The Ontario New Democrats are crying foul after it learned the province spent $231-million last year to tear up hundreds of renewable energy contracts.
The PC government cancelled the contracts last July after winning the provincial election, claiming it would ultimately save taxpayers $790-million — that figure has been disputed by industry officials.
Essex NDP MPP Taras Natyshak says cancelling contracts of any kind costs taxpayers' money.
"That was associated with the 750 green energy contracts that had been previously entered into and the cost to cancel those contracts," says Natyshak.
Speaking on AM800's 'The Afternoon News,' he believes that money could have been better spent in other areas like in overcrowded hospitals, more long-term care beds or to help kids with autism.
Natyshak says this has happened before.
"It is a ploy that we have seen before in this place, when the previous {Liberal} government cancelled gas plants to the tune of $1.2-billion. So it seems as though in the province of Ontario, if you have a contract with the government, they can easily buy their way out of it but unfortunately it is the taxpayers who have to pay the price," he says.
Natyshak says contracts have an end date and if it isn't critical to exit them, the taxpayers shouldn't be on the hook.
"That's not the way the free market system and commerce in a democracy works. If you are going to exit a contract you are going to pay a penalty and there is other indications of where we are seeing that, they are looking to exit the contract with the Beer Store which could potentially cost taxpayers a billion dollars," he points out.
Associate Energy Minister Bill Walker defended the cost, blaming the previous Liberal government for signing the deals while the province had an oversupply of electricity.
Natyshak says taxpayers deserve better.
"To just flush $231-million down the drain is unacceptable and we would hope better from this government but we certainly haven't been able to count on that," he added.
At the time the government cancelled the contract, it said it would introduce legislation that would protect hydro consumers from any costs incurred from the cancellation.
Walker said Tuesday that provincial taxpayers will foot the bill for the cancelled contracts, not hydro customers.
With files from Patty Handysides and the Canadian Press