Hydro One sale could cost in the long run

[projekktor id=’21663′]

Ontario’s new financial accountability officer, Stephen LeClair, isn’t too keen on the provincial government’s plan to privatize a majority of Hydro One. But despite the numbers and his reasoning Premier Kathleen Wynne remains determined to sell off part of the provincial asset.

“Its frustrating that we would have a premier that plugs her ears and turn a blind eye that is something that is so obviously wrong to do.” said leader of the Provincial NDP party Andrea Horwath. She is pleading with Premier Kathleen Wynne to back away from the sale of Hydro One, after the financial accountability officer’s report says bluntly that “the province’s fiscal position will deteriorate compared to if they didn’t undertake this sale.”

“The premier knows that this is the wrong thing to do, and that everybody thinks this is the wrong thing to do except for a few of her close friends and advisors who are likely benefiting from this deal.”

Hydro One generates over 750 million dollars a year for the province. Leclair stated that the net income effect cannot be understated the lost future income after the sale will add to Ontario’s debt.

Finance minister Charles Sousa views the report differently. “A lot of indications in the report doesn’t elaborate or elude to the net benefit by way of stimulus to the economy or the reinvestment of those dollars to other assets to create greater opportunities.”

The portion of Hydro One that the province wants to sell would generate 6.8 to 8.9 billion dollars. The premier says she needs to sell 60% of the utility, to raise money for her 10 year, 130 billion dollar plan for public transit and infrastructure projects.

“What is the benefit in the end of this transaction, you are reducing debt by 5 million dollars to the province, reinvesting 4 billion dollars more into other assets and other opportunities to increase stimulus to the economy.” said Sousa

The numbers aren’t adding up for the opposition. “It’s just a bad deal, it’s killing the golden goose, selling off that golden goose that is currently returning 700 million of revenue to the province that could be used for years to come.” said Conservative MPP Todd Smith.

The Premier was at an unrelated event in Niagara-on-the-Lake this morning, and she said that with the economic benefit of the investments they’re going to make, she’s convinced that they will outweigh the long-term change in the revenue.