Nipissing MPP Vic Fedeli announced the Conservative party Northern plan, Friday at J&J Machine Works. (MARIA CALABRESE The Nugget)

NORTH BAY - Severance, pensions and other liabilities could cost the province more than $500 million if the Liberal government goes ahead with the Ontario Northland Transportation Commission sale, says Nipissing MPP Vic Fedeli.

“I think they have provided a false scenario to Northern Ontario, a false scenario in their budget, and I intend to prove it,” Fedeli said during an announcement Friday to introduce the PC party's Northern plan ahead of the provincial budget May 2.

Fedeli repeated calls to stop ONTC divestment, review the Crown corporation's assets and guarantee rail freight will not be privatized.

He has brought in Ontario's auditor general to review ONTC financial statements and believes pensions, benefits and workers' compensation would wipe out the $265 million the province estimates it will save in the sale, and doubles that cost when it comes to offering severances to the hundreds of workers who could lose their jobs.

Boosting economic development was the underlying message in the Conservative Northern plan, released simultaneously by leader Tim Hudak in Thunder Bay and by Fedeli in North Bay.

Fedeli said the Conservatives would boost the economy by lowering corporate taxes and energy costs for industry.

He suggested one of the reasons Sandvik left North Bay, at a cost of 70 jobs, and relocated to New Brunswick was due to energy costs.

Sandvik, which manufactures mining equipment, had planned to reduce staffing at various sites in other countries and said it relocated to the East Coast as part of its restructuring plan.

Fedeli made his announcement at J&J Machine Works on Commerce Crescent, a fabrication and custom machining business that manufactures long toms used for tunnelling and mining narrow veins of gold.

Energy costs are skyrocketing, and that's having an impact on how many workers can be hired, said Brian Heltcher, secretary treasurer at J&J Machine Works.

“Energy costs are a tremendous factor that we have to keep a close eye on,” Heltcher said.

The business has been operating for the past 40 years, and Heltcher has been involved with the company for the past eight years.

He said red tape has placed a noose around the mining sector in Ontario by making it difficult to start up projects, and that's impacting manufacturers.

Fedeli said the Conservatives would reduce government red tape by 30% during their first term by eliminating duplication between ministries when it comes to establishing mines, environmental assessments and other legislation that tie up development.

He said the Ring of Fire has become dormant with no progress to build infrastructure to bring in workers and start mining chromite, copper, nickel and zinc found at the site in the James Bay Lowlands.

“Those are the resources that are needed all over the world,” Fedeli said.

The party would also repeal the Far North Act and open the area to mining exploration and forestry.

He accused the Liberals of treating much of Northern Ontario like a museum with no access to its natural resources.

Fedeli said his party would share resource revenue and mining taxes with host municipalities and host First Nations, and kick start the mining, forestry and manufacturing sectors.

Premier Kathleen Wynne was in Barrie on Friday to announce $100 million for roads and bridges in rural and Northern Ontario.

She promised more details in next week's provincial budget.

maria.calabrese@sunmedia.ca