TORONTO — The Ford government is refusing to disclose how much money taxpayers could be on the hook for in its cancellation of a $100-million contract with Elon Musk’s Starlink to provide satellite internet to thousands of Ontario homes and businesses.
"We have cancelled the contract, and we're ongoing work to figure out a Canadian alternative," Minister of Energy and Mines Stephen Lecce said at an unrelated press conference on Wednesday morning.
Asked repeatedly by a reporter about the contract and any penalties for breaking it, Lecce wouldn't say.
"I can confirm that the premier has fulfilled his word, which is to cancel that contract because of the very reasons he cited in the past. We are standing up for Canada," he said, and went on to list actions the province has taken in the trade war against the U.S., including taking American alcohol off the shelves of the LCBO and reducing procurement from American companies.
Questions sent to the premier's office following the press conference about the contract and any penalties were responded to by Lecce's spokesperson with a similar statement.
Global News reported on Wednesday that there was a fee for cancelling the deal, but that, according to a government source, it was much less than the planned cost of the agreement.
The province's initial deal, announced shortly after the U.S. election in November, would have seen Ontario pay Musk's Starlink $100 million to provide satellite internet hookups to 15,000 remote homes and businesses.
The deal raised some eyebrows at the time — it broke down to $6,667 per connection and recipients would have still had to pay monthly fees — while Starlink kits retail for about $500. A government spokesperson told Village Media at the time that up to $92 million of the cost would “cover capacity reservation from Starlink for Ontario, hardware and installation costs, and (an) Indigenous Engagement and Participation Plan.”
Prior to Ford triggering Ontario's February election and amid tariff threats from U.S. President Donald Trump, the provincial Liberals called on the government to cancel its "sweetheart deal with Elon Musk."
"Why did Doug cozy up to Elon in the first place? This is a destructive man child who proudly styles his leadership after a dictator, and is championing the 25 per cent tariff on Canada," Liberal Leader Bonnie Crombie said on Jan. 22 of Musk, who at the time was an adviser to Trump.
Asked about the call by The Trillium at a press conference on Jan. 24, Premier Doug Ford defended his government's decision to strike a deal with Musk's Starlink, but said he'd "keep an eye on that."
The province's decision on the status of the contract changed alongside the constant shift in U.S. tariffs.
As Trump's tariffs of 25 per cent on Canadian goods and 10 per cent on energy were supposed to hit in early February, Ford announced the province was "ripping up" its contract with Starlink. But when the levies were paused, a government spokesperson said the contract would proceed “for now.”
When the U.S. carried through on its tariffs, the premier again announced in March that he would cancel the deal, saying "not that $100 million makes a difference for them, but it's principle."
—With files from Jessica Smith Cross
