SALE OF HYDRO ONE WOULD BE WORSE FOR BUDGET BALANCE THAN WITHOUT IT: PROVINCIAL WATCHDOG

Oct 29, 2015

By Jane Brown

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There is a strong warning against the controversial sale of Hydro One by the governing Liberals at Queens park.

The province’s new budget watchdog says in an explosive report that cash strapped Ontario will be in even worse financial shape after Hydro One is sold.

Stephen LeClair is the recently appointed financial accountability officer. He says selling off the crown agency would hike the already massive provincial debt by slashing revenue.

LeClair writes that “in the years following the sale of 60 percent of Hydro One, the province’s budget balance would be worse than it would have been without the sale.”

He explains that if the province “sells 15 percent of Hydro One in 2015-16, Ontario’s net debt would initially be reduced by $2.4 billion to $3.9 billion.” But he says “net debt would eventually increase as a result of the partial sale as the costs of forgone revenues from Hydro One begin to exceed the initial fiscal benefits.”

Premier Kathleen Wynne maintains the sale is essential to provide $4 billion for her 10 year, $30.5 billion push to build transit, roads and bridges.

Energy Consultant Tom Adams will have more to say about this story on Zoomer Radio’s Goldhawk Fights Back at 11:30 this morning.

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