FAO Confirms Cap-and-Trade Being Used to Artificially Balance Budget

QUEEN’S PARK The Financial Accountability Officer revealed today that money collected from the Wynne-Liberal’s cap-and-trade scheme is another cash grab that will do little to reduce emissions, Ontario PC MPPs Lisa Thompson and Vic Fedeli stated today.

In his report, the FAO said that cash raised from cap-and-trade could “reduce the deficit in that year, and increase the deficit in future years.” This trick would allow the Wynne Liberals to balance the budget in an election year, followed by larger deficits in future years.

”Earlier this year, the Financial Accountability Officer told us that they’re using the one-time money from asset sales and contingency funds to artificially balance the budget in an election. Now he’s confirmed what the Ontario PC caucus has said all along – the government’s cap-and-trade plan is about raising revenues, not cutting emissions,” said PC Finance critic Vic Fedeli.

The FAO report also outlined the fiscal impact of 4 different scenarios on the deficit, and it turns out that there are a variety of methods that the Liberals could use to influence the deficit, despite their assurances that the money would be placed in a separate account, not general revenues.

“Like we said from the beginning, cap-and-trade is a disingenuous shell game that will do nothing to reduce emissions” added PC Environment Critic Lisa Thompson. “The PC revenue neutral carbon price will be transparent; we will pay back every cent to Ontarians, not play games with their money.”

“This Liberal scheme is reckless, unrealistic, and has now been exposed for what it is, a cash grab. It is time for the government to work in the best interests of Ontarians, not the Liberal Party,” concluded Thompson.

To view Lisa’s question, click here:

The Financial Accountability Officer’s Cap and Trade: An Assessment of the Fiscal Impact of Cap and Trade Report can be found at the following link:

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