Premier Dalton McGuinty personally pushed for the recycling program that led to eco fees on consumer products despite objections from at least five of his cabinet ministers, sources told the Star.

Government insiders said at the February 2008 cabinet meeting, where the doomed scheme was approved, ministers loudly railed against it, fearing political damage to the Liberals.

The senior minister who led the charge warned the premier the policy could spark a backlash if eco fees were slapped directly on products.

“We can’t do this fast enough,” countered McGuinty, who had been re-elected with a second massive majority government just four months earlier.

But the minister, whose identity is being protected because cabinet discussions are secret, stood his ground.

He predicted it would be a big mistake to effectively cede taxing powers to Stewardship Ontario, an arm’s-length industry group empowered by Queen’s Park to oversee recycling.

The revelations undermine the government’s claim it was caught off guard by the fallout over the eco fees that came into effect on July 1. The fees were scrapped July 20 amid public outcry and a replacement program will be launched by Oct. 18, 2010.

Emboldened by their colleague’s stance at the 2008 meeting, several other senior ministers joined the crusade, expressing concern the Liberals would be seen as “nickel-and-diming” consumers.

The veterans — all of whom worked with McGuinty in opposition and remain loyal to him — said while charging fees to pay for recycling sounded noble, it would be a tough sell.

That they took that position more than one year before the premier foisted the 13 per cent harmonized sales tax on cabinet was especially prescient.

Other than Environment Minister John Gerretsen, only two cabinet members spoke out in favour of the premier’s proposal.

“John was persuaded this was the way to go and it was clear he had Dalton’s full support,” recalled one of several witnesses contacted by the Star.

“Almost everyone else was skeptical.”

While McGuinty forged ahead, imposing the first wave of eco fees on paint, anti-freeze, and fertilizers on July 1, 2008, other Liberals were, behind the scenes, flagging potential problems with the stewardship program.

With the most recent round of eco fees looming, the premier’s office was cautioned earlier this year against proceeding.

Liberals working in various industries affected by the charges had implored their friends at Queen’s Park to reconsider the plan, which they said could lead to higher prices for consumers.

They also said the double-whammy of the eco fees and the HST, which blended the old 8 per cent provincial sales tax and the 5 per cent federal GST, being launched on July 1 could be explosive.

That was indeed the case. The HST, which was successfully promoted by Revenue Minister John Wilkinson, was introduced to relatively little fanfare.

In contrast, eco fees — ranging from a penny to $6.66 on thousands of household products, such as bleach, hand sanitizer, and fire extinguishers — left Ontarians feeling ambushed.

Some retailers had trouble calculating the levies, which led to shoppers being overcharged and Stewardship Ontario was blamed for bungling the eco-fee rollout.

“We failed to bring adequate oversight to Stewardship Ontario to make sure they got it right and they provided the best possible communications plan to Ontarians,” a contrite McGuinty said last week.

“I think that we have been a little less than successful when it comes to execution on our programs,” he said July 27.

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“But I will also say if we don’t get something right, I want to assure Ontarians we do listen. We will learn. And we’ll take necessary steps to pull something off the shelves, improve it and make it better.”

As of Thursday, the Liberals have 74 days to come up with a successor program to the fees on toxic household products.

In the meantime, provincial taxpayers are footing the $5 million recycling tab to ensure Stewardship Ontario can keep diverting hazardous waste from landfill sites.

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