Arnott, Pettapiece slam Liberals as higher gas plant cancellation costs revealed

Local Conservative MPPs say the Liberal government misled the people of Ontario, in light of a report showing the cost of cancelling a gas plant in Mississauga in the run up to the last election was much higher than originally stated.

Auditor General Jim McCarter tabled his report on the cancellation of the Mississauga power plant in the Ontario Legislature on April 15.

Wellington-Halton Hills MPP Ted Arnott attended the lock up prior to the release of the report and argued that the government has been caught fudging the numbers.

“The Liberal government has been caught red-handed. They told us repeatedly that the cost of cancelling the Mississauga gas plant was $190 million; we now know that the real number is $275 million,” said Arnott.

“What’s more, Ontario’s auditor general is expected to study and report on the cancellation of the Oakville gas plant later on this year,” Arnott added.“It’s safe to assume the Oakville cancellation will cost Ontario taxpayers hundreds of millions more.”

Arnott said there is a long list of other priorities on which the money could have been spent.

“This money could have gone to pay for new hospitals or hospital renovation projects.  It could have gone towards important infrastructure projects such as the Highway 6 Morriston bypass, municipal roads and bridges, or other priorities,” Arnott noted.

The Liberals must be held accountable, says Perth-Wellington MPP Randy Pettapiece.

“If it really was a mistake to understate the cost by $85 million, they are [still at fault].If it wasn’t a mistake, it looks like they misled the people of Ontario,” Pettapiece stated.

$90 million in penalties

Some of the specific costs revealed in the Auditor General’s report include $90 million in penalties and interest to the power company’s lender in the US – all on a $59-million loan; $41 million in labour costs without seeing copies of payroll documents or T4s; and $4.2 million to the power company for the plant property without gaining title to the property.

Ontario energy minister Bob Chiarelli, in an April 15 statement, thanked the auditor for his work and accepted his findings.

“The auditor has provided Ontarians with a longer-term assessment than the figure announced last year, by estimating costs and savings over 20 years,” stated Chiarelli.

“We listened to the residents of Mississauga by relocating the plant. All parties made the same promise,” he added.

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