NIPISSING – A pair of Northern Ontario MPPs say fear is what they heard during a round of consultations across the northeast last week.

Nipissing MPP Vic Fedeli and Parry Sound/Muskoka MPP Norm Miller returned from their trip on Thursday saying industry in Northern Ontario is very uncertain about its future in the wake of the provincial government’s decision to sell off the Ontario Northland Transportation Commission.

“There is a lot of uncertainty out there. The announcement was made in March without a lot of consultation and business is wondering what is going to happen to them,” said Miller.

The major concern is for the continuation of freight rail service and what pricing for the service will be if a private carrier takes over.

“You get to the end of the line at Hearst and they are wondering if they will even have rail service,” said Miller.

The two MPPs covered 1,600 km in two days with stops in Timmins, Hearst, Kapuskasing, Cochrane, Iroquois Falls, Englehart and North Bay.

The focus on rail was intentional, as Miller and Fedeli met with mayors, chambers of commerce and industry about what the divestment would mean for their futures.

Fedeli says the number one concern is whether rail freight costs will remain competitive.

“Many of the companies made the point that it has to be competitively priced for them to stay in business … All of them said we won’t be here without competitive rail service,” said Fedeli.

The prediction in the North is that at least one in four paper mills will close if the ONTC rail service fails to remain at current rates and level of service.

Reasoning from the business community is the alternative of trucking resources in and product out is a 25 per cent premium over rail, with every freight car taking three trucks off the road.

Economic loss to Northern Ontario could be substantial, with Fedeli pointing to the Xstrata Mining decision to pull processing for its Timmins mine site out of Ontario and into Quebec.

“They call that the $54 million Xstrata problem,” said Fedeli.

Because of soaring electricity prices in Ontario, the mining giant found it would be cheaper to ship materials from Timmins to Quebec for processing, removing more than 600 direct jobs. That has meant the loss of $44 million in tax revenue for the province and $10 million in freight revenue for ONTC, with all material now moving by truck.

“Each of these companies is on that same scale,” said Fedeli.

The economic effect of the divestiture announcement is already being felt in the north.

“Right now you have world-wide companies who are holding off on their capital dollars because there is uncertainty,” said Fedeli. From the reports he received, he believes the amount of private investment being held back is well over $10 million.

Miller says he witnessed firsthand one of the major problems that will affect the quality of life in Northern Ontario as potentially every freight car gets replaced by three transport trucks.

“For a highway that is not in that great of shape, there are going to be a lot of trucks on the road,” said Miller.

The two Progressive Conservative representatives will make a report of their findings and file it with the government.

“The message we heard was talk to us,” said Fedeli. “Right now, that’s not happening