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Spain threatening Canada over Highway 407 dispute
Ontario premier says fight
against 99-year privatization deal will continue
Toronto - The Spanish government is threatening action against
Canada if the province of Ontario does anything to interfere with
Highway 407, the private highway now run by a Spanish-led
conglomerate as the result of a 99-year lease granted by former
Tory premier Mike Harris.
Spain has indicated that it is prepared to veto a proposed trade
agreement between Canada and the European Union because of the
Ontario government's decision to fight Grupo Ferrovial SA's toll
increases on the highway. |
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Mike Harris
sold out the interests of Ontario residents until 2098 |
Reports say Canada has been told informally that the Spanish
government will scuttle talks on a Trade and Investment Enhancement
Agreement with the EU before they begin unless Ontario backs down in
the dispute with 407 ETR, the company that operates the highway.
Ontario Premier Dalton McGuinty says he will not be intimidated by the
threat, arguing that Spain must recognize the responsibility of the
province to protect the interests of citizens. "They would understand
that we have the legitimate right to pursue the (matter) before the
courts," the premier said.
An arbitrator ruled earlier this year that the consortium has the
right, spelled out in a 600-page contract negotiated and signed by the
Harris government, to set whatever tolls it likes until the deal
expires in 2098.
"The people connected with the highway maintain that the deal they got
from the Conservative government said that they effectively had the
unilateral right to raise tolls for the next 94 years," McGuinty said.
"We see it differently."
Privately, some Ontario government officials say there is another
reason that they believe Spain will ultimately be reasonable about the
matter. In 2003, Ontario residents consumed 1.6 million litres of
Spanish wine, all sold through the provincially owned Liquor Control
Board of Ontario.
Web posted by NUPGE:
13 August 2004
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