Mayor John Tory's Toronto

[jje1000]

Yet another Globe article calling for the sale of Toronto Hydro. This one is behind a paywall, unfortunately.

Sell Toronto Hydro, because we’ll get top dollar
by Tim Kiladze

http://www.theglobeandmail.com/repo...-because-well-get-top-dollar/article32111393/

 

[Soop]

Yet another Globe article calling for the sale of Toronto Hydro. This one is behind a paywall, unfortunately.

Here's a non-pay version
http://www.pressreader.com/canada/the-globe-and-mail-bc-edition/20160929/281526520545133

 

[rbt]

Here's a non-pay version
http://www.pressreader.com/canada/the-globe-and-mail-bc-edition/20160929/281526520545133

Wow. An expected value of $3.8B and dividends were $61M/year (1.6%). If those kinds of numbers are true then a sell-off is an incredibly easy decision to make.

The 10 year capital budget has Toronto taking on $4.457B in debt and paying around $155M/year (3.5% for long-term debt) in interest on it.

 

[W. K. Lis]

Wow. An expected value of $3.8B and dividends were $61M/year (1.6%). If those kinds of numbers are true then a sell-off is an incredibly easy decision to make.

The 10 year capital budget has Toronto taking on $4.457B in debt and paying around $155M/year (3.5% for long-term debt) in interest on it.

If they sell Toronto Hydro, I'll expect the new owners will ask for an increase in electricity rates to get a higher return. In other words, maybe if we increase the rates now instead of later, we'll get better dividends (does Toronto pay income taxes?) towards the city.

 

[TheTigerMaster]

I say Tory continuing to push forward on a Hydro sale is a terrible enough decision to make him deserving of the "worst mayor in the history of Amalgamated Toronto" award. This is a colossally terrible decision.

 

[salsa]

Wow. An expected value of $3.8B and dividends were $61M/year (1.6%). If those kinds of numbers are true then a sell-off is an incredibly easy decision to make.

Once you sell an asset, it's gone for good. Toronto needs to stop relying on one-time sell offs to pay for everything.

 

[pman]

Once you sell an asset, it's gone for good. Toronto needs to stop relying on one-time sell offs to pay for everything.

Isn't the idea to use the proceeds to fund acquisition of a different asset? I can't imagine any Canadian government actually returning the proceeds of asset sales to taxpayers, so the City's net asset position won't change. Admittedly Council always wants to spend money on projects with no economic return, like east Gardiner and SSE, which kind of negates the case for selling TH. But if our political brain trust were ever capable of making sensible investments, then selling off something yielding 1.6% wouldn't be such a bad way of funding them. OK, fair enough, that'll never happen.

 

[rbt]

If they sell Toronto Hydro, I'll expect the new owners will ask for an increase in electricity rates to get a higher return. In other words, maybe if we increase the rates now instead of later, we'll get better dividends (does Toronto pay income taxes?) towards the city.

Sure, but the current owners have also been asking for higher rates in each of the last 8 or so years too.

 

[rbt]

Once you sell an asset, it's gone for good.

That's not really true; you can take on debt and buy it back again. You do whatever makes sense financially at the time.

IMO, Toronto shouldn't be subsidizing Toronto Hydro rates. Either the dividend needs to increase to something more reasonable or it should be dumped and debt taken off the books.

Look at it the other way. Would we borrow $3.8B for $60M/year repayment?

 

[salsa]

John Tory cut the TCHC budget, then voted against protecting social programs from his mandatory cuts, and now he has the gall to make this statement as he asks for more money from the Wynn government.

And before he said that he again told us how property tax payers can't finance this.

 

[DSC]

I say Tory continuing to push forward on a Hydro sale is a terrible enough decision to make him deserving of the "worst mayor in the history of Amalgamated Toronto" award. This is a colossally terrible decision.

Worse than Ford? I am not really in favour of Hydro sale BUT if money was ONLY used for transit and housing I might be convinced.

 

[W. K. Lis]

John Tory is mini-Ford.

 

[Videodrome]

The difference is that council doesn't reject everything he does.

 

[TheTigerMaster]

Worse than Ford? I am not really in favour of Hydro sale BUT if money was ONLY used for transit and housing I might be convinced.

There's something about a respected, eloquently spoken, non drug addicted WASP that makes him more destructive than Rob Ford could ever dream of being. Ford had crazy ideas, but never had intelligence, strategy or temperament to see them implemented. This hydro sale is where I believe Tory's policies will inflict greater long term damage to our city than Ford's.

 

[freshcutgrass]

IMO, Toronto shouldn't be subsidizing Toronto Hydro rates. Either the dividend needs to increase to something more reasonable or it should be dumped and debt taken off the books.

In a sensible society, certain public services are left off the table for a good reason....to protect it from the instabilities of capitalism. Public utilities are one of them. Public services are not businesses, and cannot, and should not be run like one.

I can guarantee you that this notion has never seen the inside of John Tory's skull.