Greenhouse owners caught off guard

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Plans by the provincial government to reduce natural gas usage have concerned owners of Platinum Produce who use $1 million of the fuel each year to heat their greenhouses. The Communications Road firm is shovel-ready for an $18-million dollar but was caught off guard by the leak of cabinet documents.
Plans by the provincial government to reduce natural gas usage have concerned owners of Platinum Produce who use $1 million of the fuel each year to heat their greenhouses. The Communications Road firm is shovel-ready for an $18-million dollar but was caught off guard by the leak of cabinet documents.

Gerard Verbeek stands on the verge of a $16 to $18 million expansion at his Platinum Produce business and shakes his head at the thought that the province might be planning to force him to stop using natural gas.

“They can’t mean us, too, can they,” he asked of last week’s concern that the province aims to move away from natural gas for heating Ontario’s millions of homes and businesses.

“If they want us or any greenhouse operator to use electricity, they are putting us out of business,” he said. “It will mean the end of the greenhouse industry.”

Last week, the Globe and Mail obtained leaked copies of a $7 billion plan to reduce Ontario’s carbon footprint by eliminating the use of natural gas for heating, massive tax incentives and targets for electric automobiles and other items.

The plan lays out 80 policies that include phasing out natural gas heat and banning it in new homes by 2030 and all buildings by 2050.

It outlines billions in incentives for use of new technologies, the funding of which will be paid for from a cap-and-trade system in which carbon emissions are limited by government permits but can be purchased through government auctions.

Verbeek says he pays more than $1 million in natural gas heating costs on his Communication Road business.

“We have 50 acres now and we’re building another 20 acres immediately,” he said. “It’s a growing business but we have to watch our costs like anyone else. We can’t simply afford to switch. It would cost millions even if the rates were the same. Who’s going to pay for this?”

Verbeek employs 125 people and is always looking for more.

“If you’re prepared to work, we’re prepared to hire you,” he said. “I always need people.”

Lambton-Kent-Middlesex MPP Monte McNaughton said he was in total disbelief and shock when he heard about the plan.

“This issue by far has raised the most concern in the five years I’ve been an MPP,” he said. “We’re seeking public opinion and we had more than 2,500 people sign our online petition within the first five hours or so.”

McNaughton said the plan “shows how out of touch the government is. We have 76 per cent of all homes in Ontario heated by natural gas and the government wants them to convert and pay an additional $3,000 per year for electric heat.”

McNaughton said he’s heard from businesses, from greenhouse operators to utility giants.

“The sentiment is unanimous,” he said. “They can’t sustain the kinds of increases the premier wants. This action will destroy Ontario’s economy.”

He said the plan goes against the rest of North America which has recognized the value of natural gas as a cheap, reliable and affordable source of heat.

“It doesn’t even make sense when compared to the Liberal actions during the past decade as they’ve invested billions in 17 gas-fired hydro plants to prop up their inefficient and costly wind projects,” he said.

Chatham-Kent-Essex MPP Rick Nicholls received a raucous response when he raised the issue in the House.

“The anger from the government just shows me that this minister’s out of touch with the reality of life in Ontario,” he said. “Average Ontarians are having an enormous amount of difficulty paying their electricity bills and now they’re going to have to pay even more. They are outraged.”

Nicholls said a link on his website showing him being heckled received nearly 8,000 views and 200 shares within a few hours.

“It’s the worst I’ve seen in five years,” he said. “Seniors are worried about heating their homes, businesses are worried about where they’re going to get the money. It just goes on and on.”

He said he doubts money raised by cap and trade taxes will be used for incentives.

“I expect the money will be placed in general government coffers. It’s just a shell game to these people.”

He accused the government of “breaking faith” with the rural community.

“They’ve been telling the OFA (Ontario Federation of Farmers) they want to expand natural gas usage and then they come up with this. Who is going to trust them?”

Stuart McFadden, deputy director of economic development for Chatham-Kent, said he was shocked by the report.

“We have been working closely with the province for the past several years to promote the expansion of natural gas in our rural areas and especially for our agri-business sector,” he said. “This comes out of left field as far as we’re concerned. There was no hint whatsoever of this change in direction. From my understanding, members of the government had no idea.”

McFadden said the greenhouse industry is one of the fastest growing sectors of the agri-economy.

“When you look at the millions of dollars invested and see what this plan would place in jeopardy, it’s shocking. I hope this is some form of first draft.”

 

Mayor Randy Hope didn’t respond to a request for an interview.

4 COMMENTS

  1. I think the next time we vote for a leader in Ontario we should correct the mistake that the uninformed voters made last time around and keep the liberal party out of Ontario, the downward spiral they have us in is very unnecessary for the biggest money making province in the whole country.

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