It’s not surprising that those businesses trying to get rich off the Mc-Guinty Green Energy Act are coming out swinging after Tim Hudak’s announcement that he will cancel the $7 billion, 20-year contact with Samsung and kill the costly Feedin Tariff program. Their jobs are at stake.
These green energy supporters claim the renewable energy schemes will generate jobs and economic activity. What they don’t say is that subsidizing renewable energy results in a net loss of jobs.
European countries have been heavily subsidizing renewable energy projects for a decade. Studies show that for every green energy job created, two to three jobs are lost in the broader economy (2.2 in Spain; 3.7 in the U.K.)
The current global financial crisis is forcing Germany, Spain, the U.K. and California to back away from their green energy gambits. They’ve decided that the negligible returns from renewable energy simply don’t justify the massive subsidies required to support them.
Wind and solar energy are not viable without big government subsidies. These subsidies suck up tax dollars and push up electricity rates, both of which have a negative impact on the economy and job creation.
Faced with rising taxes and electricity costs, businesses struggle just to maintain their employment levels, never mind growing their workforce. Many will shut down.
Some will migrate to more business-friendly jurisdictions. Others will lay off workers.
McGuinty himself warned that electricity costs will rise another 45 per cent in the next five years, largely due to his heavy subsidization of wind and solar energy.
Hudak is right. The Samsung deal, which was signed in secret and without any competition, should be terminated, along with the entire FIT program.
We should also demand an immediate moratorium on signing any new FIT contracts and a public review of the Samsung contract. Hydro consumers deserve nothing less.
Emma McLennan, Ottawa