(Original French version here)
Selling the LCBO, OLG and Hydro One could yield billions of dollars to the Ontario government. The LCBO alone is worth over $10 billion dollars.
It's tempting, especially with a budget deficit near $25 billion.
Premier McGuinty asked two private firms to address the issues and make recommendations. It would be a way to ensure that "we get the biggest bang for our bucks, to invest in education and health care." said the Premier.
Promises?
During the last two elections (2003 and 2007), Dalton McGuinty has campaigned against the privatization of Crown Corporations. Then in 2004, facing a deficit of 6 billion left by the previous Conservative gouvernement, he briefly juggled with the idea of selling the LCBO.
Back in 2009, a new idea is under consideration. Creating a “super-corporation” that would hold a number of provincially controlled companies, then selling a stake in that to public investors. It offers a way out for Dalton McGuinty, that would allow him to say he did not "privatize" Crown corporations.
Really for Sale?
Ontario Power Generet (OPG) For Sale? Perhaps, but at what cost? As a Crown corporation OPG does not pay federal taxes. OPG makes a payment to the Ontario government that
is the same as the corporate income tax on its net income that it would
otherwise owe to Ottawa. So, sell OPG is losing income to Ottawa.
LCBO: Could Bring $10 billion in one shot to the provincial coffers. But it contributes 1.7 billion dollars a year in revenue . It would sell the goose that lays golden eggs for a pittance.
Hydro One : who would want to buy a network of pylons and power lines that needs repair, maintenance, upgrade? Besides the existing debt of Hydro One that comes with the network ...
OLG ? Maybe. Premier Dalton McGuinty has often wondered aloud in public if the State was not a bit too addicted to revenues from the game and it would enable his government to divest itself of a problem.
Who would buy?
Hydro Quebec buys Hydro One?
Loto-Quebec buys Lotto-Ontario?
The SAQ buys the LCBO?
Perhaps not as crazy as you might think.
When the Harris government sold the 407 toll highway north of Toronto, a consortium including SNC-Lavalin bought it.
The province sold the Savings Office of Ontario, Desjardins Credit Union purchased it.
