.

The strength and composition of the U.S. economy are key determinants of the pace of growth in Ontario. The U.S. economy is Ontario’s largest export market. At the time of the 2010 Ontario Economic Outlook and Fiscal Review, economists projected U.S. real GDP to grow by 2.7% in 2010, 2.5% in 2011, 3.2% in 2012 and 3.0% in 2013.

The exchange rate is forecast to average 96.9 cents US in 2010, 98.0 cents US in 2011, and 98.5 cents US in 2012 and 2013. The Canadian three-month treasury bill rate is projected to average 0.6% in 2010, 1.6% in 2011, 3.0% in 2012 and 3.9% in 2013. Ten-year Government of Canada bond yields are forecast to average of 3.2% in 2010 and 2011, 4.1% in 2012 and 4.8% in 2013. These interest rate assumptions were in line with private-sector forecasts at the time of the 2010 Economic Outlook and Fiscal Review. For planning purposes, crude oil prices are projected to average $79.2 US per barrel in 2010, $87.9 US in 2011, $89.8 US in 2012 and $90.2 US in 2013.


(3)	Structure of the Economy

Secondary Industries

Manufacturing. Ontario is Canada’s leading manufacturing province. In 2009, Ontario’s manufacturing volume of output (measured in Chained 2002 dollars) totaled about $68 billion, or 45% of the national total. The contribution of manufacturing output to Ontario’s total GDP (measured in Chained 2002 dollars) was 15%.

Manufacturing Real Gross Domestic Product
(Chained 2002 dollars)


	Year ended December 31,
	2005		2006		2007		2008		2009
	(in millions)

Food	$	8,005	$	8,231	$	8,198	$	8,223	$	8,376
Beverage and Tobacco Products		2,816		2,612		1,979		1,705		1,719
Textile and Textile Product Mills		941		736		631		603		471
Clothing		622		604		517		381		316
Leather and Allied Products		53		54		58		55		55
Wood Products		2,387		2,419		2,161		1,792		1,549
Paper		3,920		3,367		3,209		2,952		2,527
Printing and Related Support Activities		3,253		3,164		3,103		2,990		2,556
Petroleum and Coal Products		1,387		1,285		1,352		1,235		1,194
Chemical		6,854		7,187		6,804		6,395		5,945
Plastic and Rubber Products		5,824		5,534		5,319		4,402		3,645
Non-Metallic Mineral Products		2,707		2,762		2,648		2,507		1,958
Primary Metal and Fabricated Metal Products		13,282		12,854		12,180		11,326		8,293
Machinery		6,396		6,206		6,270		5,772		4,751
Computer and Electronic Products		4,159		4,451		4,349		3,998		3,804
Electrical Equipment, Appliance and Components		1,942		1,689		1,634		1,623		1,403
Transportation Equipment		27,223		26,775		25,929		20,430		15,497
Motor Vehicle		14,623		14,087		13,585		10,258		7,140
Motor Vehicle Parts		9,530		8,995		8,487		6,531		4,902
Furniture and Related Products		2,577		2,426		2,274		1,988		1,690
Miscellaneous		1,803		1,857		1,838		1,865		1,914

Manufacturing Total⁽¹⁾	$	95,639	$	93,624	$	89,668	$	80,452	$	68,385

Source: Statistics Canada, Provincial Economic Accounts.


(1)	Totals may not add due to rounding and chained GDP data.

Transportation equipment is Ontario’s largest manufacturing industry measured by output. In 2009, output in this sector totaled $15.8 billion, or approximately 22% of total Ontario manufacturing output. In 2009, Ontario accounted for about 90% of Canadian-manufactured motor vehicles, parts and accessories GDP, and 16.8% of North America’s motor vehicle assembly. Ontario’s international trade deficit in automotive products was $6.0 billion in 2009. Capital investment in Ontario’s transportation equipment industry totaled $1.4 billion in 2009 and capital investment intentions for 2010, according to Statistics Canada data, are $1.3 billion.

In 2009, 60.9% of Canada’s electrical and electronic product manufacturing was in Ontario. A number of firms with worldwide reputations in the design, manufacture and distribution of high technology products are based in the Province. Ontario manufacturers as a whole conducted an estimated $4.1 billion worth of industrial research and development in 2008, and accounted for 56.5% of total Canadian manufacturing industrial research and development.

Construction. Ontario’s capital spending on construction includes buildings, roads and other facilities. Construction spending intentions, according to the latest survey from Statistics Canada, indicate an expected rise of 7.5% in 2010 to $63.2 billion. The highest increase is expected in government and institutions at 20%. In 2010, capital spending intentions on housing construction constitutes the largest share, representing 46.3% of the total.

Ontario Construction Capital Expenditure


	Year ended December 31,
	2005		2006		2007		2008		2009		2010⁽¹⁾
	(in millions)

Housing	$	28,297	$	30,231	$	31,152	$	32,740	$	29,008	$	29,244
Business		13,588		15,609		17,541		18,264		16,084		17,543
Government and Institutions		10,190		10,882		11,713		12,002		13,632		16,365

Total	$	52,075	$	56,721	$	60,406	$	63,005	$	58,724	$	63,152


(1)	Source: Private and Public Investment in Canada, Intentions 2010 Statistics Canada.

Primary Industries

Agriculture. Ontario has a large and highly diversified agricultural sector. Agricultural activity can be found in most areas of the Province, but production is concentrated in southwestern Ontario, which is located at roughly the same latitude as Northern California and has a climate moderated by the Great Lakes. Provincial agricultural production, based on farm cash receipts (less direct payments), was valued at $9.3 billion in 2009, or 22.5% of the Canadian total. Of this, total livestock receipts were $4.6 billion, and crop receipts were $4.7 billion.

Agricultural Production


	Year ended December 31,
	2005		2006		2007		2008		2009
	(in millions)

Agricultural Production⁽¹⁾	$	8,111	$	8,176	$	8,727	$	9,452	$	9,283

Source: Statistics Canada.


(1)	Farm total cash receipts; excluding direct payments.

Mining. Ontario’s value of mineral production was $6,330 million in 2009. Ontario accounted for 19.7% of Canadian mineral production in 2009, excluding oil and gas. The Province’s most important minerals in terms of 2009 value of production were: gold, $1,836 million; nickel, $753 million; copper, $686 million, stone, $584 million; cement, $521 million; and sand and gravel, $486 million. Ontario’s value of metallic mineral production was about $3.8 billion in 2009, down from the previous year due to lower prices for minerals.

Mineral Production


	Year ended December 31,
	2005		2006		2007		2008		2009
	(in millions)

Mineral Production	$	7,438	$	9,524	$	10,856	$	9,545	$	6,330

Source: Natural Resources Canada, 2009 numbers are preliminary.

Forestry. Ontario has about 56.8 million hectares of productive forestland representing 52.9% of Ontario’s total land area. Timber harvests amounted to approximately 12 million cubic meters in 2008. The value of revenues from goods produced in the primary forest industry as well as the various wood and paper manufacturing industries in the Province totaled $13.4 billion in 2008, and equaled 22.1% of the Canadian total.

Energy

In 2008, the composition of Ontario’s primary energy consumption was the following: crude oil 29.6%, natural gas and liquids 37%, coal 14.4% and electricity 4.5%.

Total primary energy consumption was 3,137 Petajoules in 2008, a decline of 3.6% from 3,255 Petajoules in 2007. Consumption of crude oil, coal, natural gas and primary electricity declined by 2%, 12%, 5% and 13% respectively.

Service Sector

The service sector is the largest component of Ontario’s economy, accounting for approximately 77% of Ontario’s GDP (measured in Chained 2002 dollars) in 2009. Ontario has a modern and diversified services sector. It includes a wide variety of industries serving businesses, individuals and governments.

Services Producing Industries Real Gross Domestic Product
(measured in Chained 2002 dollars)


	Year ended December 31,
	2005		2006		2007		2008		2009
	(in millions)

Wholesale Trade	$	28,749	$	30,026	$	31,365	$	31,057	$	29,346
Retail Trade		25,597		26,655		27,192		28,063		28,080
Transportation and Warehousing		18,765		19,089		19,312		19,480		18,635
Information and Cultural		18,661		19,384		19,826		19,798		19,548
Finance, Insurance, Real Estate and Leasing⁽¹⁾		101,995		105,713		109,592		110,296		111,573
Professional, Scientific and Technical		25,579		26,737		27,735		28,198		27,901
Administrative and Support Services		13,736		14,052		14,694		14,682		13,950
Education		21,872		22,794		23,492		24,108		24,328
Health Care and Social Services		28,099		28,904		30,006		30,714		31,307
Arts, Entertainment and Recreation		4,556		4,589		4,692		4,703		4,705
Accommodation and Food Services		9,420		9,453		9,510		9,695		9,327
Other Services		11,516		11,663		12,082		12,327		12,219
Public Administration		24,345		25,349		26,001		26,838		27,227

Total⁽²⁾	$	332,911	$	344,411	$	355,491	$	359,862	$	357,618

Source: Statistics Canada, Provincial Economic Accounts.


(1)	Includes owner-occupied housing.

(2)	Totals may not add due to rounding and chained GDP data.

The finance, insurance, real estate and renting and leasing sector is the largest component of Ontario’s service sector output. In 2009, Ontario’s share accounted for 44.5% of Canada’s finance, insurance, real estate and renting and leasing output, the highest share of any province.

Ontario’s sizable financial services sector is a by-product of the large number of head offices of industrial and financial companies located in the Toronto area. The Toronto Stock Exchange (“TSX”) is Canada’s premiere stock exchange with a value of trading of $1.4 trillion dollars in 2009.

Ontario also has strong professional and administrative output, accounting for 46.2% of the Canadian total. Wholesale and retail trade help support the spending of business and consumers, including investment and imports. Ontario accounts for 41.2% of Canada’s wholesale and retail trade output and 43.1% of Canada’s information and cultural services.


(4)	Labour Force

From 2005 to 2009, Ontario’s labour force increased at an average annual rate of 0.7%, slightly below the Canadian rate of 1.1%. During 2009, the Ontario labour force averaged approximately 7.2 million persons. In 2009, the Ontario participation rate was 67.3%, the same as the Canadian rate. Reflecting the industrial structure of the Province, 98.7% of employment was in the non-agricultural sector. The service sector, which has been a major source of employment growth, accounted for 78.8% of Ontario’s employment, while manufacturing and construction accounted for 18.5% and agriculture, utilities and other primary industries accounted for 2.7%. In 2009, the Ontario unemployment rate averaged 9.0%, while the national rate averaged 8.3%.

Labour Force


	2005		2006		2007		2008		2009

The Ontario Labour Force
Labour Force (thousands)		6,849.1		6,927.3		7,043.5		7,154.5		7,175.1
Employed (thousands)		6,397.7		6,492.7		6,593.8		6,687.3		6,526.1
Unemployment Rate (%)		6.6		6.3		6.4		6.5		9.0
Participation Rate⁽¹⁾ (%)		68.0		67.7		68.0		68.1		67.3
The Canadian Labour Force
Unemployment Rate (%)		6.8		6.3		6.0		6.1		8.3
Participation Rate⁽¹⁾ (%)		67.2		67.2		67.6		67.8		67.3

Source: Statistics Canada.


(1)	The percentage of working age population in the labour force.

Ontario Employment by Industry — 2009


	Thousands		% of Total

Agriculture		84		1.3
Other Primary Industries		36		0.5
Manufacturing		797		12.2
Construction		409		6.3
Utilities		58		0.9
Service Sector		5,142		78.8

Total		6,526		100.0

Sources: Statistics Canada and Ontario Ministry of Finance.

Totals may not add due to rounding.


(5)	Social Security System

The Province provides a wide range of health care, social services and income security assistance to Ontarians. Until fiscal year 1995-96, the Province received funding for health care from the federal government under the Established Programs Financing (“EPF”) arrangements. This national funding arrangement provided support for the provision of provincial health care programs as well as postsecondary education.

The Province also provides income security assistance to individuals and families to replace earnings or provide income support. Until 1995-96, income supplementation related to defined needs was provided, when necessary, on a cost-shared basis with the federal government under the Canada Assistance Plan (“CAP”). In its 1995 budget, the federal government announced major cutbacks to social transfers to the provincial and territorial governments. Beginning in 1996-97, the EPF arrangements and CAP were replaced by the Canada Health and Social Transfer (“CHST”). Effective April 1, 2004, the CHST was split into two separate transfers: the Canada Health Transfer (“CHT”), designated specifically for health care; and the Canada Social Transfer (“CST”) for postsecondary education and social services. See “3. Public Finance — (3) Revenue — Federal Government Payments” below.

The federal government also administers the Employment Insurance (“EI”) program, a national, contributory unemployment insurance scheme, and the Canada Pension Plan (“CPP”), a national, contributory earnings-related pension system. CPP benefits include retirement pensions, disability pensions, survivor benefits, orphans’ benefits and death benefits. In 2009, Ontario residents received about $14.4 billion in benefits from the CPP and about $8.0 billion in total benefits from EI. Both of these programs are financed through payroll taxes paid by employers and employees. In 2008, the federal government created the Canada Employment Insurance Financing Board which is responsible for managing EI revenues and maintaining a cash reserve to support premium rate stability. The CPP Account is separate from the federal budget and is managed independently by the CPP Investment Board and invested in marketable and non-marketable securities.

The federal government also provides universal and income-tested support for senior citizens through Old Age Security (“OAS”) pensions, the Guaranteed Income Supplement (“GIS”) program and the Allowance for

low-income persons aged 60-64. The Ontario government provides an income-tested supplement for seniors, the Guaranteed Annual Income System (“GAINS”) benefit, which is paid to GIS recipients with low incomes. In 2009, seniors in Ontario received a total of about $12.7 billion from these three federal programs and about $103 million from GAINS. The Ontario Senior Homeowners’ Property Tax Grant will assist eligible low- and moderate- income seniors, who own their homes, to offset their property taxes through grants of up to $500 for 2010 and subsequent years. This will provide an estimated $1 billion in assistance over the next five years.

The federal government provides cash transfers to families raising children. The Canada Child Tax Benefit (“CCTB”) and the related National Child Benefit Supplement (“NCBS”) are non-taxable income-tested federal cash benefits provided to low- and middle-income families with children under age 18. In fiscal year 2006 (the most recent data available), Ontario families received about $3.5 billion in benefits from these programs. The federal government also provides the Universal Child Care Benefit (“UCCB”). The UCCB is a taxable cash benefit provided to all children under age six. In 2008-09, Ontario families received an estimated $1 billion in benefits from the UCCB. These benefits are provided to families regardless of whether they work or receive social assistance. These benefits are delivered through the tax system.

The Ontario Child Benefit (“OCB”) is a non-taxable income-tested provincial cash benefit provided to low- to moderate-income families with children under age 18. The OCB provided almost $765 million in benefits to families in 2009-10. The OCB is provided to families regardless of whether they work or receive social assistance. It is delivered through the tax system. The OCB streamlined the child benefit system by consolidating the previous provincial children’s benefits into one integrated benefit.

Ontario also provides sales tax and property tax relief to low-to middle income people through refundable tax credits. Starting in 2010, two new Ontario tax credits, the Ontario Sales Tax Credit (“OSTC”) and the Ontario Property Tax Credit (“OPTC”) are replacing the combined Ontario property and sales tax credits. The OSTC will provide sales tax relief of over $1 billion per benefit year to about 3.1 million families and individuals. The 2010 Ontario Budget proposes to convert the OPTC to the Ontario Energy and Property Tax Credit. This tax credit would provide over $1.2 billion in energy and property tax relief to about 2.8 million individuals and families annually.

The Ontario government and municipalities jointly share responsibility for providing income support to individuals and families whose income is insufficient to meet their basic needs. Social assistance costs are shared between the Province and municipalities. The Province pays ninety per cent of Ontario Disability Support Program (“ODSP”) assistance costs, almost eighty one per cent of Ontario Works (“OW”) assistance costs, fifty per cent of OW administration costs and one hundred per cent of ODSP administration costs as well as drug benefits for all social assistance recipients. In 2009-10, the Province provided an estimated $6.6 billion through social assistance and related programs.


(6)	Government Responsibilities and Relationships

Constitutional Framework

Canada is a federation and its constitution (“Constitution”) provides for a division of responsibilities between the federal and provincial governments. Each province and the federal government have supremacy within its respective sphere of assigned responsibilities. Jurisdiction over the establishment and operation of municipalities is granted exclusively to the provinces.

The federal government is empowered to raise money by any mode or system of taxation. It has exclusive jurisdiction over such matters as the regulation of trade and commerce, currency and coinage, banks and banking, national defence, foreign affairs, postal services, railways and navigation, as well as those areas not exclusively assigned to the provinces. Each province has authority to raise revenue through direct taxation within the province. Areas of provincial constitutional authority include health care, education, social services, municipal institutions, property and civil rights, and natural resources.

The Constitution of Canada was amended in 1982. The Constitution Act, 1982 (“Constitution Act”) established a Charter of Rights and Freedoms and a procedure for amending the Constitution. Nothing in the Constitution Act diminishes the taxing or spending authority of the provinces.

Operational Framework

Ontario administers its constitutional responsibilities through government ministries and provincially created bodies such as government-owned corporations (“Crown corporations”), agencies, boards, commissions, municipalities, school boards and hospital boards. The use of these quasi-independent bodies decentralizes the administration of provincial responsibilities. However, the Province has elected to centralize the financing of these bodies by retaining the major taxing and borrowing powers at the provincial level. Some municipalities borrow in their own names in various capital markets (See “4. Public Debt — (3) Consolidated Debt of the Ontario Public Sector” below) as did Ontario Hydro prior to its restructuring in April 1999 (See “4. Public Debt — (2) Assets and Liabilities, (iii) Liabilities — Ontario Electricity Industry” below).

Implications for Provincial Financial Statements

The provinces have been assisted with their responsibilities in areas such as health, postsecondary education and social assistance by transfer payment arrangements between the federal and provincial governments. Through these arrangements, the federal government provides revenues to provincial governments to finance programs under provincial jurisdiction.

Federal-provincial funding arrangements create extensive financial interrelationships between the Province, the federal government and provincially-created bodies. These financial interrelationships are important in understanding the revenue, expense and financing activity of the Province. For example, in fiscal year 2010-11, approximately 22.1% of the Province’s revenue is expected to come from the federal government.

Investing in provincially-created bodies has an impact on the reporting of assets. As at March 31, 2010, approximately 27.6% (2009, 33.8%) of the Financial Assets of the Province could be attributed to these intermediary activities (See “4. Public Debt — (2) Assets and Liabilities” below).

3. PUBLIC FINANCE


(1)	Financial Reporting

Annually, the Province publishes its Public Accounts, which include the Annual Report and Consolidated Financial Statements for the fiscal year ended March 31, together with ministry statements, detailed schedules of ministry expenses, financial statements of significant provincial corporations, boards and commissions that are part of the government reporting entity and other miscellaneous financial statements. The Auditor General of Ontario examines the Public Accounts of the Province and provides an opinion on the Consolidated Financial Statements to the Legislative Assembly. In addition, the Auditor General of Ontario is required to submit an annual report to the Legislative Assembly.

Summary of Significant Accounting Policies

Basis of Accounting

The Consolidated Financial Statements are prepared in accordance with the accounting principles for governments recommended by the Public Sector Accounting Board (“PSAB”) of the Canadian Institute of Chartered Accountants (“CICA”) and, where applicable, the recommendations of the Accounting Standards Board (“AcSB”) of the CICA.

Reporting Entity

The financial statements report the activities of the Consolidated Revenue Fund combined with those organizations that are controlled by the Province.

Government business enterprises, broader public sector (“BPS”) organizations (i.e., hospitals, school boards and colleges) and other government organizations controlled by the Province are included in these financial statements. All BPS organizations are consolidated. However, other government organizations are individually consolidated if they meet one of the following criteria: i) their revenues, expenses, assets or liabilities are greater than $50 million, or ii) their outside sources of revenue, deficit or surplus are greater than $10 million.

The activities of organizations that do not meet the materiality thresholds for consolidation are reflected in these financial statements through the accounts of the ministries responsible for them.

Trusts administered by the Province on behalf of other parties are excluded from the reporting entity.

Principles of Consolidation

Government business enterprises are defined as those government organizations that i) are separate legal entities with the power to contract in their own name and that can sue and be sued; ii) have the financial and operating authority to carry on a business; iii) have as their principal activity and source of revenue the selling of goods and services to individuals and non-government organizations; and iv) are able to maintain their operations and meet their obligations from revenues generated outside the government reporting entity. The activities of government business enterprises are recorded in the financial statements using the modified equity method. Under this method, government business enterprises are reported in accordance with the accounting principles generally accepted for business enterprises. Their combined net assets are included in the financial statements as Investment in Government Business Enterprises on the Consolidated Statement of Financial Position and their net income is shown as a separate item, Income from Investment in Government Business Enterprises, on the Consolidated Statement of Operations.

Effective April 1, 2009, the assets and liabilities of the BPS organizations are consolidated with those of the Province on a line-by-line basis on the Consolidated Statement of Financial Position. As such, the net debt of hospitals, school boards and colleges is included in the consolidated net debt of the Province. The total annual expenses of these BPS organizations, net of revenues they receive directly from the public, such as tuition fees, patient fees, donations and other recoveries, are included with the consolidated expenses of the Province. The expenses of hospitals are included with Health expenses, school boards with Education expenses, and colleges with Post-Secondary Education and Training expenses on the Consolidated Statement of Operations. Where necessary, adjustments are made to present the accounts of these organizations on a basis consistent with the accounting policies of the Province, and to eliminate significant inter-organizational accounts and transactions.

Other government organizations are included on a line-by-line basis with the consolidated assets, liabilities, revenues and expenses of the Province. Where necessary, adjustments are also made to present the accounts of these organizations on a basis consistent with the accounting policies of the Province, and to eliminate significant inter-organizational accounts and transactions.

Measurement Uncertainty

Uncertainty in the determination of the amount at which an item is recognized or disclosed in the financial statements is known as measurement uncertainty. Such uncertainty exists when there could be a material variance between the recognized or disclosed amount and another reasonably possible amount.

Measurement uncertainty in these financial statements and notes thereto exists in the valuation of pensions and other employee future benefits obligations, the value of tangible capital assets, the estimation of personal income and corporations tax revenue accruals, the valuation of the Canada Health Transfer and Canada Social Transfer entitlements, the valuation of auto sector investments and the valuation of asset-backed term notes.

Uncertainty related to pensions and other employee future benefits accruals arises because actual results may differ significantly from the Province’s best estimate of expected results (for example, the difference between actual results and actuarial assumptions regarding return on investment of pension fund assets and health care cost trend rates for retiree benefits). Uncertainty in the value of tangible capital assets exists because of differences between estimated useful lives of the assets and their actual useful lives. Uncertainty related to the accrual for personal income tax and corporations tax revenues arises due to possible subsequent revisions of estimates based on forthcoming information from past-year tax return processing. Uncertainty in the estimation of the Canada Health Transfer and Canada Social Transfer entitlements arises from variances between the estimated and actual Ontario shares of the Canada-wide personal income and corporations tax base and population. Uncertainty related to the estimated net realizable value of the investments in the auto sector arises due to the reliance on market assumptions used in the Province’s valuation of the enterprises. Actual market results may vary from these assumptions. The uncertainties relating to the valuation of the Canadian third-party asset-backed term notes are detailed in the financial statements.

Estimates are based on the best information available at the time of preparation of the financial statements and are reviewed annually to reflect new information as it becomes available.

Revenues

Revenues are recognized in the fiscal year that the events giving rise to the revenues occur and they are earned. Amounts received prior to the end of the year, which relate to revenues that will be earned in a subsequent fiscal year, are deferred and reported as liabilities.

Deferred capital contributions are amortized into revenue over the estimated useful life of the related tangible capital assets.

Expenses

Expenses are recognized in the fiscal year that the events giving rise to the expenses occur and resources are consumed.

Transfer payments are recognized in the year during which the events giving rise to them occur, provided that the transfer is authorized, all eligibility criteria are met and a reasonable estimate of the amount can be made.

Interest on debt includes: i) interest on outstanding debt net of interest income on investments and loans; ii) amortization of foreign exchange gains or losses; iii) amortization of debt discounts, premiums and commissions; iv) amortization of deferred hedging gains and losses; and v) servicing and other costs.

Employee future benefits such as pensions, other retirement benefits and entitlements upon termination are recognized as expenses over the years in which the benefits are earned by employees. These expenses are the government’s share of the current year’s cost of benefits, interest on the net benefits liability or asset, amortization of actuarial gains or losses, cost of or gain on plan amendment, and other adjustments.

Other employee future benefits are recognized in the period when the event that obligates the government occurs or in the period when the benefits are earned and accumulated by employees.

The costs of buildings, transportation infrastructure, vehicles, aircraft, leased assets, machinery, equipment and information technology infrastructure and systems owned by the Province and its consolidated organizations are amortized and recognized as expenses over their estimated useful lives on a straight-line basis.

Liabilities

Liabilities are recorded to the extent that they represent present obligations of the government to outside parties as a result of events and transactions occurring prior to the end of the fiscal year. The settlement of liabilities will result in the sacrifice of economic benefits in the future.

Liabilities include present obligations for environmental costs, probable losses on loan guarantees issued by the government, and contingencies when it is likely that a loss will be realized and the amount can be reasonably determined.

Liabilities also include obligations to government business enterprises.

Alternative financing and procurement (“AFP”) refers to the Province using private-sector partners to procure and finance infrastructure assets. Assets procured via AFP are recognized as tangible capital assets and the related obligations are recognized as other long-term financing liabilities in these financial statements as the assets are constructed.

Debt

Debt consists of treasury bills, commercial paper, medium- and long-term notes, savings bonds, debentures and loans.

Debt denominated in foreign currencies that has been hedged is recorded at the Canadian dollar equivalent using the rates of exchange established by the terms of the hedge agreements. Other foreign currency denominated debt, liabilities and assets are translated to Canadian dollars at year-end rates of exchange and any exchange gains or losses are amortized over the remaining term to maturity.

The Province uses derivative financial instruments (derivatives) for the purposes of minimizing interest costs and managing risk. The Province does not use derivatives for speculative purposes. Derivatives are financial contracts, the value of which is derived from underlying instruments. Gains or losses arising from derivative transactions are deferred and amortized over the remaining life of the related debt issue.

Pensions and Other Employee Future Benefits

The liabilities for pensions and other employee future benefits are calculated on an actuarial basis using the government’s best estimates of future inflation rates, investment returns, employee salary levels and other underlying assumptions, and, where applicable, the government’s borrowing rate. When actual plan experience of pensions, other retirement benefits and termination pay differs from that expected, or when assumptions are revised, actuarial gains and losses arise. These gains and losses are amortized over the expected average remaining service life of plan members.

The liabilities for selected employee future benefits (such as pensions, other retirement benefits and termination pay) represent the government’s share of the actuarial present values of benefits attributed to services rendered by employees and former employees, less its share of the assets of the plans. In addition, the liability includes the Province’s share of the unamortized balance of actuarial gains or losses, and other adjustments primarily for differences between the fiscal year-end of the pension plans and that of the Province.

Assets

Assets are resources controlled by the government from which it will derive future benefits. Assets are recognized in the year the events giving rise to the government’s control of the benefit occur.

Financial Assets

Financial assets are resources that can be used to discharge existing liabilities or finance future operations. They include cash and cash equivalents, investments, accounts receivable, loans receivable, advances, and investments in government business enterprises.

Investments include temporary investments, investments in the auto sector, asset-backed term notes, and portfolio investments. Temporary investments are recorded at the lower of cost or market value. Investments in the auto sector, asset-backed term notes and portfolio investments are recorded at the lower of cost or their estimated net realizable value.

Accounts receivables are recorded at cost. A valuation allowance is recorded when collection of the receivable is considered doubtful.

Loans receivable include loans to government business enterprises and loans under the student loans program, advanced manufacturing investment program, and the automotive investment strategy fund. Loans receivable with significant concessionary terms are considered in part to be grants and are recorded on the date of issuance at face value discounted by the amount of the grant portion. The grant portion is recognized as an expense at the date of issuance of the loan. The amount of the loan discount is amortized to revenue over the term of the loan.

Investment in government business enterprises represents the net assets of government business enterprises recorded on the modified equity basis as described under Principles of Consolidation.

Tangible Capital Assets

Tangible capital assets are recorded at historical cost less accumulated amortization. Historical cost includes the costs directly related to the acquisition, design, construction, development, improvement or betterment of tangible capital assets. Cost includes overheads directly attributable to construction and development, as well as interest related to financing during construction. Estimated historical cost was used to record existing tangible capital assets if actual cost was unknown when the Province first implemented tangible capital assets accounting. Tangible capital assets, except land, are amortized over the estimated useful lives of the assets on a straight-line basis.

The following categories are included under tangible capital assets: land, buildings, transportation infrastructure, vehicles, aircraft, leased assets, machinery, equipment and information technology infrastructure and systems, and construction in progress.

Maintenance and repair costs are recognized as an expense when incurred. Betterments or improvements that significantly increase or prolong the service life or capacity of a tangible capital asset are capitalized. External contributions for acquisition of tangible capital assets are recorded as deferred capital contributions and amortized to revenue consistent with the amortization to expense of the related tangible capital assets.

Future Changes in Accounting Standards

In December 2009, PSAB confirmed that government business enterprises will be required to adopt International Financial Reporting Standards (“IFRS”) in fiscal years beginning on or after January 1, 2011. On July 28, 2010, the CICA issued an Exposure Draft proposing that qualifying entities with rate-regulated activities be permitted to defer the adoption of IFRS until January 1, 2013. The Province’s Consolidated Financial Statements will be affected by these changes to the extent that government business enterprises are impacted.

Other consolidated government organizations may also be impacted by PSAB’s recent proposals for Government Not-for-Profit Organizations that could impact the basis upon which these entities report. The Ministry of Finance continues to assess these proposals and has initiated a process to consult with the potentially impacted public-sector organizations.

The final PSAB standard and the result of the consultations may result in changes to the classification and basis of reporting for some government organizations and enterprises in future periods.

The potential future impact on the Province’s Consolidated Financial Statements of these proposed future changes in accounting standards is not reasonably determinable at this time.

Accounting and Financial Presentation Changes

The financial statements reflect the following changes in accounting policies and financial statement presentation:

Accounting Policy Changes

Minor Tangible Capital Assets

During fiscal year 2009-10, the Province extended its accounting policy for tangible capital assets in accordance with PSAB standards to include building leasehold improvements, assets acquired through capital leases, vehicles, aircraft and information technology infrastructure and systems.

Starting in the 2009-10 fiscal year, the costs of assets acquired in these classifications are being capitalized and amortized over their estimated useful lives. Previously these items were expensed in their year of acquisition.

Except for the tangible capital assets in these classifications for school boards, these items are being capitalized on a prospective basis as the information necessary to restate opening balances is not readily available.

At March 31, 2009, the net book value of the minor tangible capital assets of the school board sector was $404 million and the net book value of their leased assets was $49 million. The revised accounting policy as discussed above has been implemented retroactively as the information necessary to restate was available. The net impact of the restatement was to decrease the Province’s Accumulated Deficit at April 1, 2009 by $453 million with a corresponding increase in tangible capital assets.

The impact of the accounting policy change was a decrease in total expenses and the 2009-10 Annual Deficit of $215 million.

Interest Capitalization on Constructed Assets

Effective April 1, 2009, interest relating to the financing of the construction of tangible capital assets owned by the Province is being capitalized consistent with the accounting practice of consolidated BPS organizations.

The net impact of the accounting policy change was to decrease interest on debt expense and the 2009-10 Annual Deficit by $148 million.

Financial Statement Presentation Changes

Broader Public Sector Presentation

In accordance with PSAB, effective fiscal 2005-06, the Province’s reporting entity was expanded to include public hospitals, school boards, and colleges, collectively referred to as BPS organizations. As permitted under PSAB standards, these BPS organizations were consolidated in the Province’s financial statements on a one-line equity basis of accounting until March 31, 2009. Effective April 1, 2009, the BPS organizations are being consolidated in the Province’s financial statements on a line-by-line basis as described in Note 1 to the Consolidated Financial Statements contained in the 2009-2010 Public Accounts of Ontario.

With this change in presentation, the consolidated net debt of the Province as at April 1, 2009 was increased by $16.3 billion. There is no impact on the Province’s annual deficit or accumulated deficit as a result of adoption of this financial presentation change.

The comparative results from the 2008-09 fiscal year have been restated to reflect the revised financial presentation.

Education Property Tax

In prior years, Education Property Tax revenue was netted against Education Expenses consistent with the one-line basis of presenting consolidated BPS expenses of school boards described above. Effective April 1, 2009, with the change in presentation of consolidated BPS organizations described in Note 1 to the Consolidated Financial Statements contained in the 2009-2010 Public Accounts of Ontario, Education Property Tax revenue is no longer being netted against school board expenses but shown separately in revenue. This change results in an increase in total Revenues of $6.5 billion (2008-09, $6.5 billion). Education Property Tax revenue increased by $5.6 billion (2008-09, $5.7 billion) and Personal Income Tax revenue by $912 million

(2008-09, $765 million) reflecting the reclassification of refundable property tax credits from Personal Income Tax consistent with PSAB’s recommended presentation. The related increase in Education Expenses is $6.5 billion (2008-09, $6.5 billion). There is no impact on the Province’s annual deficit or accumulated deficit as a result of adoption of this financial presentation change. Prior years’ results have been restated to reflect this change in presentation.

The Budget

Traditionally, a Budget is tabled each year by the Ontario Minister of Finance in the Legislative Assembly, setting out the expense and revenue forecast for activities to be undertaken for Provincial purposes. In addition, a publication entitled “Ontario Finances” provides a quarterly update to reflect in-year developments, budget performance and policy actions and the “Ontario Economic Outlook and Fiscal Review” traditionally provides a more comprehensive update of second quarter numbers.


(2)	Fiscal Position

The following table provides an overview of the Province’s revenue and expense for each of the fiscal years in the four-year period ending March 31, 2010, as well as the Current Outlook for 2010-11 as presented in the 2010 Ontario Economic Outlook and Fiscal Review.

Ontario’s Fiscal Position


											Current			Rate of Growth
								Actual			Outlook⁽¹⁾			2009-10 to
	2006-07		2007-08		2008-09			2009-10			2010-11			2010-11
	(in millions)													(%)

Revenue
Taxation Revenue	$	70,553	$	74,889	$	68,856		$	64,931		$	72,483			11.6
Government of Canada		14,036		16,597		16,591			18,620			23,759			27.6
Income from Investment In Government Business Enterprises		4,196		4,437		4,042			4,195			4,164			(0.7	)
Other Revenue		7,855		7,656		7,444			8,047			7,250			(9.9	)

Total Revenue		96,640		103,579		96,933			95,793			107,656			12.4

Expense
Programs		85,540		94,065		94,776			106,336			115,896			9.0
Interest on Debt		8,831		8,914		8,566			8,719			9,715			11.4

Total Expense		94,371		102,979		103,342			115,055			125,611			9.2

Reserve		—		—		—			—			700			n/a
Surplus/(Deficit)	$	2,269	$	600	$	(6,409	)	$	(19,262	)	$	(18,656	)		n/a

Source: Ontario Ministry of Finance.


(1)	Fiscal forecast as presented in the 2010 Ontario Economic Outlook and Fiscal Review.

Fiscal Outlook 2010-11

2010-11 In-year Fiscal Performance

Ontario is now projecting a deficit of $18.7 billion for 2010-11 — a $1.0 billion improvement compared with the deficit forecast in the 2010 Budget. The improvement to the fiscal forecast for 2010-11 is mainly due to an increase in revenue resulting from stronger economic growth and the government’s prudent fiscal management. Total program expense is unchanged from the 2010 Budget plan.

Total revenue, projected to be $107.7 billion in 2010-11, is 0.7 per cent higher than the 2010 Budget forcast while total expense, projected to be $125.6 billion has decreased by 0.2 per cent. Total expense is lower due to the fact that the Province’s interest on debt expense projection is $0.2 billion below the 2010 Budget forecast.

The fiscal plan continues to maintain a $0.7 billion reserve in recognition of the global economic uncertainty that remains.

Fiscal Summary


				Current
	Actual			Outlook
	2009-10			2010-11⁽¹⁾
	(in billions)

Revenue	$	95.8		$	107.7
Expense
Programs		106.3			115.9
Interest on Debt		8.7			9.7

Total Expense		115.1			125.6
Reserve		—			0.7

Surplus/(Deficit)	$	(19.3	)	$	(18.7	)

Source: Ontario Ministry of Finance.


(1)	Fiscal forecast as presented in the 2010 Ontario Economic Outlook and Fiscal Review.

Notes: Interim numbers and related variances may not add due to rounding. A reserve of $1.2 billion included in the fiscal plan in the 2009 Budget was used to reduce the size of the deficit.

Revenues

Total revenues are projected to increase by $11.9 billion, or 12.4 per cent, in 2010-11 compared to 2009-10. Taxation revenue is $7.6 billion higher reflecting economic growth in 2010. Government of Canada transfers increase by $5.1 billion including increased funding for infrastructure, social and health programs and transitional assistance related to the introduction of the Harmonized Sales Tax on July 1, 2010. These increases are partially offset by a $0.8 billion decrease mostly in various non-tax revenues.

Expense

Total expense is projected to increase from $115.1 billion in 2009-10 to $125.6 billion in 2010-11. Projected increases are mainly a result of additional infrastructure stimulus spending as well as temporary relief provided by the Government of Canada for the transition to a new sales tax system. Remaining expense growth can be attributed to investments in the Ministry of Health and Long-Term Care for the Ontario Health Insurance Program, investments in the Ministry of Education and the Ministry of Training, Colleges and Universities, and additional spending for social assistance due to the increased number of Ontarians requiring income support from the government.


(3)	Revenue

Overview

The following table sets forth historical revenue information for the fiscal year in the period ended March 31, 2007.


Revenue	2006-07
	($ Millions)

Taxation Revenue
Personal Income Tax		24,622
Sales Tax		15,986
Education Property Tax*		5,518
Corporations Tax		10,845
Employer Health Tax		4,371
Ontario Health Premium		2,589
Gasoline Tax		2,310
Tobacco Tax		1,236
Land Transfer Tax		1,197
Fuel Tax		723
Electricity Payments-In-Lieu of Taxes		757
Other Taxes		399

		70,553


Revenue		2006-07
		($ Millions)

Government of Canada
Canada Health Transfer			7,702
Canada Social Transfer			3,478
Equalization			—
Infrastructure Programs			191
Labour Market Programs			289
Social Housing			532
Wait Times Reduction Fund			467
Other Federal Payments			1,377

			14,036
Income from Investment in Government Business Enterprises
Ontario Lottery and Gaming Corporation			1,945
Liquor Control Board of Ontario			1,307
Ontario Power Generation Inc. and Hydro One Inc.			947
Other Government Enterprises			(3	)

			4,196
Other Non-Tax Revenue
Reimbursements			1,415
Vehicle and Driver Registration Fees			970
Electricity Debt Retirement Charge			991
Power Supply Contract Recoveries			863
Sales and Rentals			1,108
Other Fees and Licences			624
Liquor Licence Revenue			467
Net Reduction of Power Purchase Contract Liability	��		412
Royalties			215
Miscellaneous Other Non-Tax Revenue			790

			7,855

Total Revenue			96,640

Source: Ontario Ministry of Finance.

Totals may not add due to rounding.


*	Education Property Tax (“EPT”) revenue, rather than netting against Education expense, will now be reported as revenue. These presentation changes are fiscally neutral.

The following table sets forth historical revenue information for each of the fiscal years in the three year period ended March 31, 2010 and 2010-11 forecast information presented in the 2010 Ontario Economic Outlook and Fiscal Review.

Total revenue in fiscal year 2010-11 is projected to be $107,656 million. Tax revenue is projected at $72,483 million or 67.3% of total revenue. Government of Canada transfers, at $23,759 million, account for 22.1% of total revenue. Income from Investment in Government Business Enterprises is projected to be $4,164 million, 3.9% of total revenue. All Other Non-Tax Revenues are projected to be $7,250 million, 6.7% of total revenue.

Ontario’s Revenue


										Current			% of Total
							Actual			Outlook			Revenue
Revenue	2007-08			2008-09			2009-10			2010-11			2010-11
	($ Millions)

Taxation Revenue
Personal Income Tax		25,472			25,738			23,393			24,812			23.0
Sales Tax¹		16,745			17,021			17,059			19,463			18.1
Corporations Tax		12,990			6,748			5,615			8,086			7.5
Education Property Tax		5,754			5,696			5,626			5,698			5.3
Employer Health Tax		4,605			4,617			4,545			4,747			4.4
Ontario Health Premium		2,713			2,776			2,763			3,022			2.8
Gasoline Tax		2,360			2,323			2,336			2,378			2.2
Land Transfer Tax		1,363			1,013			1,015			1,149			1.1
Tobacco Tax		1,127			1,044			1,083			1,132			1.1
Fuel Tax		733			698			658			733			0.7
Beer and Wine Tax (replacing Fees)²		—			—			—			414			0.4
Electricity Payments-In-Lieu of Taxes		546			830			516			481			0.4
Other Taxes		481			352			322			368			0.3

		74,889			68,856			64,931			72,483			67.3
Government of Canada
Canada Health Transfer		8,487			8,942			9,791			10,217			9.5
Canada Social Transfer		3,778			4,079			4,204			4,327			4.0
Equalization		—			—			347			972			0.9
Infrastructure Programs		207			151			990			2,146			2.0
Labour Market Programs		664			797			1,253			1,207			1.1
Social Housing		525			520			498			487			0.5
Wait Times Reduction Fund		468			235			97			97			0.1
Other Federal Payments		2,468			1,867			1,440			4,306			4.0

		16,597			16,591			18,620			23,759			22.1
Government Business Enterprises
Ontario Lottery and Gaming Corporation		1,857			1,921			1,924			1,859			1.7
Liquor Control Board of Ontario		1,374			1,410			1,440			1,465			1.4
Ontario Power Generation Inc./Hydro One Inc.		1,214			713			854			844			0.8
Other Government Enterprises		(8	)		(2	)		(23	)		(4	)		(0.0	)

		4,437			4,042			4,195			4,164			3.9
Other Non-Tax Revenue
Reimbursements		1,464			1,379			1,429			1,095			1.0
Vehicle and Driver Registration Fees		1,051			1,034			1,057			1,059			1.0
Electricity Debt Retirement Charge		982			970			907			916			0.9
Power Supply Contract Recoveries		929			953			1,409			1,385			1.3
Sales and Rentals		553			733			647			673			0.6
Other Fees and Licences		677			683			717			736			0.7
Beer and Wine Fees (replaced by Tax)²		466			459			451			115			0.1
Net Reduction of Power Purchase Contract Liability		398			373			348			339			0.3
Royalties		193			205			228			195			0.2
Miscellaneous Other Non-Tax Revenue		943			655			854			737			0.7

		7,656			7,444			8,047			7,250			6.7

Total Revenue		103,579			96,933			95,793			107,656			100.0


1	Sales Tax in 2010-11 includes Retail Sales Tax and Harmonized Sales Tax. Effective July 1, 2010, the Retail Sales Tax was replaced with a value-added tax and combined with the federal Goods and Services Tax to create a federally administered Harmonized Sales Tax.

2	Beer and Wine Tax replaces reduced Beer and Wine Fees ( -$343 million) and the reduced sales tax on alcohol ( -$71 million). There is no net new revenue for the Province.

Source: Ontario Ministry of Finance.

Totals may not add due to rounding.

Taxation

The Constitution provides for a division of taxation authority between the federal and provincial governments. Local governments derive their taxing powers from the Province. In accordance with its policy of centralized financing, the Province has delegated its taxing powers respecting real property taxes to local governments.

Personal Income Tax. Ontario imposes a personal income tax (“PIT”) on individuals who are resident in Ontario on the last day of the taxation year and on non-resident individuals who earn income in Ontario during the year. This tax is the Province’s largest single source of revenue.

Ontario basic PIT is calculated as a percentage of taxable income, as defined under the Income Tax Act (Canada). It is collected by the Canada Revenue Agency on Ontario’s behalf. The tax rates for 2010 are as follows: 5.05% of the first $37,106 of taxable income, plus 9.15% of any portion of taxable income between $37,106 and $74,214, plus 11.16% of any portion of taxable income over $74,214. Ontario non-refundable tax credits are provided to recognize individual and family circumstances (e.g., basic personal amount, spouse or common-law partner amount, medical expenses, charitable donations), at the rate of 5.05% in 2010 (11.16% for charitable donation amounts in excess of $200), before the calculation of the surtax and the Ontario Tax Reduction (“OTR”).

Ontario also applies a surtax on taxpayers with higher incomes. For the 2010 taxation year, the surtax is equal to 20% of Ontario basic PIT in excess of $4,006, plus an additional 36% of Ontario basic PIT in excess of $5,127. For tax filers with low or moderate incomes, the OTR can reduce or eliminate Ontario PIT.

The Ontario Health Premium (“OHP”) is a component of the PIT system and is based on taxable income of individuals. There are five OHP levels, with phase-in rates between levels. No one with a taxable income of $20,000 or less is liable to pay the OHP. The initial OHP level of $300 is phased in at the rate of 6% of taxable income in excess of $20,000, reaching the full amount at a taxable income of $25,000. The increase to the second OHP level of $450 is phased in at a rate of 6% of taxable income from $36,000 to $38,500. Each subsequent OHP level is phased in at the rate of 25% over the first $600 of taxable income in the range. The third OHP level of $600 is reached at a taxable income of $48,600, the fourth OHP level of $750 is reached at taxable income of $72,600, and the maximum annual OHP amount of $900 is reached at a taxable income of $200,600.

Harmonized Sales Tax. Starting July 1, 2010, Ontario’s Retail Sales Tax (“RST”) was converted to a value-added tax structure and combined with the federal goods and services tax (“GST”) to create a federally administered harmonized sales tax (“HST”). The HST generally has the same base as the federal GST at a combined tax rate of 13%. The provincial portion of the tax is 8% — the same as the general RST rate before the introduction of the HST — and the federal portion is 5%. As with the federal GST, businesses selling taxable or zero-rated goods and services are able to claim input tax credits on their purchases, with limited exceptions.

Retail Sales Tax. Ontario continues to apply RST at a rate of 8% to certain insurance premiums and at a rate of 13% to private transfers of used vehicles. Upon proclamation of certain amendments, the Retail Sales Tax Act will provide for a tax on transient accommodation at a regionally based rate, not exceeding 3%.

Corporate Income Tax. The Province taxes corporate income allocated to Ontario. All corporations carrying on business in Ontario, with a permanent establishment in Ontario, are subject to corporate income tax (“CIT”). Each corporation within a corporate group is taxed separately. CIT is collected by the Canada Revenue Agency on Ontario’s behalf.

The general CIT rate is 12%. The Manufacturing and Processing (“M&P”) CIT rate is 10%. The M&P CIT rate applies to income from manufacturing and processing, mining, logging, fishing and farming. On July 1, 2010, the general CIT rate was reduced from 14% to 12% and the M&P CIT rate was reduced from to 12% to 10%.The general CIT rate will be further reduced to 11.5% on July 1, 2011, to 11% on July 1, 2012 and to 10% on July 1, 2013.

The small business deduction provides a preferential CIT rate of 4.5% to Canadian-controlled private corporations on the first $500,000 of active business income. On July 1, 2010 the small business CIT rate was reduced from 5.5% to 4.5%. Prior to July 1, 2010 the benefit of the lower small business CIT rate was phased-out for corporations with taxable income between $500,000 and $1,500,000 by the 4.25% small business deduction surtax,applied in addition to the regular CIT rates. The small business deduction surtax was eliminated effective July 1, 2010.

Ontario provides assistance for scientific research and experimental development (“SR&ED”) activities through: (1) a 10% refundable innovation tax credit for qualified SR&ED expenditures by small and medium-sized corporations; (2) a full deduction for qualified expenses in the year they are incurred; (3) a 20% refundable tax credit for SR&ED done through specified research institutions; and (4) a 4.5% non-refundable tax credit on qualifying SR&ED expenditures in Ontario.

The Province provides an Ontario Resource Tax Credit, a non-refundable tax credit available where a corporation’s notional resource allowance exceeds the amount paid with respect to Crown royalties.

Ontario provides corporations established after March 24, 2008 and before March 25, 2012 that commercialize intellectual property developed at qualifying Canadian universities, colleges or research institutes, with a refund of CIT paid in their first 10 taxation years.

Ontario provides a number of refundable tax credits on expenses for certain other corporate activities carried out in Ontario: a 35% to 45% apprenticeship tax credit for hiring qualifying apprentices, a 25% to 30% co-operative education tax credit for hiring qualifying co-op students; a 30% book publishing tax credit; a 20% computer animation and special effects tax credit; a 35% tax credit for producing domestic film and television productions (40% for first-time producers), with an additional 10% bonus for qualifying regional productions; a 25% film and television production services tax credit for foreign-based and non-certified domestic productions; a 35% to 40% interactive digital media tax credit; and a 20% sound recording tax credit. Effective July 1, 2010, the Tax Credit for Small Beer Manufacturers provides a maximum tax credit of $2,499,500 for eligible non-draft or $1,824,500 for eligible draft beer sales in Ontario, effective July 1, 2010.

A corporation, or an associated group, with total assets over $50 million and total revenues over $100 million is subject to a corporate minimum tax (“CMT”). The CMT is applied at a rate of 2.7% on adjusted accounting income and is reduced by regular CIT payable in the year. CMT generally acts as a prepayment of CIT by providing for a carry-forward credit equal to the amount of CMT paid. The credit can be carried forward up to 20 years and may be applied to reduce CIT in years where CIT exceeds CMT. On July 1, 2010, the CMT rate was reduced from 4% to 2.7%. For taxation years ending after June 30, 2010, the exemption threshold were increased so a corporation or an associated group with under $50 million in total assets or under $100 million in annual gross revenue would not pay CMT. For taxation years ending before July 1, 2010, a corporation or an associated group with under $5 million in total assets and under $10 million in annual gross revenue would not pay CMT.

Insurance Premiums Tax. Insurance companies pay a 2% tax on net premiums in respect of accident, sickness and life insurance for persons resident in Ontario. A 3% tax is levied on net premiums in respect of property and any other contract of insurance in Ontario. Contracts in respect of property insurance also bear an additional 0.5% tax on net premiums. A 2% premiums tax is also payable by employers in respect of uninsured benefit arrangements.

Life insurance companies are subject to a special additional tax of 1.25% on taxable paid-up capital in Ontario. The first $10 million in paid-up capital is exempt from tax. This tax is reduced by regular income tax and any corporate minimum tax payable in the year.

Capital Tax. The Province eliminated capital tax on July 1, 2010. Prior to July 1, 2010, the Province levied a capital tax on taxable capital allocated to Ontario. The first $15 million of a corporation or associated group’s taxable capital was exempt from the tax. The capital tax rate for corporations other than financial institutions was 0.15% for 2010 until the elimination date. Capital tax generally applied to corporations that are financial institutions at a two-tier rate. For 2010, the rate was 0.3% on a financial institution’s first $400 million of adjusted taxable capital until the elimination date. Non-deposit taking financial institutions with taxable capital over $400 million were subject to capital tax at the rate of 0.36% in 2010 until the elimination date. Deposit taking financial institutions with taxable capital over the $400 million threshold were subject to capital tax at the rate of 0.45% in 2010 until the elimination date. Certain financial institutions were able to reduce capital tax liability by making eligible investments in Ontario small businesses under the Small Business Investment Tax Credit for Financial Institutions. Prior to the full elimination of capital tax on July 1, 2010, certain entities such as credit unions, deposit insurance corporations, family farm and fishing corporations were exempt from paying capital tax. Capital tax was eliminated for manufacturing and resource firms effective January 1, 2007.

Mining Tax. The Mining Tax Act levies a tax on profits from the extraction of minerals (except diamonds) in Ontario. The tax is levied on the operator’s profit in excess of $500,000. The mining tax rate is 10%. There is a three-year or $10 million profit exemption available to new or expanded mines. To assist mines in remote areas of the Province, the three-year exemption is extended to ten years for new remote mines. After the tax exemption, the profits from remote mines are taxed at a rate of 5%.

Diamond Royalty. The profit-based diamond royalty has a graduated rate structure starting at 5% and an overall maximum rate of 13%. Ontario has introduced special deductions that could result in an effective diamond royalty rate, in any one year, ranging from 4% to a maximum of 10.4%. The effective royalty rate could be reduced even further with investments in aboriginal or northern communities.

Employer Health Tax. Ontario levies an employer health tax on Ontario remuneration. Employers with total annual Ontario remuneration of $200,000 or less calculate tax payable at a rate of 0.98%. Employers with total annual Ontario remuneration exceeding $200,000 and up to $400,000 calculate this tax at graduated rates from 1.101% to 1.829%. Employers with total annual Ontario remuneration in excess of $400,000 calculate the tax at a rate of 1.95%. An exemption from the tax is provided to certain employers such as private sector employers and Crown corporations on the first $400,000 of total annual Ontario remuneration.

Land Transfer Tax. Ontario levies a land transfer tax on the value of consideration of most registered conveyances and unregistered dispositions of beneficial interest in land in Ontario. The land transfer tax applies at graduated rates ranging from 0.5% on the value of consideration of $55,000 or less, 1.0% on the value of consideration exceeding $55,000 to $250,000 and 1.5% on the value of consideration exceeding $250,000. Where the value of consideration exceeds $400,000 and the property contains one or two single-family residences, there is an additional 0.5% (in addition to the 1.5%) tax levied on the amount exceeding $400,000. A refund of up to $2,000 of the land transfer tax paid is available for qualifying first-time buyers.

Other Significant Taxes. Taxes are applied to the purchases of gasoline (Gasoline Tax Act) and use of diesel fuel (Fuel Tax Act). The taxes apply to gasoline and diesel fuel used in on-road motor vehicles and certain off-road uses (i.e. recreational boats, snowmobiles, lawn mowers). Under the Gasoline Tax Act, the tax rate for gasoline is 14.7 cents per litre; 4.3 cents per litre for propane; and 2.7 cents per litre for fuel used to power aircraft. Under the Fuel Tax Act, the tax rate for diesel fuel is 14.3 cents per litre and 4.5 cents per litre for diesel fuel used to power railroad locomotives.

Beer and Wine Tax. Starting on July 1, 2010, beer and wine taxes imposed under Part II of the Alcohol and Gaming Regulation and Public Protection Act, 1996 came into effect. These taxes replace certain fees imposed on Ontario beer and wine manufacturers. These taxes apply to Ontario wine purchased at retail stores operated by wineries and to Ontario beer purchased from the Beer Store, a licensed establishment or on-site manufacturer’s store.

Tobacco Tax. Since February 1, 2006, Ontario’s tobacco tax rate is 12.35 cents per cigarette or per gram or part gram of cut tobacco. The tax on cigars is 56.6% of the retail price.

Race Tracks Tax. Ontario also levies a racetracks tax on wagers on horse races at 0.5% on all bets.

Federal Government Payments

Approximately 22.1% of the Province’s revenue in fiscal year 2010-11, or $23,759 million, will be received through cash payments from the federal government. These payments are expected to increase by $5,139 million, from $18,620 million in 2009-10. Federal payments are intended to assist the Province in providing services in areas of provincial jurisdiction.

Canada Health Transfer (“CHT”) and Canada Social Transfer (“CST”). The largest cash transfers from the federal government, in the form of CHT and CST payments, are to assist the Province in providing health care, postsecondary education and other social programs. In 2010-11, CHT and CST payments to Ontario are expected to total $14,544 million, including $10,217 million in CHT and $4,327 million in CST.

The CHT and CST were created April 1, 2004, when the Government of Canada split the Canada Health and Social Transfer (“CHST”) into two separate transfers: the CHT, designated specifically for health care, and the CST for postsecondary education and social programs. The CHST was a block fund contribution by the federal government in respect of social programs under the Federal-Provincial Fiscal Arrangements Act. It replaced both the Established Programs Financing (“EPF”) and Canada Assistance Plan (“CAP”) in 1996-97. To

receive the CHT cash contribution, provinces must comply with the Canada Health Act. To receive the CST cash contribution, provinces may not impose a residency requirement in determining eligibility for social assistance.

Beginning in 2007-08, CST total entitlements were allocated on an equal per capita cash basis. CHT entitlements will still be calculated using a formula that takes into account PIT and corporate income tax (“CIT”) tax points until 2013-14. CHT entitlements in 2010-11 include a separate payment to Ontario to bring it up to the same CHT per capita cash amount received by other Equalization receiving provinces.

Equalization is the Government of Canada’s transfer program for addressing fiscal disparities among provinces. Equalization payments are unconditional — receiving provinces are free to spend the funds according to their own priorities. Ontario has qualified for an Equalization payment of $972 million in 2010-11.

In 2010-11, Ontario expects to receive a total of $8,243 million through federal programs other than the CHT, CST and Equalization, including $2,146 million for infrastructure, $1,207 million for labour market training, $487 million for social housing, $97 million from the Wait Times Reduction Fund and $4,306 million in other federal transfers (including a $3,000 million federal transition payment to support the move to a Harmonized Sales Tax).

Fiscal Stabilization. An integral part of federal-provincial fiscal relations is the federal government’s obligation to protect provincial revenues. The federal government makes cash payments to any province if its eligible revenue falls short of the previous year’s total by 5% or more due to a downturn in economic activity. The most recent payment to Ontario under this program was received in 1995-96 in respect of claims made up to and including the 1992-93 fiscal year.

Federal Payments to Ontario


	Actual		Plan
	2009-10		2010-11
	(in millions)

Canada Health Transfer (“CHT”)	$	9,791	$	10,217
Canada Social Transfer (“CST”)		4,204		4,327
Equalization		347		972
Infrastructure Programs		990		2,146
Labour Market Programs		1,253		1,207
Social Housing		498		487
Wait Times Reduction Fund		97		97
Other		1,440		4,306

Total Federal Payments	$	18,620	$	23,759

Other Revenue

In 2010-11, 10.6% of revenue is expected from sources other than taxation or Government of Canada transfers. This category includes the net income of provincially-owned business enterprises such as the Liquor Control Board of Ontario, the Ontario Lottery and Gaming Corporation, Hydro One Inc. and the Ontario Power Generation Inc. Also included are various Non-Tax revenues such as Vehicle and Driver Registration Fees, Sales and Rentals, Royalties and Reimbursements of provincial spending on various services, largely from municipalities.


(4)	Expense

Overview

The following table sets forth historical expense information for the fiscal year in the period ended March 31, 2007.


Total Expense	2006-07
	($ Millions)

Ministry Expense
Aboriginal Affairs¹		25
Agriculture, Food and Rural Affairs¹		796
Attorney General		1,345
Board of Internal Economy		163
Children and Youth Services		3,277
Citizenship and Immigration		112
Community and Social Services		7,183
Community Safety and Correctional Services		1,856
Consumer Services^2,3		55
Economic Development and Trade^1,2		223
Education¹		17,956
Energy and Infrastructure¹		513
Environment¹		312
Executive Offices		37
Finance¹		490
Francophone Affairs, Office of		4
Government Services¹		943
Health and Long-Term Care¹		35,254
Health Promotion¹		391
Labour		146
Municipal Affairs and Housing¹		843
Natural Resources²		626
Northern Development, Mines and Forestry^2,4,5		419
Research and Innovation¹		316
Revenue		649
Tourism and Culture		618
Training, Colleges and Universities¹		5,388
Transportation¹		1,787
Interest on Debt⁶		8,831
Other Expense¹		3,813
Year-End Savings⁷		—

Total Expense		94,371


1	Details on other ministry expense can be found in the table — “Other Expense”.

2	Future updates will reflect the impacts of previously announced ministry restructuring details.

3	Expense presented is that of the former Ministry of Small Business and Consumer Services.

4	Expense presented is that of the former Ministry of Northern Development and Mines.

5	2008-09 amount reflects an accounting adjustment of $112.1 million resulting from the reclassification of the Ontario Northland Transportation Commission from a Government Business Enterprise to a Government Organization.

6	Interest on debt is net of interest capitalized during construction of tangible capital assets of $78 million in 2009-10.

7	As in past years, the Year-End Savings provision reflects anticipated underspending that has historically arisen at year-end due to factors such as program efficiencies, and changes in project startups and implementation plans.

The following table provides an overview of the Province’s expense information for each of the fiscal years from 2007-08 to 2010-11.

Ontario’s Total Expense


							Current			% of Total
					Actual		Outlook			Expense
Total Expense	2007-08		2008-09		2009-10		2010-11			2010-11
	($ Millions)

Ministry Expense
Aboriginal Affairs¹		33		55		67		71.0			0.1
Agriculture, Food and Rural Affairs¹		731		877		1,265		1,288.1			1.0
Attorney General		1,650		1,669		1,584		1,709.8			1.4
Board of Internal Economy		257		188		187		195.0			0.2
Children and Youth Services		3,733		4,069		4,430		4,666.5			3.7
Citizenship and Immigration		90		89		101		112.4			0.1
Community and Social Services		7,549		8,001		8,629		9,263.2			7.4
Community Safety and Correctional Services		1,982		2,121		2,201		2,690.6			2.1
Consumer Services		54		58		57		60.0			0.0
Economic Development and Trade¹		328		245		223		349.8			0.3
Education¹		18,733		19,626		20,337		21,364.6			17.0
Energy and Infrastructure^1,2		389		251		292		723.6			0.6
Environment¹		347		363		360		383.0			0.3
Executive Offices		36		35		34		34.9			0.0
Finance¹		380		602		491		651.7			0.5
Francophone Affairs, Office of		5		5		5		5.1			0.0
Government Services¹		916		939		1,106		1,102.4			0.9
Health and Long-Term Care		37,744		40,352		42,730		45,352.4			36.1
Health Promotion and Sport¹		364		382		381		408.7			0.3
Labour		170		177		179		192.2			0.2
Municipal Affairs and Housing¹		744		756		694		686.4			0.5
Natural Resources		629		621		639		666.2			0.5
Northern Development, Mines and Forestry		506		645		653		857.3			0.7
Research and Innovation¹		301		295		333		411.5			0.3
Revenue¹		641		635		1,129		1,008.1			0.8
Tourism and Culture¹		584		566		668		720.0			0.6
Training, Colleges and Universities¹		5,787		6,081		6,479		7,154.9			5.7
Transportation¹		1,892		2,038		2,097		2,294.6			1.8
Interest on Debt³		8,914		8,566		8,719		9,715.0			7.7
Other Expense¹		7,490		3,035		8,985		12,646.5			10.1
Year-End Savings⁴		—		—		—		(1,174.5	)		n/a

Total Expense		102,979		103,342		115,055		125,611.1			100.0


1	Details on other ministry expense can be found in the table — “Other Expense”.

2	Future updates will reflect the impact of previously announced ministry restructuring details.

3	Interest on debt is net of interest capitalized during construction of tangible capital assets of $148 million in 2009-10 and $212 million in 2010-11.

4	As in past years, the Year-End Savings provision reflects anticipated underspending that has historically arisen at year-end due to factors such as program efficiencies, and changes in project startups and implementation plans.

Note: Numbers may not add due to rounding.


							Current		% of Total
					Actual		Outlook		Expense
Other Expense	2007-08		2008-09		2009-10		2010-11		2010-11
	($ Millions)

Ministry Expense
Aboriginal Affairs
One-Time Expense for the First Nations Gaming Agreement		201		—		—		—		—
Agriculture, Food and Rural Affairs
One-Time Extraordinary Assistance		274		—		—		—		—
Time-Limited Investments in Infrastructure		—		—		618		1,898.0		1.5
Time-Limited Assistance		76		13		27		9.0		0.0
Economic Development and Trade
One-Time Investments		152		—		—		—		—
Education
Teachers’ Pension Plan¹		342		50		255		525.0		0.4
Energy and Infrastructure
Capital Contingency Fund		—		—		—		200.0		0.2
One-Time Investments in Municipal Infrastructure		450		—		—		—		—
Ontario Clean Energy Benefit		—		—		—		300.0		0.2
Environment
One-Time Investments		—		68		37		—		—
Finance
One-Time Automotive Sector Support²		—		75		3,022		—		—
Investing in Ontario Act Investments		1,149		—		—		—		—
Ontario Municipal Partnership Fund		907		905		781		645.5		0.5
Operating Contingency Fund		—		—		—		1,389.9		1.1
Pension Benefit Guarantee Fund		—		—		500		—		—
Power Supply Contract Costs		929		953		1,409		1,385.0		1.1
Government Services
Pension and Other Employee Future Benefits		531		971		949		1,102.0		0.9
Health Promotion and Sport
Time-Limited Investments in Infrastructure		—		—		48		345.1		0.3
Municipal Affairs and Housing
Time-Limited Investments in Municipal Social and Affordable Housing Stock		100		—		585		659.3		0.5
One-Time Assistance		—		—		—		1.0		0.0
Research and Innovation
One-Time Investments		87		—		5		—
Revenue
Harmonized Sales Tax Transitional Support		—		—		—		3,200.0		2.5
Tourism and Culture
One-Time Investments		57		—		—		29.0		0.0
Training, Colleges and Universities
Time-Limited Investments		699		—		559		957.7		0.8
Transportation
One-Time Transit and Infrastructure Investments		1,536		—		190		—

Total Other Expense		7,490		3,035		8,985		12,646.5		10.1


1	Numbers reflect PSAB pension expense. Ontario’s matching contributions to the plan grow from $808 million in 2007-08 to $1,245 million in 2009-10 and $1,307 million in 2010-11.

2	Reflects the fiscal impact of Ontario’s $4.6 billion in support to the automotive industry.

Note: Numbers may not add due to rounding.

Health Sector. The health sector is comprised of the Ministry of Health and Long-Term Care and the Ministry of Health Promotion. The Health sector is the largest single component of Provincial expense, accounting for a projected 37% of total expense in 2010-11. Ontario’s health care system is primarily funded

by Provincial revenues. Major components of health expense include the net expense of operating public hospitals, payments to physicians and other health care practitioners, and prescription drug programs.

Education Sector. The Education sector consists of the Ministry of Education. The largest cost component is the net expense of school boards which receive substantial grants from the Province. Additional funding for public education is provided through local property taxes. Education Sector expense is projected to be 17% of total expense in 2010-11.

Postsecondary Education and Training Sector. This sector consists of the Ministry of Training, Colleges and Universities. Major components of expense include operating grants to Universities, as well as the net expense of Colleges of Applied Arts and Technology. The Postsecondary Education and Training Sector is projected to be 6% of total expense in 2010-11.

Children’s and Social Services Sector. This sector is comprised of the Ministry of Community and Social Services and the Ministry of Children and Youth Services. The Province provides a wide range of social services, including social assistance, drug benefits, childcare, child protection and developmental service programs. The Children’s and Social Services Sector is projected to be 11% of total expense in 2010-11.

Justice Sector. The Justice Sector is comprised of the Ministry of the Attorney General and the Ministry of Community Safety and Correctional Services. The Justice Sector is projected to be 4% of total expense in 2010-11.

Other Programs Sector. All other expenses — excluding Interest on Debt — are included in the Other Program Sector, representing a projected 18% of total expense in 2010-11.

Interest on Debt. Interest on Debt represents a projected 8% of total expense in 2010-11.


(5)	Outline of Principal Provincial Institutions

The Province has established a number of Crown corporations, which are primarily intended to provide goods and services needed to implement approved government policy and programs or to provide a regulatory function for operations authorized by government legislation. Among the more prominent Ontario Crown corporations are the Liquor Control Board of Ontario, the Ontario Financing Authority, the Ontario Lottery and Gaming Corporation, the Ontario Securities Commission, the Ontario Infrastructure Projects Corporation and the Ontario Northland Transportation Commission.

Until its restructuring in April 1999 and its continuation as Ontario Electricity Financial Corporation (“OEFC”), Ontario Hydro had a mandate to generate and supply power in Ontario. For a description of Ontario Hydro, its restructuring and the operations of its successor companies, See “4. Public Debt — (2) Assets and Liabilities, (iii) Liabilities — Ontario Electricity Industry” below.

The following table provides summary information on the Revenues, Expenses and Net Income/(Loss) of Government Business Enterprises for years 2005-06 to 2009-10.


GOVERNMENT
BUSINESS	TOTAL REVENUES								TOTAL EXPENSES								NET INCOME (LOSS)
ENTERPRISES	2006/07		2007/08		2008/09		2009/10		2006/07		2007/08		2008/09		2009/10		2006/07			2007/08			2008/09			2009/10
	($ millions)								($ millions)								($ millions)

Algonquin Forestry Authority		28		24		21		19		28		24		23		19		—			—			(2	)		—
Hydro One Inc.		4,663		4,599		4,690		4,761		4,211		4,192		4,160		4,298		452			407			530			463
Liquor Control Board of Ontario		3,928		4,133		4,298		4,349		2,621		2,759		2,888		2,909		1,307			1,374			1,410			1,440
Niagara Parks Commission		79		77		77		73		80		78		81		99		(1	)		(1	)		(4	)		(26	)
Ontario Clean Water Agency		122		132		141		148		117		128		137		145		5			4			4			3
Ontario Lottery and Gaming Corporation		6,085		6,261		6,486		6,336		4,140		4,404		4,565		4,412		1,945			1,857			1,921			1,924
Ontario Northland Transportation Commission*		144		140		—		—		151		151		—		—		(7	)		(11	)		—			—
Ontario Power Generation Inc.		5,613		5,761		5,994		5,612		5,118		4,954		5,811		5,221		495			807			183			391

TOTAL		20,662		21,127		21,707		21,298		16,466		16,690		17,665		17,103		4,196			4,437			4,042			4,195


*	Ontario Northland Transportation Commission no longer meets the criteria for classification as a government business enterprise.


(6)	Sinking Funds

The Province of Ontario does not have a sinking funds system.

4. PUBLIC DEBT


(1)	Debt

The Province has met its financing requirements through a combination of public borrowing, non-public borrowing and increases in cash and temporary investments. There is no constitutional limit on borrowing.

Publicly Held Debt

The majority of Ontario’s borrowing requirements are met through public market borrowing. See “4. Public Debt — (2) Assets and Liabilities — (iii) Liabilities — Publicly Held Debt” below.

Non-Public Debt

The Public Service Pension Plan (“PSPP”), the Ontario Public Service Employees Union (“OPSEU”) Pension Plan and the Ontario Teachers’ Pension Plan (“OTPP”). Prior to January 1, 1990, PSPP and OTPP were required to invest their net cash flow in debt issued by the Province. Legislation now allows these Plans to invest in public capital markets, and they are no longer a source of direct financing for the Province. The OPSEU Pension Plan was created in June 1994 through legislation dividing the PSPP and creating a separate plan for OPSEU members and for certain other unionized non-management employees. See “4. Public Debt — (2) Assets and Liabilities — (iii) Liabilities — Non-Public Debt” below.

The Canada Pension Plan (“CPP”) obtains monies from a compulsory national contributory pension plan in which all provinces other than Quebec participate. The Canada Pension Plan Investment Board (“CPP Investment Board”) is a Crown corporation managed independently of the CPP and at arm’s length from government and invests the funds not needed by CPP to pay current benefits in a diversified portfolio of assets. Prior to the creation of the CPP Investment Board, the net cash flows of the CPP were invested in non-marketable bonds issued by participating provinces, agents of the Crown and the Government of Canada. These investments have been transferred to the CPP Investment Board. The amount available to a province was based on the proportion of total contributions coming from that province. Provinces continue to have access to CPP funds and may elect to have the CPP Investment Board purchase a replacement debt security or securities in a total principal amount not exceeding the principal amount of the maturing security for a minimum term of 5 years and a maximum term of 30 years.

Borrowing Program


	2006-07⁽¹⁾			2007-08⁽¹⁾			2008-09⁽¹⁾			2009-10⁽¹⁾
	(in millions)

Debt Issues	$	19,210		$	20,761		$	35,877		$	50,077
Retirements:
Publicly Held Debt		15,362			13,476			19,281			12,628
Canada Pension Plan Investment Fund		232			42			—			—
Ontario Teachers’ Pension Plan		1,185			1,945			1,465			1,236
Public Service Pension Plan		204			241			269			278
Ontario Public Service Employees’ Union (“OPSEU”) Pension Fund		97			115			128			132
Municipal Employee Retirement Fund		103			—			—			—
Other		48			36			36			596

		17,231			15,855			21,179			14,870

Net Debt Retirements/(Issues)		(1,979	)		(4,906	)		(14,698	)		(35,207	)
Other Items⁽²⁾		3,841			2,117			(7,655	)		3,361
Acquisition less Amortization of Tangible Capital Assets		1,211			1,867			5,348			5,832
Increase/(Decrease) in Cash, Cash Equivalents and Investments		(804	)		1,522			10,596			6,752

Surplus/(Deficit)	$	2,269		$	600		$	(6,409	)	$	(19,262	)

Source: Ontario Ministry of Finance.


(1)	2006-07 to 2009-10 refers to information presented in the Public Accounts of Ontario, Consolidated Statement of Cash Flow.

(2)	Other items include accruals, liability for pensions and other employee future benefits, consolidation adjustments, total debt of the Broader Public Sectors (hospitals, school boards and colleges) and obligations under Alternative Financing and Procurement arrangements.


(2)	Assets and Liabilities


*(i)*	*General*

Two features of Ontario’s accounting and financing policies have a material effect on the reporting of assets and liabilities: the treatment of physical assets and the intermediary aspect of centralized financing.

Starting in 2002-03, major tangible capital assets owned by the Province (land, buildings and transportation infrastructure) are accounted for on a full accrual accounting basis. During fiscal year 2009-10, the Province extended its accounting policy for tangible capital assets in accordance with PSAB standards to include building leasehold improvements, assets acquired through capital leases, vehicles, aircraft and information technology infrastructure and systems.

The intermediary activity of borrowing on behalf of provincially created bodies creates assets and liabilities. These would not appear if the bodies were funded independently or through a provincial guarantee. This borrowing action increases the Province’s debt. The related asset arises because the government is funding, through loans and investments, expenses that are administered outside a government ministry.

Activities so funded are expected to generate sufficient return to repay the principal and interest. However, the recipients of the advances and investments are not always required to produce a profit, and some are not self-sustaining.


*(ii)*	*Assets*

Summary of Assets


	March 31,		% of
	2010		Total
	(in millions)

Financial Assets:
Cash and Cash Equivalents	$	12,751		21.2
Investments		12,741		21.2
Accounts Receivable		8,436		14.1
Loans Receivable and Other Assets		9,552		15.9
Investment in Government Business Enterprises		16,561		27.6

	$	60,041		100.0

Non-Financial Assets:
Tangible Capital Assets	$	62,632		100.0

Source: Ontario Ministry of Finance.

Cash and Investments

Between April 1, 2009 and March 31, 2010, the month-end level of cash and temporary investments varied from a low of approximately $10,416 million to a high of approximately $19,586 million. The cash and temporary investments are used to accommodate differences in revenue and expense flows during each fiscal year and to provide flexibility for debt management.

Accounts Receivable

Accounts receivables are recorded at cost. A valuation allowance is recorded when collection of the receivable is considered doubtful.

Loans Receivable and Other Assets

receivable with significant concessionary terms are considered in part to be grants and are recorded on the date of issuance at face value discounted by the amount of the grant portion. The grant portion is recognized as an expense at the date of issuance of the loan. The amount of the loan discount is amortized to revenue over the term of the loan.

Investment in Government Business Enterprises

Investment in government business enterprises represents the net assets of government business enterprises recorded on the modified equity basis as described under Principles of Consolidation.

The activities of government business enterprises are recorded in the financial statements using the modified equity method. Under this method, government business enterprises are reported in accordance with the accounting principles generally accepted for business enterprises. Their combined net assets are included in the financial statements as Investment in Government Business Enterprises on the Consolidated Statement of Financial Position and their combined net income is shown as a separate item, Income from Investment in Government Business Enterprises, on the Consolidated Statement of Operations.

Net Assets of Broader Public Sector Organizations

In accordance with PSAB, effective fiscal 2005-06, the Province’s reporting entity was expanded to include public hospitals, school boards, and colleges, collectively referred to as BPS organizations. As permitted under PSAB standards, these BPS organizations were consolidated in the Province’s financial statements on a one-line equity basis of accounting until March 31, 2009. Effective April 1, 2009, the assets and liabilities of the BPS organizations are consolidated with those of the Province on a line-by-line basis on the Consolidated Statement of Financial Position. As such, the net debt of hospitals, school boards and colleges is included in the consolidated net debt of the Province.

Tangible Capital Assets


*(iii)*	*Liabilities*

Overview

Liabilities include debt issued for Provincial purposes and for Ontario Electricity Financial Corporation, accounts payable and accrued liabilities, pension liabilities for the Public Service Pension Plan, the Ontario Public Service Employees’ Union (“OPSEU”) Pension Plan, the Ontario Teachers’ Pension Plan, Power Purchase Contracts and other liabilities.

Summary of Liabilities


	March 31,
	2010		% of Total
	(in millions)

Liabilities:
Publicly Held Debt⁽¹⁾	$	195,116		76.9

Non-Public Debt
Canada Pension Plan Investment Fund		10,233		4.0


	March 31,
	2010			% of Total
	(in millions)

Ontario Teachers’ Pension Plan		1,765			0.7
Canada Mortgage and Housing Corporation		755			0.4
Public Service Pension Plan		1,713			0.7
Ontario Public Service Employees’ Union (“OPSEU”) Pension Fund		814			0.3
Other		1,726			0.7

		17,006			6.8

Total Debt Issued (a)		212,122			83.7
Accounts Payable and Other Liabilities^(*)		35,334			13.9
Power Purchase Contracts^(*)		1,858			0.7
Pensions and Other Employee Future Benefits^(*)		4,316			1.7

Total Liabilities	$	253,630			100.0

Total obligations guaranteed^(2)(*)	$	734			100.0

Total Revenue (b)	$	95,793

Proportion of (a) to (b)		221.4	%

Source: Ontario Ministry of Finance.


(*)	Per March 31, 2010 Public Accounts of Ontario.

(1)	All balances are expressed in Canadian dollars. The balances above reflect the effect of related derivatives contracts entered into by the Province. See “4. Public Debt — (5) Financial Tables — I. Summary of Net Debt and Accumulated Deficit — Risk Management and Derivative Financial Instruments”.

(2)	These are outstanding loans guaranteed and other contingencies as at March 31, 2010. In addition to the above reported obligations, the Province has entered into the following agreements:

Social Housing Loan Insurance Agreements.

For all non-profit housing projects in the provincial portfolio, the Province is liable to indemnify and reimburse the Canada Mortgage and Housing Corporation (“CMHC”) for any net costs, including any environmental liabilities, incurred as a result of project defaults through the Ministry of Municipal Affairs and Housing or the Ontario Housing Corporation.

At March 31, 2010, there were $7.4 billion (2009, $7.7 billion) of mortgage loans outstanding. As operating subsidies provided by the Province are sufficient to ensure that all mortgage payments can be made when due, default is unlikely. To date, there have been no claims for defaults on insured mortgage loans.

Ontario Nuclear Funds Agreement.

See “4. Public Debt — (2) Assets and Liabilities, (iii) Liabilities — Ontario Electricity Industry” below.

Canadian Blood Services

The provincial and territorial governments of Canada have entered into a Canadian Blood Services Excess Insurance Captive Support Agreement (the “Captive Support Agreement”) with Canadian Blood Services (CBS) and Canadian Blood Services Captive Insurance Company Limited (CBSI), a wholly owned subsidiary of CBS. Under the Captive Support Agreement, each government indemnifies CBSI for its pro-rata share of any payments that CBSI becomes obliged to make under a comprehensive blood risks insurance policy it provides to CBS. The policy has an overall limit of $750 million, which may cover settlements, judgments and defence costs. The policy is in excess of, and secondary to, a $250 million comprehensive insurance policy underwritten by CBS Insurance Company Limited, a subsidiary of CBS. Given current populations, Ontario’s maximum potential liability under the Captive Support Agreement is approximately $376 million. The Province is not aware of any proceedings that could lead to a claim against it under the Captive Support Agreement.

Collateral

The Province has financial instrument repurchase agreements in place providing for the exchange of collateral with counterparties. Starting in 2009 —10, the Province also entered into collateral agreements with certain derivatives counterparties that are generally conducted under terms that are usual and customary to derivatives transactions. In the normal course of business, the Province may be required to pledge and/or receive assets relating to obligations arising from derivatives and repurchase agreements. Provided there is no default, these pledged securities must be returned to the pledgor when there are no longer any outstanding obligations.

As at March 31, 2010, the Province pledged assets in the carrying amount of $1.3 billion, which are included in Investments.

The following table provides the Province’s outstanding debt for each of the fiscal years in the five-year period ended March 31, 2010.

Domestic And External Debt


	2006		2007		2008		2009		2010
	(in millions)

Domestic Debt	$	118,112	$	119,158	$	128,736	$	139,910	$	157,605
External Debt		36,794		37,835		33,320		37,005		54,517

Total	$	154,906	$	156,993	$	162,056	$	176,915	$	212,122

Publicly Held Debt

Publicly held debt is debt issued to the general public. As at March 31, 2010, the total publicly held debt issued was $195,116 million, $146,045 million of which was issued in Canadian dollars (includes $13,914 million of treasury bills), $36,197 million in U.S. dollars (includes $3,088 million in U.S. commercial paper), $7,506 million in euros, $2,734 million in Swiss francs and $2,634 million in other currencies.

From April 1, 2010 through November 30, 2010, the Province announced public offerings of bonds and notes totaling approximately $27.6 billion of which $27.1 billion were for provincial purposes and $0.5 billion was debt incurred for the OEFC. The tables below provide a summary of the publicly held debt issued by the Province from April 1, 2010 through November 30, 2010 for provincial purposes.

Debt Issued by the Province for Provincial Purposes

Series

Date of Issue

Date of Maturity

Interest Rate %

Funds

Principal

References

(in millions)

G48-USD

14-Apr-2010

14-Apr-2020

4.400

U.S.$

2,000.0

⁽²⁾⁽⁹⁾

DMTN200

22-Apr-2010

02-Jun-2020

4.200

Canadian$

675.0

⁽²⁾⁽⁴⁾

DMTN202

22-Apr-2010

16-Apr-2012

1.900

Canadian$

151.0

⁽²⁾

DMTN182

29-Apr-2010

02-Jun-2039

4.600

Canadian$

600.0

⁽²⁾⁽⁵⁾

DMTN182

04-May-2010

02-Jun-2039

4.600

Canadian$

600.0

⁽²⁾⁽⁵⁾

G49-USD

07-May-2010

07-May-2013

USD Libor 3M+0.16

U.S.$

500.0

^(1)(10)

EMTN101

07-May-2010

07-May-2020

2.375

Swiss Francs

400.0

^(3)(12)

DMTN203

12-May-2010

15-May-2015

3 CBA+0.18

Canadian$

40.0

^(1)(21)

DMTN182

14-May-2010

02-Jun-2039

4.600

Canadian$

600.0

⁽²⁾⁽⁵⁾

EMTN102

14-May-2010

14-May-2013

3.000

NOK

1,250.0

^(3)(13)

DMTN200

18-May-2010

02-Jun-2020

4.200

Canadian$

700.0

⁽²⁾⁽⁴⁾

EMTN102

19-May-2010

14-May-2013

3.000

NOK

500.0

^(3)(13)

EMTN102

27-May-2010

14-May-2013

3.000

NOK

500.0

^(3)(13)

DMTN182

02-Jun-2010

02-Jun-2039

4.600

Canadian$

600.0

⁽²⁾⁽⁵⁾

DMTN182

04-Jun-2010

02-Jun-2039

4.600

Canadian$

600.0

⁽²⁾⁽⁵⁾

EMTN103

07-Jun-2010

07-Jun-2015

HKD HIBOR 3M+0.04

H.K.$

1,550.0

^(1)(14)

EMTN104

07-Jun-2010

08-Jun-2015

0.930

JPY

95,700.0

^(2)(15)

EMTN105

07-Jun-2010

08-Jun-2020

1.650

JPY

36,900.0

^(2)(16)

EMTN106

11-Jun-2010

11-Jun-2015

3.250

NOK

750.0

^(3)(17)

DMTN204

15-Jun-2010

02-Jun-2041

4.650

Canadian$

600.0

⁽²⁾⁽⁶⁾

G50-USD

16-Jun-2010

16-Jun-2015

2.700

U.S.$

2,500.0

^(2)(11)

OSB2010

21-Jun-2010

Various

Canadian$

1,143.0

⁽⁸⁾

EMTN102

30-Jun-2010

14-May-2013

3.000

NOK

250.0

^(3)(13)

DMTN200

13-Jul-2010

02-Jun-2020

4.200

Canadian$

600.0

⁽²⁾⁽⁴⁾

EMTN106

16-Jul-2010

11-Jun-2015

3.250

NOK

350.0

^(3)(17)

DMTN204

19-Jul-2010

02-Jun-2041

4.650

Canadian$

600.0

⁽²⁾⁽⁶⁾

DMTN201

23-Jul-2010

08-Sep-2015

3.150

Canadian$

750.0

⁽²⁾⁽⁷⁾

DMTN200

03-Aug-2010

02-Jun-2020

4.200

Canadian$

700.0

⁽²⁾⁽⁴⁾

DMTN200

30-Aug-2010

02-Jun-2020

4.200

Canadian$

750.0

⁽²⁾⁽⁴⁾

DMTN182

03-Sep-2010

02-Jun-2039

4.600

Canadian$

600.0

⁽²⁾⁽⁵⁾

DMTN204

14-Sep-2010

02-Jun-2041

4.650

Canadian$

600.0

⁽²⁾⁽⁶⁾

G51-USD

15-Sep-2010

15-Sep-2015

1.875

U.S.$

1,250.0

^(2)(18)

DMTN200

22-Sep-2010

02-Jun-2020

4.200

Canadian$

700.0

⁽²⁾⁽⁴⁾

EMTN107

28-Sep-2010

28-Sep-2020

3.000

EUR

1,250.0

^(3)(19)

DMTN204

30-Sep-2010

02-Jun-2041

4.650

Canadian$

750.0

⁽²⁾⁽⁶⁾

AUD2

29-Sep-2010

29-Sep-2020

6.250

AUD

275.0

^(2)(20)

DMTN205

5-Oct-2010

5-Oct-2015

3 CBA+0.23

Canadian$

410.0

^(1)(22)

DMTN200

13-Oct-2010

2-Jun-2020

4.200

Canadian$

650.0

⁽²⁾⁽⁴⁾

DMTN200

21-Oct-2010

2-Jun-2020

4.200

Canadian$

750.0

⁽²⁾⁽⁴⁾

DMTN200

26-Oct-2010

2-Jun-2020

4.200

Canadian$

1,000.0

⁽²⁾⁽⁴⁾

DMTN205

4-Nov-2010

5-Oct-2015

3 CBA+0.23

Canadian$

100.0

^(1)(22)

DMTN205

8-Nov-2010

5-Oct-2015

3 CBA+0.23

Canadian$

56.0

^(1)(22)

DMTN204

9-Nov-2010

2-Jun-2041

4.650

Canadian$

600.0

⁽²⁾⁽⁶⁾

DMTN206

25-Nov-2010

2-Jun-2031

5.200

Canadian$

133.3

⁽²⁾


*	3 CBA is 3-month Canadian Bankers’ Acceptances Rate.

**	USD LIBOR 3M is 3-month London Inter-Bank Offered Rate.

***	HKD HIBOR 3M is 3-month Hong Kong Inter-Bank Offered Rate.

(1)	Interest is paid quarterly.

(2)	Interest is paid semi-annually.

(3)	Interest is paid annually.

(4)	DMTN200: During the fiscal year 2010-11, the Series DMTN200 was re-opened nine times, bringing the total issue size to $8,350 million, including $475 million for OEFC.

(5)	DMTN182: During the fiscal year 2010-11, the Series DMTN182 was re-opened six times, bringing the total issue size to $9,700 million, including $100 million for OEFC.

(6)	DMTN204: During the fiscal year 2010-11, the Series DMTN204 was re-opened four times, bringing the total issue size to $3,150 million.

(7)	DMTN201: During the fiscal year 2010-11, the Series DMTN201 was re-opened once bringing the total issue size to $1,500 million.


(8)	Ontario Savings Bonds Series 2010 were available in various types, maturities and interest rates. This was the sixteenth issue of provincial savings bonds. The total proceeds from this issue were $1,143 million.

(9)	G48-USD: The Province entered into currency exchange agreements that effectively converted 2,000 million of these US dollar obligations to Canadian dollar obligations at an exchange rate of 1.04605. In addition, the Province entered into interest rate agreements and bond hedges that effectively converted the interest rate obligation on this debt to a rate of 3.7661%.

(10)	G49-USD: The Province entered into currency exchange agreements that effectively converted 500 million of these US dollar obligations to Canadian dollar obligations at an exchange rate of 1.00750. In addition, the Province entered into interest rate agreements that effectively converted the interest rate obligation on this debt to a fixed rate of 2.8812%.

(11)	G50-USD: The Province entered into currency exchange agreements that effectively converted 1,500 million of these US dollar obligations to Canadian dollar obligations at an exchange rate of 1.03683, and converted 1,000 million of these US dollar obligations to Canadian dollar obligations at an exchange rate of 1.0408. In addition, the Province entered into interest rate agreements that effectively converted the interest rate obligation on US$1,500 million to a fixed rate of 3.5768%, and converted the interest rate obligation on US$1,000 million to a floating rate of 1.8625%.

(12)	EMTN101: The Province entered into currency exchange agreements that effectively converted 400 million of these Swiss Franc obligations to Canadian dollar obligations at an exchange rate of 1.0497.

(13)	EMTN102: During the fiscal year 2010-11, the Series EMTN102 was re-opened three times, bringing the total issue size to NOK 2,500 million. The Province entered into currency exchange agreements that effectively converted 2,500 million of these Norwegian Kroner obligations to Canadian dollar obligations at an exchange rate of 0.16749. In addition, the Province entered into interest rate agreements that effectively converted the interest rate obligation on this debt to a fixed rate of 2.7991%.

(14)	EMTN103: The Province entered into currency exchange agreements that effectively converted 1,550 million of these Hong Kong dollar obligations to Canadian dollar obligations at an exchange rate of 0.131795. In addition, the Province entered into interest rate agreements that effectively converted the interest rate obligation on this debt to a fixed rate of 3.437%.

(15)	EMTN104: The Province entered into currency exchange agreements that effectively converted 95,700 million of these Japanese Yen obligations to Canadian dollar obligations at an exchange rate of 0.01233. In addition, the Province entered into interest rate agreements that effectively converted the interest rate obligation on this debt to a fixed rate of 0.9921%.

(16)	EMTN105: The Province entered into currency exchange agreements that effectively converted 36,900 million of these Japanese Yen obligations to Canadian dollar obligations at an exchange rate of 0.01233.

(17)	EMTN106: During the fiscal year 2010-11, the Series EMTN106 was re-opened once bringing the total issue size to NOK 1,100 million. The Province entered into currency exchange agreements that effectively converted 1,100 million of these Norwegian Kroner obligations to Canadian dollar obligations at an average exchange rate of 0.16361. In addition, the Province entered into interest rate agreements that effectively converted the interest rate obligation on this debt to a fixed rate of 3.39593%.

(18)	G51-USD: The Province entered into currency exchange agreements that effectively converted 1,250 million of these US dollar obligations to Canadian dollar obligations at an exchange rate of 1.03725. In addition, the Province entered into interest rate agreements that effectively converted the interest rate obligation on this debt to a fixed rate of 2.6569%.

(19)	EMTN107: The Province entered into currency exchange agreements that effectively converted 750 million of these Euro obligations to Canadian dollar obligations at an exchange rate of 1.34934, and converted 500 million of these Euro obligations to Canadian dollar obligations at an exchange rate of 1.35012. In addition, the Province entered into interest rate agreements that effectively converted the interest rate obligation on EUR750 million to a fixed rate of 3.7187%, and converted the interest rate obligation on EUR500 million to a floating rate of 1.9421%.

(20)	AUD2: The Province entered into currency exchange agreements that effectively converted 275 million of these Australian dollar obligations to Canadian dollar obligations at an exchange rate of 0.99083. In addition, the Province entered into interest rate agreements that effectively converted the interest rate obligation on this debt to a fixed rate of 3.8457%.

(21)	DMTN203: The Province entered into interest rate agreements that effectively converted the interest rate obligation on this debt to a fixed rate of 3.3938%.

(22)	DMTN205: During the fiscal year 2010-11, the Series DMTN205 was re-opened three times, bringing the total issue size to $616 million, including $50 million for OEFC.

Debt Issued by the Province for Ontario Electricity Financial Corporation (“OEFC”)

Series

Date of Issue

Date of Maturity

Interest Rate %

Funds

Principal

References

(in millions)

DMTN200

22-Apr-2010

02-Jun-2020

4.200

Canadian$

75.0

⁽²⁾⁽⁴⁾

DMTN200

18-May-2010

02-Jun-2020

4.200

Canadian$

50.0

⁽²⁾⁽⁴⁾

DMTN200

13-Jul-2010

02-Jun-2020

4.200

Canadian$

150.0

⁽²⁾⁽⁴⁾

DMTN200

03-Aug-2010

02-Jun-2020

4.200

Canadian$

50.0

⁽²⁾⁽⁴⁾

DMTN200

22-Sep-2010

02-Jun-2020

4.200

Canadian$

50.0

⁽²⁾⁽⁴⁾

DMTN200

13-Oct-2010

02-Jun-2020

4.200

Canadian$

100.0

⁽²⁾⁽⁴⁾

DMTN205

26-Nov-2010

05-Oct-2015

3 CBA+0.23

Canadian$

50.0

^(1)(22)


(1)	Interest is paid quarterly.

(2)	Interest is paid semi-annually.

Ontario Electricity Industry

Ontario Electricity Financial Corporation (“OEFC”), a Crown agency, is the continuation of Ontario Hydro and is responsible for the management of that corporation’s debt and other liabilities that were not transferred to successor companies as part of the restructuring of Ontario Hydro in 1999, including the administration of certain power purchase agreements with non-utility generators. As at March 31, 2010, OEFC had total debt of $27.367 billion (2009, $27.590 billion), excluding short-term overnight lending from the Province. $19.4 billion of OEFC’s debt as at March 31, 2010 (2009, $19.7 billion) is held by the Province and included in total debt and other liabilities.

Ontario Hydro’s successor companies include Ontario Power Generation Inc. (“OPG”), a generation business, and Hydro One Inc. (“Hydro One”), a transmission and distribution business, both of which are wholly-owned by the Province. In addition, the Independent Electricity System Operator (“IESO”) is the electricity system and market operator and the Electrical Safety Authority is responsible for electricity safety inspection. Pursuant to various transfer orders (“Transfer Orders”), assets of the former Ontario Hydro were transferred to OPG, Hydro One and the IESO in exchange for debt. The Province assumed a portion of OPG’s and Hydro One’s debt in exchange for equity, in order to provide them with commercially acceptable capital structures. As of March 31, 2010, OEFC held notes receivable in the amount of $3.7 billion from OPG, $78 million from the IESO and $8.9 billion from the Province.

Subject to a deductible of $10 million, OEFC has agreed to indemnify Hydro One in respect of (i) the failure of the Transfer Orders to transfer any asset, right or thing, or any interest therein related to its business; (ii) any adverse claims or interests, including those of the Crown, subject to certain exclusions, or any deficiency or lack of title in respect of any asset, right or thing or any interest therein, which was intended to be transferred; and (iii) the creation, treatment, payment to or from or other dealing with any equity account of Ontario Hydro, including with respect to certain litigation relating thereto. The Province has guaranteed the obligations of OEFC under the indemnity.

The Electricity Act, 1998 (“Electricity Act”) defines “stranded debt” as the amount of OEFC’s debt and other liabilities that, in the opinion of the Minister of Finance, cannot reasonably be serviced and retired in a competitive electricity market. As of April 1, 1999, the Ministry of Finance estimated the stranded debt to be approximately $20.9 billion. OEFC’s unfunded liability is the net deficiency of OEFC’s assets over its liabilities. Unfunded liability represents the stranded debt adjusted for $1.5 billion of additional assets transferred to OEFC on April 1, 1999, at which time the unfunded liability was $19.433 billion. OEFC’s unfunded liability at March 31, 2010 was $14.810 billion.

As part of the restructuring of the electricity sector, a long-term plan provides for certain dedicated revenue streams to service and retire OEFC’s debt and other liabilities. These revenue streams are established under the Electricity Act and include payments-in-lieu of property taxes and federal and provincial corporate income and capital taxes paid by OPG, Hydro One and the municipal electric utilities.

The Province receives dividend payments on its investments in OPG and Hydro One. Pursuant to the government’s commitment to keep electricity income in the electricity sector, the cumulative combined net

income of OPG and Hydro One in excess of the Province’s cumulative interest expenditure on its investment in the companies is allocated to OEFC for purposes of debt retirement.

Residual stranded debt is the portion of OEFC’s stranded debt that cannot be serviced by the foregoing dedicated revenue streams. The residual stranded debt was estimated at $7.8 billion on April 1, 1999. The Electricity Act provides for a debt retirement charge of 0.7 cents per kilowatt hour to be levied on Ontario electricity users. This charge, collected by the IESO, distributors and retailers, is payable to OEFC until its residual stranded debt is retired.

The Electricity Act and the Ontario Energy Board Act, 1998 set out the legislative framework for Ontario’s electricity market and restructuring of Ontario Hydro. Open, non-discriminatory access to transmission and distribution systems commenced May 1, 2002. Since 2005, electricity prices payable by consumers reflect a blend of contract prices, regulated prices for OPG’s output from its price-regulated nuclear and large hydroelectric plants, and market prices. The Ontario Energy Board (“OEB”) sets the commodity price payable by low volume and certain other specified consumers under the Regulated Price Plan (“RPP”). The Ontario Power Authority (“OPA”) finances any differences between prices under the RPP and the actual supply cost of electricity, with any shortfall or surplus to be recovered or returned through the setting of RPP prices in the following period.

The Province, OPG and certain subsidiaries of OPG are parties to the Ontario Nuclear Funds Agreement (“ONFA”), which governs the establishment, funding and management of segregated funds to ensure sufficient funds are available to pay the costs of nuclear station decommissioning and nuclear used fuel waste management.

Under ONFA, the Province is liable to make payments should the cost estimate for nuclear used fuel waste management rise above specified thresholds, for a fixed volume of used fuel. The likelihood and amount by which the cost estimate could rise above these thresholds cannot be determined at this time. The cost estimate will be updated periodically to reflect new developments in the management of nuclear used fuel waste.

As well, under ONFA, the Province guarantees a return of 3.25 per cent over the Ontario Consumer Price Index for the portion of the nuclear used fuel waste management segregated fund related to the fixed volume of used fuel. If the earnings on assets in that fund related to the fixed volume exceed the guaranteed rate, the Province is entitled to the excess.

Two agreements are in place to satisfy the Canadian Nuclear Safety Commission (CNSC) licensing requirements for financial guarantees in respect of OPG’s nuclear station decommissioning and nuclear waste management obligations. One agreement gives the CNSC access (in prescribed circumstances) to the segregated funds established under ONFA.

The other agreement provides a direct provincial guarantee to the CNSC on behalf of OPG. This guarantee, for up to $1.5 billion, effective March 1, 2010, relates to the portion of the decommissioning and waste management obligations not funded by the value of the segregated funds as at January 1, 2009. In return, the Province receives from OPG an annual fee equal to 0.5 per cent of the value of the direct provincial guarantee.

Non-Public Debt

Non-public debt is debt issued to certain public sector pension plans or the federal government and its agencies. As of March 31, 2010, approximately 6.8% of total liabilities were in the form of non-public debt. Non-public debt is composed almost exclusively of debt to pension plans, the largest component being CPP debt (4.0% of total liabilities).

Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities comprise transfer payments, interest on publicly held debt, salaries, wages, benefits, materials, supplies, and deferred revenue.

Pensions and Other Employee Future Benefits


	As at March 31
	2010			2010			2010			2009
				Other
				Employee
				Future
Pensions and Other Employee Future Benefits Liability (Asset)	Pensions			Benefits			Total			Total

Obligation for benefits	$	91,596		$	10,796		$	102,392		$	96,508
Less: plan fund assets		(96,729	)		(438	)		(97,167	)		(94,488	)
Unamortized actuarial gains (losses)		(2,082	)		(776	)		2,858			410
Adjustments⁽¹⁾		1,949			—			1,949			1,782

Total⁽²⁾	$	(5,266	)	$	9,582		$	4,316		$	4,212


(1)	Adjustments for pensions consist of:


	i)	differences for amounts reported by the pension plans at December 31, instead of the Province’s year-end of March 31

	ii)	unamortized difference between employer and employee contributions for jointly sponsored pension plans

	iii)	unamortized employee contribution reductions for solely sponsored plans

	iv)	unamortized initial unfunded liabilities of jointly sponsored plans

	v)	amounts payable by the Province that are reflected as contributions in the pension plan assets.


(2)	Effective April 1, 2009, the Pensions and Other Employee Future Benefits liabilities of the hospitals, school boards and colleges sectors are combined with those of the Province and comparative numbers restated to reflect such changes.


	For the Year Ended March 31
	2010			2010		2010			2009
				Other
				Employee
				Future
Pensions and Other Employee Future Benefits Expense	Pensions			Benefits		Total			Total

Cost of benefits	$	1,869		$	363	$	2,232		$	2,021
Amortization of actuarial losses (gains)		(289	)		78		(211	)		(468	)
Employee contributions		(251	)		—		(251	)		(220	)
Cost of plan amendments		—			—		—			280
Interest expense (income)		(519	)		264		(255	)		(387	)
Adjustments⁽¹⁾		(19	)		—		(19	)		(12	)

Total⁽²⁾	$	791		$	705	$	1,496		$	1,214


(1)	Adjustments for Pensions consist of amortization of:


	i)	the difference between employer and employee contributions for jointly sponsored pension plans

	ii)	employee contribution reductions for solely sponsored plans

	iii)	initial unfunded liability of jointly sponsored pension plans.


(2)	This expense is disclosed in Schedule 4 to the Consolidated Financial Statements as follows:


for the year ended March 31	2010		2009

Ontario Teachers’ Pension Plan		255		50
Public Service Pension Plan and Ontario Public Service Employees Union Pension Plan		949		971
Included in Various Ministries		292		193

Total (Schedule 3 to the Consolidated Financial Statements)		1,496		1,214

The Pensions and Other Employee Future Benefits Expenses for the hospitals, school boards and colleges sectors (except for the Ontario Teachers’ Pension Plan) are not included in the table above. These expenses are included in the Salaries, Wages and Benefits of BPS organizations (Schedule 10 to the Consolidated Financial Statements) and in the expenses of the BPS ministries (Education, Health and Long-Term Care, and Training, Colleges and Universities) in Schedule 4 to the Consolidated Financial Statements.

Pensions

The Province sponsors several pension plans. It is the sole sponsor of the Public Service Pension Plan (“PSPP”) and joint sponsor of the Ontario Public Service Employees Union (“OPSEU”) Pension Plan and the Ontario Teachers’ Pension Plan (“OTPP”).

These three plans are contributory defined benefit plans that provide Ontario government employees and elementary and secondary school teachers and administrators with a guaranteed amount of retirement income. Benefits are based primarily on the best five-year average salary of members and their length of service, and are indexed to changes in the Consumer Price Index to provide protection against inflation. Plan members normally contribute seven to eleven per cent of their salaries to these plans. The Province matches these contributions.

Funding of these plans is based on statutory actuarial funding valuations undertaken at least once every three years. The Province contributed $1,246 million to OTPP in 2009-10 (2008-09, $1,073 million), $240 million (including a $4 million special payment) to PSPP (2008-09, $227 million including a $4 million special payment) and $157 million to OPSEU Pension Plan (2008-09, $157 million). During calendar year 2009, OTPP paid benefits, including transfers to other plans, of $4.4 billion (2008, $4.2 billion), PSPP paid $914 million (2008, $881 million) and OPSEU Pension Plan paid $718 million (2008, $590 million). Under agreements between the Province and OPSEU, and between the Province and the Ontario Teachers’ Federation (“OTF”), gains and losses arising from statutory actuarial funding valuations are shared by the co-sponsors.

The government’s best estimate of the long-term annual inflation rate used in the pension and other employee future benefits calculations disclosed in these financial statements is 2.5 per cent; the salary escalation rate is 3.5 per cent; and the discount rate and expected rate of return on pension plan assets are 6.75 per cent for OTPP, 6.5 per cent for PSPP and 6.75 per cent for OPSEU Pension Plan. Actuarial gains or losses are amortized over periods of 11.4 to 14 years.

The Province is also responsible for sponsoring the Ontario Teachers’ Retirement Compensation Arrangement and the Public Service Supplementary Benefits Plan. Expenses and liabilities of these plans are included in the Pensions Expense and Pensions Liability reported in the above tables.

Pension benefits for employees in the hospital and colleges sectors are provided by the Healthcare of Ontario Pension Plan (“HOOPP”) and the Colleges of Applied Arts and Technology Pension Plan (“CAATPP”).

HOOPP is a multi-employer pension plan covering employees of Ontario’s healthcare community. CAATPP is a multi-employer pension plan covering employees of the Colleges of Applied Arts and Technology in Ontario, the Board of Trustees, the Ontario College Application Services and, effective December 1, 2009, the Ontario College Library Services. Both of these plans are contributory defined benefit plans that provide eligible members with a retirement income based on a formula that takes into account a member’s earnings history and length of service in the plan. The plans are financed by contributions from participating members and employers, and by investment earnings.

Expenses for HOOPP of $956 million (2008-09, $853 million) and CAATPP of $153 million (2008-09, $94 million) are included in the Salaries, Wages and Benefits expenses of the hospital and colleges sectors respectively (Schedule 10 to the Consolidated Financial Statements) and in the expenses of the related ministries (Schedule 4 to the Consolidated Financial Statements). The related liabilities are included in the Pensions and Other Employee Future Benefits liability on the Consolidated Statement of Financial Position.

Other Employee Future Benefits

Other Employee Future Benefits are non-pension retirement benefits, post-employment benefits, compensated absences and termination benefits.

Non-Pension Retirement Benefits

The Province provides dental, basic life insurance, supplementary health and hospital benefits to retired employees through a self-insured, unfunded defined benefit plan. The liability for non-pension retirement benefits of $7.3 billion as at March 31, 2010 (2009, $6.7 billion) is included in the Other Employee Future Benefits Liability. The expense for 2009-10 of $413 million (2008-09, $650 million) (excluding the expense for BPS sector organizations) is included in the Other Employee Future Benefits Expense. The BPS sector expense of $168 million in 2009-10 (2008-09, $205 million) is included in the Salaries, Wages and Benefits expense of

BPS organizations (Schedule 10 to the Consolidated Financial Statements) and in the expenses of the related ministries (Schedule 4 to the Consolidated Financial Statements).

The discount rate used in the non-pension retirement benefits calculation for 2009-10 is 5.3 per cent (2008-09, 5.1 per cent).

Post-Employment Benefits, Compensated Absences and Termination Benefits

The Province provides, on a self-insured basis, workers’ compensation benefits, long-term disability benefits and regular benefits to employees who are on long-term disability. For employees who have completed five years of service, the Province provides termination pay equal to one week’s salary for each year of service up to a maximum of 50 per cent of their annual salary. Employees who have completed one year of service but less than five years are also entitled to termination pay in the event of death, retirement or release from employment. The total post-employment benefits liability of $2.3 billion as at March 31, 2010 (2009, $2.1 billion) is included in the Other Employee Future Benefits Liability. The total post-employment benefits expense for 2009-10 of $292 million (2008-09, $193 million) (excluding the expense for BPS sector organizations) is included in the Other Employee Future Benefits Expense. The BPS sector total post-employment benefits expense of $386 million for 2009-10 (2008-09, $346 million) is included in the Salaries, Wages and Benefits expense of BPS organizations (Schedule 10 to the Consolidated Financial Statements) and in the expenses of the related ministries (Schedule 4 to the Consolidated Financial Statements).

The discount rate used in the post-employment benefits, compensated absences and termination benefits calculations for 2009-10 is 4.80 per cent (2008-09, 4.95 per cent).

Other Liabilities

Other funds and liabilities include pension and benefit funds related to the Provincial Judges’ Pension Fund, the Public Service and the Deputy Ministers’ Supplementary Benefit Accounts and externally restricted funds.

Claims Against the Crown

Of the claims outstanding against the Crown in right of Ontario as at March 31, 2010, 69 (2009, 66) were for amounts over $50 million as reported in Note 12 to the Consolidated Financial Statements contained in the 2009-2010 Public Accounts of Ontario. These claims arise from legal action, either in progress or threatened, in respect of aboriginal land claims, breach of contract, damages to persons and property and like items. As of December 20, 2010, there were 85 claims outstanding against the Crown in right of Ontario, which were for amounts over $50 million each. The cost to the Province, if any, cannot be determined because the outcome of these actions is uncertain.

Debt
Selected Characteristics by Type of Issue
As at March 31, 2010


					Average
			Average		Annual Cost		Average Annual
	As a Percentage		Term to		to the		Rate of Growth
Debt	of Total		Maturity		Province		2006-2010
	(%)		(Years)		(%)		(%)

Publicly Held Debt
Debentures & Bonds⁽¹⁾		71.4		10.4		4.6		7.3
Treasury Bills		5.5		0.3		1.5		30.0
Non-Public Debt
Canada Pension Plan Investment Fund		4.0		13.6		6.6		—
Ontario Teacher’s Pension Plan		0.7		1.2		10.9		(27.3	)
Ontario Public Service Employees’ Union (“OPSEU”) Pension Fund		0.3		2.9		11.2		(9.9	)
Public Service Pension Plan		0.7		2.9		11.2		(9.9	)
Canada Mortgage and Housing Corporation		0.3		6.4		7.3		(5.5	)
Other		0.7		8.3		2.7		8.9

		83.6		9.7		4.6		—

Other Liabilities		16.4		N/A		—		9.8

Total		100.0		N/A		N/A		6.8


(1)	All balances are expressed in Canadian dollars. The balances above reflect the effect of related derivatives contracts entered into by the Province. See “4. Public Debt — (5) Financial Tables — I. Summary of Net Debt and Accumulated Deficit — Risk Management and Derivative Financial Instruments”.

Debt Record

The Province has never defaulted on the payment of principal or interest on any of its obligations. Payments have been made when due, subject during wartime to any applicable laws and regulations forbidding such payments.

Debt Maturity and Interest Charges

As at March 31, 2010, approximately 49.8% of the total debt issued for provincial purposes and OEFC Program was scheduled to mature within the next five years and 67.1% within the next 10 years. Interest charges on total debt for fiscal year 2009-10 was $8,719 million and are estimated to be $9,715 million for fiscal year 2010-11 on an accrual and consolidation basis of accounting.

Debt Maturity Schedule
As at March 31, 2010


	Total Debt⁽¹⁾
	Publicly Held		Non-Public
Year Ending March 31,	Debt		Debt		Total		% Of Total
	(in millions)

2011	$	31,894	$	2,029	$	33,923		16.0
2012		11,124		2,352		13,476		6.4
2013		15,045		2,280		17,325		8.2
2014		18,324		1,009		19,333		9.1
2015		20,958		674		21,632		10.2

1-5 years		97,345		8,344		105,689		49.8
6-10 years		35,255		1,509		36,764		17.3
11-15 years		8,817		3,253		12,070		5.7
16-20 years		14,810		792		15,602		7.4
21-25 years		9,341		285		9,626		4.5
26-50 years		29,416		2,823		32,239		15.2
Unrealized FX gains/losses		132		—		132		0.1

	$	195,116	$	17,006	$	212,122		100.0


(1)	All balances are expressed in Canadian dollars. The balances above reflect the effect of related derivatives contracts entered into by the Province. See “4. Public Debt — (5) Financial Tables — I. Summary of Net Debt and Accumulated Deficit — Risk Management and Derivative Financial Instruments”.

The following table sets forth the scheduled payments of the outstanding external debt of the Province in respect of currency over the five fiscal years.

Schedule Payment of Principal and Interest of Province’s External Debt


			Outstanding
			External Debt
			As at March 31,		Amount of the Payments
	Currency		2010		2011		2012		2013		2014		2015
	(in millions)

Principal payment		AUD		525		—		—		125		100		—
Interest payment		AUD		—		31		31		31		24		18
Principal payment		CAD*		3,957		200		725		250		425		700
Interest payment		CAD		—		216		210		174		151		125
Principal payment		CHF		2,625		—		—		—		300		650
Interest payment		CHF		—		71		71		71		71		63
Principal payment		EUR		4,975		—		—		—		1,500		—
Interest payment		EUR		—		209		209		209		209		146
Principal payment		GBP		200		—		—		200		—		—
Interest payment		GBP		—		10		10		10		—		—
Principal payment		HKD		1,745		—		—		—		930		300
Interest payment		HKD		—		61		60		60		60		19
Principal payment		JPY		27,000		—		—		—		14,000		5,000
Interest payment		JPY		—		364		365		365		352		172
Principal payment		NZD		968		250		—		—		—		—
Interest payment		NZD		—		61		45		45		45		45
Principal payment		USD		29,009		3,100		4,250		7,858		1,000		8,000
Interest payment		USD		—		934		852		679		536		436
Principal payment		ZAR		960		300		300		—		—		—
Interest payment		ZAR		—		76		53		29		29		29


*	Canadian dollars issued in foreign market.


(3)	Consolidated Debt of the Ontario Public Sector

Overview

While centralized financing is prominent in Ontario, not all funding of the public sector is shown on the Province’s financial statements. Since the responsibilities assigned to the Canadian provinces by the Constitution are uniform (although not all provinces have chosen to assume the same set of responsibilities), interprovincial comparisons are more clearly facilitated by the presentation of the consolidated debt. This method of presenting public sector debt is not affected by the degree of centralization or decentralization of Provincial public sector financing. Included in the total is the debt of municipalities with separate revenue sources, and all of the sector’s revenue sources under provincial jurisdiction.

Consolidated Debt of the Ontario Public Sector


	March 31,
	2010		% of Total
	(in millions)

Net Debt⁽¹⁾	$	193,589		93.4
Obligations Guaranteed⁽²⁾		734		0.4
Other Public Sector Debt⁽³⁾		12,969		6.2

Total Consolidated Debt of the Ontario Public Sector	$	207,292		100.0

Source: Ontario Ministry of Finance.


(1)	Net debt is calculated as the difference between liabilities and financial assets. Net debt does not take into account tangible capital assets of $62,632 million as at March 31, 2010 (2009, $56,347 million).

(2)	A provision of $26 million as at March 31, 2010 (2009, $36 million) based on an estimate of the likely loss arising from guarantees under the Ontario Student Support Program has been expensed and is reflected in the accrued liabilities for transfer payments.

(3)	Other Public Sector Debt includes $2,702 million debt of universities, and $10,267 million debt of municipalities.


(4)	Selected Debt Statistics

The following table examines the Consolidated Debt of the Ontario Public Sector in absolute terms and in relation to certain provincial economic indicators.

Consolidated Debt of the Ontario Public Sector


											Average
											Annual
											Rate of
											Growth
	As at March 31,										2006-2010
	2006		2007		2008		2009		2010		%
	(in millions unless otherwise indicated)

Consolidated Debt	$	165,409	$	168,922	$	171,118	$	183,822	$	207,292		5.7
Consolidated Debt per Capita		13,203		13,338		13,376		14,215		15,866		4.6
Consolidated Debt/Personal Income (%)		39.4		38.2		36.7		38.4		43.4		1.1
Consolidated Debt/GDP (%)		30.8		30.1		29.3		31.5		35.9		3.3

Sources: Ontario Ministry of Finance.

The Canadian Dollar

Recent high and low exchange rates for the Canadian dollar in terms of United States cents are as follows:


											Jan 1-
											Nov 30
	2005		2006		2007		2008		2009		2010

High		86.90		91.05		108.52		102.41		97.16		100.39
Low		78.72		85.31		84.35		77.31		76.92		92.78

Source: Bank of Canada.


(5)	Financial Tables


I.	*Summary of Net Debt and Accumulated Deficit*


	As at March 31,
	2006			2007			2008			2009			2010
	(in millions)

Non-Public Debt
Canada Pension Plan Investment Fund	$	10,233		$	10,233		$	10,233		$	10,233		$	10,233
Ontario Teachers’ Pension Plan		7,596			6,411			4,466			3,001			1,765
Canada Mortgage and Housing Corporation		960			914			863			811			755
Public Service Pension Plan		2,705			2,502			2,260			1,991			1,713
Ontario Public Service Employees’ Union (“OPSEU”) Pension Fund		1,285			1,188			1,074			946			814
Other		1,367			1,314			1,430			1,632			1,726

	$	24,146		$	22,562		$	20,326		$	18,614		$	17,006

Publicly Held Debt
Debentures and Bonds⁽¹⁾	$	123,555		$	128,984		$	134,524		$	145,549		$	176,194
Treasury Bills		5,215			4,249			5,092			9,051			13,914
U.S. Commercial Paper⁽¹⁾		706			254			644			2,006			3,088
Infrastructure Ontario (“IO”)		1,323			1,262			1,631			1,695			1,920
Other		387			—			—			—			—

	$	131,186		$	134,749		$	141,891		$	158,301		$	195,116

Debt⁽⁴⁾	$	155,332		$	157,311		$	162,217		$	176,915		$	212,122

Cash and Investments		(12,575	)		(12,145	)		(14,002	)		(18,740	)		(25,492	)
Other Net (Assets)/Liabilities⁽²⁾		9,945			8,576			8,401			11,410			6,959

Net Debt⁽³⁾	$	152,702		$	153,742		$	156,616		$	169,585		$	193,589

Non-Financial Assets⁽³⁾		(43,547	)		(46,966	)		(50,999	)		(56,347	)		(62,632	)

Accumulated Deficit	$	109,155		$	106,776		$	105,617		$	113,238		$	130,957

Source: Ontario Ministry of Finance


(1)	All balances are expressed in Canadian dollars. The balances above reflect the effect of related derivative contracts. See “4. Public Debt — (5) Financial Tables — I. Summary of Net Debt and Accumulated Deficit — Risk Management and Derivative Financial Instruments”.

(2)	Other Net (Assets)/Liabilities include Accounts Receivable, Loans Receivable (including municipal loans by IO), Advances and Investments in Government business enterprises, Accounts Payable, Accrued Liabilities, Pensions, and the liability for Power Purchase Agreements with non-utility generators, debt of hospitals, school boards and colleges, and obligations under Alternative Financing and Procurement arrangements.

(3)	Starting in 2009-10, Net Debt and Non-Financial Assets include the respective balances of hospitals, school boards and colleges as a result of change in the method of consolidation. For comparative purposes, these items have been restated from 2005-06 to 2008-09 to conform with this revised presentation.

(4)	See “4. Public Debt — (5) Financial Tables — Public Accounts, 2009-2010 — Volume 1 — II. Outstanding Debt” for details of individual debt issues.

Risk Management and Derivative Financial Instruments

The Province employs various risk management strategies and operates within strict risk exposure limits to ensure exposure to risk is managed in a prudent and cost-effective manner. A variety of strategies are used, including the use of derivative financial instruments (“derivatives”).

Derivatives are financial contracts, the value of which is derived from underlying instruments. The Province uses derivatives to hedge and to minimize interest costs. Hedges are created primarily through swaps, which are legal contracts under which the Province agrees with another party to exchange cash flows based on one or

more notional amounts using stipulated reference interest rates for a specified period. Swaps allow the Province to offset its existing obligations and thereby effectively convert them into obligations with more desirable characteristics. Other derivative instruments used by the Province include forward foreign exchange contracts, forward rate agreements, futures, options, caps and floors.

Foreign exchange or currency risk is the risk that foreign currency debt principal and interest payments and foreign currency transactions will vary in Canadian dollar terms due to fluctuations in foreign exchange rates. To manage currency risk, the Province uses derivative contracts including foreign exchange forward contracts, futures, options and swaps to convert foreign currency cash flows into Canadian dollar denominated cash flows. Most of the derivative contracts hedge the underlying debt by matching all the critical terms to achieve effectiveness. In the instances where the term of foreign exchange forward contracts used for hedging is shorter than the term of the underlying debt, the effectiveness is maintained by continuously rolling the foreign exchange forward contract over the remaining term of the underlying debt, or until replaced with a long-term derivative contract.

The current policy allows the amount of unhedged foreign currency debt principal net of foreign currency holdings to reach a maximum of 5 per cent of Debt Issued for Provincial Purposes and OEFC Debt. At March 31, 2010, the respective unhedged levels were 0.1 and nil per cent (2009, 0.2 and nil per cent). The Province’s unhedged level of 0.1 per cent was primarily related to Japanese yen denominated debt. For every one Japanese yen decrease versus the Canadian dollar, there would be an increase in debt of $2.3 million (2009, $3.1 million) and an increase in Interest on Debt of $0.6 million (2009, $0.9 million). Total foreign exchange gains recognized in the Statement of Operations for 2009-10 were $30 million (2008-09, $67 million).

Interest on Debt expense may also vary as a result of changes in interest rates. In respect of Debt Issued for Provincial Purposes and OEFC Debt, the risk is measured as interest rate resetting risk, which is the net of floating rate exposure, liquid reserves and fixed-rate debt maturing within the next 12-month period as a percentage of Debt Issued for Provincial Purposes and OEFC Debt respectively. Depending on market conditions, the Province creates or reduces its exposure to interest rate changes by issuing or retiring short-term debt, or by entering into or closing out derivative positions. The current policy limits interest rate resetting risk for Debt Issued for Provincial Purposes and OEFC Debt to a maximum of 35 per cent.

As at March 31, 2010, interest rate resetting risk for Debt Issued for Provincial Purposes and OEFC Debt was 11.4 per cent and 16.4 per cent respectively (2009, 11.5 per cent and 19.5 per cent). Based on floating rate interest-bearing financial instruments on hand at the balance sheet date plus planned refinancing of maturing debt in the coming year, a one per cent (100 basis points) increase in interest rates would result in an increase in Interest on Debt of $240 million (2009, $230 million).

Liquidity risk is the risk that the Province will not be able to meet its current short-term financial obligations. To reduce liquidity risk, the Province maintains liquid reserves, that is, cash and temporary investments, adjusted for collateral, at levels that will meet future cash requirements and will give the Province flexibility in the timing of issuing debt. Pledged assets are considered encumbered for liquidity purposes while collateral held is a source of liquidity. In addition, the Province has short-term note programs as alternative sources of liquidity.

The table below presents a maturity schedule of the Province’s derivatives, by type, outstanding as at March 31, 2010, based on the notional amounts of the contracts. Notional amounts represent the volume of outstanding derivative contracts and are not indicative of credit risk, market risk or actual cash flows.

Derivative Portfolio Notional Value
As at March 31,


											6-10		Over 10		2010		2009
Maturity in Fiscal Year	2011		2012		2013		2014		2015		Years		Years		Total		Total
	(in millions)

Swaps:
Interest Rate⁽¹⁾	$	9,280	$	10,579	$	12,209	$	6,546	$	24,034	$	22,465	$	6,224	$	91,337	$	74,207
Cross Currency		5,866		4,516		10,364		5,954		9,224		15,404		—		51,328		31,847
Forward Foreign Exchange Contracts		9,379		—		—		—		—		—		—		9,379		8,881
Caps and Floors		—		—		—		—		—		—		—		—		88

TOTAL	$	24,525	$	15,095	$	22,573	$	12,500	$	33,258	$	37,869	$	6,224	$	152,044	$	115,023

Note:


(1)	Includes $1.6 billion (2009, $1.3 billion) of interest rate swaps related to loans receivable held by consolidated entity.

The use of derivatives introduces credit risk, which is the risk of a counterparty defaulting on contractual derivative obligations in which the Province has an unrealized gain. The table below presents the credit risk associated with the derivative financial instrument portfolio, measured through the replacement value of derivative contracts, at March 31, 2010.

Credit Risk Exposure
As at March 31,


	2009			2010
	(in millions)

Gross Credit Risk Exposure	$	5,492		$	2,919
Less: Netting		(4,542	)		(2,508	)

Net Credit Risk Exposure	$	950		$	411

The Province manages its credit risk exposure from derivatives by, among other things, dealing only with high credit quality counterparties and regularly monitoring compliance to credit limits. In addition, the Province enters into contractual agreements (“master agreements”) that provide for termination netting and, if applicable, payment netting with most of its counterparties. Gross credit risk exposure represents the loss that the Province would incur if every counterparty to which the Province had credit risk exposure were to default at the same time, and the contracted netting provisions were not exercised or could not be enforced. Net credit risk exposure is the loss including the mitigating impact of these netting provisions.

PUBLIC ACCOUNTS, 2009-2010 — VOLUME 1

II. OUTSTANDING DEBT

As at March 31, 2010


Date of Maturity	Date of Issue	Series	Interest Rate	Outstanding		Reference
			%	$

DEBT ISSUED FOR PROVINCIAL PURPOSES

PAYABLE IN CANADA IN CANADIAN DOLLARS

NON-PUBLIC DEBT

To Ontario Teachers’ Pension Fund:

Year ending March 31

2011	1987	TI	10.11 to 10.32		560,000,000
2012	1988-1991	TI	10.68 to 11.24		580,000,000
2013	1989-1991	TI	11.06 to 11.31		625,000,000

					1,765,000,000


To Canada Pension Plan Investment Board:

Year ending March 31

2012	1992	CPP	9.81 to 10.04		987,249,000
2013	1993	CPP	9.17 to 9.45		700,137,000
2014	2005	CPP	4.17		44,887,000
2016	2008	CPP	4.68		42,300,000
2017	2008	CPP	4.08 to 4.88		91,896,000
2019	1999	CPP	5.81 to 5.84		45,270,000
2020	1999	CPP	5.50 to 6.91		869,889,000
2021	2001	CPP	6.33 to 6.67		609,834,000
2022	2002	CPP	6.22 to 6.47		330,994,000
2024	2004	CPP	5.26 to 5.97		688,007,000
2025	2005	CPP	5.15 to 5.79		1,133,182,000
2026	2006	CPP	4.67 to 5.19		574,612,000
2031	2009	CPP	4.79		43,880,000
2032	2009	CPP	4.75		52,000,000
2036	2006-2008	CPP	4.59 to 4.73		649,066,000
2037	2007	CPP	4.50 to 4.76		351,269,000
2038	2008	CPP	4.63 to 4.68		241,756,000
2039	2009	CPP	4.70 to 5.48		493,439,000
2040	2010	CPP	4.56 to 5.03		1,086,695,000

					9,036,362,000		⁽⁵	⁾


To Public Service Pension Fund:

Year ending March 31

2011	1997	OPB	13.33		141,497,279
2012	1997	OPB	11.55		336,229,108
2013	1997	OPB	10.38		374,479,804
2014	1997	OPB	11.10		409,677,031
2015	1997	OPB	11.19		450,938,707

					1,712,821,929		⁽²	⁾

PUBLIC ACCOUNTS, 2009-2010 — VOLUME 1

II. OUTSTANDING DEBT — Continued

As at March 31, 2010


Date of Maturity	Date of Issue	Series	Interest Rate	Outstanding		Reference
			%	$


To Public Service Employees’ Union Pension Fund:

Year ending March 31

2011	1997	OPPT	13.33		67,218,935
2012	1997	OPPT	11.55		159,727,189
2013	1997	OPPT	10.38		177,898,359
2014	1997	OPPT	11.10		194,618,964
2015	1997	OPPT	11.19		214,220,513

					813,683,960		⁽²	⁾


To Ontario Mortgage and Housing Corporation:

Year ending March 31

2011	1994-1995	OHC	8.242 to 9.898		694,880,091
2012	1995	OHC	9.655		33,382,267
2013	1995	OHC	9.655		6,561,000

					734,823,358		⁽⁹⁹	⁾


To Ontario Immigrant Investor Corporation:

Year ending March 31
2011	2006-2007	OIIC 65-75,77	Zero		148,111,672
2012	2007-2008	OIIC 78-87, 89-90	Zero		100,431,184
2013	2008-2009	OIIC 91-100, 102-103	Zero		248,139,591
2014	2009	OIIC 104-105 107-114,116-117	Zero		270,245,557
2015	2010	OIIC 118-127 128-129	Zero		273,768,875

					1,040,696,879		⁽⁸	⁾
Less: Unamortized Discount					(99,461,707)

					941,235,172


To Canada Mortgage and Housing Corporation:

Year ending March 31

2000-2011	1971-1976	CMHC	5.375 to 8.25		446,601
2000-2012	1972	CMHC	6.875 to 8.25		922,633
2000-2013	1973	CMHC	7.25 to 8.25		268,230
2000-2014	1974	CMHC	6.125 to 8.25		4,888,961
2000-2015	1975	CMHC	7.50 to 10.375		3,707,120
2000-2016	1976	CMHC	5.375 to 10.75		8,993,030
2000-2017	1977	CMHC	7.625 to 10.75		7,363,529
2000-2018	1977-1978	CMHC	7.625 to 13.00		20,670,961
2000-2019	1977-1980	CMHC	7.625 to 15.25		24,875,465
2000-2020	1977-1980	CMHC	7.625 to 15.75		41,291,598
2000-2021	1979-1981	CMHC	9.50 to 15.75		20,685,478
2000-2022	1982	CMHC	9.75 to 15.75		862,463

					134,976,069		⁽⁶	⁾

TOTAL NON-PUBLIC DEBT					15,138,902,488

PUBLIC ACCOUNTS, 2009-2010 — VOLUME 1

II. OUTSTANDING DEBT — Continued

As at March 31, 2010

Date of Maturity

Date of Issue

Series

Interest Rate

Outstanding

Reference

PUBLICLY HELD DEBT

May 19, 2010

April 4, 2005

DMTN144

4.00

2,350,000,000

⁽²⁶

⁾

July 5, 2010

July 5, 2005

DMTN150

Step-up

75,500,000

⁽³⁶

⁾

August 20, 2010

November 20, 2008

DMTN190

2.50

1,525,000,000

⁽⁶⁵

⁾

September 16, 2010

September 16, 2008

DMTN187

3M CBA

50,000,000

⁽⁸⁵

⁾

September 17, 2010

September 17, 2008

DMTN186

3M CBA-1.00

1,240,000,000

⁽⁶⁶

⁾

November 19, 2010

November 24, 2000

6.10

1,620,000,000

⁽⁸⁰

⁾

December 3, 2010

December 3, 2007

DMTN179

3M CBA-0.16

1,933,000,000

⁽⁷⁵

⁾

July 15, 2011

January 12, 2009

DMTN191

3M CBA+0.60

415,000,000

⁽⁶⁷

⁾

November 10, 2011

November 10, 2008

DMTN188

3M CBA-0.75

555,000,000

⁽⁶⁸

⁾

December 2, 2011

February 27, 2002

DMTN8

6.10

1,000,000,000

⁽³¹

⁾

December 2, 2011

May 3, 2006

DMTN165

4.40

3,000,000,000

⁽³⁹

⁾

March 13, 2012

March 13, 2009

DMTN192

3M CBA+0.95

42,570,000

⁽⁷⁰

⁾

April 9, 2012

April 09, 2009

DMTN194

3M CBA+0.70

75,000,000

⁽⁷

⁾

July 7, 2012

May 8, 2002

DMTN46

Zero

537,208

⁽⁶⁰

⁾

December 2, 2012

December 2, 2002

DMTN53

5.375

2,000,000,000

⁽⁴

⁾

December 2, 2012

September 10, 2007

DMTN178

4.50

1,500,000,000

⁽⁷⁴

⁾

April 2, 2013

April 2, 2009

DMTN193

3M CBA+0.99

827,000,000

⁽¹²

⁾

June 2, 2013

September 22, 2003

DMTN69

4.75

3,566,000,000

⁽⁷²

⁾

September 8, 2013

July 23, 2004

DMTN116

Step-up

100,000,000

⁽⁵⁶

⁾

November 10, 2013

November 10, 2008

DMTN189

Per sch

415,000,000

⁽⁷³

⁾

March 8, 2014

January 12, 2004

DMTN93

5.00

5,100,000,000

⁽⁶²

⁾

September 8, 2014

June 30, 2009

DMTN197

3.25

3,500,000,000

⁽⁹⁶

⁾

October 28, 2014

November 3, 2009

DMTN198

3M CBA+0.25

1,965,000,000

⁽¹⁴

⁾

November 19, 2014

January 22, 2010

DMTN199

3M CBA+0.14

115,000,000

⁽²⁰

⁾

December 2, 2014

December 2, 2004

6.80

11,450,000

⁽³⁴

⁾

March 8, 2015

March 9, 2005

DMTN135

4.50

2,500,000,000

⁽¹¹

⁾

September 1, 2015

September 1, 2000

DMTN1

6.25

34,000,000

⁽⁴⁵

⁾

September 8, 2015

March 9, 2010

DMTN201

3.15

750,000,000

⁽⁹⁸

⁾

March 8, 2016

February 14, 2006

DMTN163

4.40

1,250,000,000

June 2, 2016

June 29, 2005

DMTN149

Step-up

200,000,000

⁽³²

⁾

June 24, 2016

June 24, 2009

DMTN196

3M CBA+0.62

275,000,000

⁽²⁵

⁾

December 2, 2016

December 7, 2004

DMTN132

4.875

200,000,000

⁽⁴⁷

⁾

December 2, 2016

August 22, 2005

DMTN152

Step-up

300,000,000

⁽⁴⁰

⁾

March 8, 2017

January 25, 2007

DMTN173

4.30

3,100,000,000

⁽¹⁹

⁾

March 8, 2018

March 10, 2008

DMTN183

4.20

1,560,000,000

⁽⁷⁶

⁾

June 2, 2018

August 28, 2003

DMTN79

5.50

605,000,000

⁽¹⁰

⁾

June 2, 2019

April 19, 2004

DMTN105

5.35

100,000,000

⁽⁴⁹

⁾

June 2, 2019

April 17, 2009

DMTN195

4.40

5,550,000,000

⁽⁷¹

⁾

June 2, 2020

February 22, 2005

DMTN140

4.85

562,000,000

June 2, 2020

February 23, 2010

DMTN200

4.2

1,350,000,000

⁽⁹⁷

⁾

September 4, 2020

September 4, 1998

6.30

15,000,000

June 2, 2021

December 27, 2007

DMTN180

4.50

75,000,000

⁽⁷⁸

⁾

July 13, 2022

July 13, 1992

9.50

1,590,438,000

December 2, 2022

December 27, 2007

DMTN181

4.50

75,000,000

⁽⁷⁹

⁾

September 8, 2023

September 8, 1993

8.10

940,570,000

⁽⁵⁹

⁾

September 8, 2023

July 31, 2007

DMTN177

4.95

75,000,000

June 2, 2025

December 20, 1994

9.50

460,000,000

December 2, 2025

October 5, 1995

8.50

1,000,000,000

February 6, 2026

February 6, 1996

8.00

12,500,000

June 2, 2026

December 21, 1995

8.00

1,000,000,000

PUBLIC ACCOUNTS, 2009-2010 — VOLUME 1

II. OUTSTANDING DEBT — Continued

As at March 31, 2010

Date of Maturity

Date of Issue

Series

Interest Rate

Outstanding

Reference

December 2, 2006

February 13, 1997

8.00

386,500,000

December 2, 2026

January 20, 1999

7.00

124,584,000

⁽⁸⁹

⁾

February 3, 2027

August 5, 1997

7.50

58,220,000

February 3, 2027

August 5, 1997

6.95

8,726,000

February 3, 2027

April 1, 1998

7.50

11,549,000

February 3, 2027

December 4, 1998

7.50

5,507,000

February 4, 2027

February 4, 1998

7.375

990,000

June 2, 2027

October 17, 1996

7.60

4,734,700,000

⁽⁶¹

⁾

August 25, 2028

February 25, 1998

6.25

2,020,000

March 8, 2029

January 8, 1998

6.50

4,727,000,000

January 13, 2031

September 8, 1995

9.50

125,000,000

January 15, 2031

March 8, 2005

DMTN141

5.20

137,000,000

June 2, 2031

March 27, 2000

6.20

2,500,000,000

⁽⁵¹

⁾

March 8, 2033

February 17, 2003

DMTN61

5.85

4,662,610,000

March 8, 2033

April 29, 2004

DMTN110

Step-up

200,000,000

⁽⁸⁷

⁾

July 13, 2034

September 21, 2005

DMTN157

5.00

47,500,000

⁽⁵²

⁾

November 3, 2034

November 3, 1994

9.75

248,800,000

January 10, 1995 to

November 30,

9.4688

2,315,904

⁽²⁴

⁾

January 10, 2035

1994

January 10, 1995 to

November 30,

9.4688

9,312,742

⁽²⁴

⁾

January 10, 2035

1994

January 10, 1995 to

November 30,

9.4688

8,482,324

⁽²⁴

⁾

January 10, 2035

1994

January 10, 1995 to

November 30,

9.4688

4,764,354

⁽²⁴

⁾

January 10, 2035

1994

January 10, 1995 to

November 30,

9.4688

3,171,134

⁽²⁴

⁾

January 10, 2035

1994

January 12, 2035

January 12, 2007

9.50

110,950,000

February 8, 2035

February 8, 1995

9.875

53,000,000

June 2, 2035

August 25, 2004

DMTN119

5.60

6,882,300,000

June 2, 2035

January 12, 2005

DMTN133

Step-up

150,000,000

⁽³⁸

⁾

June 20, 2036

June 28, 1996

8.25

98,984,000

December 1, 2036

March 8, 2006

DMTN158

2.00 Real Return

2,302,355,841

⁽⁴⁴

⁾

June 2, 2037

February 22, 2006

DMTN164

4.70

8,700,000,000

⁽⁴⁶

⁾

December 2, 2037

February 1, 2005

DMTN138

5.20

100,000,000

June 2, 2038

July 28, 2004

DMTN117

10.00

75,000,000

⁽¹⁵

⁾

June 20, 2038

September 16, 1996

8.10

120,000,000

July 13, 2038

July 29, 1998

5.75

50,000,000

August 25, 2038

August 17, 1998

6.00

86,500,000

June 2, 2039

January 15, 2008

DMTN182

4.60

6,000,000,000

⁽⁵⁵

⁾

July 13, 2039

February 2, 1999

5.65

300,000,000

December 2, 2039

February 25, 2000

5.70

1,489,000,000

July 13, 2040

April 18, 2002

DMTN44

6.20

100,000,000

December 2, 2041

August 15, 2001

DMTN10

6.20

340,000,000

March 8, 2042

December 4, 2001

DMTN29

6.00

41,000,000

June 2, 2042

January 18, 2002

DMTN33

6.00

240,000,000

June 2, 2043

February 24, 2003

DMTN62

5.75

75,000,000

June 2, 2044

September 13, 2006

DMTN169

4.60

27,000,000

January 10, 2045

May 25, 1995

8.435

35,531,176

⁽⁴¹

⁾

March 1, 2045

March 1, 1995

9.50

150,000,000

June 2, 2045

August 31, 2005

DMTN153

4.50

175,000,000

PUBLIC ACCOUNTS, 2009-2010 — VOLUME 1

II. OUTSTANDING DEBT — Continued

As at March 31, 2010

Date of Maturity

Date of Issue

Series

Interest Rate

Outstanding

Reference

June 2, 2046

May 24, 2006

DMTN166

4.85

154,700,000

June 2, 2047

February 28, 2007

DMTN176

4.50

158,000,000

June 2, 2048

May 6, 2008

DMTN184

4.70

50,000,000

⁽⁶³

⁾

June 2, 2054

July 22, 2008

DMTN185

4.60

20,000,000

102,653,638,683

CPI adjustment to Real Return Swap

(18,886,614)

⁽⁴⁴

⁾

102,634,752,069

ONTARIO SAVINGS BONDS

March 1, 2000

March 1, 1995

Annual

Variable

581,400

⁽²⁹

⁾

March 1, 2000

March 1, 1995

Compound

Variable

1,258,250

⁽²⁹

⁾

June 21, 2000

June 21, 1997

Annual

5.25

84,100

⁽²⁹

⁾

June 21, 2000

June 21, 1997

Compound

5.25

60,700

⁽²⁹

⁾

June 21, 2001

June 21, 1996

Annual

Step-up

254,000

⁽²⁹

⁾

June 21, 2001

June 21, 1996

Annual

Variable

376,300

⁽²⁹

⁾

June 21, 2001

June 21, 1996

Compound

Step-up

599,800

⁽²⁹

⁾

June 21, 2001

June 21, 1996

Compound

Variable

101,600

⁽²⁹

⁾

June 21, 2001

June 21, 1998

Annual

5.25

74,300

⁽²⁹

⁾

June 21, 2001

June 21, 1998

Compound

5.25

104,300

⁽²⁹

⁾

June 21, 2002

June 21, 1999

Annual

5.50

103,100

⁽²⁹

⁾

June 21, 2002

June 21, 1999

Compound

5.50

536,000

⁽²⁹

⁾

June 21, 2003

June 21, 1998

Annual

Step-up

122,000

⁽²⁹

⁾

June 21, 2003

June 21, 1998

Compound

Step-up

586,200

⁽²⁹

⁾

June 21, 2003

June 21, 2000

Annual

6.50

360,500

⁽²⁹

⁾

June 21, 2003

June 21, 2000

Compound

6.50

315,800

⁽²⁹

⁾

June 21, 2004

June 21, 1997

Annual

Step-up

860,600

⁽²⁹

⁾

June 21, 2004

June 21, 1997

Annual

Variable

4,800

⁽²⁹

⁾

June 21, 2004

June 21, 1997

Compound

Step-up

589,550

⁽²⁹

⁾

June 21, 2004

June 21, 1997

Compound

Variable

46,400

⁽²⁹

⁾

June 21, 2004

June 21, 1999

Annual

Step-up

322,100

⁽²⁹

⁾

June 21, 2004

June 21, 1999

Compound

Step-up

918,300

⁽²⁹

⁾

June 21, 2004

June 21, 2001

Annual

5.50

548,000

⁽²⁹

⁾

June 21, 2004

June 21, 2001

Compound

5.50

891,100

⁽²⁹

⁾

June 21, 2005

June 21, 1998

Annual

Variable

234,100

⁽²⁹

⁾

June 21, 2005

June 21, 1998

Compound

Variable

893,100

⁽²⁹

⁾

June 21, 2005

June 21, 2000

Annual

Step-up

651,500

⁽²⁹

⁾

June 21, 2005

June 21, 2000

Compound

Step-up

1,310,700

⁽²⁹

⁾

June 21, 2005

June 21, 2002

Annual

4.625

746,600

⁽²⁹

⁾

June 21, 2005

June 21, 2002

Compound

4.625

1,368,600

⁽²⁹

⁾

June 21, 2006

June 21, 1999

Annual

Variable

233,800

⁽²⁹

⁾

June 21, 2006

June 21, 1999

Compound

Variable

807,100

⁽²⁹

⁾

June 21, 2006

June 21, 2001

Annual

Step-up

1,371,300

⁽²⁹

⁾

June 21, 2006

June 21, 2001

Compound

Step-up

4,041,300

⁽²⁹

⁾

June 21, 2006

June 21, 2003

Annual

3.45

319,700

⁽²⁹

⁾

June 21, 2006

June 21, 2003

Compound

3.45

941,800

⁽²⁹

⁾

June 21, 2007

June 21, 2000

Annual

Variable

590,800

⁽²⁹

⁾

June 21, 2007

June 21, 2000

Compound

Variable

894,300

⁽²⁹

⁾

June 21, 2007

June 21, 2002

Annual

Step-up

538,200

⁽²⁹

⁾

June 21, 2007

June 21, 2002

Compound

Step-up

1,438,200

⁽²⁹

⁾

June 21, 2007

June 21, 2004

Annual

3.30

762,800

⁽²⁹

⁾

PUBLIC ACCOUNTS, 2009-2010 — VOLUME 1

II. OUTSTANDING DEBT — Continued

As at March 31, 2010

Date of Maturity

Date of Issue

Series

Interest Rate

Outstanding

Reference

June 21, 2007

June 21, 2004

Compound

3.30

779,000

⁽²⁹

⁾

June 21, 2008

June 21, 2001

Annual

Variable

524,000

⁽²⁹

⁾

June 21, 2008

June 21, 2001

Compound

Variable

1,811,100

⁽²⁹

⁾

June 21, 2008

June 21, 2003

Annual

Step-up

1,899,600

⁽²⁹

⁾

June 21, 2008

June 21, 2003

Compound

Step-up

5,939,200

⁽²⁹

⁾

June 21, 2008

June 21, 2005

Annual

3.10

1,454,200

⁽²⁹

⁾

June 21, 2008

June 21, 2005

Compound

3.10

2,090,000

⁽²⁹

⁾

June 21, 2009

June 21, 2002

Annual

Variable

835,200

⁽²⁹

⁾

June 21, 2009

June 21, 2002

Compound

Variable

1,928,700

⁽²⁹

⁾

June 21, 2009

June 21, 2004

Annual

Step-up

4,118,400

⁽²⁹

⁾

June 21, 2009

June 21, 2004

Compound

Step-up

8,666,800

⁽²⁹

⁾

June 21, 2009

June 21, 2006

Annual

4.10

2,465,200

⁽²⁹

⁾

June 21, 2009

June 21, 2006

Compound

4.10

4,112,500

⁽²⁹

⁾

June 21, 2010

June 21, 2003

Annual

Variable

27,984,600

⁽¹⁸

⁾

June 21, 2010

June 21, 2003

Compound

Variable

33,024,200

⁽¹⁸

⁾

June 21, 2010

June 21, 2005

Annual

Step-up

26,627,100

⁽¹⁷

⁾

June 21, 2010

June 21, 2005

Compound

Step-up

47,866,500

⁽¹⁷

⁾

June 21, 2010

June 21, 2007

Annual

4.75

118,762,200

⁽³⁰

⁾

June 21, 2010

June 21, 2007

Compound

4.75

139,875,100

⁽³⁰

⁾

June 21, 2011

June 21, 2004

Annual

Variable

2,362,700

⁽¹⁸

⁾

June 21, 2011

June 21, 2004

Compound

Variable

5,552,400

⁽¹⁸

⁾

June 21, 2011

June 21, 2006

Annual

Step-up

52,054,100

⁽¹⁷

⁾

June 21, 2011

June 21, 2006

Compound

Step-up

72,769,100

⁽¹⁷

⁾

June 21, 2011

June 21, 2008

Annual

3.50

35,956,600

⁽³⁰

⁾

June 21, 2011

June 21, 2008

Compound

3.50

32,863,300

⁽³⁰

⁾

June 21, 2011

June 21, 2009

Annual

1.25

4,327,200

⁽³⁰

⁾

June 21, 2011

June 21, 2009

Compound

1.25

5,535,900

⁽³⁰

⁾

June 21, 2012

June 21, 2005

Annual

Variable

14,902,700

⁽¹⁸

⁾

June 21, 2012

June 21, 2005

Compound

Variable

15,549,300

⁽¹⁸

⁾

June 21, 2012

June 21, 2007

Annual

Step-up

127,178,300

⁽¹⁷

⁾

June 21, 2012

June 21, 2007

Compound

Step-up

168,085,000

⁽¹⁷

⁾

June 21, 2012

June 21, 2009

Annual

2.00

13,919,600

⁽³⁰

⁾

June 21, 2012

June 21, 2009

Compound

2.00

13,176,000

⁽³⁰

⁾

June 21, 2013

June 21, 2006

Annual

Variable

50,655,000

⁽¹⁸

⁾

June 21, 2013

June 21, 2006

Compound

Variable

53,585,600

⁽¹⁸

⁾

June 21, 2013

June 21, 2008

Annual

Step-up

21,296,800

⁽¹⁷

⁾

June 21, 2013

June 21, 2008

Compound

Step-up

27,765,600

⁽¹⁷

⁾

June 21, 2014

June 21, 2007

Annual

Variable

59,759,500

⁽¹⁸

⁾

June 21, 2014

June 21, 2007

Compound

Variable

51,258,500

⁽¹⁸

⁾

June 21, 2014

June 21, 2009

Annual

3.00

31,470,500

⁽³⁰

⁾

June 21, 2014

June 21, 2009

Compound

3.00

29,879,900

⁽³⁰

⁾

June 21, 2014

June 21, 2009

Annual

Step-up

469,143,500

⁽¹⁷

⁾

June 21, 2014

June 21, 2009

Compound

Step-up

286,136,200

⁽¹⁷

⁾

June 21, 2015

June 21, 2008

Annual

Variable

85,552,000

⁽¹⁸

⁾

June 21, 2015

June 21, 2008

Compound

Variable

48,340,700

⁽¹⁸

⁾

June 21, 2016

June 21, 2009

Annual

Variable

64,153,300

⁽¹⁸

⁾

June 21, 2016

June 21, 2009

Compound

Variable

19,107,700

⁽¹⁸

⁾

2,319,943,700

⁽¹⁶

⁾

TOTAL PAYABLE IN CANADA IN CANADIAN DOLLARS

104,954,695,769

PUBLIC ACCOUNTS, 2009-2010 — VOLUME 1

II. OUTSTANDING DEBT — Continued

As at March 31, 2010

Date of Maturity

Date of Issue

Series

Interest Rate

Outstanding

Reference

GLOBAL MARKET PAYABLE IN CANADIAN DOLLARS

February 7, 2024

February 7, 1994

7.50

1,106,700,000

TOTAL PAYABLE IN GLOBAL MARKET IN CANADIAN DOLLARS

1,106,700,000

PAYABLE IN EUROPE IN CANADIAN DOLLARS

December 1, 2010

November 15, 2005

EMTN74

4.00

200,000,000

⁽⁵⁸

⁾

July 27, 2011

July 27, 2004

EMTN64

4.75

250,000,000

November 30, 2011

November 30, 2001

EMTN50

5.25

450,000,000

December 2, 2011

December 3, 2008

EMTN91

3 CBA+0.94

25,000,000

⁽⁴²

⁾

April 17, 2013

April 17, 2003

EMTN56

5.50

275,000,000

October 21, 2015

October 21, 2005

EMTN73

3 CBA+0.03

250,000,000

⁽⁵⁷

⁾

July 13, 2034

July 13, 1994

EMTN5

9.40

300,000,000

TOTAL PAYABLE IN EUROPE IN CANADIAN DOLLARS

1,750,000,000

PAYABLE IN THE UNITED STATES IN CANADIAN DOLLARS

February 18, 2013

February 18, 1993

9.24

250,000,000

⁽²⁸

⁾

TOTAL PAYABLE IN THE UNITED STATES IN CANADIAN DOLLARS

250,000,000

GLOBAL MARKET PAYABLE IN U.S. DOLLARS

September 8, 2010

September 5, 2008

3.125

1,500,000,000

February 22, 2011

February 22, 2008

2.75

1,500,000,000

May 20, 2011

May 23, 2008

3.375

1,000,000,000

October 18, 2011

October 18, 2006

5.00

1,000,000,000

January 20, 2012

January 21, 2009

2.625

2,000,000,000

May 22, 2012

May 22, 2009

3M USD Libor+0.45

1,525,000,000

⁽⁷⁷

⁾

June 1, 2012

May 24, 2007

4.95

900,000,000

July 17, 2012

July 17, 2002

5.125

707,600,000

November 19, 2012

November 19, 2009

G45-USD

1.875

3,000,000,000

November 19, 2012

November 19, 2009

G46-USD

3M USD Libor+0.15

500,000,000

⁽⁸²

⁾

February 15, 2013

February 7, 2003

4.375

500,000,000

July 15, 2013

April 9, 2008

3.50

1,000,000,000

July 16, 2014

June 16, 2009

4.10

4,000,000,000

February 3, 2015

February 3, 2005

4.50

500,000,000

February 5, 2015

February 5, 2010

G47-USD

2.95

3,000,000,000

January 19, 2016

January 18, 2006

4.75

950,000,000

April 27, 2016

April 27, 2006

5.45

900,000,000

November 28, 2016

November 28, 2006

4.95

891,000,000

October 7, 2019

October 7, 2009

G44-USD

4.00

2,000,000,000

TOTAL PAYABLE IN GLOBAL MARKET IN U.S. DOLLARS

27,373,600,000

CANADIAN DOLLAR EQUIVALENT EXCHANGE RATE OF $1.09038

29,847,751,316

⁽⁴³

⁾

PAYABLE IN CANADA IN U.S. DOLLARS

November 18, 2014

November 18, 2004

DMTN131

4.50

300,000,000

December 21, 2016

December 21, 2006

DMTN171

4.95

100,000,000

PUBLIC ACCOUNTS, 2009-2010 — VOLUME 1

II. OUTSTANDING DEBT — Continued

As at March 31, 2010

Date of Maturity

Date of Issue

Series

Interest Rate

Outstanding

Reference

TOTAL PAYABLE IN CANADA IN U.S. DOLLARS

400,000,000

CANADIAN DOLLAR EQUIVALENT EXCHANGE RATE OF $1.22113

488,450,000

⁽⁹

⁾

PAYABLE IN EUROPE IN U.S. DOLLARS

November 8, 2010

November 7, 2008

EMTN86

3M USD Libor+0.60

100,000,000

July 25, 2011

July 25, 2008

EMTN83

3M USD
Libor-0.10

150,000,000

December 2, 2011

December 2, 2008

EMTN90

3M USD Libor+0.77

100,000,000

TOTAL PAYABLE IN EUROPE IN U.S. DOLLARS

350,000,000

CANADIAN DOLLAR EQUIVALENT EXCHANGE RATE OF $1.15614

404,650,000

⁽⁹⁰

⁾

PAYABLE IN JAPAN IN JAPANESE YEN

July 28, 2014

July 28, 2003

YL015

0.76

5,000,000,000

August 8, 2018

August 8, 2008

YL016

1.675

8,000,000,000

TOTAL PAYABLE IN JAPAN IN JAPANESE YEN

13,000,000,000

CANADIAN DOLLAR EQUIVALENT EXCHANGE RATE OF $0.011554

150,207,943

⁽⁹¹

⁾

PAYABLE IN EUROPE IN JAPANESE YEN

June 24, 2013

June 24, 2003

EMTN59

0.50

5,000,000,000

November 12, 2013

November 12, 2008

EMTN85

1.89

6,000,000,000

December 12, 2013

December 11, 2008

EMTN87

1.805

3,000,000,000

TOTAL PAYABLE IN EUROPE IN JAPANESE YEN

14,000,000,000

CANADIAN DOLLAR EQUIVALENT EXCHANGE RATE OF $0.010856

151,987,374

⁽⁹²

⁾

PAYABLE IN EUROPE IN AUSTRALIAN DOLLARS

April 23, 2013

April 23, 2003

EMTN57

5.50

100,000,000

TOTAL PAYABLE IN EUROPE IN AUSTRALIAN DOLLARS

100,000,000

CANADIAN DOLLAR EQUIVALENT EXCHANGE RATE OF $0.88595

88,595,320

⁽²²

⁾

PAYABLE IN EUROPE IN EURO

April 23, 2019

April 23, 2009

EMTN97

4.75

1,500,000,000

December 3, 2019

December 3, 2009

EMTN100

4.00

1,750,000,000

TOTAL PAYABLE IN EUROPE IN EURO

3,250,000,000

CANADIAN DOLLAR EQUIVALENT EXCHANGE RATE OF $1.46990

4,777,171,772

⁽²⁷

⁾

GLOBAL MARKET PAYABLE IN EURO

May 14, 2013

May 7, 2003

4.125

750,000,000

December 11, 2013

December 11, 2008

4.25

750,000,000

January 9, 2018

January 9, 2009

3M Euribor
+1.39

120,000,000

TOTAL PAYABLE IN GLOBAL MARKET IN EURO

1,620,000,000

CANADIAN DOLLAR EQUIVALENT EXCHANGE RATE OF $1.57374

2,549,455,595

⁽³³

⁾

PUBLIC ACCOUNTS, 2009-2010 — VOLUME 1

II. OUTSTANDING DEBT — Continued

As at March 31, 2010

Date of Maturity

Date of Issue

Series

Interest Rate

Outstanding

Reference

PAYABLE IN EUROPE IN SWISS FRANCS

September 8, 2014

September 8, 2005

2.00

200,000,000

December 2, 2014

December 2, 2008

EMTN88

2.645

50,000,000

December 4, 2014

December 4, 2009

EMTN98

1.625

400,000,000

June 29, 2015

June 29, 2005

2.125

200,000,000

December 1, 2015

December 1, 2008

EMTN84

3.375

225,000,000

July 30, 2018

July 30, 2008

EMTN82

3.75

225,000,000

⁽⁵⁰

⁾

July 30, 2018

August 14, 2009

2.525

100,000,000

December 14, 2018

August 14, 2009

2.59

100,000,000

April 29, 2019

April 29, 2009

EMTN95

3.375

225,000,000

December 4, 2019

December 4, 2009

EMTN99

2.50

275,000,000

TOTAL PAYABLE IN EUROPE IN SWISS FRANCS

2,000,000,000

CANADIAN DOLLAR EQUIVALENT EXCHANGE RATE OF $1.03812

2,076,238,205

⁽⁵⁴

⁾

GLOBAL MARKET PAYABLE IN NEW ZEALAND DOLLARS

June 16, 2015

June 16, 2005

6.25

718,450,000

TOTAL PAYABLE IN GLOBAL MARKET IN NEW ZEALAND DOLLARS

718,450,000

CANADIAN DOLLAR EQUIVALENT EXCHANGE RATE OF $0.89505

643,050,875

⁽⁶⁹

⁾

PAYABLE IN EUROPE IN NEW ZEALAND DOLLARS

October 12, 2010

October 12, 2005

EMTN72

6.375

250,000,000

TOTAL PAYABLE IN EUROPE IN NEW ZEALAND DOLLARS

250,000,000

CANADIAN DOLLAR EQUIVALENT EXCHANGE RATE OF $0.79730

199,325,000

⁽⁴⁸

⁾

PAYABLE IN EUROPE IN POUNDS STERLING

November 21, 2012

May 21, 2008

EMTN81

5.125

200,000,000

TOTAL PAYABLE IN EUROPE IN POUNDS STERLING

200,000,000

CANADIAN DOLLAR EQUIVALENT EXCHANGE RATE OF $2.16024

432,048,000

⁽⁸⁶

⁾

PAYABLE IN EUROPE IN HONG KONG DOLLARS

June 26, 2013

June 12, 2003

EMTN61

4.10

500,000,000

November 27, 2013

November 28, 2008

EMTN89

2.98

200,000,000

December 11, 2013

December 11, 2008

EMTN92

3.50

230,000,000

April 11, 2014

April 20, 2009

EMTN96

2.94

300,000,000

TOTAL PAYABLE IN EUROPE IN HONG KONG DOLLARS

1,230,000,000

CANADIAN DOLLAR EQUIVALENT EXCHANGE RATE OF $0.16766

206,223,890

⁽¹³

⁾

PAYABLE IN EUROPE IN SOUTH AFRICAN RAND

August 17, 2015

August 17, 2005

EMTN71

7.75

300,000,000

September 20, 2016

September 20, 2006

EMTN78

9.00

60,000,000

TOTAL PAYABLE IN EUROPE IN SOUTH AFRICAN RAND

360,000,000

CANADIAN DOLLAR EQUIVALENT EXCHANGE RATE OF $0.18808

67,708,404

⁽⁵³

⁾

TOTAL BONDS

150,144,259,463

TREASURY BILLS

13,711,129,000

⁽⁸⁴

⁾

PUBLIC ACCOUNTS, 2009-2010 — VOLUME 1

II. OUTSTANDING DEBT — Continued

As at March 31, 2010

Date of Maturity

Date of Issue

Series

Interest Rate

Outstanding

Reference

U.S. COMMERCIAL PAPER (in U.S. Dollars)

2,987,300,000

⁽²¹

⁾

CANADIAN DOLLAR EQUIVALENT EXCHANGE RATE OF $1.03362

3,087,731,756

UNAMORTIZED FOREIGN EXCHANGE GAINS

60,567,924

TOTAL PUBLICLY HELD DEBT

167,003,688,143

TOTAL NON-PUBLIC AND PUBLIC DEBT

182,142,590,631

OTHER DEBT

SCHOOL BOARD TRUST DEBT

Year ending March 31

2037

2004

5.90

891,000,000

Less: Sinking Fund

(94,269,327)

796,730,673

⁽³

⁾

TOTAL DEBT ISSUED FOR PROVINCIAL PURPOSES

182,939,321,304

Net Consolidation and other adjustments

1,744,624,403

TOTAL PROVINCIAL PURPOSE DEBT AFTER NET CONSOLIDATION AND OTHER ADJUSTMENTS

184,683,945,707

⁽⁸³

⁾

DEBT ISSUED FOR INVESTMENT PURPOSES*

ONTARIO POWER GENERATION INC

5,126,000,000

HYDRO ONE INC.

3,759,000,000

TOTAL DEBT ISSUED FOR INVESTMENT PURPOSES

8,885,000,000

* Debt for Investment Purposes, as a result of a debt for equity swap between the Province and Ontario Power Generation Inc. and Hydro One Inc., is eliminated upon consolidation.

PUBLIC ACCOUNTS, 2009-2010 — VOLUME 1

II. OUTSTANDING DEBT — Continued

As at March 31, 2010

Date of Maturity

Date of Issue

Series

Interest Rate

Outstanding

Reference

DEBT ISSUED FOR ONTARIO ELECTRICITY FINANCIAL CORPORATION (OEFC)

PAYABLE IN CANADA IN CANADIAN DOLLARS

NON-PUBLIC DEBT

Canada Pension Plan Investment Board:

2021

2001

CPP

6.08

19,375,000

2022

2002

CPP

6.17 to 6.29

172,961,000

2023

2003

CPP

6.16

38,130,000

TOTAL NON-PUBLIC DEBT

230,466,000

⁽⁵

⁾

PAYABLE IN CANADA IN CANADIAN DOLLARS

PUBLICLY HELD DEBT

May 19, 2010

October 2, 2007

DMTN144

4.00

150,000,000

⁽²⁶

⁾

November 19, 2010

September 1, 2000

HC-NK

6.10

500,000,000

⁽⁸⁰

⁾

March 15, 2011

March 15, 2001

DMTN3

6.80

50,000,000

⁽³⁷

⁾

December 2, 2011

July 20, 2001

DMTN8

6.10

500,000,000

December 2, 2012

May 12, 2003

DMTN53

5.375

500,000,000

December 2, 2012

December 20, 2007

DMTN178

4.50

300,000,000

⁽⁷⁴

⁾

June 2, 2013

May 28, 2003

DMTN69

4.75

2,164,000,000

⁽⁷²

⁾

March 8, 2014

January 28, 2004

DMTN93

5.00

1,200,000,000

⁽⁶²

⁾

September 8, 2014

October 9, 2009

DMTN197

3.25

150,000,000

⁽⁹⁶

⁾

November 19, 2014

January 22, 2010

DMTN199

3M CBA + 0.14

135,000,000

⁽²⁰

⁾

March 8, 2015

January 24, 2005

DMTN135

4.50

500,000,000

March 8, 2016

February 14, 2006

DMTN163

4.40

1,800,000,000

March 8, 2017

January 12, 2007

DMTN 173

4.30

2,300,000,000

⁽¹⁹

⁾

March 8, 2018

March 10, 2008

DMTN183

4.20

1,440,000,000

⁽⁷⁶

⁾

June 2, 2018

June 6, 2005

DMTN79

5.50

110,000,000

⁽¹⁰

⁾

June 2, 2019

April 27, 2009

DMTN195

4.40

550,000,000

⁽⁷¹

⁾

June 2, 2020

February 22, 2005

DMTN140

4.85

29,000,000

September 8, 2023

November 29, 2004

8.10

50,000,000

⁽⁵⁹

⁾

June 2, 2027

February 4, 2000

HC-KJA

7.60

100,500,000

⁽⁶¹

⁾

August 25, 2028

April 6, 1999

HC-LQA

6.25

78,600,000

June 2, 2031

February 24, 2000

HC-NF

6.20

500,000,000

⁽⁵¹

⁾

December 1, 2036

October 4, 2005

DMTN158

2.00 Real Return

751,702,000

⁽⁴⁴

⁾

June 2, 2037

September 1, 2006

DMTN164

4.70

400,000,000

⁽⁴⁶

⁾

June 2, 2039

July 10, 2009

DMTN182

4.60

100,000,000

⁽⁵⁵

⁾

TOTAL PAYABLE IN CANADA IN CANADIAN DOLLARS

14,358,802,000

PUBLIC ACCOUNTS, 2009-2010 — VOLUME 1

II. OUTSTANDING DEBT — Continued

As at March 31, 2010

Date of Maturity

Date of Issue

Series

Interest Rate

Outstanding

Reference

PAYABLE IN EUROPE IN CANADIAN DOLLARS

April 17, 2013

June 3, 2003

EMTN56

5.50

150,000,000

July 8, 2014

July 8, 2004

EMTN63

3M CBA+0.07

500,000,000

February 17, 2015

February 17, 2005

EMTN69

4.50

200,000,000

TOTAL PAYABLE IN EUROPE IN CANADIAN DOLLARS

850,000,000

PAYABLE IN EUROPE IN SWISS FRANCS

July 8, 2013

July 8, 2003

EMTN60

2.50

300,000,000

May 27, 2016

May 27, 2008

EMTN80

3.375

200,000,000

July 30, 2018

December 29, 2008

EMTN82

3.75

125,000,000

⁽⁵⁰

⁾

TOTAL PAYABLE IN EUROPE IN SWISS FRANCS

625,000,000

CANADIAN DOLLAR EQUIVALENT EXCHANGE RATE OF $1.05298

658,114,050

⁽³⁵

⁾

PAYABLE IN EUROPE IN AUSTRALIAN DOLLARS

July 13, 2012

July 13, 2005

EMTN70

5.50

125,000,000

TOTAL PAYABLE IN EUROPE IN AUSTRALIAN DOLLARS

125,000,000

CANADIAN DOLLAR EQUIVALENT EXCHANGE RATE OF $0.94398

117,996,875

⁽⁸¹

⁾

PAYABLE IN AUSTRALIA IN AUSTRALIAN DOLLARS

November 30, 2016

November 30, 2006

AUD1

6.00

300,000,000

TOTAL PAYABLE IN AUSTRALIA IN AUSTRALIAN DOLLARS

300,000,000

CANADIAN DOLLAR EQUIVALENT EXCHANGE RATE OF $0.87509

262,525,500

⁽⁶⁴

⁾

GLOBAL MARKET PAYABLE IN EURO

October 9, 2017

January 9, 2009

3M Euribor+1.39

105,000,000

TOTAL PAYABLE IN GLOBAL MARKET IN EURO

105,000,000

CANADIAN DOLLAR EQUIVALENT EXCHANGE RATE OF $1.70800

179,340,000

⁽⁹³

⁾

PAYABLE IN EUROPE IN HONGKONG DOLLARS

December 29, 2015

December 29, 2008

EMTN94

3.30

515,000,000

TOTAL PAYABLE IN EUROPE IN HONGKONG DOLLARS

515,000,000

CANADIAN DOLLAR EQUIVALENT EXCHANGE RATE OF $0.16034

85,572,774

⁽⁹⁴

⁾

PAYABLE IN EUROPE IN SOUTH AFRICAN RAND

November 22, 2010

November 22, 2005

EMTN75

7.75

300,000,000

July 5, 2011

July 5, 2006

EMTN76

8.00

300,000,000

TOTAL PAYABLE IN EUROPE IN SOUTH AFRICAN RAND

600,000,000

CANADIAN DOLLAR EQUIVALENT EXCHANGE RATE OF $0.16629

99,773,408

⁽⁸⁸

⁾

GLOBAL MARKET PAYABLE IN U.S. DOLLARS

May 22, 2012

May 22, 2009

3M USD Libor+0.45

225,000,000

⁽⁷⁷

⁾

November 19, 2012

November 19, 2009

G46-USD

3M USD Libor+0.15

500,000,000

⁽⁸²

⁾

PUBLIC ACCOUNTS, 2009-2010 — VOLUME 1

II. OUTSTANDING DEBT — Continued

As at March 31, 2010

Date of Maturity

Date of Issue

Series

Interest Rate

Outstanding

Reference

February 3, 2015

February 3, 2005

4.50

500,000,000

TOTAL PAYABLE IN GLOBAL MARKET IN U.S. DOLLARS

1,225,000,000

CANADIAN DOLLAR EQUIVALENT EXCHANGE RATE OF $1.07597

1,318,062,500

⁽²³

⁾

PAYABLE IN EUROPE IN U.S. DOLLARS

December 18, 2018

December 18, 2008

EMTN93

4.28

60,000,000

TOTAL PAYABLE IN EUROPE IN U.S. DOLLARS

60,000,000

CANADIAN DOLLAR EQUIVALENT EXCHANGE RATE OF $1.2275

73,650,000

⁽⁹⁵

⁾

TOTAL BONDS

18,000,837,107

TREASURY BILLS

1,201,028,000

UNAMORTIZED FOREIGN EXCHANGE GAINS

70,940,969

TOTAL PUBLICLY HELD DEBT

19,272,806,076

TOTAL DEBT ISSUED BY THE PROVINCE FOR OEFC

19,503,272,076

DIRECT OEFC DEBT

7,934,474,000

TOTAL OEFC DEBT

27,437,746,076

PUBLIC ACCOUNTS, 2009-2010 — VOLUME 1

II. OUTSTANDING DEBT — Continued

As at March 31, 2010

References:


1.	All debt issues are non-callable, except as noted below. CBA is Canadian Bankers’ Acceptance Rate; 3 CBA is a three month floating rate; LIBOR is London Inter-bank Offered Rate. All foreign currency debt has been converted into Canadian dollars at the rates of the currency exchange agreements if the debt is hedged, or at year end exchange rates if unhedged. The exchange rates of foreign currencies to Canadian dollars as at March 31, 2010 are: Australian dollar 0.9308, euro 1.3711, Hong Kong dollar 0.130723, Japanese yen 0.010856, New Zealand dollar 0.7204, South African rand 0.1393, Swiss franc 0.9630, United States dollar 1.0150, pound sterling 1.5409.

2.	OPB & OPPT: Pursuant to the Ontario Public Service Employees’ Pension Act 1994 and the Asset Transfer Agreement of December 12, 1994, the Province was obligated to re-split the debentures between the Public Service Pension Fund (“PSPF”) and the Ontario Public Service Employees’ Union Pension Plan Trust Fund (“OPSEU Fund”) based on accurate data when it was available. On June 13, 1997 a Restated Sponsorship Amendment and Asset Transfer Agreement was signed, replacing the 1994 agreement and which resulted in the existing split after debt payment. The terms of these debentures require that the principal be repaid in 12 equal monthly payments in the year preceding the date of maturity.

3.	SBT: The School Board Trust was created in June 2003 to permanently refinance debt incurred by 55 school boards to support their capital projects prior to the introduction of the student focused funding model in 1998. The Trust issued 30-year sinking fund debentures amounting to $891 million in June 2003. The Trust provided $882 million of the proceeds to the 55 school boards in exchange for the irrevocable right to receive future transfer payments from the Province related to this debt. These amounts will be reduced over the 30-year period by the transfer payments made by Ministry of Education to the Trust under the School Board Operating Grant program.

4.	DMTN53: Outstanding amount includes bonds held by Agricorp, a government organization, of $9.2 million.

5.	The Canada Pension Plan Investment Board (“CPPIB”) invests funds in the Province of Ontario’s non-marketable securities. Effective July 1, 2005, under a side-letter agreement signed between the CPPIB and the Province, CPPIB offered the Province upon maturity of the debentures held to the credit of the Canada Pension Plan Investment Fund (“CPPIF”) that were issued before January 1, 1998, an option of issuing new replacement debentures to the CPPIB with a maximum term of 30 years (minimum term of 5 years and with subsequent roll over options subject to the 30 years maximum from the date of issue of the first replacement debenture) at a rate based on the capital market rates at the time of roll over. These debentures are not negotiable or transferable and are assignable only to a wholly-owned subsidiary of the CPPIB. On April 1, 2007, all debentures held to the credit of the CPPIF or purchased by the Minister of Finance of Canada in accordance with Section 110 of the Canada Pension Plan were transferred to the CPPIB.

6.	CMHC: The terms of these debentures require that equal payments be made each year until their maturity. Each payment consists of blended principal and interest.

7.	DMTN194: During the fiscal year 2009-10, Series DMTN194 was re-opened once bringing the total issue size to $75 million. Interest is payable quarterly at a 3 month CBA rate plus 0.70%. In addition, the Province entered into interest rate agreements that effectively converted the interest rate on this obligation to a fixed rate of 2.04%.

8.	OIIC: These are zero coupon bonds. Amount represents the amount payable at maturity.

9.	Domestic USD Bonds: The Province entered into currency exchange agreements that effectively converted these U.S. dollar obligations to Canadian dollar obligations at an exchange rate of 1.22113. In addition, the Province entered into interest rate agreements that effectively converted the interest rate on these obligations to a fixed rate of 4.46%.

10.	DMTN79: Total outstanding amount is $715 million, including $110 million for OEFC. The Province entered into interest rate agreements that effectively converted the interest rate on $125 million of the Province’s obligation to a fixed rate of 4.84%.

11.	DMTN135: Outstanding amount includes bonds held by Agricorp, a government organization, of $10.1 million.

12.	DMTN193: During the fiscal year 2009-10, Series DMTN193 was re-opened nine times bringing the total issue size to $827 million. Interest is payable quarterly at a 3 month CBA rate plus 0.99%. In addition, the Province entered into interest rate agreements that effectively converted the interest rate on this obligation to a fixed rate of 2.44%.

13.	EMTN HKD Bonds: The Province entered into currency exchange agreements that effectively converted these Hong Kong dollar obligations to Canadian dollars at an exchange rate of 0.16766. In addition, the Province entered into interest rate agreements that effectively converted the interest rate on these obligations to a fixed rate of 4.13%.

14.	DMTN198: During the fiscal year 2009-10, Series DMTN198 was re-opened thirteen times bringing the total issue size to $1,965 million. Interest is payable quarterly at a 3 month CBA rate plus 0.25%. In addition, the Province entered into interest rate agreements that effectively converted the interest rate on this obligation to a fixed rate of 3.02%.

15.	DMTN117: The bond was issued at a high premium in 2004 to offer a yield of 5.737%.

16.	OSB: 2003-2009 Series are redeemable at the option of the holder on June 21 and December 21 and for 14 calendar days following the redemption date of June 21 and December 21, with the exception of Fixed-Rate bonds which are redeemable at maturity only. Starting in 2009, Variable Rate Bonds are redeemable annually only on June 21. All current outstanding OSBs may be redeemed upon the death of the beneficial owner.

17.	OSB (Step-up):

2003 Series: Interest is payable at 2.75%, 3.25%, 3.5%, 4.0%, and 4.25%,

PUBLIC ACCOUNTS, 2009-2010 — VOLUME 1

II. OUTSTANDING DEBT — Continued

As at March 31, 2010

2004 Series: Interest is payable at 1.7%, 3.0%, 3.5%, 4.5%, and 6.0%,

2005 Series: Interest is payable at 2.25%, 2.75%, 3.0%, 3.5%, 4.0%,

2006 Series: Interest is payable at 3.7%, 3.8%, 3.9%, 4.0%, and 4.25%,

2007 Series: Interest is payable at 4.0%, 4.2%, 4.4%, 4.6%, and 4.95%,

2008 Series: Interest is payable at 2.6%, 2.8%, 3.0%, 3.2%, and 4.0%,

2009 Series: Interest is payable at 0.75%, 1.5%, 2.5%, 3.5% and 4.5%,

in year 1, 2, 3, 4 and 5 respectively.


18.	OSB (Variable): The Minister of Finance resets the interest rate every six months. On December 21, 2009, the interest rate was re-set at 1.0%.

19.	DMTN173: During the fiscal year 2009-10, the series DMTN173 was re-opened once bringing the total issue size to $5,400 million, including $2,300 million for OEFC. In addition, the Province entered into interest rate agreements that effectively converted the interest rate on $209.5 million of the Province’s obligation to a 3 month CBA rate minus 0.279%.

20.	DMTN199: During the fiscal year 2009-10, Series DMTN199 was re-opened once bringing the total issue size to $250 million, including $135 million for OEFC. Interest is payable quarterly at a 3 month CBA rate plus 0.14%. In addition, the Province entered into interest rate agreements that effectively converted the interest rate on this obligation to a fixed rate of 2.75%.

21.	U.S. Commercial Paper issues are discount notes with maturities up to 182 days.

22.	EMTN57: The Province entered into currency exchange agreements that effectively converted these Australian dollar obligations to Canadian dollars at an exchange rate of 0.88595. In addition, the Province entered into interest rate agreements that effectively converted the interest rate on this obligation to a fixed rate of 5.59%.

23.	USD Global Bonds (OEFC): The Province entered into currency exchange agreements that effectively converted these U.S. dollar obligations to Canadian dollars at an exchange rate of 1.07597. In addition, the Province entered into interest rate agreements that effectively converted the interest rate on $553 million of these obligations to a fixed rate of 5.11%, $527 million to a 3 month CBA rate plus 0.28% and $238 million to a 3 month CBA rate plus 0.58%.

24.	Series HZ, JA, JB, JC, JD: These are zero coupon bonds which require unequal payments consisting of principal and interest to be made at predetermined irregular intervals. During the fiscal year 2009-10, principal repaid was $0.8 million. By January 10, 2035, the principal to be repaid on these bonds will be $230 million.

25.	DMTN196: During the fiscal year 2009-10, Series DMTN196 was re-opened twice bringing the total issue size to $275 million. Interest is payable quarterly at a 3 month CBA rate plus 0.62%. In addition, the Province entered into interest rate agreements that effectively converted the interest rate on this obligation to a fixed rate of 3.73%.

26.	DMTN144: Total outstanding amount is $2,500 million, including $150 million for OEFC.

27.	EMTN Euro Bonds: The Province entered into currency exchange agreements that effectively converted these euro obligations to Canadian dollar at an exchange rate of 1.46990. In addition, the Province entered into interest rate agreements that effectively converted the interest rate on $2,038 million of these obligations to a fixed rate of 4.49% and $564 million to a 3 month CBA rate plus 1.88%.

28.	HJ: Outstanding amount includes bonds held by Agricorp, a government organization, of $6.8 million.

29.	OSB: The outstanding amounts represent bonds matured but not yet presented for redemption. No interest is payable on these bonds.

30.	OSB: Every year the Province issues fixed rate Ontario Savings Bonds for a term of three years. However, in 2009, fixed rate bonds were also issued for a term of 2 years and 5 years.

31.	DMTN8: Outstanding amount includes bonds held by Agricorp, a government organization, of $19 million.

32.	DMTN149: Bonds are extendible at the option of the bondholders on the initial maturity date of June 2, 2016 to the final maturity date of June 2, 2035 and if extended are exchangeable at the option of the bondholders on June 13, 2016 for series DMTN119. Interest is payable semi-annually at 3.6% until June 2, 2016 and 4.8% thereafter if extended. In addition, the Province entered into interest rate agreements that effectively converted the interest rate obligation on this obligation to a rate of 4.67%.

33.	Euro Global Bonds: The Province entered into currency exchange agreements that effectively converted these euro obligations to Canadian dollars at an exchange rate of 1.57374. In addition, the Province entered into interest rate agreements that effectively converted the interest rate on these obligations to a fixed rate of 4.43%.

34.	MW: The Province entered into interest rate agreements that effectively converted the interest rate on this obligation to a 3 month CBA rate minus 0.05%.

35.	EMTN CHF Bonds (OEFC): The Province entered into currency exchange agreements that effectively converted these Swiss franc obligations to Canadian dollars at an exchange rate of 1.05298. In addition, the Province entered into interest rate agreements that effectively converted the interest rate on these obligations to a fixed rate of 4.69%.

36.	DMTN150: Interest is payable semi-annually at 3.05% in years 1-2 and 4.2% thereafter. In addition, the Province entered into interest rate agreements that effectively converted the interest rate on this obligation to a 3 month CBA rate minus 0.06%.

37.	DMTN3 (OEFC): Interest is payable at 5.50% for the first four years and 6.80% for the remaining six years.

PUBLIC ACCOUNTS, 2009-2010 — VOLUME 1

II. OUTSTANDING DEBT — Continued

As at March 31, 2010


38.	DMTN133: Bonds are retractable at the option of the bondholders on December 2, 2014 or exchangeable for series DMTN119 at par on December 15, 2014. Interest is payable at 4.0% until December 2, 2014 and thereafter at 5.35% until final maturity date. In addition, the Province entered into interest rate agreements that effectively converted the interest rate on this obligation to a rate of 5.26%.

39.	DMTN165: Outstanding amount includes bonds held by Agricorp, a government organization, of $9.9 million, and bonds held by Ontario Infrastructure Projects Corporation, a government organization, of $10 million.

40.	DMTN152: Bonds are extendible at the option of the bondholders on the initial maturity date of December 2, 2016 to the final maturity date of June 2, 2035 and if extended are exchangeable on December 14, 2016 for series DMTN119 at par. Interest is payable semi-annually at 3.75% until the initial maturity date and thereafter at 4.75% if extended. In addition, the Province entered into interest rate agreements that effectively converted the interest rate on this obligation to a rate of 4.76%.

41.	JL: The terms of these debentures require unequal payments, consisting of both principal and interest, to be made at predetermined irregular intervals with the final payment on January 10, 2045. The total principal and interest to be payable over the life of the debenture is $1,325 million.

42.	EMTN91: The Province entered into interest rate agreements that effectively converted the interest rate on this obligation to a fixed rate of 2.39%.

43.	USD Global Bonds: The Province entered into currency exchange agreements that effectively converted these US dollar obligations to Canadian dollar at an exchange rate of 1.09308. In addition, the Province entered into interest rate agreements that effectively converted the interest rate on $18,151 million of these obligations to a fixed rate of 3.44%; $4,296 million to a rate of 5.45%; $7,022 million to a 3 month CBA rate plus 0.19%; $379 million to a 1 month CBA rate plus 0.04%.

44.	DMTN158: This Real Return Bond bears interest to the indexed adjusted principal in relation to All-Items Consumer Price Index for Canada (the “CPI”), issued with a base index of 127.54839 on March 8, 2006. Consequent to the change of official time base reference period from 1992 to 2002 by the Bank of Canada on June 19, 2007, the base index has been changed to 107.18352. During the fiscal year 2009-10, the series was re-opened twice bringing the total issue size to $2,844 million in principal, of which $700 million has been on lent to OEFC, and $300 million has been swapped effectively to a nominal debt paying a fixed rate of 4.66%. The amount outstanding represents the indexed value of the principal.

45.	DMTN1: The Province entered into interest rate agreements that effectively converted the interest rate on this obligation to a 3 month CBA rate minus 0.02%.

46.	DMTN164: Total outstanding amount is $9,100 million, including $400 million for OEFC. Outstanding amount for the Province, $8,700 million, includes bonds held by Ontario Infrastructure Projects Corporation, a government organization, of $4.8 million.

47.	DMTN132: Outstanding amount for the Province includes bonds held by Agricorp, a government organization, of $18 million.

48.	EMTN72: The Province entered into a currency exchange agreement that effectively converted this New Zealand dollar obligation to Canadian dollar at an exchange rate of 0.79730. In addition, the Province entered into interest rate agreements that effectively converted the interest rate on this to a 3 month CBA rate minus 0.01%.

49.	DMTN105: The Province entered into interest rate agreements that effectively converted the interest rate on this obligation to a fixed rate of 4.94%.

50.	EMTN82: Total outstanding amount is CHF350 million, including CHF125 million for OEFC.

51.	NF: Outstanding amount is $3,000 million, including $500 million on-lent to OEFC until June 2, 2010, after which the issue has been assumed by the Province until the maturity date.

52.	DMTN157: Interest is payable semi-annually at 15.0% until January 13, 2006 and thereafter at 5.0%.

53.	EMTN71/78: The Province entered into currency exchange agreements that effectively converted these South African rand obligations to Canadian dollar at an exchange rate of 0.18808. In addition, the Province entered into interest rate agreements that effectively converted the interest rate on these obligations to a fixed rate of 4.36%.

54.	Europe CHF Bonds: The Province entered into currency exchange agreements that effectively converted these Swiss franc obligations to Canadian dollar at an exchange rate of 1.03812. In addition, the Province entered into interest rate agreements that effectively converted the interest rate on $1,823 million of these obligations to a fixed rate of 4.12% and $205 million to a rate of 4.24%.

55.	DMTN182: During the fiscal year 2009-10, Series DMTN182 was re-opened ten times bringing the total issue size to $6,100 million, including $100 million for OEFC. Outstanding amount for the Province, $6,000 million, includes bonds held by Ontario Infrastructure Projects Corporation, a government organization, of $20.2 million.

56.	DMTN116: Bonds are extendible at the option of the bond holders on the initial maturity date of September 8, 2013 to the final maturity date of March 8, 2033. Interest is payable semi-annually at 4.625% until the initial maturity date and at 5.85% if extended. In addition, the Province entered into interest rate agreements that effectively converted the interest rate on this obligation to a rate of 5.08%.

57.	EMTN73: The Province entered into interest rate agreements that effectively converted the interest rate on this obligation to a fixed rate of 4.34%.

58.	EMTN74: The Province entered into interest rate agreements that effectively converted the interest rate on this obligation to a 3 month CBA rate minus 0.05%.

59.	HP: Total outstanding amount is $990.6 million, including $50 million for OEFC.

PUBLIC ACCOUNTS, 2009-2010 — VOLUME 1

II. OUTSTANDING DEBT — Continued

As at March 31, 2010


60.	DMTN46: This is a variable payment bond with a yield of 4.53%. The principal and interest are repayable on a blended semi-annual installment. During the fiscal year 2009-10, principal repaid was $0.3 million.

61.	KJ: Total outstanding amount is $4,835 million, including $101 million for OEFC.

62.	DMTN93: During the fiscal year 2009-10, Series DMTN93 was re-opened six times, bringing the total issue size to $6,300 million, including $1,200 million for OEFC. Outstanding amount for the Province, $5,100 million, includes bonds held by Agricorp, a government organization, of $17.6 million.

63.	DMTN184: During the fiscal year 2009-10, Series DMTN184 was re-opened once bringing the total issue size to $50 million.

64.	AUD1 (OEFC): The Province entered into currency exchange agreements that effectively converted this Australian dollar obligation to Canadian dollar at an exchange rate of 0.87509. In addition, the Province entered into interest rate agreements that effectively converted the interest rate on this obligation to a fixed rate of 4.24%.

65.	DMTN190: Outstanding amount includes bonds held by Ontario Infrastructure Projects Corporation, a government organization, of $3.5 million.

66.	DMTN186: The Province entered into interest rate agreements that effectively converted the interest rate on this obligation to a fixed rate of 2.94%.

67.	DMTN191: The Province entered into interest rate agreements that effectively converted the interest rate on this to a fixed rate of 1.67%.

68.	DMTN188: The Province entered into interest rate agreements that effectively converted the interest rate on this obligation to a fixed rate of 3.14%.

69.	PG: The Province entered into currency exchange agreements that effectively converted this New Zealand dollar obligation to Canadian dollar at an exchange rate of 0.89505. In addition, the Province entered into interest rate agreements that effectively converted the interest rate on this obligation to a fixed rate of 4.24%.

70.	DMTN192: This bond is a 3 year floating rate bond where the Province has the option to switch to a fixed rate coupon of 2.5% on the 13^th day of March, June, September and December of each year. In addition, the Province entered into interest rate agreements that effectively converted the interest rate on this obligation to a fixed rate of 1.98%.

71.	DMTN195: During the fiscal year 2009-10, Series DMTN195 was re-opened thirteen times bringing the total issue size to $6,100 million, including $550 million for OEFC. Outstanding amount for the Province, $5,550 million, includes bonds held by Ontario Infrastructure Projects Corporation, a government organization, of $29.5 million.

72.	DMTN69: Total outstanding amount, $5,730 million, including $2,164 million for OEFC.

73.	DMTN189: Bonds are callable at the option of the Province on November 20, 2011 at par. Interest is payable quarterly as follows: November 20, 2008 to November 10, 2011-3 month CBA rate plus 0.75%, November 10, 2011 to November 10, 2013-3 month CBA rate plus 1.20%. In addition, the Province entered into interest rate agreements that effectively converted the interest rate on this obligation to a fixed rate of 3.13%

74.	DMTN178: Total outstanding amount is $1,800 million, including $300 million for OEFC. In addition, the Province entered into interest rate agreements that effectively converted the interest rate on $105 million of the Province’s obligation to a 3 month CBA rate.

75.	DMTN179: Interest is payable quarterly at a 3 month CBA rate minus 0.16%. In addition, the Province entered into interest rate agreements that effectively converted the interest rate on this obligation to a fixed rate of 3.96%.

76.	DMTN183: Total outstanding amount is $3,000 million, including $1,440 million for OEFC.

77.	PW: Total outstanding amount is US $1,750 million, including US $225 million for OEFC.

78.	DMTN180: The Province entered into interest rate agreements that effectively converted the interest rate on this obligation to a fixed rate of 4.52%.

79.	DMTN181: The Province entered into interest rate agreements that effectively converted the interest rate on this obligation to a fixed rate of 4.50%.

80.	NK: Total outstanding amount is $2,120 million, including $500 million for OEFC. Outstanding amount includes bonds held by Agricorp, a government organization, of $20.3 million and Ontario Infrastructure Projects Corporation, a government organization, of $4.4 million.

81.	EMTN70 (OEFC): The Province entered into currency exchange agreements that effectively converted this Australian dollar obligation to Canadian dollar at an exchange rate of 0.94398. In addition, the Province entered into interest rate agreements that effectively converted the interest rate on this obligation to a fixed rate of 4.0%.

82.	G46-USD: Total outstanding amount is US $1,000 million, including US $500 million for OEFC.

83.	Total Provincial Purpose debt includes the following debt issued by other government organizations and government business enterprises: $1,507 million by Ontario Mortgage and Housing Corporation, $79 million by Ontario Municipal Improvement Corporation, $1,920 million by Ontario Infrastructure Projects Corporation, $275 million by Ornge, $21 million by Ontario Northland Transportation Commission and excludes Ontario Mortgage and Housing Corporation’s debt of $735 million, and Ontario Treasury Bills and Bonds held by other government organizations and agencies of $1,311 million.

PUBLIC ACCOUNTS, 2009-2010 — VOLUME 1

II. OUTSTANDING DEBT — Concluded

As at March 31, 2010


84.	The Treasury Bills balance includes the following Treasury Bill holdings by other government organizations: $500 million held by Ontario Infrastructure Projects Corporation, $213 million held by the Northern Ontario Heritage Fund Corporation, $30 million by Ontario Power Authority, $129 million held by Ontario Reality Corporation, $85 million held by Ontario Capital Growth Corporation, $24 million held by Ontario Immigrant Investor Corporation, and $20 million held by Ontario Securities Commission.

85.	DMTN187: The Province entered into interest rate agreements that effectively converted the interest rate on this obligation to a fixed rate of 0.903%.

86.	EMTN81: The Province entered into currency exchange agreements that effectively converted this pound sterling obligation to Canadian dollar at an exchange rate of 2.16024. In addition, the Province entered into interest rate agreements that effectively converted the interest rate on this obligation to a fixed rate of 3.68%.

87.	DMTN110: Bonds are retractable at the option of the bond holders on March 8, 2012 or if the bond holders do not retract the bonds the bond holders may exchange the bonds at par on March 21, 2012 for the Series DMTN61. Interest is payable semi-annually at 3.25% until March 8, 2012 and 5.85% to March 8, 2033. In addition, the Province entered into interest rate agreements that effectively converted the interest rate on this obligation to a rate of 5.72%.

88.	EMTN75/76 (OEFC): The Province entered into currency exchange agreements that effectively converted these South African rand obligations to Canadian dollars at an exchange rate of $0.16629. In addition, the Province entered into interest rate agreements that effectively converted the interest rate on these obligations to a fixed rate of 4.76%.

89.	MH: The terms of these debentures require that a special one-time interest payment of $31.1 million be made at maturity.

90.	EMTN83/86/90: The Province entered into currency exchange agreements that effectively converted these U.S. dollar obligations to Canadian dollar at an exchange rate of 1.15614. In addition, the Province entered into interest rate agreements that effectively converted the interest rate on these obligations to a fixed rate 3.04%.

91.	YL015/16: The Province entered into currency exchange agreements that effectively converted 13 billion of these Japanese yen obligations to Canadian dollar at an exchange rate of 0.011554. In addition, the Province entered into interest rate agreements that effectively converted the interest rate on $96 million of these obligations to a fixed rate of 4.34%.

92.	EMTN59/85/87: The Province entered into currency exchange agreements that effectively converted 14 billion of these Japanese yen obligations to Canadian dollar at an exchange rate of 0.010856.

93.	PU (OEFC): The Province entered into currency exchange agreements that effectively converted this obligation to Canadian dollar at an exchange rate of 1.708. In addition, the Province entered into interest rate agreements that effectively converted the interest rate on this obligation to a fixed rate of 4.0%.

94.	EMTN94 (OEFC): The Province entered into currency exchange agreements that effectively converted this obligation to Canadian dollar at an exchange rate of 0.16034. In addition, the Province entered into interest rate agreements that effectively converted the interest rate on this obligation to a fixed rate of 4.13%.

95.	EMTN93 (OEFC): The Province entered into currency exchange agreements that effectively converted this obligation to Canadian dollar at an exchange rate of 1.2275. In addition, the Province entered into interest rate agreements that effectively converted the interest rate on this obligation to a fixed rate of 4.22%.

96.	DMTN197: During the fiscal year 2009-10, Series DMTN197 was re-opened five times bringing the total issue size to $3,650 million, including $150 million for OEFC. Outstanding amount for the Province, $3,500 million, includes bonds held by Ontario Infrastructure Projects Corporation, a government organization, of $44.7 million.

97.	DMTN200: During the fiscal year 2009-10, Series DMTN200 was re-opened once bringing the total issue size to $1,350 million. Outstanding amount includes bonds held by Ontario Infrastructure Projects Corporation, a government organization, of $76.5 million.

98.	DMTN201: Outstanding amount includes bonds held by Ontario Infrastructure Projects Corporation, a government organization, of $8.5 million.

99.	OMHC: Debentures issued to Ontario Mortgage and Housing Corporation (OMHC) are not negotiable and not transferable or assignable but are redeemable in whole or in part at the option of the OMHC on six months prior written notice.

PUBLIC ACCOUNTS, 2009-2010 — VOLUME 1

III. CONTINGENT LIABILITIES —

OBLIGATIONS GUARANTEED BY THE PROVINCE OF ONTARIO

For the year ended March 31, 2010

LOANS GUARANTEED

Year of

Rate of

Outstanding

Issue

Interest

March 31, 2010

References

MINISTRY OF AGRICULTURE, FOOD AND RURAL AFFAIRS

Commodity Loan Guarantee Program

2009-10

Various

40,960,795

⁽¹⁾

Feeder Cattle Loan Guarantee Program

2009-10

Various

52,101,260

⁽²⁾

FarmPlus Rural Loan Pool Program

2009-10

Various

5,151,966

TOTAL MINISTRY OF AGRICULTURE, FOOD AND RURAL AFFAIRS

98,214,021

MINISTRY OF COMMUNITY SAFETY & CORRECTIONAL SERVICES

Ottawa-Carlton Detention Centre

2009-10

N/A

5,200,000

TOTAL MINISTRY OF COMMUNITY SAFETY & CORRECTIONAL SERVICES

5,200,000

MINISTRY OF ECONOMIC DEVELOPMENT AND TRADE

The Development Corporations Act

Total guarantees re: various companies

Various

Prime+1

11,250

TOTAL MINISTRY OF ECONOMIC DEVELOPMENT AND TRADE

11,250

MINISTRY OF MUNICIPAL AFFAIRS AND HOUSING

Ontario Housing Corporation “Homes Now” Mortgage Financing Program

1989

Various

152,533,642

⁽³⁾

TOTAL MINISTRY OF MUNICIPAL AFFAIRS AND HOUSING

152,533,642

MINISTRY OF NATURAL RESOURCES

Freshwater Fish Marketing Corporation

1969

3.60

31,900,000

Global Sticks

2009

Prime+2.5

901,600

Hanover Veneer

2009

Prime+1

473,514

Canada bond

Olav Haavaldsrud Timber

2009

+1.17

5,000,000

1494718 Ontario Limited

2009

Cost + 35bp

1,150,000

TOTAL MINISTRY OF NATURAL RESOURCES

39,425,114

MINISTRY OF TRAINING, COLLEGES AND

UNIVERSITIES

Ontario Student Loan Plan:

Class “A”

Various

Prime

12,328,838

Class “B”

Various

Prime+1

2,710,394

Class “C”

Various

Prime+1

190,337,009

TOTAL MINISTRY OF TRAINING, COLLEGES AND UNIVERSITIES

205,376,241

TOTAL LOANS GUARANTEED

500,760,268

PUBLIC ACCOUNTS, 2009-2010 — VOLUME 1

III. CONTINGENT LIABILITIES —

OBLIGATIONS GUARANTEED BY THE PROVINCE OF ONTARIO — Concluded
For the year ended March 31, 2010

Year of

Rate of

Outstanding

Issue

Interest

March 31, 2010

References

OTHER GUARANTEES

MINISTRY OF FINANCE

Ontario Municipal Improvement Corporation

1991

9.17 to 11.04

79,021,000

⁽⁴⁾

Credit Facilities from Desjardins Credit Union:

To Madoc Co-operative Association

2009

Prime+1

2,234,174

⁽⁵⁾

Loan Facility by Woodslee Credit Union Ltd

To Pelee Island Co-operative Association

2005

4.75

486,759

⁽⁶⁾

TOTAL MINISTRY OF FINANCE

81,741,933

TOTAL OTHER GUARANTEES

81,741,933

TOTAL LOANS AND OTHER GUARANTEES

582,502,201

FINANCIAL GUARANTEES:

MINISTRY OF FINANCE

Two agreements are in place to satisfy the Canadian Nuclear Safety Commission (“CNSC”) licensing requirements for financial guarantees in respect of Ontario Power Generation Inc’s (“OPG��) nuclear station decommissioning and nuclear waste management obligations. One agreement gives CNSC access (in prescribed circumstances) to the segregated funds established under the Ontario Nuclear Funds Agreement (“ONFA”). The other agreement provides a direct provincial guarantee to the CNSC on behalf of OPG. This guarantee, for up to $1,545 million, effective March 1, 2010, relates to the portion of the decommissioning and waste management obligations not funded by the value of the segregated funds as at January 1, 2009. In return, the Province receives from OPG an annual fee equal to 0.5% of the value of the direct provincial guarantee.

References:


1.	The Province’s maximum liability for the program is $120,000,000.

2.	The Province’s maximum liability for the program is $80,000,000.

3.	Loans totalling $1,323 million taken by Ontario Mortgage and Housing Corporation for “Homes Now” from the Federal Government’s Canada Pension Plan allotment have been guaranteed by the Province. Starting 1993, most of these loans, except for loans related to Student Housing ($166,127,703), were refinanced by the private sector and funds realized were loaned to the Ministry of Finance. The Ministry of Finance will report its loan of $1,157 million as a liability therefore this should be excluded from the guarantee amount.

4.	In accordance with the Capital Investment Plan Act, 1993, the Ontario Municipal Improvement Corporation’s (OMIC) assets and liabilities were transferred to the Ontario Financing Authority (OFA) on November 15, 1993. OMIC received loans from the Canada Pension Plan (CPP) and the Province, which OMIC used to make loans to municipalities and school boards under similar terms as its debt.

5.	The Province has guaranteed the repayment of revolving credit facility made by Desjardins Credit Union to Madoc Co-operative Association (MCA) for a period beginning October 31, 2009 and ending April 30, 2010. The maximum amount guaranteed is $2.43 million plus any unpaid interest, costs and expenses thereon. MCA will pay the Province a guarantee fee of 0.5% of actual borrowings.

6.	The Province has guaranteed the repayment of loan facility made by Woodslee Credit Union Limited to Pelee Island Cooperative Association for a period beginning October 6, 2005 ending October 6, 2020. The maximum amount guaranteed is $0.6 million plus any unpaid interest, costs and expenses thereon.

PUBLIC ACCOUNTS, 2009-2010 — VOLUME 1

IV.* CLAIMS AGAINST THE CROWN

As at March 31, 2010

The following are claims arising from legal action either in progress or threatened against the Crown in respect of breach of contract, damages to persons and property and like items. The amounts claimed have not been specified, but in each case are expected to exceed $50 million.


	1.	Dudley Abbot et al. (preferred shareholders of Crown Trust) v. HMQRO.

	2.	Theriault v. HMQRO.

	3.	Mary Lou LaPratte, Roland LaPratte, Sheila Horrell, Arthur Horrell et al. v. HMQRO.

	4.	Monaghan, John Richard v. HMQRO et al.

	5.	Arnold Guettler, Neo-Form Corporation and Neo-Form North America Corporation v. HMQRO et al.

	6.	R. Shawn A. Cantlon v. HMQRO.

	7.	Augier, Gideon McGuire v. HMQRO et al.

	8.	Deep, Dr. Albert Ross v. HMQRO.

	9.	Mastronardi, Giovanna v. HMQRO.

	10.	Koumoundouros, Terry v. HMQRO.

	11.	General Motors Corporation v. HMQRO.

	12.	Adam’s Mine Rail Haul v. HMQRO.

	13.	Twain, Jim Chief v. HMQRO.

	14.	Office & Professional Employees International Union and Ontario Public Service Employees’ Union v. HMQRO.

	15.	Harrison, John Arthur v. HMQRO.

	16.	Whole World Trade Ltd. v. HMQRO.

	17.	Sarazin, Daniel Lynden v. HMQRO.

	18.	Foster, Tracey Marie v. HMQRO.

	19.	Brown, Vincent v. HMQRO.

	20.	Zoran Djuric v. HMQRO.

	21.	Phaneuf, Sylvie v. HMQRO.

	22.	AXA Insurance (Canada), et al: Corsine, Allison. v. HMQRO.

	23.	Leclair, Dianne v. HMQRO.

	24.	Chuang, David Dr. v. HMQRO.

	25.	Greenfield Ethanol (formerly Commercial Alcohols Inc. and Suncor) v. HMQRO.

	26.	Palu-Corbelli Corporation v. HMQRO.

	27.	Hassum, Amanda v. HMQRO.

	28.	Sood, Vishvander v. HMQRO.

	29.	Nazarali, Hassan v. HMQRO.

	30.	Dr. Jeffrey Lipsitz v. HMQRO.

	31.	Mallory, Richard, et al. v. HMQRO.

	32.	Plaunt, Donald v. HMQRO et al.

	33.	Williams, James-Andrew v. HSBC Bank, et al; Williams, James-Andrew v. TD Bank, et al.

PUBLIC ACCOUNTS, 2009-2010 — VOLUME 1

IV.* CLAIMS AGAINST THE CROWN — Continued

As at March 31, 2010


	34.	Empire Communications Ltd. & Empire Pleasantview Communities Ltd. v. HMQRO and Ontario Realty Corporation.

	35.	Dolmage as Litigation Guardian of Marie Slark and Jim Dolmage as Litigation Guardian of Patricia Seth v. HMQRO and Huronia Regional Centre.

	36.	McNamara, Michael et al. v. HMQRO.

	37.	Sidhu, Avtar v. HMQRO.

	38.	Corporation of the City of Brantford v. Montour, Ruby, et al.

	39.	Weininger Farms Ltd. v. HMQRO and HMQRC.

	40.	Visutski, Frank v. HMQRO.

	41.	Magnotta Winery Corporation et al. v. AGCO et al.

	42.	Mayotte, Michael v. HMQRO.

	43.	Karas, et al. v. LAWPRO et al.

	44.	Curactive Organic Skin Care Ltd. In its own capacity and as a representative of a class v. HMQRO, et al.

	45.	Alderson v. Grey Bruce Health Unit, HMQRC and HMQRO.

	46.	Vivace Tavern and House of Lancaster v. HMQRO, Commissioner of the OPP and Alcohol and Gaming Commission of Ontario.

	47.	McSheffey v. HMQRO.

	48.	Brett, L. Brenda and Wells, C. Thomas v. HMQRO.

	49.	Peter Fallis v. HMQRO.

	50.	Grant Forest Products Inc. v. HMQRO.

	51.	Direk v. HMQRO.

	52.	Anderlis Leasing Enterprises et al. v. HMQRO.

	53.	Northern Diamond Gaming Services Limited and Diamond Gaming Services Inc. et al. v. HMQRO.

	54.	First Class Casinos and Mr. Casino Inc. v. HMQRO.

	55.	1191067 Ontario Inc., Silvo Di Gregorio and Tom Jones v. HMQRO.

	56.	The Chippewas of Sarnia, the Chippewas of Kettle Point et al. v. HMQRO, Polysar Hydrocarbons Limited et al.

	57.	Clifford Meness et al., for themselves and all other members of the Algonquins of Golden Lake Band of Indians v. HMQRO.

	58.	Roger Southwind on behalf of the Lac Seul Indian Band v. HMQRO.

	59.	Moose Factory First Nation et al. v. Spruce Falls Power and Paper Company Limited.

	60.	New Post First Nation et al. v. Spruce Falls Power and Paper Company Limited.

	61.	Beaver House First Nation v. HMQRO.

	62.	The Chippewas of Saugeen and Nawash First Nations regarding Bruce Peninsula v. HMQRO.

	63.	Missanabie Cree First Nation v. HMQRO and HMQRC.

	64.	Six Nations of the Grand River Band v. HMQRO.

	65.	Mishkeegogamang First Nation and seventeen others v. HMQRO.

	66.	Wikwemikong Indian Band v. HMQRO.

PUBLIC ACCOUNTS, 2009-2010 — VOLUME 1

IV. * CLAIMS AGAINST THE CROWN — Concluded

As at March 31, 2010


	67.	Chippewas of Sarnia Band v. HMQRO.

	68.	Mississauga of Alderville, Beausoleil, Chippewas of Georgia Island, Mnjikaning (Rama), Curve Lake Hiawatha, and Scugog Island First Nation v. HMQRO.

	69.	Wesley Big George on behalf of seven Lake of the Woods First Nations v. HMQRO.

	70.	Big Grassy (Mishkosiimiiniiziibing) First Nation and Ojibways of Onigaming First Nations adjacent to the Lake of the Woods and Winnipeg River area who are signatories to Treaty 3 v. HMQRO.

	71.	Wauzhushk Onigum First Nation and Ochiichagwe’babig o’ining First Nation and Washagamis Bay First Nations v. HMQRO.

	72.	Walpole Island First Nations v. HMQRO.

	73.	The Begetikong Anishnabe First Nation (aka the Ojibways of Pic River) Chief Roy Michano, Councillor Duncan Michano and Councillor Arthur H. Fisher v. HMQRO.

	74.	Whitesand First Nation v. HMQRO.

	75.	Moose Deer Point First Nation v. HMQRO.

	76.	Kinew, Tobasonakwut v. HMQRC and HMQRO.

	77.	Garden River First Nation Reserve No. 14 v. HMQRO.

	78.	Sinclare, Alfred v. HMQRO.

	79.	Long Lake No. 58 First Nation v. HMQRO.

	80.	Biinjitiwaabik Zaaging Anishinabek First Nation (Rocky Bay Band) v. HMQRO.

	81.	Sand Point First Nation v. HMQRO.

	82.	Pic Mobert First Nation v. HMQRO.

	83.	Pays Plat First Nation v. HMQRO and HMQRC.

	84.	Agency One Damages v. HMQRO.

	85.	Long Lake No. 58 First Nation v. HMQRO.

	86.	Atikameksheng Anishnawbek v. HMQRO and v. HMQRC, et al.

	87.	Wabaseemoong Independent First Nations of One Man Lake, Whitedog and Swan Lake (formerly collectively, the Islington Indian Band) v. HMQRC, HMQRO, OPG and OEFC.

	88.	The Corporation of the Town of Fort Frances v. HMQRC, et al.

	89.	Proceedings before the Copyright Board of Canada.

	90.	Gallo v. HMQRO and HMQRC.


*	Updated for changes up to date of release of Public Accounts. 59 of the above claims were assessed as “not determinable”, with the remainder assessed as “unlikely”.

Ontario Province Of 18-KAnnual report (foreign governments)