Northern Development and Mines Minister Michael Gravelle has responded to criticism from north shore mayors over changes to a government plan to expand access to natural gas.
On Monday, mayors of several communities issued a joint news release saying the viability of the project had been jeopardized by a decision to provide $100 million dollars in grants rather than a combination of grants and loans totalling $230 million.
The grants will support the expansion of natural gas service to northern, small and rural communities not presently served.
Gravelle has issued a written statement that said the government had heard "that grants, not loans, are needed to have meaningful expansion of natural gas in Ontario. The grant funding for the program will more than triple from $30 million to $100 million."
The minister said the grant program has the potential to help households and businesses save up to $1,500 in heating costs every year.
"Municipalities and First Nations here in the Northwest will be able to work with utilities to bring forward proposals under a competitive intake process," he said.
Gravelle said the program will be launched in the spring with more details to follow at that time.
His statement noted that the Northern Ontario Heritage Fund Corporation had provided money for a feasibility study to bring liquefied natural gas to north shore communities.
The mayors of Schreiber, Terrace Bay, Marathon, Manitouwadge and Wawa pointed out yesterday that their municipalities have been working with a Toronto company on that project, and that the study identified energy savings of more than $6 million a year if it went ahead.
Terrace Bay Mayor George David said the change to the government funding "will no doubt affect our ongoing LNG project."
