News

Fedeli calls for investigation into real savings from ONTC sell off

Wednesday, September 05, 2012   by: Kate AdamsNipissing MPP Vic Fedeli
News Release

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QUEEN’S PARK -- Nipissing MPP Vic Fedeli has written to Ontario’s Auditor General asking for a comprehensive investigation of the Liberal government’s predicted savings from its planned divestiture of Ontario Northland.



The letter comes after recent revelations that some Ontario Northland employees may be due to receive 14-year severance packages upon termination.



“My estimates would put that cost at about $450 million over the specified time frame. That far exceeds any savings the government has claimed it will realize,” said Fedeli.



“We need the Auditor General to do a thorough examination and tell us if indeed this is simply a politically-motivated fire sale, as I’ve contended all along.”



Through months of investigation, Fedeli uncovered several hidden costs the government doesn’t appear to have considered, including an unfunded pension liability of up to $200 million, ongoing pension and benefit costs for ONTC retirees, environmental liabilities, and ongoing subsidies for the Polar Bear Express and smaller feeder bus routes.



“This latest revelation, however, requires a full-scale probe by the auditor to ensure Ontario taxpayers’ best interests are being protected,” Fedeli said.



Fedeli also asked the Auditor General to investigate the per-passenger subsidy and annual operating subsidy figures the McGuinty government has been using to justify its fire sale of the ONTC.



“I know the Auditor will find the annual operating amount for ONTC to be far less than the $103 million the government claims,” said Fedeli. “There simply are no savings.”



The Ontario PC party would modernize Ontario Northland by appointing a board with transportation expertise and move responsibility for the ONTC from the Ministry of Northern Development to the Ministry of Transportation.

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Comments
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buttons 9/5/2012 8:58:13 AM Report

..so Vic wants to stop divestment of ONTC??? ..stickhandles better than the Lakers...
yabadaba 9/5/2012 11:42:04 AM Report

At least he's offering alternative solutions, to what Bartolucci is doing.
Cannon 9/5/2012 11:43:53 AM Report

Ya! Who cares if he's a hypocrite, he's telling us what we want right now!
dealer 9/5/2012 11:59:58 AM Report

cannon u have no clue....

Vic has ALWAYS been for the taxpayer...he was for the selling of the ontc because the taxpayer was footing the bill for the millions in losses.....BUT, the way the liberals are selling it is a whole different issue....he is saying that the way they r doing it is saving nothing!

btw, he is the 1 asking questions about ontc employee's pensions....i dont see horwath or anyone else sticking up for the employee's in the legislature???

Its so easy to post negative comments with no proof....isnt it cannon!
Cannon 9/5/2012 12:44:11 PM Report

Your comment doesn't make any logical sense and is a grammatical nightmare.

As you said, when Vic was in support of selling the ONTC it was because the taxpayer was footing millions in losses. Ok, we agree on that.

Yet now, when the taxpayer is still footing millions of dollars of losses, it's different because of the way the ONTC is being sold? It doesn't matter if the initial sale will cost more than expected if it negates perpetual losses. The taxpayer will eventually save money.

Make up your mind and reply with a logical argument please.

yabadaba 9/5/2012 1:54:07 PM Report

Canon, sense is logical; therefore your post is no better than anyone elses. Stick to the arguement.

The sell off makes no sense at all when all the factors are considered. The economic impact will be felt far and wide.

Being the marketing guru you are,why do retailers sell items at a loss? Maybe because the impact of having someone coming into purchase that item will leed to other higher margin items being purchased.

The ONTC may well be a lost leader but the impact on the region is huge. Don't kid yourself, this divestiture is a spanking by the Liberals on Northern Ontario for not voting Liberal.

The ONTC is being sacrificed to pay for all day babysitting. The Drummond report stated that the province could not afford all day baby sitting yet McGuinty forges ahead with that agenda, yet cancels one of the main economic engines of the North.
yabadaba 9/5/2012 2:25:39 PM Report

Can Mr. Fedeli ask Mr. Bartolucci for a copy of the new and improved bus schedule as promised my the Minister himself. Guess what, it doesn't exist.
Cannon 9/5/2012 4:56:51 PM Report

My argument was that Fedeli is pandering to an electorate by flip-flopping his opinion on the issue. "dealer" tried to refute my assessment of Fedeli's tactics and I replied to him, pointing out his flawed logic.

I never stated any opinion about the ONTC divestment itself. If you wish to know, I find your opinion expressed in comment six to be similar to mine.
whaaazz up 9/6/2012 8:56:40 AM Report

Yaba
Loose cannons are known for shooting off
on that of which they know nothing.
People like he or she like nothing more
than hearing their own voices and it's
impossible to shut them up.
JUST MY OPINION !!!!!!!!!!!!!!
Comments
9
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Note: Comments that appear on the site are not the opinion of BayToday.ca. Keep discussions civil and on topic. Refrain from obscenity and don't post anything that your grandmother would be ashamed to read. Those who do not abide by these guidelines will have their membership revoked without notice. If you see an abusive post, please click the link beside the post to report it.
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