Zurich Citizens News, 1974-05-16, Page 12PAGE 12
Jottings
by
Jack
from
Ontario Hydro announced
last week that it was proposing
increases of 15% in the cost of
power to municipal used utilit-
ies in 1975. The utilities buy in
bulk from hydro and in turn
supply the majority of Ontario's
2 1/2 million users. Hydro said
further that it anticipated an-
nual increases of 10 to 15%
through the period 1975.to 1979.
During the discussion of the
expenditure estimates of the
ministry of energy, opposition
members attacked hydro's prop-
osal in the legislature. They
said the increases were more
apt to be 15% than 10% and this
if compounded meant a doubling
of hydro's charges in five years.
Opposition members stressed
upon the minister of energy
that he had to step in and tell
hydro that it must not double
its rate over five years. Hydro's
rate application will be review-
ed by the Ontario Energy Board
in public hearings beginning
June 10, The board will make
recommendation to the govern-
ment.
Mr. McKeough, minister of
Energy, told opposition memb-
ers that he was concerned about
the proposed increase and indic-
ated that Ontario Hydro's prop-
osed rate increases for the rest
of the decade are staggering.
He said the government would
have to look at things after the
board has made its examination
and report.
Ontario Hydro tried to justify
its rate of increases by laying
emphasis on the fact that it had
been hard hit by the escalating
prices of coal, oil and natural
gas. Coal used to fuel the maj-
ority of Hydro's thermo stations
will increae 34% in price this
year and another 17% in 1975,
according to hydro. Oil and
natural gas prices are likely to
rise even faster and more than
60% of new generating units
commissioned before 1980 will
be fired by coal or oil.
Recognizing the impact of
current inflation on Ontario
hospitals, Health Minister Frank
Miller said he will allow hosp-
ital boards that can prove need
to spend perhaps $100 million
more than spending ceilings
permit this year. The increase
grant will be given on an ind-
ividual basis to hospitals whose
applications are approved. Mr.
Miller told the legislature extra
funds will be automatically
granted to cover forced costs,
additional expenses to hospitals
for higher unemployment insur-
ance, Canada Pension Plan and
Workmen's compensation Board
contributions. The government
will also cover actual cost in-
creases in hospitals of fuel oil,
food, medical supplies and other
materials. In addition the Min-
istry is prepared to consider ap-
peals from hospitals for more
money to cover wages and fringe
benefits, particularly for workers
in lower wage brackets.
The Ministry's spending
ceilings allowed an increase in
hospital budgets of 7.9% this
year. The ministry budget
provides 1.2 billion dollars for
hospitals about half its total
estimated spending this year,
and Mr. Miller chose not to
raise the ceilings.
Mr. Miller rejected automat-
ic across the board wage increas
es for all hospital workers in
the province, modelled on the
Toronto settlement which prov-
ides $1.50 raises in five stages
over two years. Although he
hinted the Toronto settlement
may be considered a model for
workers in other urban areas.
He said the wages paid may not
be realistic in rural areas where
the cost of living is lower.
Philip Givens, Liberal Transp-
ortation critic accused the
provincial government of mis-
leading the public over the esc-
alating costs of the magnetic
cushion go urban train system.
Costs of the Go Urban 2.5 mile
test track at the Canadian Nat-
ional Exhibition have risen in
recent weeks from $17 million
to $25 million. Mr. Givens
noted that the estimates for the
system have risen 100%. He
indicated that the government's
argument that inflation is the
villian , is simply unacceptable.
The Ontario Government's
overall spending will rise 14.2%
this year from 7.3 billion doll-
ars to 8.34 billion dollars. The
two most expensive ministries
are health and education with
budgets increasing about 10%
to 2.4 billion and 2.3 billion
respectively.
The general government est-
imates include the spending of
the revenue, government serv-
ices and treasury ministries
and the cabinet and management
board expenses. The general
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government estimates also incl-
ude the projected spending of
the office of Premier William
Davis up $115, 000 to $1,216, 000.
The Lieutenant Governor's off-
ice up from $46, 000 to $61, 000
and the office of the speaker
up from $4.8 million to $6.5
million.
The Ministry of housing took
its place in the government
books with its first official
spending estimates more than
$226 million for the 1974-75
year. The housing ministry est-
imates previously included in
the Ministry of Revenue showed
a drop from $237 million to
$100 million in grants to Ontario
Housing Corporation. The spend-
ing of OHC was large last year
because it acquired land for the
proposed North. Pickering Develof
merit. In return for that decrease
this year's estimates provide
$19.8 million for the housing
action program which housing
Minister, Sidney Handleman
hopes will provide 30, 000 mod-
erately priced homes. Spending
on community planning inc-
reases from $8.3 million to
$23.8 million, of this $2.5
million will go to planning in
north Pickering. The Ministry
for the first time is providing
money for community and Co-
operative Housing, about $4.1
million.
The Ministry of government
services which handles the
government's internal business
and finds its Ministry's Accom-
modation, is estimated to cost
$224, 792, 000. This year, an
increase from $179, 568, 700.
last year. Of this, the govern -
1
ment will spend almost $30
million buying land for itself
more than 38 million leasing
offices and more than 75 mill-
ion in building construction.
The Treasury, economics and
intergovernmental affairs
ministry shows in its $1.26 bill-
ion estimates the costs of the
government's program of grants
to municipalities $307 million
up from $202 million estimated
last year. The Ministry also
budgeted for the first time to
cover flood damage, excessive
unemployment and other specif-
ic problem situations. The
amount set aside is $14, 765, 000
THURSDAY, MAY 16, 1974
Of the total ministry budget
about half $674 million goes in
repayment of the province's
public debt.
The ministry of Revenue will
spend $110.4 million this year
almost twice last year's estim-
ated spending. The difference
comes mostly fromthe guarant-
eed income programs for pen-
sioners and the disabled and
increased tax credits announced
in this year's budget. The
changes will cost $50.5 mill-
ion according to the estimates.
The Ontario Medican Assoc-
iation misrepresetned scientific
(continued on page 13)
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