Ontario Electricity Costs Kill Manufacturing Jobs


image (1).jpg

Electricity Rate Comparison
Average Monthly Hydro Bills
City Avg. for Dec. Avg. for Jan..
Halifax $160.30
Charlettetown $156.17
Ottawa $148.00 $160.00
Regina $143.72
Toronto $143.07 $155.07
Calgary $116.55
St. John’s $115.53
Edmonton $115.47
Vancouver $102.90
Winnipeg $81.09
Montreal $71.91
Source: CTV News

 

Bad Policy Choices Kill Jobs

Well, Christmas has passed and it’s the right time to unplug that Christmas tree.  Brace yourselves.  There is more bad news headed your way in that monthly electricity bill next month.

While everyone was preoccupied with the Christmas shopping and the news about all the freebies being handed out to the alleged refugees from Syria, a silent job killer was poising itself to deliver another yet another death notice to manufacturing jobs in Ontario.

Statistics just released by CTV News tell us that average monthly household hydro bills in Ottawa and Toronto are already over twice the cost paid in Montreal.  In fact both of the Ontario cities rank among the 5 most expensive (average hydro costs) cities in Canada ranking behind only cities such as Halifax and Charlottetown.

In Ontario, where bad government policy has already been pricing Ontario’s manufacturing jobs into extinction, even more bad news looms on January 1st, 2016 when a new $12/month increase will begin appearing on monthly hydro bills.  Legislation for Ontario’s “Green Energy” will end on December 31st, 2015.  When that legislation ends, the temporary ($12 per month) Green energy rebate will expire.

Ontario’s “Green Energy Act” (Bill 150, 2009) was a nasty bit of Liberal legislation created to assure that Ontario Liberal policy aimed at promoting wind and solar supply received subsidies to compete with more existing efficient (nuclear produced) electricity in the province.  Huge subsidies to wind turbine manufacturers such as Japanese corporate giant, Samsung in exchange for Samsung’s promise to (a) produce cleaner and cheaper electricity and (b) establish an Ontario based manufacturing site have both fizzled.  In the mean time, “wind” turbine produced electricity began receiving a lengthy and protracted series of court actions alleging adverse health issues from neighbors with properties abutting such turbines.

With a plan in mind to avoid negative public scorn likely to result from pricier electricity from wind and solar, the Liberal government headed by Dalton McGuinty masked the bad news by implementing temporary Green Energy rebates.  Those temporary rebates are now about to expire leaving Ontario’s hydro consumers an expensive increase on monthly hydro bills.  In real terms, the addition of this new subsidy to failing wind and solar producers will impact every hydro user in Ontario by almost 10% higher energy costs in the New Year.

I recall reading (The Economist, 2009)[1] than inside tight knit global manufacturing circles, each newly created “Green Energy” job had the impact of killing two existing manufacturing jobs.   In Ontario, one in five manufacturing jobs has already been lost.[2]

Make NO mistake, soaring energy costs kill jobs.  In global economies, corporate captains cannot be blamed if they steer their business to jurisdictions where key input costs allow them to compete in global markets.  Recent political silly-stuff coming out of Premier Wynne’s short-pants squad at Queen’s Park does not bode well for the manufacturing sector.

My Grim Prediction

No matter how staunchly I love this country and no matter how fervently loyal I remain to Canada and other Canadians, if (today) I was again in a senior position with a large multi-national, I would be hard-pressed to argue against steering a corporation out of Canada.

The Ontario Chamber of Commerce[3] has already predicted that another 20% of Ontario based businesses will shut their doors within the next five years because of Ontario’s high electricity costs.  In addition, over 40% of Ontario’s businesses openly state that they have postponed investing more in Ontario because of soaring energy (electricity) costs.

When one adds surtax for carbon (cap and trade) tax plus a sexy new made in Ontario pension plan, businesses cannot be faulted for looking for more favorable jurisdictions.

Only in the fantasy world of Liberal economics would one dare to (even) propose the sale of Ontario’s Hydro Corporation and then have the “chutzpah” to openly state that the government (Ontario) wants to use the asset sale proceeds to subsidize dying technologies such as Light Rail Transit.

One thing is certain: the Ontario Ombudsman’s Office will have a great deal less work once Ontario “Hydro” (Hydro One) is sold off and becomes private sector.  Those 10,000 (PLUS!!!) consumer complaints relating to billing errors and other price gouging will be removed from the Ombudsman’s purview.

Thomas Jefferson is credited with saying “The government you elect is government you deserve. “  Do not blame me.  I have not voted for any Liberal candidate (Federal or Provincial) for over 12 years.  Once I began to understand just how pervasive are Liberals and their followers, I just could not bring myself to put an “X” beside the name of any Liberal on any ballot.

[1] “What Will Bill C-150 Mean to You”, Excellence in Manufacturing, David Arkell, May 12, 2009

[2] Statistics Canada, #75-001

[3] Financial Post, “Ontario’s Job Killer: Business Sounds Alarm over Electricity Prices”, Ross McKitrick/Tom Adams, July 10, 2015

 

bio

Copyright ©  Thunderbird Rising 2015

 The above article is copyrighted.  You may use, copy or distribute this article conditional on attributing your source (Thunderbird Rising) and the author (Lloyd Fournier)

Advertisements

One thought on “Ontario Electricity Costs Kill Manufacturing Jobs”

  1. Reblogged this on Robbie's Blog and commented:
    Though that I may not count among experts on policy or management, very early in the change of Ontario to Liberals I concluded that the abyss is deeper than a commoner could conceive. One popular saying from Lebanon states: “The cat enjoys licking the lime filer not knowing that it is its blood that it’s licking”! The analogy serves those who bask in the benefit / welfare provided by Liberal governments without knowing that they (and more so all) are on the hook for the money!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s