MPP not impressed with Hydro One or beer announcements

Ontario’s Liberal government plans to hike the tax on beer and sell a majority stake in Hydro One. 

And the result according to Nipissing MPP Vic Fedeli will be more money coming out of the pockets of Ontarians.  The government’s revised agreement with the foreign-owned Beer Store shows it will raise $100 million a year “by applying a volumetric tax or markup” on all beer sold in Ontario.  

Ontario will also allow beer to be sold in 450 grocery stores, start a pilot project to sell 12-packs of beer in 10 Liquor Control Board stores, and make it easier for craft brewers to list their products in the Beer Store’s 447 retail outlets.  

Meantime, the province plans to sell up to 60 per cent of Hydro One, but not allow any one shareholder to own more than 10 per cent, so the government’s 40 per cent gives it  control of the utility.

Fedeli says the result will be higher prices because the government won’t be able to pay off the debt the utility faces.

He says the money from the sale will be used to reduce the provinces deficit. 

Fedeli says the auditor general and other organizations have suggested a different strategy, that being stop spending so much money.   Fedeli says the debt at Hydro One is 27 billion.