A shock­ing proposal

The Glengarry News - - The Opinion Page - The Glen­garry News Robert Mills, Alexan­dria

The Edi­tor, I am re­act­ing to an ar­ti­cle in the June 12 is­sue of under the head­ing “An­other Per­spec­tive – Can­cel all wind farms.”

The au­thors of this ar­ti­cle pro­poses leg­is­lat­ing the can­cel­la­tion of all clean en­ergy con­tracts signed by the pre­vi­ous On­tario government. What a shock­ing proposal! Be­fore the era of Trump and Ford, government con­tracts signed in good faith have al­ways been re­spected by suc­ces­sor gov­ern­ments. Con­tract law was re­spected. To do oth­er­wise would in­vite chaos. The au­thors be­lieve that the course of ac­tion pro­posed would save tax­pay­ers a lot of money. I dis­agree.

Busi­ness has a way of ad­just­ing for un­cer­tainty. In­sur­ance com­pa­nies charge higher pre­mi­ums for riskier cus­tomers, banks charge higher in­ter­est rates on riskier loans etc. If busi­ness felt that a con­tract signed with the government might not sur­vive an elec­tion, they would build a risk pre­mium into the price. In the end, costs to tax­pay­ers would in­crease. Per­haps the writ­ers of the ar­ti­cle would like Cana­dian gov­ern­ments to op­er­ate like gov­ern­ments in China or Rus­sia. Imag­ine the toll on for­eign in­vest­ment in Canada. Again, the cit­i­zens would pay the price.

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