Public Values

Conservatives fund risky, expensive privatization deals

Evidence is mounting that P3s do not deliver real value for money - Paul Moist.

Evidence is mounting that P3s do not deliver real value for money - Paul Moist.May 12, 2010, OTTAWA - The federal government would get more bang for its buck by investing its $1.2 billion privatization fund directly into public infrastructure, says CUPE National President Paul Moist.

The federal crown corporation in charge of privatization called today for new applications to the P3 Canada Fund. Yet PPP Canada Inc. has only disclosed one recipient of the first round of cash. Canadians have the right to scrutinize how their tax dollars are spent - before any further P3 funding is handed out, according to Moist.

"Evidence is mounting that P3s don't deliver real value for money. Quebec's auditor general recently found the provincial P3 agency couldn't back up its recommendation that privatizing a Montreal hospital was the best deal for taxpayers. It's a similar story in British Columbia, where the provincial agency's methodology is fundamentally flawed. Now we have a federal P3 agency acting as both cheerleader and cheque-cutter," says Moist.

P3s are an expensive and risky way to deliver infrastructure. Major industry figures, most recently the head of Bombardier, have questioned the value of P3s given the private sector's higher financing costs. "Funneling public money into privatization deals wastes tax dollars and doesn't deliver what Canadian communities need," says Moist.

"If I had a billion dollars, I'd invest it where we'd get a faster and bigger economic return - in publicly financed and delivered projects, not privatization." In addition to costing more, privatization through P3s injects lengthy delays into the process, limits local purchasing and hiring, and lacks transparency. "It's time to turn off the taps on this privatization subsidy and invest directly in the public services and infrastructure that are the bedrock of our country," says Moist.

Posted: May 13, 2010

Categories:
  News
  Public services
  Front lines

Public Values (PublicValues.ca) is a project of the Golden Lake Institute and the online publication StraightGoods.ca


Public Values
 
HOME
CONTACT US
SEARCH
FREE BULLETIN
FRANÇAIS
Search PublicValues.ca
Donate to PublicValues.ca
News
Research
Politics
Campaigns
Health care
Public services
Natural resources
Energy
Education
Front lines
Voices of privatization
Feedback and dialogue
Visit StraightGoods.ca
About Us
Donations
Newswire/RSS
What is framing?
Friday, December 15, 2017
Updated frequently
To view photo captions, run your mouse over the photo
 
Bookmark and Share

© Golden Lake Institute/PublicValues.ca, 2007-11
PublicValues.ca owns copyright on all staff-written articles.
We encourage others to freely distribute material from this website but, without explicit permission,
Web publishers may only use short excerpts that also include credit to us and a reference to our site for the full article.
This site is managed by the Golden Lake InstituteVisit Golden Lake Institute Website and Straight Goods NewsVisit Straight Goods News Website
For comments or suggestions, please contact the PublicValues.ca Editor
For technical issues, please contact the PublicValues.ca Webmaster