Ontario trying to duck public scrutiny on Hydro One with latest legal move, CUPE says
CUPE filed a lawsuit to stop further privatizing of Hydro One. On Tuesday, it received the motion to strike down the lawsuit instead of a statement of defence.

thestar.com
By Rob Ferguson
Feb. 1, 2017

The Ontario government is seeking to dismiss a lawsuit aimed at stopping the further sale of shares of Hydro One in an “attempt to avoid a public trial,” says the Canadian Union of Public Employees.

CUPE filed the malfeasance suit in early December against Premier Kathleen Wynne and two cabinet ministers, calling the former Crown utility a “vital asset” the Liberal government has “no mandate” to sell.

“It’s not surprising that they want to try and stop the public spotlight this case will bring to their actions,” Fred Hahn, president of CUPE Ontario, said Wednesday.

In the suit, CUPE claims the government was in a conflict of interest by holding political fundraisers - including one at $7,500 per ticket - where cabinet ministers mingled with investment bankers hoping to win lucrative contracts to handle the share offerings.

Energy Minister Glen Thibeault’s office said in a statement later Wednesday that the lawsuit IS “an abuse of the court process” because Ontario’s integrity commissioner has already ruled there was no wrongdoing with the fundraisers.

The government defends the sale as a way to raise $9 billion to pay down debt in the hydro system and bankroll improvements to public transit.

“It allows us to significantly invest $4 billion in critical infrastructure without raising taxes, increasing debt, or recklessly cutting public services,” added the statement from Thibeault’s office.

CUPE said it had expected the province to file a statement of defence but received the motion to strike down the lawsuit late Tuesday.

“We’re confident they won’t be successful in their attempt to have the suit dismissed and strongly believe that it is in everyone’s best interest that this case to proceed to trial before the next election,” said Hahn.

“Privatizing our hydro system only hurts the people of Ontario in the long-run. If anyone may have benefitted from the sale of shares, that is simply wrong and the courts need to have the chance to review the evidence.”

About half the Hydro One shares designated for sale have been sold on the stock market.

No date has been set for the sale of another tranche of shares, which depend on market conditions. Hydro One shares closed at $23.72 on the Toronto Stock Exchange, down 33 cents. The stock has traded between $26.80 but and $21.90 in the last 52 weeks.

Under the privatization, no one private shareholder is allowed to hold more than 10 per cent of the shares, which leaves the province as the largest single shareholder with 40 per cent once the transactions are complete.

CUPE said it will move quickly to have the court rule on the government’s motion to strike down the lawsuit in hopes of proceeding to trial.

“In the meantime, we are counting on the Premier to hold off on any further sale of Hydro One shares until the court has been able to hear the case,” said Hahn. “The people of Ontario still own the majority of shares and the vast majority of Ontarians want to keep it that way.”