Can anyone please explain to me how Dalton McGuinty’s antics are not going to result in a further recession in Ontario?
And a sobering note from Rick Conroy, Wellington Times (H/T SDA):
…Worse still, we are propelling massive hikes in energy costs. This will have direct impact on low- and middleincome Ontarians. It will be yet another blow to manufacturers and processors—another reason to move jobs out of the province to low-cost jurisdictions. Smelters, miners, pulp and paper mills and auto manufacturers are all large consumers of electricity. As their margins get squeezed they get closer to putting their raw materials on a ship and processing them elsewhere—taking these jobs with them.
In desperation McGuinty is doubling down and digging our hole deeper. So far this year the province has spent on average a little over 3 cents per kilowatt hour for electricity. Last week McGuinty offered to pay 2225054 Ontario and dozens of other such outfits 44.3 cents per kilowatt hour—14 times more than the going rate. Does this sound like a rational man?
Please tell me this is all just a bad dream.
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Related
Ontario green power plan sparks cost concerns – Globe:
Erco Worldwide shut down its chemical plant in Thunder Bay four years ago after blaming rising power costs for making the factory uneconomic, and now president Paul Timmons worries a similar fate may be in store for his customers in the pulp and paper industry.
While Premier Dalton McGuinty touts the “green jobs” that will result from unprecedented investments in renewable energy, Mr. Timmons echoes critics who are more focused on the rising price of electricity, which they fear is eroding the competitiveness of Ontario’s industrial power customers…
Ontario’s power trip: Priced out of the market – Parker Gallant, Financial Post:
As a former banker I have no direct expertise in the electrical sector. I was simply curious as to why my electricity bill in Ontario went up when my consumption went down. What I found as I researched is a bewildering story of a province whose electrical sector is in trouble. Ontario is a high-price energy province and, under current policy, it is poised for a further escalation in prices. In short, Ontario is pricing itself out of the market and will not have the ability to attract any manufacturers or service sector companies that require significant energy in their daily processing...
Bye-bye factory and manufacturing jobs in Ontario.
We’ll all be green – and broke.
And from D.G. Smith in Welland, who is a disgruntled member of a significant voting block – Hydro bills batter seniors:
...In 2011 consumers will pay $3.04 cents a kilowatt hour which when adding distribution will total 14.54 cents a kilowatt hour based on consumption of 800 kilowatt hours per month.
To add salt to this wound the dreaded McGuinty HST of 8% will be added to all hydro bills starting July 1, meaning $98 more a year. One must not forget the Smart Meter program when all meters are installed at the fixed rates for peak periods and off peak periods will result in an increase of $50 a years for a typical residential consumer.
Seniors on fixed incomes will not be able to handle these whopping increases when they are subjected to annual rent increases, not exceeding 2%, when they receive a pittance cost of living increase in the Canada Pension Plan, and when they receive nothing in cost of living increases in their Old Age Security cheques…
BTW, about those ‘Smart’ Meters – Official slams hydro price surge (Gazette):
…Gord Miller, Environmental Commissioner of Ontario, says millions of so-called smart meters will be useless unless the government changes course and sets a sufficiently low hydro rate to convince people to do their laundry and dishes at night and on weekends.
Rate increases announced this week show a “disturbing” move in the opposite direction, says Miller.
Off-peak power rates jumped 20 per cent, disproportionately high compared to peak daytime rates. The increase means peak rates are now only 1.9 times greater than off-peak rates (which run from 9 p.m. to 7 a.m. and throughout weekends).
To successfully persuade people to change their behaviour, Miller says, off-peak should be three to five times less expensive...
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Update
You can join this Facebook group – Stop the Unfair Tax Grab. Looks like an NDP group but I won’t hold that against them.
Any other relevant Facebook groups out there?
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Tuesday Update
I missed this one in yesterday’s Post – Dalton McGuinty’s pretend economics:
…One would think the government would have realized that introducing the HST would mean more costs for everyone, but under the rules of pretend economics you’re allowed to make believe it’s easier for landlords to come up with the extra money than it is for their tenants. And when landlords stop cutting the grass or painting the halls, everyone can pretend that the building isn’t going to pot…