Tim Hudak and the Conservatives will End the Money-Grabbing Wind Scam!

wilson
Simcoe-Grey Progressive Conservative candidate Jim Wilson (second from right) makes a campaign announcement during a stop at the Collingwood Regional Airport, Friday, May 23, 2014. With Wilson are, from left, pilot Alexander Younger, pilot and airport board chair Charlie Tatham, and pilot Kevin Elwood. Morgan Ian Adams/Collingwood Enterprise-Bulletin/QMI Agency

CLEARVIEW Twp. —The Progressive Conservative candidate for Simcoe-Grey says he’d put a stop to a company’s plans to erect wind turbines near the local airport should his party form the next government.

In a campaign stop at the Collingwood Regional Airport Friday morning, during which he slammed the existing Green Energy Act and the impact he says it has had on electricity bills, Jim Wilson promised a Progressive Conservative government would do what it could to halt WPD Canada’s plans to erect turbines near the facility should his party win the June 12 provincial election.

WPD’s proposal is to erect eight turbines in the area north of County Road 91; at least two of the proposed 500-foot-tall turbines are within an area the municipal services board that manages the airport say are a potential safety hazard to aircraft, especially in the landing or take-off phase, while another three turbines are considered on the edge of that area.

WPD’s plans are presently under technical review by the Ministry of Environment.

“We’ll do whatever it takes to stop WPD Canada from putting the wind turbines in this vicinity,” said Wilson. “It is in process, and it may end up in a lawsuit, but we just can’t allow it.”

“If you’re going to prevent death, you do everything you can to do that — you have a moral obligation to do that.”

The airport board, and several landowners in the area, have been fighting the proposal for several years; both Collingwood and Clearview Township municipal councils have also voiced their opposition.

One of those landowners, Kevin Ellwood — who has a private aerodrome on his farm on County Road 91, and is faced with the prospect of having a turbine in the path of his landing strip — has filed 39 access-to-information requests of various ministries on WPD’s proposal.

Some of those requests are now before an adjudicator to see if the information will be released.

The turbines, said Ellwood, are “dangerous and significant threats to pilots and their passengers.”

Ellwood and Wilson both point to a crash in South Dakota in April that killed four, after a Piper 32 aircraft collided with a turbine in poor weather conditions. The National Transportation Safety Board is investigating, but authorities have not released any details on the crash.

Regional airport board chair Charlie Tatham, who was on hand for Wilson’s announcement, said he’s tried to point out to provincial officials that the location of the turbines “pose a lethal danger… yet they choose to ignore it.

“To ignore it could lead to someone’s death at some point,” he said.

WPD’s position has been the location of the turbines will have a negligible effect on airport movements.

Wilson, however, remains unconvinced, and says the location of the turbines is just one of the problems with the Green Energy Act, which the Conservatives claim will cost electricity customers $46 billion over the next 20 years, paying out contracts for wind and solar power at rates that far exceed current electricity prices.

“Hopefully we can stop it, that there’s some escape clauses (in the agreements)… but I don’t know the full extent of these (contracts and what’s hidden in them,” said Wilson. “There are thousands, tens of thousands of these contracts that are essentially secret and covered up from the public. This one just keeps on rolling ahead and (government) doesn’t seem to be listening to anybody.”

Wilson said a former provincial Liberal cabinet minister warned the legal costs of putting a halt to some of these contracts would be in the billions of dollars, but that point is irrelevant when considering the long-term cost of paying out energy contracts — or worse, if someone dies because a plane hits a wind turbine located close to the airport.

“It’s a lot cheaper than paying people 20 years of contracts when they get paid whether the wind blows or the sun shines. It’s going to bankrupt the province, so you might as well just cut your losses,” said Wilson.

“It’s a moral choice, it’s an expensive choice, but it’s one we’re going to have to make. Hopefully we can get to the bottom of this on day-one (of a new government)… it may require that we talk to our lawyers, it may require new legislation to undo the Green Energy Act, and if we have to do that… well (the legislature) is supreme.”

By Morgan Ian Adams
Published in the Barrie Examiner, May 23, 2014

20 Lies the Liberals Told Us…(there are many, many more!)

With five provincial by-elections on Aug. 1, now’s the time to remember that the most reliable indicator of future political performance is past political practice.

Here then, are 20 lies the Dalton McGuinty/Kathleen Wynne Liberals told you, promises they made in their own words when they first came to power in 2003 — and then broke.

1. “We will hold the line on taxes” — McGuinty’s signature promise in the 2003 election campaign, which he shredded with a $2.6 billion tax grab, the largest in Ontario history. The HST, which massively extended the reach of the province’s 8% sales tax to such necessities as gasoline, electricity and home heating fuels, soon followed.

2. “We will not raise the debt” — The Liberals have doubled Ontario’s debt to $281 billion since taking office. Paying interest on debt, at $10.6 billion annually, is now our third-largest expenditure, after health and education.

3. “We will make sure the debt goes in only one direction, down” — See above.

4. “We will stop the waste of taxpayers’ dollars” — The Ornge, eHealth and gas plant scandals alone, in which billions of tax dollars were wasted, put the lie to this Liberal promise.

5. “We will respect your hard-earned tax dollars” — See above.

6. “We will balance the budget” — See above.

7. “We will live by the balanced budget law” — In 2003, McGuinty pledged, in writing: “I … promise if my party is elected as the next government, that I will: Not raise taxes or implement any new taxes without the explicit consent of Ontario voters. And not run deficits.” After the election, he broke all three promises.

8. “We will measure every investment against results.” If the Liberals had kept this promise, the eHealth, Ornge and gas plant scandals would never have happened.

9. “We will make sure your health care dollars are invested wisely” — See Ornge and eHealth, above.

10. “We will bring peace and stability to our schools” — Ontario students have just lived through a year of teacher unrest, including the shutdown of extra-curricular activities, over the Liberals’ belated attempt to rein in teacher salaries and benefits, after nine years of throwing our money at them.

11. “We will ensure there is transparency in public education” — Instead, the Liberals unleashed a controversial sex education curriculum with no warning to ordinary parents. Now we’ve learned Education Minister Liz Sandals doesn’t even read the curriculum documents she signs.

12. “We will ease gridlock with a seamless transportation network across the Greater Toronto Area” — After 10 years in power, gridlock across the GTA is worse than ever and the Liberals are making exactly the same broken promise again.

13. “We will shut down Ontario’s coal-burning plants by 2007” — The Liberals still haven’t closed them, now promising to do so in 2014.

14. “We will bring clean, renewable energy to Ontario” — Under the Liberals, wind and solar power are producing minuscule amounts of unneeded, unreliable, inefficient and expensive electricity, which has to be backed up by fossil fuels. This will, according to the Auditor General, cost Ontarians billions of dollars extra on their hydro bills, for decades to come.

15. “We will bring stability to Ontario’s electricity market” — See above.

16. “We will respect the views of rural constituents by giving their MPPs free votes” — If that was true, Liberal MPPs wouldn’t be responding to furious complaints from their constituents about having industrial wind turbines rammed down their throats with form letters.

17. “We will ensure that all developers play by the rules” — Unless they’re wind developers, where the Liberals took away the rights of local citizens to oppose wind projects.

18. “We will give real legal rights to victims of crime” — In 2007, Ombudsman Andre Marin described Ontario’s Criminal Injuries Compensation Board as “unreasonable, oppressive, unjust (and) wrong,” stooping so low as to humiliate a grieving father when he asked for funds to help bury his five-year-old daughter, who had been raped and murdered.

19. “We will lift the veil of secrecy on government agencies and appointments” — In fact, the Liberals routinely resort to obfuscation, stonewalling, misdirection and deceit when answering even basic questions about who does what in their government. Think of their farrago of lies in the gas plants scandal.

20. “We will help create jobs and spur economic growth” — According to the Auditor General, Ontario is losing two to four jobs for every “green” job the Liberals create, due to skyrocketing electricity costs.

 

We need to Get the Message Out! Only Hudak is Willing and Able to Repair Damage!

Pretty radical stuff

During the present campaign a great deal has been made of the Conservative plan to create 1,000,000 private sector jobs and reduce public sector jobs by 100,000 to 2006 levels.

Much criticism has been levelled at Tim Hudak and his Party for these election promises.

Funny thing is, even Smokey Thomas, head of OPSEU, agrees there are probably 60,000 superfluous management positions in the Provincial bureaucracy.

The Premier is Tim Hudak’s most vocal critic on these promises. She claims reducing the Public Service by 10% will destroy Ontario’s economy.

Yet she has never told the voters what her own government’s Ministry of Finance concluded in a confidential report on the impact of her proposed Ontario Pension Plan. It found that her plan would result in the loss of 150,000 private sector jobs.

Yet she still promises to implement an Ontario Pension Plan.

The million jobs plan has been derided, but even if it is only an aspirational goal some think it is very achievable. Even the Star agrees. One can understand however why a government, which over 8 years has only managed to double the Ontario debt and deficit while destroying over 300,000 jobs in the Province, wouldn’t understand the plan.

The Conservatives have promised to stop signing contracts for more unneeded wind and solar generation, cancel any applications that have not already been approved and re-evaluate, on a case-by-case basis any approved projects that aren’t already connected to the grid.

He would also give municipalities more control over the siting of wind projects:

“If people can have a say about a hot dog stand going in for a Canada Day celebration, shouldn’t they have a say about massive industrial wind turbines in their backyard?” Hudak said.

This is indeed good news to those of us that have been fighting Ontario’s insane energy policy for the past few years – maybe it is an indication that someone in government has listened.

Premier Kathleen Wynne said her government remains committed to its overall plan for renewable energy, including wind power.

Hudak’s campaign is disconcerting:

He’s trusting voters to assess the situation and make their choice based on a full understanding of the options. He evidently believes voters understand the damage that’s been done to the province under the Liberals, and the danger of continuing down that path, and being mature enough to choose between repairing it, or continuing along the same route.
– Kelly McParland

Trusting voters? Telling them what you’re really going to do?

Pretty radical stuff!

On the other hand we have promises that no jobs will be endangered, no impact will be felt, and spending can continue to grow at the same old unsustainable pace, or even increase. In the past decade that’s certainly been the approach to winning elections in the province.

It will be interesting to see whether this faith in Ontario voter’s ability to appreciate the options, and in their maturity is justified.

To many of us, companies and individuals, it will signal whether out future remains in this Province or not.

Liberals are Throwing Away our Children’s (and Grandchildren’s), Future!

Warning: Reading about How the Ontario Liberals Keep on Winning Might Make You Sick

Enough is enough.

You would think the sheer waste of taxpayer dollars through scandals and mismanagement would be enough to hang the Liberals.

Especially since, at the same time your money swirls down the toilet, the Liberals continue to run deficits (seven in a row) andIllustration: Truth and Lie pile up debt that your grandchildren’s children will still be paying off.

Yet in spite of their mistakes and outright lies (the hit parade includes: the billion-dollar gas plant cancellation and the failure to provide proper oversight of Ornge air ambulance expenses and out-of-control spending at the Ontario Lottery and Gaming Corporation and elsewhere) they’ve managed to hold onto power for 11 years. How is that?

I’ll give you three reasons. (Hold on, it’s a long explanation.)

1. They buy votes with big spending promises.

George Bernard Shaw got it right. “A government that robs Peter to pay Paul can always depend on the support of Paul.”

When even the tax-the-rich NDP recognize that Ontarians are taxed to the hilt and refuse to put up with any “new taxes, tolls or fees that hit middle-class families,” you know Ontario must be in financial trouble.

Net debt is projected to climb to $269.2 billion for 2013–14 and hit $324.5 billion by 2017–18 (nearly 40% of Ontario’s economy). In fact, Ontario’s debt has more than doubled since the Ontario Liberals came to power in 2003–04 when the provincial debt stood at $138.8 billion (or 27.5% of the economy).

Interest payments are the third largest expense in the budget. And right now interest rates are low. When rates go back up, each point will add another $3 billion to our annual interest payment, points out economist Jack Mintz.

But in spite of repeated warnings about the need for spending cuts, from former Liberal finance minister Dwight Duncan (who conveniently woke up to the Ontario’s debt problem in his last few months in office) and public servants in Ontario’s finance ministry, what did the Liberals propose in the budget that forced an election?

Big spending promises, of course. Billions for schools and hospitals, roads and bridges, billions more for corporate grants, and millions for a smorgasbord of social services.

With this budget, the Liberals are in fact driving toward a deficit $2.4 billion higher(or 24% more) than they previously projected—in spite of hiking taxes by almost $1 billion. The deficits planned for 2015–16 and 2016–17 also increased by $1.7 billion and $1.8 billion.

In other words, the Liberals forecast spending to jump by $3.4 billion this year, $900 million more than projected in the 2013 budget, with program spending expected to climb by nearly $3 billion to $119.4 billion.

With Ontario already in a fiscal mess, the NDP (yes, the NDP, a party not known for financial responsibility), criticized the budget as “a mad dash to escape the scandals by promising the moon and the stars.”

2. They pander to unions, whose members make up a big chunk of the electorate.  

The real beneficiary of the tax-and-spend Liberals has been the unions.

For starters, over half of Ontario’s program spending goes to pay public-sector workers their salaries and pension benefits.

What’s more, when the Liberals came into power in 2003, only 14,926 public-sector employees were making $100,000 or more. Today, 97,796 Ontario public-sector workers are on the so-called Sunshine List, an increase of 655% in just 10 years.

But, really, who can be surprised when about 70 percent of public-sector employees are unionized (compare this to the roughly 15 percent unionization rate in the private sector)?

The fact is the Liberals have pandered to unions, especially teacher’s unions, handing out massive, unaffordable pay hikes.

From 2003 to 2011, the McGuinty Liberals increased education spending by 45%, hiring 14,000 more teachers (up 10%) and increasing salaries by 24%—all while student enrollment actually dropped by 6%.

And teachers repaid the favour, “volunteering and voting for McGuinty’s Liberals in huge numbers during the past three elections.”

But following a narrow election win in 2011 (voters were angry over broken promises and higher taxes), McGuinty shifted direction, proposing to freeze teacher wages for two years and curb benefits to reduce the government’s alarming $14.4 billion deficit.

The teachers reacted with predictable outrage.

So despite all their talk about austerity, the Liberals just couldn’t say “no” to their vote-rich cash cow.

While the McGuinty government was calling for wage freezes publicly, it secretly negotiated a three percent wage increase with the Ontario Public Service Employees Union, which represents 35,000 voters, er, government workers.

And forget about Kathleen Wynne taking a firm stance on public-sector wages and benefits.

In a clear bid to win back union support, one of her first moves as premier was to negotiate an LCBO contract that gave 7,000 unionized workers a $1,600 signing bonus over two years—about $9 million— and wage increases of two% in 2015–16.

Her education minister also renegotiated new contracts with the province’s two biggest teachers unions, the Ontario Secondary School Teachers’ Federation and the Elementary Teachers’ Federation of Ontario, offering better maternity benefits, fewer unpaid days off, and an improved “sick-day bank.”

And the quid pro quo?

Millions of dollars spent on attack ads directed exclusively against Tory leaders in Ontario’s 2003, 2007, and 2011 elections—by a powerful coalition of special interest unions that includes the Ontario English Catholic Teachers Association, the Canadian Auto Workers, and the Ontario Secondary School Teachers’ Federation and calling itself the Working Families Coalition.

The so-called Working Families coalition first “came together in 2003 to discredit then Tory premier Ernie Eves and get Dalton McGuinty elected.” Their ad campaigns had such a big impact on the election results, they followed up with more of the same in the 2007 and 2011 elections. For this campaign, they’re just getting started, but expect a barrage of attack ads aimed squarely at Tim Hudak.

The coalition’s negative ads effectively doubles the advertising budget of the Liberals at the expense of the Tories through loose election laws around third-party advertising. Unlike political parties, third parties “can spend as much as they want, take contributions as large as they want and keep their financial backers hidden until long after the campaign is over.”

In Ontario’s 2011 general election, Working Families spent $1.6 million to help the Liberals.

Other big spenders included the Elementary Teachers’ Federation—$2.6 million—and the English Catholic Teachers’ Association, which spent $1.9 million to help defeat the PC party. For comparison’s sake, out of 21 registered political parties, only two spent more than $2 million on advertising. The Elementary Teachers’ Federation, the biggest third-party advertiser, spent more on advertising than nineteen political parties combined.

Spending records for the 2007 election (the first year third parties had to register with Elections Ontario) show a similar story. A shocking “90 per cent of the $2.3 million raised by third-party advertisers for the 2007 campaign went to organized labour or groups opposed to specific Tory policy positions.”

Plainly, Ontario’s election laws are giving Liberals with their deep-pocketed union allies an unfair advantage.

3. They reward party insiders with lucrative contracts.

In Ontario, it’s not what you know, but who you know.

From eHealth Ontario and Cancer Care Ontario to the Local Health Integration Networks, the Liberals have a history of rewarding party loyalists with “cushy, untendered contracts” and well-paid appointments.

In 2004, Mike Crawley, the then-president of the Ontario Liberals, was awarded awind power contract that guarantees his company AIM PowerGen $66,000 a day for 20 years. That’s a total of $475 million dollars.

In 2010, nearly two-thirds of the $68 million of taxpayers’ money spent on the 14 LHINs went to cover the salaries and remuneration of government-appointed board members.

Pat Dillon, the business manager of the Provincial Building and Construction Trades Council and the head of the infamous Working Families Coalition, has received a number of appointments—to Premier Wynne’s Transit Panel, the Ontario College of Trades, the WSIB Board, Infrastructure Ontario, and more.

The Globe and Mail recently reported that Ontario Liberal friends and allies were awarded millions of dollars in taxpayer-funded contracts because of loopholes in the rules surrounding government expenditures. The report goes on to say that, “while there is no indication that any of the transactions were illegitimate, the lack of transparency makes it difficult to determine what services were provided at taxpayers’ expense.”

The sad truth? It pays to be a friend of the Liberals. Ontario taxpayer, not so much.

The Ontario Liberals are long past their best-before date

After 11 years, it’s time to hold the Liberals to account.

Imagine if some pimply-faced thug robbed a gas station and got caught, he’d get what? A thousand dollars tops and some jail time.

But the Liberals who have “stolen” billions of taxpayer money through incompetence and cronyism remain unpunished.

It’s time to throw the Liberals out. They’ve inflicted enough damage on the province. It’s time they answered for their crimes against taxpayers.

 

McGuinty and Wynne….Same Evil Person, in a Different Outfit? LIARS!

Liars: The McGuinty-Wynne Record
by: Daniel Dickin

About the book
Daniel Dickin sees a clear split in Ontario’s wealth and prosperity. For the first 136 years following Confederation, Ontario was known for its balanced budgets, responsible spending, and prudent political, fiscal, and economic policies. These policies made Ontario the “economic powerhouse” of Canada and the envy of the other provinces.

Unfortunately, all of that changed when Dalton McGuinty’s Liberals took the reigns of power in Ontario in 2003. The 136 years of substantial progress and good governance were thrown to the side in favour of expensive government experiments, reckless green energy programs, record-setting deficit spending, a ballooning debt and scandal after scandal after scandal – along with all the lies to cover it up.

While the average Ontario citizen benefitted under the Big Blue Conservative governments of the 20th century, the only people benefiting from the Ontario Liberals are the public sector unions and Liberal Party elites.

Kathleen Wynne took over Dalton McGuinty’s legacy in 2013 and had the opportunity define her new government. She had the opportunity to get Ontario back on track and set herself apart from the scandal-plagued McGuinty past. Unfortunately, Kathleen Wynne only continued McGuinty’s legacy of scandals and lies, digging Ontario deeper into the hole of higher debt, more taxes, and fewer jobs.

Dickin’s book provides the hardhitting analysis and inconvenient facts that have been public information for years yet never organized into one strong, cohesive argument. This book presents a compelling argument for the real legacy of Dalton McGuinty and the Ontario Liberal Party – and it isn’t pretty – they are liars who have covered up the mismanagement and derailment of a once great and prosperous Ontario.

*BONUS*
Get a free bumper sticker with this purchase.

About the author
Daniel Dickin is a grassroots community leader and self-described political junkie. He obtained his Bachelor’s degree in law and political science from Carleton University in 2011. He has worked on federal and provincial election campaigns, including in Dalton McGuinty’s former riding of Ottawa South. Daniel is also a legal and political affairs columnist for the Prince Arthur Herald and Huffington Post Canada publications.

*BUNDLES*

 
$40.95
 

Wynne’s Pension Plan will Eliminate 150,000 Jobs…and NOT Through Attrition!

Internal, confidential government document’s confirmed the 150,000 jobs losses, stating –

  • “payroll taxes would have the largest negative impact on employment.”
  • the Ministry of Finance calculated that for every $2-billion increase in Ontario payroll taxes, 18,000 people would lose their job

Canada Free Press — May 22, 2014

Canadian workers and employers contribute $42 billion a year nationwide to the Canada Pension Plan.  Ontario’s share of these annual contributions is roughly $16.5 billion. The payroll tax will mean 150,000 fewer private sector jobs.

Internal, confidential government document’s confirmed the 150,000 jobs losses, stating –

  • “payroll taxes would have the largest negative impact on employment.”
  • the Ministry of Finance calculated that for every $2-billion increase in Ontario payroll taxes, 18,000 people would lose their job

Ontarians already pay the highest payroll taxes in Canada. On average, families pay $9,970 a year in government payroll taxes in addition to their personal income taxes

The McGuinty-Wynne Liberal payroll tax will increase taxes by:

  • $788 a year for someone making $45,000
  • $1,263 a year for someone making $70,000
  • $1,643 a year for someone making $90,000

Ontario small business has been unanimous in their opposition to this job killing tax:

  • In particular, CFIB is vehemently opposed to the proposed Ontario Retirement Pension Plan, which will hurt small business owners and their employees by taxing everyone who issues and receives a paycheque and does not currently have a workplace pension. “In one of the worst Ontario budgets ever, the government is picking the pockets of Ontarians, especially the middle class, to pay for it.” (Dan Kelly, President, Canadian Federation of Independent Business)
  • The OCC does not support a stand-alone Ontario pension plan, as the plan will create administrative duplication with the CPP, further fragment Canada’s pension landscape, and potentially deter job creation. (Ontario Chamber of Commerce)

 

broke bankrupt

More Scandals Involving the Liberals….Does it Never End?

 

ONTARIO ELECTION: WORKING FAMILIES EXPOSED,

AND DEB MATTHEWS ON THE HOT SEAT AGAIN

1)  The Working Families Coalition has been exposed as being nothing more than a gang of old white dudes who spend millions and millions of union member paid dollars to try to keep their arch nemesis — the PC party —  out of Queen’s Park.

Click on the link and sign the petition to stop this kind of third party interference and intimidation in our democratic voting process. 

 

2) Deb Matthews, the Liberal Party’s version of a bumbling inept fool is in hot water once again.  This time over colorectal screening practices in Ontario.  Click here to read article in the Toronto Star.

 

We can dream can’t we?…..

Matthews

How Could Anyone Vote for the Liberal Miscreants?

This Household Is Quite Unhappy With The Ontario Liberals (PHOTO)

The Huffington Post Canada  |  Posted: 05/21/2014 4:43 pm EDT  

 Embedded image permalink

Well, don’t sugarcoat it.

Matt Young, an Ontario PC candidate in Ottawa South, tweeted a photo of an angry letter he found taped to a door in his riding Wednesday.

The note tears a strip off Ontario Liberals over high electricity rates and the gas plant scandal. It also warns Grit MPP John Fraser and his “henchmen” that they will be hit with both HYDRO BILLS and OBSCENITIES if they dare knock.

Whoever posted the letter claims to have worked on five different Liberal campaigns but now regrets those efforts.

Ottawa South was previously represented by former Liberal premier Dalton McGuinty. Fraser won a byelection to replace him in August, besting Young by more than 1,000 votes.

The note may be representative of how some Ontarians feel about the estimated $1.1 billion lost after the cancellation of gas plants in Mississauga and Oakville.

But Mississauga Mayor Hazel McCallion, who endorsed Liberal leader Kathleen Wynne last week, believes there are more important issues to focus on. In fact, she called the scandal “water under the bridge.”

The best line of the angry letter?

“John Manley would be turning in his grave if he were dead.”

Manley, a former federal Liberal finance minister, was the MP for Ottawa South for about 16 years. He was replaced by another McGunity — Dalton’s younger brother, David.

Ontario voters head to the polls on June 12.

Tim Hudak can Legally get rid of Greed Energy Contractual Obligations!

Killing green energy contracts

Done the right way, a new PC government could indeed rip up green energy contracts with no liability. Should they?

Brent Lewin/BloombergDone the right way, a new PC government could indeed rip up green energy contracts with no liability. 

Hudak’s Ontario Conservatives can easily and legally negate the giveaways the Liberals had lavished on renewables developers

Tim Hudak says the Ontario Conservatives, if elected, will cancel lucrative wind and solar contracts put in place under the Liberals’ green energy program. Can he do so without racking up huge compensation costs?

The answer is yes – if he does it the right way.

The wrong way is to direct the Ontario Power Authority to simply terminate existing contracts, which have robust compensation clauses. The liabilities would dwarf the $1.1-billion paid out by the Liberals for cancelled gas plants.

The right way is to legislate: to enact a statute that declares green contracts to be null and void, and the province to be free from liability. The compensation clauses in the contract will be rendered inoperative if the statute says so.

Statutes can override iron-clad provisions in a contract because that is the nature of legislative supremacy: Legislatures can pass laws of any kind, as long as they are within their jurisdiction and do not offend the constitution. Legislating on electricity production is clearly a provincial power, as are “property and civil rights.”

Since the Canadian constitution does not guarantee property or contract rights, there are no obvious constitutional limitations on a provincial legislature’s ability to change any contract as it likes. Unlike the U.S. Constitution, in Canada there is no constitutional right to compensation for property expropriated by government.

Courts interpret ambiguous statutes as implicitly requiring compensation be paid to the owner of expropriated property. But if the statute is clear that no compensation shall be paid, the words of the statute govern. Where a statute and a contract are in conflict, the statute prevails. Although unilateral and retroactive changes to established contracts might seem to offend the rule of law, the Supreme Court of Canada has said that prospectivity is not a constitutional requirement for legislation.

AdvertisementWhat about NAFTA? Could a U.S. or Mexican firm with a cancelled green energy contract in Ontario seek compensation for discriminatory expropriation under Chapter 11? If government action singled out a specific party’s contract for termination, it could well be characterized as discriminatory. But if Hudak’s statute cancelled large numbers of contracts for a public policy objective and treated domestic and foreign firms similarly, then NAFTA protections are unlikely to apply.

So, done the right way, a new PC government could indeed rip up green energy contracts with no liability. Should they? While legislatures can cancel contracts, they rarely do so because it penalizes parties who have done business with government, and therefore creates a disincentive to do so in the future. It erodes economic confidence and credibility. For Conservatives and their supporters, cancelling energy contracts may depend on what they find more offensive: Rich subsidies for the production of solar and wind energy, or unilateral changes to valid contracts. No renewable energy contracts have been cancelled in Ontario yet, but in Europe this line has been crossed: Spain, France, Italy and Belgium have all stepped back from their original terms for the production and purchase of renewable power, to the detriment of their domestic renewable energy industries.

The McGuinty Liberals did not pass a statute to escape the bill for cancelled gas plants. It is difficult to know why without all the facts. Perhaps they thought $1.1-billion in costs and erased records would not come to light. Perhaps they feared that legislation would have required disclosure of facts they wanted hidden. Perhaps refusing to pay compensation would have crippled their ability to enter into future contracts with the same or similar companies. Perhaps there were foreign firms involved that could, in fact, have claimed under NAFTA for discriminatory expropriation. Perhaps they judged the political and economic costs to be too high – it is one thing to roll back a program created by a previous government, especially if you have campaigned on the issue, and quite another for a long-standing government to arbitrarily cancel its own contracts. Or perhaps they did not have an opportunity until after they lost their majority, which made it politically untenable.

Contracts are safe when both parties are bound in law to follow them. Contracting with government means that one party has the power to change the rules after the contract is made. Buyers and sellers beware: At the end of the day, the protection in a government contract is not legal but political.

Bruce Pardy is a law professor at Queen’s University.

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