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Booze, electricity prices will rise with Grits' plan: PCs

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TORONTO

A plan to “optimize” major public assets is a recipe for higher booze and electricity prices in Ontario, Interim PC Leader Jim Wilson says.

The Ed Clark-led government assets council is proposing that the LCBO increase the service charge levied on beer producers to cover distribution costs, effectively giving the provincial treasury a greater share of the profits achieved as a result of the government-sanctioned Beer Store monopoly.

”The way I read that part of the report is they’re looking to squeeze beer customers,” Wilson said Monday. “They’re not talking about reducing the size and the cost of the bureaucracy at The Beer Store, they’re not talking about really selling it.”

Clark’s group of advisers is reviewing publicly-owned Hydro One, Ontario Power Generation (OPG) and the LCBO to determine if there are ways to maximize profits for taxpayers.

On Friday, Clark said in a major speech that he does not recommend selling off the assets, except for a majority share in Hydro One’s distribution business.

Wilson said he supports keeping the assets public but believes Clark should have been given freer rein to look at all the options.

Clark made it clear that the Kathleen Wynne government was not interested in selling Hydro One or OPG outright, or breaking up the monopolies of The Beer Store or LCBO.

The remaining options will push up the price of electricity and alcohol, and the provincial government will use Clark’s recommendations as a “crutch” to explain those higher costs, Wilson predicted.

“They’ll say, ‘well, that’s what Mr. Clark recommended’. You know that’s exactly what’s coming down in the next few months,” Wilson said.

Finance Minister Charles Sousa said he will act in the best interests of the consumers and taxpayers while trying to “sweat” the assets for more profits.

Sousa did not rule out going after a greater share of beer producer profits, though he said he would consult first with stakeholders.

“The efficiency of that system provides for a lower cost in Ontario than it does in other provinces ... It’s more expensive to buy liquor and beer in Quebec than it is in Ontario,” Sousa said.

NDP Leader Andrea Horwath said the plan to hive off the lion’s share of Hydro One’s distribution business will likely increase bills for electricity customers.

“We’ve seen prices go up when privatization comes into play,” she said.

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