TORONTO

Three of Ontario’s powerhouse public assets could be up for grabs.

Ontario Finance Minister Charles Sousa announced Friday his government will establish a council led by a banker to suggest ways to boost the return for the taxpayer shareholders of Ontario Power Generation (OPG), Hydro One and the LCBO.

Selling off part or all of the companies has not been ruled out, although the council has been told to give preference to proposals that would leave the assets in public hands.

“They’re going to assess what’s the best use of those assets and who should own them,” Sousa said. “These are core public assets. We want to make sure that they’re maximizing (their) use for the public good.”

In a speech to the Economic Club, Sousa said other jurisdictions such as Australia and the United Kingdom have used the sale of public assets to invest in new projects.

Ontario would put any proceeds from more efficient governance, corporate reorganizations, mergers, acquisitions or public-private partnerships into a special fund to pay for infrastructure, including new transit, he said.

“This is not about the deficit,” Sousa said. “This is about reinvesting and maximizing the potential of those assets.”

The panel could consider whether the LCBO should own its stores or whether private sector partners should be brought in to sell alcohol, he said.

Privately-owned Bruce Power has shown an interest in operating OPG’s nuclear fleet, and Sousa did not dismiss the idea outright.

The government is also evaluating its GM shares, purchased during the auto sector bailout of a few years ago, and the real estate portfolio of the public corporations for possible immediate sale, he said.

But Sousa said he doesn’t need a panel to advise him that selling the head offices for OPG and LCBO on prime real estate in Toronto is a good idea.

In his speech, which comes before a spring budget expected in weeks, the finance minister also confirmed that Ontario will expand its high occupancy vehicle (HOV) lanes on Hwy. 401, build a new four-lane alignment of Hwy. 7 between Kitchener and Guelph, and move ahead with a Toronto consolidated courthouse and new OPP detachments across the province.

NDP MPP Peter Tabuns said the government is embarking on a process to privatize key public assets — a move that will lead to higher hydro rates and less government revenue.

“I thought people learned from the sale of (Hwy.) 407, not only was that fire sale bad for us in terms of our finances but people get dinged every day by a company that’s charging the maximum the market will bear,” Tabuns said. “That’s what will happen when these assets get sold too.”

Tabuns said the NDP will not support a provincial budget that includes any privatization measures.

Without NDP backing of the budget, the Kathleen Wynne governmentr will likely fall this spring.

PC MPP Vic Fedeli said the announcement is political cover for a Liberal budget that will increase spending, rather than a sincere effort by Sousa to make better use of public assets.

“It’s just another panel that they’re going to ignore,” Fedeli said.

The panel is led by Ed Clark, CEO of TD Bank Group, and members are David Denison, former CEO of Canada Pension Plan Investment Board; Janet Ecker, a former Tory cabinet minister and CEO of Toronto Financial Services Alliance; Ellis Jacob, CEO of Cineplex Entertainment; and Frances Lankin, former NDP cabinet minister and a director of the Ontario Lottery and Gaming Corporation (OLG).