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Auditor pulls back the curtain on Liberal’ $4 billion hidden hydro scheme

October 17, 2017

FOR IMMEDIATE RELEASE

October 17, 2017

Auditor pulls back the curtain on Liberal’ $4 billion hidden hydro scheme

reveals accounting tricks and rate cover-up costing Ontarians for next 30 years 

QUEEN’S PARK – The fact that the Liberals have been caught by the Auditor using accounting tricks to cover the true impact of their so-called hydro rate reduction – amounting to $4 billion in extra interest costs – reveals a government desperate to say or do anything to hold on to power according to Kitchener-Conestoga MPP Michael Harris.

Harris commented following the release of the Auditor`s Special Report and revelations that the government created an unnecessary, complex financing structure to keep the true financial impact of most of its 25% electricity-rate reduction off the Prov­ince’s books—a decision that could cost Ontarians up to $4 billion more than necessary in interest costs over the next 30 years.

“It’s bad enough that this Premier is trying to buy votes by implementing a short-term rate cut scheme that the FAO tells us will cost another $39.4 billion over the long term – now we know that $4 billion of that is being spent to cover their tracks,” Harris said. “This is ‘Gas Plants’ all over again, forcing Ontario ratepayers to pay the bill for veiled Liberal attempts to hold on to power.”

According to the report, the Province is using accounting that does not follow its own policy for preparing financial statements – hiding the real financial impact of the government’s electricity rate reduction from Ontarians.

“The accounting proposed by the government is wrong and if used would make the Province’s budgets and future consolidated financial statements unreliable,” said Auditor General Bonnie Lysyk after the report was tabled. “This can­not be taken lightly.”

Lysyk`s report reveals the instead of borrowing all the money directly to pay for their one-time rate reduction the Liberals will have other government entities, including Ontario Power Generation, borrowing at higher interest rates.

“The Auditor`s report reveals the scheme for what it truly is, an unfair hydro plan that will have our grandchildren paying for yet another Liberal seat-saving exercise,” Harris concluded.

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CONTACT: Rob Willett | 519-404-4052 | rob.willett@pc.ola.org