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Tom Rakocevic

  • MPP
  • Member of Provincial Parliament
  • Humber River—Black Creek
  • New Democratic Party of Ontario
  • Ontario
  • Unit 38 2300 Finch Ave. W North York, ON M9M 2Y3 TRakocevic-CO@ndp.on.ca
  • tel: 416-743-7272
  • fax: 416-743-3292
  • TRakocevic-QP@ndp.on.ca

  • Government Page

I want to thank the member for his always-eloquent speech. I wanted to ask a question of him: When this was first debated at second reading, a government member got up and spoke that tolls weren’t the way to go; that it was actually gas tax that was the way to go, that it was sensible, that it was smart. A PC Conservative Ford government member said that the gas tax was the way to go. In fact, he sits way over on that side. I just wanted to ask what the member thought about this Conservative government member talking about gas tax being the way to go.

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I listened intently to the member, and he’s certainly an expert in his field. I know he cares deeply about the people of Ontario and his community, and I was so impressed with his speech. I heard him say that he believes the most efficient way forward is a gas tax, obviously. That is the most equitable way. Could you tell us a little bit more about why you believe that’s the case?

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Do you know what? I’m trying to wake up government members, because I’m trying to get them to fight for the interests of their own constituents. They know the people who right now have gas hookups are going to pay more. Are these government members going to send out a newsletter and say, “Do you know what? You’re going to pay more thanks to me, thanks to the decisions that we made”? They’re absolutely not going to do it. They’re going to spin it like a laundry machine, like they always do.

And so here’s the decision that’s made by the OEB—and I’m going to give a couple of quotes. Someone mentioned there was a dissenting position; the one dissenter said the amortization period of 40 years is too much and to reduce it by half, but the other OEB members looked at it and they said, “This is not fair to the consumer.”

I would have expected a government of the little guy to get out there and say, “No, this isn’t fair. Everyone else is tightening their belts. No one can afford to pay. Graham’s constituents can’t afford to pay an extra amount.” They can’t. So is he or are the rest of them going to get up and say, “Do you know what? This isn’t fair. Cut into that”—

Interjections.

What did the OEB say? In their own quotes:

“The risk that arises from the energy transition ... from gas customers leaving the gas system as they transition to electricity to meet energy needs ... gives rise to assets that are not fully depreciated but are no longer used and useful. This results in stranded asset costs that Enbridge Gas would seek to recover from the remaining gas customers. This in turn would increase rates for those gas customers, leading more customers to leave the gas system, potentially leading to a continuing financial decline for the utility, often referred to as the utility death spiral”—something that Graham, Lisa and Ross, forward-thinking constituents here in Ontario, are concerned about. And so—

The OEB, the regulator, looked at what Enbridge wanted to do—the monopoly that has seen an increase in their profits; the monopoly that has seen profits of $16.5 billion. And the monopoly owner tried to pull a fast one, saying, “Let’s pass this cost on to consumers.” And constituents that I named before—they don’t want their last names to be said here in the chamber, so I referred to them by their first names. The reality is, they don’t want to pay those costs, because the monopoly, Enbridge, could.

The regulator made a decision in the public interest. As usual, this is a government that doesn’t like to take no from experts, doesn’t want to hear no. This is a government that simply wants to do what it wants to do, and when it doesn’t get what it wants, like a little child, it tries to rip up the rules. It’s like playing a card game with someone who flips the table. That’s what they did. They did it because they got the phone call from Enbridge saying, “Don’t do this.”

The OEB is looking to the future of energy production. The minister sees the future and has a heat pump in their home; the parliamentary assistant does the same.

This decision will incentivize the future of energy production in this province. It is a forward-thinking decision, a decision that was made with a lot of thought, and it was a decision made to benefit the existing customers, in the public interest.

Shamefully, this government chose to put more money in the pockets and the profit margins of Enbridge, the monopoly, instead of their own constituents, the Enbridge purchaser right now.

I just can’t see this government, with a straight face, get up and say they’re for the little guy, because they’re just not.

Interjections.

I’ve laid out the rationale. The OEB laid out the rationale. I wish, for once, that this government, maybe in caucus—that the members, even the ministers, would stand up and do something for the little guy in this province, not just what the big, big corporations want, for once. Please, please do that. Please do it for the constituents I named. Do it for all Ontarians, just for once, please.

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It’s always an honour to rise on behalf of the people of Humber River–Black Creek who, thanks to this government, will be paying more for their gas bills as a result of this legislation. And you know what? They’re not going to be happy. They’re got not going to buy the line that this is the government for the little guy because, as we see more and more, it is not.

I’d like to go through how a decision like this actually unfolds. So we’ve got an OEB decision that happens last year. The OEB, which is a regulator that’s tasked at looking at all aspects of energy production, distribution, sale, all of it, makes a decision, not just for the present, but for the future—in fact, a decision that the minister and the parliamentary assistant made for themselves choosing a different form of heating their own home. The decision was, “You know what? The investors of Enbridge, the monopoly that provides the gas doesn’t want foot the risk.” And the OEB says, “We don’t think it’s acceptable to pass that risk on to consumers, so guess what? The answer is no.”

So what do you think happened when that occurred? I’ll tell you what happened: Someone high up in Enbridge made a phone call in moments—probably the decision is rendered, and they’re on the phone and they’re making a phone call. I don’t think it’s to the minister or to the parliamentary assistant, because we all know that the decisions that are made by this government come from a cloud, a shadow that exists around the leadership, that calls the shots. And those shots are dictated to ministers who have no decision-making in this process—zero. I know this. It certainly is not the backbench members but, shamefully, I don’t think it’s the ministers, for a large part.

So Enbridge makes this phone call and says, “What are you doing? What are you doing? Guys, what are we paying you for? What are we paying you for? Reverse this. Reverse it.” Then, developers who are paying them call and say, “Oh, my god. I don’t want to have to pay for this.” And they’re certainly not going to pass that down in savings of new home purchases. It’s simple economics. Home builders will charge what they can charge. If they can charge $500,000, $600,000 or $1 million to sell a home, they’re going to charge it, because the cost of construction does not necessarily equate to the cost of sale. It’s economics. This is the party of capitalism. They understand it crystal clear. But then they get up here and they read prepared notes and talk about something else. It’s outrageous.

So, the power behind this government says to them, “No. You have to go in. Forget democracy. Don’t respect what the regulator wants. Do what we say.” And you know what this government says?

“You call the shots, Enbridge. Of course. Big business always calls the shots with this.” Now, did whoever that member was stand up for the little guy and say, “Wait a sec, Enbridge. While all of us are struggling, while all of us are suffering, you, the monopoly, made 6% increase in profits. You’re now at $16.5 billion. Get your investors to pay for this. We’re the government of the little guy”? Absolutely not. They said, “Let’s take that money and put it on the backs of the consumers.”

Interjection.

Interjections.

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  • Sep/6/22 3:10:00 p.m.

This is a petition on gas prices.

“Whereas ... Ontario motorists continue to be subject to wild fluctuations in the price of gasoline; and

“Whereas the province could eliminate opportunistic price gouging and deliver fair, stable and predictable fuel prices; and

“Whereas five provinces and many US states already have some sort of gas price regulation; and

“Whereas jurisdictions with gas price regulation have seen an end to wild price fluctuations, a shrinking of price discrepancies between urban and rural communities and lower annualized gas prices;

“We, the undersigned, petition the Legislative Assembly of Ontario as follows:

“Mandate the Ontario Energy Board to monitor the price of gasoline across Ontario in order to reduce price volatility and unfair regional price differences while encouraging competition.”

I will definitely be affixing my signature to this and giving it to page Daniyal.

Resuming the debate adjourned on September 6, 2022, on the motion for third reading of the following bill:

Bill 3, An Act to amend various statutes with respect to special powers and duties of heads of council / Projet de loi 3, Loi modifiant diverses lois en ce qui concerne les pouvoirs et fonctions spéciaux des présidents du conseil.

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