News Release
Office of the Official Opposition

   

 

Parsons says government hypocritical on requested Hydro rate increase

April 13, 2006

Kelvin Parsons, Opposition Energy Critic and MHA for the District of Burgeo-Lapoile, is disappointed that Newfoundland and Labrador Hydro (Hydro) has made a rate application to the Public Utilities Board for a 5 per cent rate increase.

"When in Opposition, this government criticized the 2003 rate increase brought forward by Hydro," said Mr. Parsons. "They railed against any rate increase and argued that the poorest people in society would be most impacted. Three short years later, they are willing to sit back and allow this rate increase to come forward without a whimper. This shows the hypocrisy of this government."

In a May 23, 2003, press release, then Mines and Energy Critic Paul Shelley stated that "as always, it is the poorest people in our society who will suffer the greatest pain, because they don’t have the income to absorb these costs." Mr. Shelley also referenced the exclusion of electricity users from the home heating subsidy as another hit to low and middle income people.

"It is very strange how the attitudes change when Opposition members cross the floor to become the government. Minister Shelley argued against this rate increase because of the impact it would have on the people of the province. Now that he is responsible for ensuring the needs of our lower income population are considered, he is silent and allowing this rate increase application to move forward without a peep."

Parsons also referenced the fact that government left $54 million in dividends with Hydro this year. While in Opposition, the current government believed the dividends from Hydro should be used to prevent rate increases. "Using the logic of their own words in Opposition, the dividends made by Hydro last year should prevent the need for a rate increase. Therefore, I suggest the Minister of Natural Resources direct Hydro to use these dividends and prevent this increase from taking place. Hydro’s profits should be used to help all Newfoundlanders and Labradorians, and I suggest they begin looking at this initiative instead of raking in more profits on the backs of the people of the province."

 

Media Contact:
Darrell Mercer
Director of Communications
Office of the Official Opposition
709-729-6151 or 709-687-0477