It's going to cost $1 billion to offer Ontarians HST relief on their tax bills, says Ontario Energy Minister and Sudbury MPP Glenn Thibeault.
But it's a cost the province can afford, Thibeault said Monday following the Speech from the Throne delivered by Ontario Lieutenant Governor Elizabeth Dowdeswell.
Much of Dowdeswell's speech focused on hydro rates, including a three-point plan to lower bills. It includes an eight per cent rebate, which amounts to the provincial portion of the 13 per cent HST, on electricity bills starting in January.
The plan also include a 20 per cent rebate on hydro bills for residents in rural and northern areas, and the expansion of the Industrial Conservation Initiative, a program that helps large electricity users cut their bills by as much as 34 per cent by shifting hydro use away from peak periods.
Thibeault said his first major set of policy announcements won't affect the province's plans to balance the books ahead of the 2018 provincial election.
"When it comes to costs specifically relating to the provincial portion of the HST, that's $1 billion in tax savings that we're making sure is going back to the people of Ontario," he said.
"We're doing that now because we've been able to do a lot of the heavy lifting and make sure we're able to balance our budget next year.
“We can afford this now. The people who need to benefit first from this are the Ontario families that actually had to help us get here."
At least part of those policies were a result of a recent tour by Premier Kathleen Wynne, who heard from residents they were struggling with soaring hydro rates.
"She heard loud and clear from northerners and folks in rural communities that something needs to be done about electricity rates, and she heard the same thing from businesses," Thibeault said.
"So our three-point plan is doing just that. We're rebating the provincial portion of the HST on everyone's bills. The folks that live in Northern, rural and remote communities, they've been seeing what the delivery charge is. They've been seeing significant costs related to the delivery charge. We're actually bringing forward a plan that will see their reduction by about 20 per cent."
And medium and larger businesses “can save up to 34 per cent a month on their bills,” he said, if they participate in conservation programs.
“That's a significant savings," Thibeault said. "I'm very proud (that) my very first policy bringing forward as energy minister to make sure we're finding ways to help families and to help businesses right across the province save a bit of money."
But Nickel Belt MPP France Gélinas said Monday's announcement ignores the fact that the government created the current hydro problems and forced consumers to pay higher rates because of things like the gas plant scandal in 2011, when two contracts were cancelled to help candidates in Oakville and Mississauga.
"To save a few Liberal seats, it cost each and every one of us $1 billion," Gélinas said. “Today, they threw us a bone ... They are not making decisions for the good of the Ontario population right now, and people are starting to make their voices louder and louder.
"The fiscal decisions they have made have benefited a select few, at the expense of all of us who pay more."
The throne speech also ignores the unpopular partial privatization of Hydro One, she said. The Liberals stopped the work of the previous session of the Ontario Legislature while ignoring what residents wanted.
"When 87 per cent of the people of Ontario are telling you, don't sell Hydro One, you put a pause on and throw all the work of the Legislative Assembly to the curb, to be started afresh, and you don't say anything about the sale of Hydro One?" Gélinas said. "You missed the boat."
She's also concerned that these are stop gap measures, with no assurances the relief will stay in place. For example, taxing people's hydro bills is something that should be stopped, rather than just giving out rebates.
"This won't start for another four months and we don't know how long it's going to last for,” she said. “That's not what people are asking for. They're telling us that electricity is a common good, and it should not be taxed.
"It's focused on short-term relief. It's like they're saying, OK, you've yelled loud enough, we'll give you a little something. But it's not something that will fundamentally change our hydro bills. Our hydro bills will continue to go up."
"These are not in-depth changes, these are little giveaways to appease 87 per cent of the people."
But Thibeault said the HST rebates are not intended to be temporary.
"This is ongoing," he said. "For me, making sure that we help families with their everyday cost of living is key. Today, this eight per cent reduction on the provincial side of the HST will do just that for many of them."
