Eves was sworn in as Ontario's 23rd Premier on April 15, 2002, and returned to the legislature as the member for
Dufferin—Peel—Wellington—Grey after a by-election on May 2, 2002. Reforms were made to the power system. Cost over-runs at nuclear reactors and a very hot summer combined with problems in market regulation to drive hydro prices up significantly (particularly in northern Ontario). The government was forced to cancel the privatization and capped hydro rates below cost, billing the taxpayers hundreds of millions of dollars. In late 2002, cabinet minister
Cam Jackson was forced to resign when the Liberals alleged he had spent more than $100,000 on meals and alcohol in expensive restaurants and in four star Toronto hotels. Jackson was later fully exonerated of allegations of wrongdoing. Eves was also caught unaware when the Liberals broke that Mike Harris had arranged a secret tax break for professional sports teams on his last day in office. In December 2002, a coroner's
inquest into the death of
Kimberly Rogers recommended numerous changes to the government's
welfare legislation, which
Community and Social Services Minister,
Brenda Elliott, dismissed as unnecessary tinkering with a system that "was working effectively". Concerned about returning to the legislature, Eves' advisors hatched a plan that turned out to be a public relations disaster. They convinced the Premier to have the Minister of Finance,
Janet Ecker, present the government's March 2003 budget at a televised press conference at the headquarters of auto parts maker Magna International, instead of in the legislature. Magna's CEO,
Belinda Stronach, was prominent PC supporter, who later became a Liberal cabinet minister at the federal level. The "Magna Budget" resulted in accusations that the government was trying to avoid the scrutiny of the legislature and was flouting centuries of parliamentary tradition in favour of a PR stunt. Furthermore, the expense of the move was condemned as a waste of money, considering that the legislative chamber was already equipped with video equipment for televised coverage. The "Magna Budget" was intended to launch a provincial election campaign, but was so poorly received that the election was delayed until the autumn. Attacks came from not only the opposition parties and the media but from one of Eves' own party members,
Gary Carr. As
Speaker of the legislature, Carr ruled that the government's actions were
prima facie in contempt of the legislature. (Subsequently, the PC majority in the Legislature voted to overturn Carr's ruling.) The budget also included several assumptions that led many commentators to believe the government was in fact running a deficit in the range of $2 billion. On 10 June, the Eves cabinet selected judge
Archie Campbell to chair its
SARS Commission inquiry into the failures of the health system, after the virus that caused the
SARS epidemic was transmitted on 23 February from China to Toronto, where it wreaked havoc, including from 7 March at
Scarborough Grace Hospital. Soon after the budget, Energy Minister
Chris Stockwell ran into trouble when he allowed a company he regulated to pay for a family trip to Europe. After several weeks of front-page news on the scandal and an unfavourable ruling from the province's
Integrity Commissioner, Eves forced Stockwell to resign on 17 June. In the summer of 2003, the power issue caused further trouble for Eves. During its time in office, the PC government had failed to make any substantial investments in new sources of power. Warm weather and the use of air conditioners pushed the Ontario hydro grid to the brink, and after the
Northeast blackout of 2003, the provincial power utility was forced to buy expensive power from neighbouring producers in
Quebec. During that time, Eves made daily television appearances announcing developments in the situation, and appealing to the public to conserve as much electricity as possible during the period. As a result of that exposure, Eves enjoyed a moderate uptick in the polls. A highlight of his premiership was his meeting with Ukrainian opposition leader
Victor Yushchenko in May 2003. During Yushchenko's visit to Toronto, a banquet was organized by the
Ukrainian Canadian Congress, attended by over 1,000 people. Yushchenko was welcomed by "the members of the Canadian political elite in Toronto, headed by Premier of Ontario Ernie Eves", who was described as a leading Canadian of Ukrainian heritage, as well as federal cabinet minister
Sheila Copps, Bishop
Augustine Eugene Hornyak, Senator
A. Raynell Andreychuk and City Councillor
Gloria Lindsay Luby. ==2003 election==