The leader of Ontario's New Democrats says it's never been more clear that Kathleen Wynne must scrap plans to sell 60% of Hydro One.
Andrea Horwath says a report by the province's Financial Accountability Officer spells out how the sale will hurt Ontario's budget. According to Stephen LeClair's report, "The province's fiscal position will deteriorate compared to if they didn't undertake this sale."
The report says there would actually be gains in the first year after an initial sale of 15% of the utility's share, but once 60% is sold, the impact will be negative.
"The sale of Hydro One will have an immediate improvement to the province's balance sheet, but because of the loss of net income that results from the partial sale, there will be a subsequent worsening of the government's fiscal position," he says.
Hydro One delivers roughly $750-million in profits to the province each year, a figure that will shrink once private shareholders take their cut.
LeClair says the government would also lose $100-million a year it currently gets from the utility in lieu of taxes.
"It is ludicrous that anybody would go forward with this sale after having this evidence put in front of them," says Ontario NDP leader Andrea Horwath. "And it is the height of arrogance that this Premier would ignore this information."
LeClair estimates the value of Hydro One at between $11-billion and $14.3-billion. A 60% sell off would generate between $6.8-billion and $8.9-billion, which is less than what the Liberals expect to get.
"There is significant uncertainty over how much the province will take in in proceeds from the partial sale," says LeClair. "This uncertainty feeds its way through the entire analysis."
Horwath says LeClair's report is all the non-partisan evidence the Liberals need to cancel the sale.
"Now, the financial accountability officer has laid everything bare. It's the straight goods, non-bised, completely independant," says Horwath. "He reports directly to the people of Ontario and he has said to the Liberal government this is a bad deal for Ontario."
Premier Kathleen Wynne said she needs to sell 60% of Hydro One to raise money for her ten-year, $130-billion plan for public transit and infrastructure projects.
With files from the Canadian Press