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Ontario: Come Clean on Gas Plant Costs!

Author: Candice Malcolm 2013/04/17

The Canadian Taxpayers Federation has received countless emails and phone calls from outraged Ontario taxpayers, demanding accountability from this government over the ongoing gas plant scandal.

“Have taxpayers of a province ever sued a government for fraud and misuse of taxpayers money?” asked one supporter, after hearing the cost of the Mississauga plant cancellation is 45 per cent higher than the government had claimed.

If only. The sad reality is that they would use our tax dollars to defend themselves in court, and would pay out loses with our tax dollars.

Another Ontario taxpayer suggested, “The costs should be covered by the Ontario Liberal Party, and maybe the people foolish enough to reelect those clowns!”

People are upset, and for good reason. The latest development shows that the Mississauga plant cancellation will cost taxpayers $275 million, and a resounding $149.6 million of that will go to a US hedge fund financer with 14 per cent interest!

Auditor General Jim McCrater issued a special report on Monday confirming that the cost of cancelling the Mississauga plant and rebuilding it in Sarnia will not be $190 million as the McGuinty government stated. Instead, the cost will be $351 billion, with about $76 million in energy savings. “The people of Ontario will have essentially paid for two power plants,” said McCrater.

Recall that during the committee hearings, industry professional Bruce Sharp insisted that the Oakville plant cancelation cost is orders of magnitude higher than the $40 million the government claims. He estimates the figure to be $638 million.

PC energy critic Vic Fedeli goes even further, using Ontario Power Authority figures and the auditor general's methodology; he puts the figure of moving the plant to Napanee closer to $990 million.

This government must come clean about the actual costs if it expects taxpayers to pay the bill. At this point, it’s really the least they can do.

Mississauga plant cancelation cost

McGuinty claim: $190,000,000

Actual cost: $351,000,000

Differece: $161,000,000

Difference: +45.86%

 

Oakville plant cancelation cost

McGuinty claim: $40,000,000

Estimated cost*: $638,000,000

Differece: $598,000,000

Difference: +1495%

*Based on committee testimony by engineer Bruce Sharp. Official Auditor General report to be released in September, 2013


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Franco Terrazzano
Federal Director at
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Federation

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