A shocking proposal
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.