Ontario’s books could take a hit in the coming years.
Despite the Ford government’s best intentions, a new report by the Financial Accountability Officer says cancelling the Cap and Trade program will cost us $3-billion.
Peter Weltman says the added deficit will accrue over the next four years because of spending the government might be overlooking.
Weltman says the loss of Cap and Trade revenue is greater than the savings from spending achieved by cancelling the programs.
Weltman says the true impact of the federal carbon tax will be measured by how the Trudeau government re-invests the tax revenue.
Meantime, Ontario’s Environment Minister says he’s not too concerned with the report.
Rod Phillips says the other way of looking at the report is that the government is saving taxpayers billions of dollars by scrapping a new tax.
“When we made it a commitment about affordability for the people of Ontario, we made it knowing that meant that we were going to reduce revenues for government. We were reducing revenues for a program that wasn’t working. A regressive, job killing tax. $264 per family is confirmed in this report.”
Phillips adds that the FAO report also confirms the provincial government will be paying out five million dollars to compensate companies for cancelling green energy projects funded by Cap and Trade.
(Picture: Rod Phillips)