Times-Advocate, 1978-02-02, Page 10Times-Advocate, February 2, 1978
By JACK RIDDELL
MPP Huron-Middlesex
committee opens
Meetings of the Select
Committee on Ontario
Hydro have begun and will,
no doubt, continue for at
least a year. During this
period of minority govern
ment, the recommendations
of the Committee will,
almost certainly, be quite
far reaching.
Ontario Hydro has become
a giant enterprise, employ
ing thousands of people,
making demands on capital
funding unprecedented in
the history of the province,
and influencing the lives of
every citizen in Ontario,
either directly or indirectly.
Originally, it was en
visaged that the Select Com
mittee’s work would, after a
brief orientation period for
new members unfamiliar
with some of the
background, proceed to
study the problems of cost
over-runs incurred by Lum
mus Corporation at the
Bruce Heavy Water Plants.
These over-runs were in-
About 300 area snowmobilers par-HEADING
ticipated in Sunday's Snowarama for Timmy. Above, Ron
Taylor of Brucefield leaves the Pineridge Chalet on his way
back to Hully Gully. T-A phot'
before it is utilized in the
reactors and the safety of
the reactors themselves
must be taken into account.
It seems highly likely that
nuclear power will have to
meet some of our energy
needs, at least in the early
part of the twenty-first cen
tury. However, it should not
be permitted to become On
tario’s sole energy source,
and there are a number of
other viable alternatives
which must be developed.
A great deal of very useful
information has been
gathered by the Royal Com
mission on electric power
planning under the Chair
manship of Arthur Porter
and this will also be con
sidered by the Select Com
mittee.
While these matters will
certainly be discussed by the
Select Committee, they
have been placed in
abeyance for the time being,
because of the urgent need
to consider the question of
the long-term contracts
signed by Ontario Hydro
with Denison Mines and
Preston Mines for the supply
of uranium fuel. Both con
tracts are subject to Ontario
Government approval.
Denison Mine approval
must be given by Order-in-
Council by February 28th;
Preston Mines approval
must be given by October
31st of this year. Premier
Davis has asked the Select
Committee to consider the
contracts and “confirm”
that they are in the public in
terest.
Ontario Hydro began
negotiations with the two
companies in 1974. The 200
million pounds of uranium
fuel involved is intended to
feed 5 committed reactor
complexes from 1980 to 2020,
and the contracts, if fulfill
ed, will cover the largest
uranium fuel purchase in
history.
Based on 1978 prices, the
purchase totals $6.5 billion
dollars, representing a net
profit before corporate tax
es of about $2.5 billion,
depending on cost of produc
tion. Each contract contains
escalator clauses which tie
the price paid to the world
price which could, according
to present predictions,
result in an additional profit
of about $1 billion for each
$11 dollar rise in the world
price of uranium: a further
possible $3 billion.
It is becoming increasing
ly evident that while the
itially brought to the atten
tion of the people of Ontario
by the Leader of the Official
Opposition, Dr. Stuart
Smith, early last Fall. At
that time, investigations
revealed that the costs had
exceeded estimates by about
$140 million as of August.
Questions need to be
answered with respect to
waste on the job, the at
titude of the Lummus Cor
poration to the open ended
contract, the terms of the
contract, and so forth.
It was anticipated that the
second phase of discussion
would centre around the
recommendations made by
the previous Select Com
mittee to both Hydro and the
Government regarding the
maximizing and upgrading
of Hydro’s system, obvious
ly, we need to know what
Hydro has done about those
recommendations, how far
it is prepared to go, whether
or not institutional barriers
will have to be removed in
order to achieve success in
implementing the
recommendations.
If the more than forty
recommendations were ful
ly implemented, the ef
ficiency of Ontario’s electric
power generating system
would be improved, the con
sumers would benefit by the
resultant cost break.
Obviously, there will have
to be some discussion of the
advisability of large cen
tralized utilities versus a
more decentralized system,
including the whole question
of power corridors. Hopeful
ly, the methods of selecting
and siting these power cor
ridors will also be discussed
at some length.
Nuclear power in Ontario
will also have to be con
sidered in some detail, and
recommendations will be
made to the Government on
future policy in this connec
tion. Many important con
siderations must be taken
into account. There is the
question of spent fuel waste,
and its possible re
processing — a possibility
viewed with some caution,
even trepidation, by many of
the most learned nuclear ex
perts in the world at this
time.
Another matter for con
sideration is the contingency
of a great deal of political
power in the hands of a few
highly trained technocrats.
There are also health and
safety risks attached to the
processing of nuclear fuel
government has long known
of the need for uranium fuel,
no consideration has been
given to alternatives other
than simple purchase. As an
example, in 1973, Task
Force Hydro suggested that
one means of securing ade
quate fuel supplies would be
to acquire control of a
uranium mine — a sugges
tion consistent with free
enterprise since any cor
poration will consider ac
quisition of a 100supplier.
That was five years ago,
when mining stock was
cheaper. This present con
tract was negotiated right in
the midst of a sellers’
market, the worst possible
time to make a deal.
NOTICE TO DOG OWNERS
in the Township of Stephen
1978 Dog Tags available
at Township Office
1 st dog — $8.00
2nd or additional dog — $15.00 for
each
After May 1st, 1978
1st dog —$12.00
2nd or additional dog — $22.00 for
each
Kennel Licence — $25.00
You may request a tag by
mail.
* RATE SUBJECT TO CHANGE
ttiniDflGHS
Mrs. Joyce Black
Accountant
COMPOUNDED AND
ACCUMULATED SEMI-ANNUALLY
CHECK THESE:
RATE GUARANTEED 5 YEARS
NO SET UP OR ANNUAL FEES
10.69% AVERAGE ANNUAL INTEREST
YIELD
* 8 %%
COMPARE OUR
R.R.SJ>.
(Registered Retirement
Savings Plan)
R.H.O.S.P.
(Registered Home
Ownership Savings Plan)
CURRENTLY PAYING
Serving more and more
people since 1889
VICTORIA.., GREY
TRUST COMPANY
425 Main St. EXETER
235-0530
FOR FURTHER DETAILS CONTACT:
Dennis J. Smith
Manager
Vlwwww, gee cote...vou used all the hc>t w<ater<again...
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centre