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.”