ONTC sale could cost $790 million, Fedeli says – by Gord Young (North Bay Nugget – May 31, 2013)

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Nipissing MPP Vic Fedeli pointed to newly divulged documents Friday as evidence Ontario Northland Transportation Commission can’t be sold because of $790-million in liabilities associated with its sale.

“The government has stated they wanted to divest Ontario Northland to save money. Their own documents prove they now know any sale will actually cost the taxpayer $790 million,” said Fedeli, during a news conference this morning at his North Bay constituency office.

The Ministry of Finance documents, released to the standing committee on justice as part of the gas plant investigation, outline “worst case” estimates for transitional funding to support the divestment process. According to the documents, labour and severance costs alone are estimated at $250 million, up from $25 million originally earmarked as part of the planning process for divestment.

The $250-million estimate, however, assumes no employment by a new owner or labour strategy; that all eligible employees receive employment security; and that all eligible employees collect full benefits over a period of up to 14 years.

“I have said from day one their math doesn’t add up, and there will be no savings through this fire sale,” said Fedeli. “I call on the Premier to end this charade, take Ontario Northland off the chopping block, and do what we’ve asked from the beginning: have a Strategic Review of all assets and make Ontario Northland the economic engine of the North.”

But Northern Development and Mines Minister Michael Gravelle said in a statement issued shortly after Fedeli’s announcement that his depiction is “alarmist” and not a “remotely” accurate representation of the government’s approach.

“The government has a responsibility and duty to assess all possible scenarios. In order to provide an accurate representation a wide spectrum of options must be reviewed. This is certainly prudent and part of responsible governance,” said Gravelle. “The numbers shared by Mr. Fedeli portray a scenario that would see absolutely no job retention and shows no consideration for the socio-economic development needs of the region.”

Gravelle noted that all sides agree that the status quo at the ONTC is no longer an option. And he said he has been very clear he is not satisfied divestment is the only solution.

“That is why we will be looking at multiple options for each part of the ONTC, including divestment, restructuring, alternative service delivery and new partnerships,” said Gravelle.

For the original of this article, click here: http://www.nugget.ca/2013/05/30/ontc-fedeli-to-announce-bombshell