TORONTO -- Ontario's governing Liberals plan to bring in legislation in the new year to cap the salaries of senior executives in the broader public sector -- a key NDP demand.
The minority Liberals agreed to the New Democrats' request last spring in order to pass their budget and avoid an election.
If the legislation is passed, the Liberals say it would give them direct control over compensation -- including severance packages, as well as salaries and bonuses.
The New Democrats want the salaries of CEO's at Ontario hospitals, electrical utilities and other public sector agencies to be capped at $418,000, twice the premier's annual salary.
Ontario Power Generation CEO Tom Mitchell is Ontario's top paid public servant, collecting $1.7 million a year.
The minority Liberals say they're also seeking advice on making pension plans in the electricity sector "more affordable and sustainable."
They're asking Jim Leech, the outgoing head of the Ontario Teachers' Pension Plan, to make recommendations about pension plans at Hydro One, OPG, the Independent Electricity System Operator and the Electrical Safety Authority.
The Liberals say these pension plans generally require a lower share of contributions from employees while providing generous benefits, and the cost is being borne by ratepayers.
Leech will be looking at equal cost-sharing between employers and employees for ongoing contributions and more affordable pension benefits, the Liberals say.
The government, which is facing a nearly $12-billion deficit this year, says he'll also be looking at pooling assets of the plans.
The Liberals have been taking heat for cancelling two gas plants ahead of the 2011 election, which the province's auditor general says could cost up to $1.1 billion.
The government has forecast electricity rates will climb 33 per cent over the next three years as the province pays to refurbish existing nuclear reactors and contracts for more wind power.
