10 Dec, 2013 – Auditor’s report proves ONTC sale is bad idea: NDP
10 December, 2013
QUEEN’S PARK – NDP Timiskaming-Cochrane MPP John Vanthof says a special report by the Auditor General reaffirms what New Democrats have been saying all along – that the divestment of the ONTC is a mistake – and urged Liberals to halt the process.
“When the Liberals announced the short sighted fire sale of the ONTC, we knew it was a mistake and we said so,” said Vanthof. “But the Liberals carried on, trumpeting apparent savings for Ontario. Now we know we were right – instead of saving money, the Liberals could cost the province almost a billion dollars. That’s three times the amount they were supposed to save, and Ontarians could be left to pick up the cost of their misguided policies unless the divestment process is stopped.”
In a special report released this afternoon, Ontario’s Auditor General outlined the real costs of the ONTC divestment so far. While the Liberal government publicly promised savings of $265.9 million over three years, they planned to spend $325 million on the divestment process itself. The Auditor General’s office says known costs may be as high as $820 million, with more unknown costs to come.
“The AG made it clear that the government was entering uncharted water with an asset sale of this size; but instead of taking the time to handle it correctly, the Liberals plunged ahead with unreasonable promises, no accurate financial plan, and no working structure in place,” explained Vanthof.
The Auditor’s report says ineffective internal communication, unclear operational structure, and a lack of stakeholder consultation all contributed to the rising costs.
“This is exactly the kind of foolish financial mess the Liberal government has become known for, and preventing messes like this is exactly the reason why New Democrats have been pushing for the creation of a Financial Accountability Office,” said Vanthof. “But while the Libs are happy to jump into spending scandals headfirst, they are dragging their heels on the creation of the very office that could prevent wasteful spending before it happens.”
Vanthof says the sale should be stopped, and called on the government to work with the North to develop a sustainable plan for the continued operation of the ONTC.
“Ontario deserves a government that has a real plan for the North, values real community consultation, and won’t throw away valuable resources without considering the actual financial and social costs,” said Vanthof. “Let’s stop the divestment before it goes any further, and work with stakeholders and affected communities to create a sustainable, valuable business model for the ONTC.”
-30-
A creative touch by