Progressive Conservative Nipissing MPP Vic Fedeli claims Ontario taxpayers will be on the hook for “hundreds of millions” if the Liberal government follows through on its divestment of the Ontario Northland Transportation Commission (ONTC).
During a May 31 press conference, Fedeli said newly-released government documents indicate the “high range estimate” of the divestment process will be $790 million, higher than former finance minister Dwight Duncan's $265-million estimate last year.
“The government has stated they wanted to divest Ontario Northland to save money,” said Fedeli in a news release. “Their own documents prove they now know any sale will actually cost the taxpayer $790 million. I have said from day one their math doesn't add up, and there will be no savings through this fire sale.”
The documents were released to the Standing Committee on Justice.
Fedeli said earlier this week that one February 2012 Ministry of Finance document indicated the government underestimated severance and pension liabilities, and neglected to include benefit and WSIB liabilities in the calculations.
Fedeli said the documents also included a Liberal strategy memo outlining potential concessions heading into negotiating sessions with the NDP to approve last year's provincial budget.
The Ontario Northland is headquartered in Fedeli's home riding of North Bay.
In a rebuttal, Northern Development and Mines Minister Michael Gravelle stayed the government's course in maintaining that the ONTC is a money-losing endeavor that spends more money in operation and repairs than it generates. That gap is only projected to widen over time, he added.
“The ONTC is simply not on a sustainable financial path and certainly not serving the best interest of Northern communities,” said Gravelle in a May 31 release.
“I firmly believe we all agree that the status quo is no longer an option and I have been very clear that I am not satisfied divestment is our only solution. That is why we will be looking at multiple options for each part of the ONTC, including divestment, restructuring, alternative service delivery and new partnerships.”
Gravelle has been meeting periodically with northeastern Ontario mayors, First Nations leaders and industry representatives through a special government-appointed advisory committee to review various service delivery options.
