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Opposition members attack affordability of provincial budget

THUNDER BAY – Two opposition leaders warn the provincial budget will have dire consequences for Ontario, specifically in the north.
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Ontario Progressive Conservative interim leader Jim Wilson (Matt Vis, tbnewswatch.com)

THUNDER BAY – Two opposition leaders warn the provincial budget will have dire consequences for Ontario, specifically in the north.

Ontario Progressive Conservative interim leader Jim Wilson and Ontario New Democrat leader Andrea Horwath both addressed the Northwestern Ontario Municipal Association conference on Friday where they both attacked the Liberal budget, which as tabled in Queen’s Park just one day before.

“I think it’s a budget Ontarians can’t afford,” Wilson said in a morning interview.

“Contrary to what is being reported by the government and some of the media, there are some significant tax increases in that budget and goodness knows that cost of living has gone through the roof in the last few years.”

Horwath said the $131.9 billion economic blueprint is a departure from promises made during last spring’s election by Premier Kathleen Wynne.

“This budget is a budget that is bad for Ontarians. It’s an austerity budget and it’s a budget Kathleen Wynne did not run on. She did not run on the privatization of our Hydro system, she did not run on cutbacks to education and health care,” Horwath said.

“We did not elect a banker to be Premier of this province but we certainly ended up with one.”

Wilson and Horwath both singled out the government’s plans to sell off 60 per cent of Hydro One, warning it will result in significant impacts to ratepayers.

Wilson said the sale will redirect revenue and dividend streams to the private sector, forcing the province to find ways to make up for the hundreds of millions of dollars that would be lost.

While the government promotes making the northern industrial energy rate program permanent, recent rate increases effectively render that program moot.

“That totally negates the two cents per kilowatt hour the (northern industrial energy rate program) subsidizes. You’re no further ahead as of Monday this week in Northern Ontario,” Wilson said.

“Right across the province with our energy prices, being the highest in North America, are killing jobs and its killing families.”

Horwath said the sale would remove public interest from the operations of the utility.

She said the province is expected to raise rates by 42 per cent over five years and keeping Hydro One publicly controlled would provide some sort of stability to rate increases.

“We are not competitive in our Hydro rates. By selling off 60 per cent of our transmissions we are going to see higher Hydro rates,” she said. “There’s only one imperative for the private sector when they get involved in these kinds of things and that’s to turn more shareholder return on investment.”

In the north, that could mean diminished interest in expanding transmission across vast distances.

During last year’s provincial election campaign Horwath pushed for a cap on executive salaries, something that would become almost impossible with privatization.

She also raised concern about health-care spending outlined in the budget will remain for the Thunder Bay Regional Health Sciences Centre, as well as jobs for nurses and medical professionals across Ontario.

“We have cuts in health care that are going to be devastating,” Horwath said.

“Here in Thunder Bay, there’s been gridlock in the hospital for months. There’s a $6 million deficit that the hospital is struggling with. They’re overcapacity at dangerous levels and they’re going to have further cuts to their budgets.”

Both Wilson and Horwath also expressed concern about the Ring of Fire, which received a $1 billion commitment in the budget.
They said it is the same money pledged during last year’s campaign and budget, with no promises it will be spent anytime soon.

“It’s been eight years since the Ring of Fire was first announced by the Liberals and it’s been eight years of zero and no progress whatsoever,” Horwath said.

“That’s shameful. Surely in eight years you could have done something other than a $300,000 study that’s co-sponsored by the federal government.”

Wilson, a former Northern Development and Mines minister, said if he were in charge of the portfolio there would currently be construction and a top priority, which is something he doesn’t believe is the case currently.

“It has to be fast tracked. We need the jobs badly. I think there’s consensus on the fact you have to build a road. Let’s get moving on it,” he said.


 





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