The Ontario government introduced on Nov. 18 the Ontario Clean Energy Benefit, which would provide a 10 per cent benefit to help consumers manage rising electricity prices for the next five years.
The benefit, which would help more than four million residential consumers and more than 400,000 small businesses, farms and other consumers, would take effect on Jan. 1.?
The government, in a press release, stated over the next five years, residential electricity prices are expected to rise by 46 per cent, after which increases are expected to moderate as Ontario will have largely completed the transition to a cleaner, more reliable system.? The statement said Ontario is emerging from the global recession and it is on track for a deficit of $18.7-billion in 2010-11. That is a $1-billion improvement over the 2010 budget projection.
The Liberal government has negotiated the principal terms of a proposed agreement to renew its long-standing business partnership with Teranet, by extending Teranet’s exclusive licences to provide electronic land registration and writs services in Ontario for an additional 50 years. Under that proposal, Teranet’s owner, Borealis Infrastructure, would provide the province with an upfront payment of $1-billion, which would be used to reduce the provincial debt.
This debt reduction is expected to decrease Ontario’s ongoing borrowing requirements and would save up to $50-million in annual interest costs. When added to the $1-billion reduction in the annual deficit, the payment means the government is borrowing $2-billion less than forecast.
Beginning in 2017, the province would also receive annual royalty payments from Teranet, which are expected to be approximately $50-million in 2017-18 and to grow in future years.
The government hopes those measures build on the government’s Open Ontario plan to create new jobs, boost economic growth, and protect the progress Ontario families have made in their schools and hospitals.
Minister of Finance ?Dwight Duncan said, “Ontario is emerging from the global economic recession. Since May 2009, more than 180,000 new jobs have been created, and this year the deficit projection has been slashed by almost 25 per cent. With the changes we’ve made, nine out of ten taxpayers are paying less income tax.”
He added, “For a long time, governments of all political stripes have neglected the electricity sector, and that’s why we have made the necessary investments to build a cleaner system and to ensure the lights go on and stay on. Ontarians are asking for some assistance with rising costs, especially their electricity costs, and every little bit helps during these lean times.”
The government stated that since May 2009, employment has increased by 2.9 per cent or 186,100 net new jobs. It added, as of October, Ontario has regained 75 per cent of the jobs lost during the global recession.
The government also proclaimed the 2010-11 revenue outlook, at $107.7-billion, is nearly $800-million more than the 2010 budget forecast, largely reflecting stronger economic growth in 2010.?
As outlined in the 2010 Budget, the government continues its comprehensive review of all government programs and services. To date, this review has identified more than $260 million in additional potential savings through both programming and administrative expenditure reductions.
In 2010-11, the estimated cost of the proposed OCEB is $300-million, with an estimated full-year cost of $1.1-billion next year. These costs are accommodated within the fiscal plan as a result of the government’s prudent approach to managing its finances.
Opposition responses
Progressive Conservative Leader Tim Hudak said the day of the financial statement that the Liberal government has already increased spending during its term of office by 70 per cent – even though the Gross Domestic Product grew at just 8.8 per cent.
And the NDP is wondering how the benefits of the HST are helping people in Ontario in light of the fall economic statement’s revelation that the HST will bring in $325 million more than expected – and hydro rates will rise 46% over five years
NDP Leader Andrea Horwath called on the Liberal government to stop stalling the release of key HST documents.
“The HST is having an even greater impact on family budgets than Liberals predicted,” said Horwath. “It’s time for the McGuinty government to stop playing games and release the HST documents they’re hiding from the public.”
