To the editor:
The recent announcement by the provincial government that they will cut our hydro costs by 25 per cent, the largest cut in Canadian history deserves some critical assessment.
The Canadian Jewelers Association warned people about similar big discounts, some 30 years ago, with the slogan, "50 per cent off what ?"
I continue to warn people about these big discounts, that appear to be great savings, however they are not..
Last year I received a phone call from a client visiting Toronto, asking me about a gold chain that was being offered at 50 per cent off the market price. A gold chain was marked at more than$800 and was now on special for $400.
I asked the caller to find out what they were really buying and paying for. When buying gold jewelry, the weight is a prime factor, as is the karat of the gold, and the quality of the finish, and manufacturer. The caller told me that the seller would not tell them the weight.
The customer eventually bought the piece, and brought the chain to me. I examined it and determined that our regular price would be $250. So beware of these discounts.
Well along comes the provincial government with their 25 per cent off sale on hydro. Is it a good deal?
Well, take another look at some comparatives. The average cost for hydro in Ontario is a total of $239.23 for 1,000 kilowatt hours
Compare that to a total of $81.38 for 1,000 KwH in Manitoba. In Quebec the average cost is $89.62 for 10,00 kilowatt hours.
Ontario hydro is 194 per cent higher than the rates in Manitoba, in part by many flawed decisions of the past 30 years, that have to be passed onto the people of this province.
Ontario would have to get a 67 per cent discount, not 25 per cent, to be the same as the hydro rates in Manitoba and Quebec.
So the lesson is that we should beware of statistics and political truths, even if they are based on some truths, they can be misleading.
Caesar J. B. Squitti
Thunder Bay
