Ontario government wants Hydro One lawsuit dismissed

The Ontario government is trying to get a lawsuit overthe partial sale of Hydro One thrown out of court.

The Canadian Union of Public Employees' lawsuit is aimed atstopping the sale of any more shares in the giant electricitytransmission utility -- about 30 per cent has been sold and thegovernment plans to sell another 30 per cent of the formerly publicutility.

A spokesman for the energy minister says the government has givenCUPE notice that it will be filing a motion to strike the case.

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CUPE Ontario president Fred Hahn says avoiding a trial is anotherway the government is trying to avoid public scrutiny of theprivatization.

But the government's position is that because the IntegrityCommissioner already addressed the matter, the lawsuit is an abuseof process.

CUPE alleges the Liberals inappropriately mixed government and party business by holding fundraisers with cabinet ministers,including one $7,500-a-ticket event with Sousa and Chiarelli thatwas attended by bankers who profited from the privatization of HydroOne.

Integrity Commissioner J. David Wake found that Finance MinisterCharles Sousa and then-energy minister Bob Chiarelli may havebenefited politically by attending the fundraiser with bankersinvolved with the sale of Hydro One, but they didn't contravene theMembers' Integrity Act.

However, he also said the legislature should consider clarifyingthe law to include the apparent conflicts of interest, not justactual ones.

Chiarelli insisted there was no specific government businessdiscussed at the fundraiser. The government has also filed a notice of intent to defend the lawsuit.

The partial sale of Hydro One is intended to raise a total of $9billion to pay down debt and to fund public transit and
infrastructure projects.

The province has raised about $3.8 billion so far from selling shares, but also gained another $3 billion from a deferred tax assetbenefit, a special dividend and payment-in-lieu of taxes as part ofthe privatization process.