Monday, November 29, 2010

Dear Dalton, Please explain this will you?

Dear Mr. McGuinty,

Try as I might to find a shred of sense in the Ontario Green Energy Act, I have failed miserably so far and wondered if you couldhelp to enlighten me?

I struggle to understand how raising electricity prices (which have already risen dramatically over the past 6 years) by 50% over the next 5 years is going to help create jobs in Ontario?  I understand the argument for green jobs and the fact that the act calls for 20% of the equipment content to come from Ontario etc.... But surely the fact will be that any jobs created will be mostly of a construction/installation nature (which is always to be welcomed) and not real manufacturing jobs for the long term?

Now, I know that you will cite the Samsung deal as a prime example, but this is far from a done deal yet as you cannot know how they will react to any future rulling by the World Trade Organization on the legality of Ontario's restrictive practices within the Green Energy Act.  Therefore, this lone exmple of possible future job creation is more than offset by the potential downside of the Green Energy Act in terms of job losses caused by increased energy costs.

Only today, Stat's Canada reported a widening of Canada's trade deficit to $17.54Bn which is a clear indicator that already Canadian companies are struggling to compete on a global basis due to a combination of global, currency and productivity factors.  The future for job creation looks weak at best and can only be further weakened in Ontario by a plan that further burdens manufacturers with increased operating costs.  How can you expect manufacturers to absorb these increases when globablly they are courted by low cost countries and provinces who are all willing to help them relocate in oredr to grab our jobs? 

It seems to me Mr. Premier that the only people that really benefit from this energy plan are the operators and manufacturers of these farms (be they solar or wind).  The business world does not benefit as they will be even more uncompetitive in the global market.  The public do not benefit as we are forced to pay higher rates to subsidize the profits of the companies installing and operating the units.  Our children do no benefit as they will suffer the legacy of higher energy prices, higher provincial debt and fewer jobs.  Even the claim of cleaner air being the benefit is really just a political smokescreen as the same benefits (which I do support incidentally) could be achieved at a fraction of the cost through hydro, nuclear and clean coal and gas technologies.  All of those technologies have proven track records and all are being chosen as the primary solutions all over the world (even in Finland, Denmark, China, India and Spain). 

Surely Mr. McGuinty you owe it to the people of our province to stop and rethink this strategy which has been clearly proven to be misguided in other parts of the world and take the time to find a solutions that will make Ontario a low cost place to manufacture goods that we can export?

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