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Reports from Kincardine News and Toronto Star

OPG garnishees IDRA accounts
By Marie Wilson --- Kincardine News staff -- May 14, 2003

When Ontario Power Generation (OPG) garnisheed $28,071.63 from the Inverhuron District Ratepayers' Association (IDRA) in January for court awarded costs, it wasn't aware the majority of that sum was earmarked to go to the Ministry of Natural Resources (MNR).
Although both IDRA and the MNR have requested that the MNR portion ($25,587.02) be given back, Terry Squire, senior manager of OPG Communications and Public Affairs, said all of the money has since be redistributed to local charities within the Kincardine and Saugeen Shores areas.
"Every cent was donated back to the community to important organizations such as the medical clinics, hospitals and food banks," he said.
Squire said OPG has "a responsibility to its shareholder (province) and ultimately the taxpayers to ensure there is some redress for litigation which is deemed by the courts to have no merit."
The court appointed award of $33,148.10 for costs to OPG was made after the IDRA failed to gain an independent environmental assessment of OPG¹s new dry storage high level waste facility at the Bruce nuclear complex and a subsequent appeal of that ruling failed as well as an application to have the case heard by the Supreme Court. The federal government was also awarded $23,000 in costs.
Garnishment for six years
IDRA was notified Jan. 31, 2003 that funds from its general account ($2,484.61) as well as those from a dormant account the association was holding for the MNR ($25,587.02) were lifted; the garnishment is in place for six years.
Peter Aunger, IDRA president since October, said the money, slated for the MNR, was intended for improvements to Inverhuron Park. It was collected as part of a formal agreement between IDRA and MNR, in place from June 1996 to March 2001, after the MNR suffered deep budget cuts that had threatened the closure of the park. Volunteer members of the IDRA agreed to collect, log and bank gate receipts from the park on behalf of MNR. In return, IDRA was allowed to keep 30 per cent of the revenue while the remainder was targeted to be used by the MNR for the benefit of the park.
The money in the dormant account wasn't set up as a trust fund and although cheques on the account said "IDRA park partnership account", there wasn't anything to formally identify the contents as MNR funds when the garnishment came through.
"The funds were only registered in the name of IDRA," said Squire. "There was nothing to indicate that the money belonged to MNR."
Wants money back
Chris Tomsett, park superintendent for Inverhuron and MacGregor Point Parks, said May 9 that the MNR has explained the situation to OPG and asked for the money back. A copy of the agreement between MNR and IDRA has also been forwarded to OPG.
The MNR hasn't received the money back yet, and Tomsett was unwilling to comment on whether or not he believes the money will be returned.
"We are currently working with OPG and IDRA on this," he said, adding that the issue is being reviewed by legal counsel.
"We made a commitment to IDRA to work on the trail system with the funds, but the project was put on hold because of the current development at the park," he said (The park is being redeveloped to offer overnight camping again).
Tomsett wasn't willing to discuss the make-up of the bank account pending legal review.
Normand de la Chevrotiere, former IDRA president who spearheaded the organization through the court cases, said the IDRA was surprised by the amount of money left in the dormant account.
"We thought that the money would have been cleaned out long ago (the agreement with MNR expired in 2001)," he said.
"It's a very unfortunate situation. We have provided documentation to prove the funds belong to the MNR, and we are very disappointed that OPG to date hasn't returned the money. You have to ask why they haven't ", he said.
Organization may fold
The return of the funds to MNR isn't the only issue of concern to IDRA.
A special meeting of the membership has been called for May 18 at McIntyre Park (Lions Hall Tiverton, inclement weather) to discuss the future of the community organization which dates back to the 1940s.
Aunger said the organization is currently on the brink and may dissolve.
"After next weekend there may be no organization because we don't have any operating funds," he said.
IDRA's insurance for public liability expires on Jun. 30 and 2003 membership fees are due, but any funds forthcoming will be lifted as long as the six-year garnishment is in place, he said.
"We are essentially out of existence unless that garnishment is lifted," he said.
In a Mar. 26 letter to Squire, Aunger states: "The recent action of OPG to garnishee IDRA's last $2,484.61 is an extreme measure that will effectively force IDRA into bankruptcy. As a result, many valuable community services such as safe public swimming programs and popular social events like the corn roast (485 attendees this past season) and children's Canada Day will no longer take place."
With the seizure of funds to date, IDRA currently owes OPG a remaining $5,000 for awarded court costs.
When asked why the organization wouldn't pass the hat to pay OPG off, Aunger said it isn't that simple.
"If we pay off OPG we will still owe the MNR the $25,000 plus there's the federal costs of $23,000," he said. "They haven't come after us yet, but they may."
Aunger said he and de la Chevrotiere met with Ken Nash, OPG¹s vice-president nuclear waste management, and Squire in Orangeville on Apr. 30 to discuss the current situation.
Aunger said his take from the meeting was that OPG may be willing to lift the garnishment if IDRA is willing to make a formal written commitment that it will not pursue any future legal action against OPG.
"We tried to emphasize that we are creatures of the organization (IDRA) and we can't commit to anything contrary to our constitution," Aunger said.
Under the IDRA constitution, the group is to make representation to municipal, provincial and federal governments on issues that pertain to the Inverhuron area.
However, Aunger said the organization wishes to return simply to a beach organization and no one has any intention in the foreseeable future of further legal action against OPG.
de la Chevrotiere echoed Aunger¹s sentiments.
"We just want to survive and see our community organization go forth. There are no plans to launch any litigation against OPG," he said. "I know I'm not willing to lead the charge."
Responsibility to taxpayers
Squire said the whole issue of the garnishment must be looked at in context of the original court case and the intent of the IDRA.
He said IDRA's challenge threatened the used fuel dry storage facility--a project vital to the whole area because it assured the continued operation of the Bruce reactors.
Squire went on to say the EA concluded the storage facility didn't represent any significant impact to the environment yet IDRA continued with its court challenges.
"At three levels of judiciary challenges, no new substantial evidence was submitted by IDRA and at each stage of the process, it was warned that OPG would be seeking legal costs," he said.

May. 15, 2003. 01:00 AM
 
OPG accused of taking park cash
Ratepayers in dispute over nuclear waste

Hydro generator garnishees group's bank accounts


JOHN SPEARS
BUSINESS REPORTER TORONTO STAR

A Bruce County ratepayers group says that Ontario Power Generation has appropriated more than $25,000 that the ratepayers held in trust for Ontario's Ministry Of Natural Resources for upkeep of Inverhuron Provincial Park.

OPG, the provincial government's electricity-generating company, says it took over the money through a legal garnishee, and that the money was not earmarked as belonging to the ministry.

But a member of the ratepayers' group said he has obtained bank records that clearly indicate the money belongs to the ministry for park use.

The money migrated as part of a legal battle by the Inverhuron and District Ratepayers Association against OPG's plans for a nuclear waste disposal facility near the Bruce nuclear reactors north of Kincardine.

The ratepayers lost, and a court ordered them to pay the legal costs run up by several federal and provincial agencies totalling close to $60,000. OPG's share was $33,000.

When the ratepayers said they didn't have the money to pay, the court garnisheed their accounts and turned the money over to OPG.

The company got $2,484.61 in the ratepayers' own account.

But OPG also was given $25,587.02 that the Inverhuron ratepayers were holding in a separate account on behalf of the ministry of natural resources.

The ratepayers had accumulated the money for the ministry under a contracting arrangement whereby ratepayer volunteers had collected fees from park users and performed other duties in the park. Under the agreement, that money was earmarked for projects within Inverhuron park itself.

Peter Aunger, president of the ratepayers' association, acknowledged that the account with the ministry's money wasn't a formal trust account, but said it had been set up solely for the purpose of administering ministry money.

John Earl, spokesperson for OPG, said the money was taken by due process, and the funds were held in the name of the ratepayers' group, the IDRA.

"There was nothing to show it was anything other than an IDRA account," he said.

But Bob MacKenzie, a member of the ratepayers' group, said bank records clearly show the money was intended for the natural resources ministry.

MacKenzie — who helped negotiate the original agreement with the ministry —obtained account information from the Kincardine bank branch where the money was held.

A print-out of the account record shows it is held under the name: "Inverhuron & District Ratepayers Association (Capital M.N.R.)" M.N.R. is a common short form for the Ministry of Natural Resources.

A record in the bank file dealing with the account contains a hand-written note reading "In trust re: Inverhuron Park."

MacKenzie is worried that OPG will pressure the ratepayers to back away from mounting any further opposition to OPG activities — notably plans to set up a permanent storage site for low level radioactive waste near the park.

Park superintendent Chris Tomsett said the ministry believes the money is theirs, and "we're looking into our options about getting it back."