Over the years, provincial auditors across the country have questioned the financial rationale for using public-private partnerships (P3s) to build public infrastructure. Provincial auditors are independent officers of legislative assemblies who review government finances and decision-making to ensure public funds are spent in an efficient and accountable manner. A number of P3s have now been reviewed by provincial and federal auditors and the verdict is bad. Auditors have found that P3s cost more than traditional public projects, use questionable methodology, lack accountability and do not transfer risk to the private sector. Ontario In her 2014 Report, Ontario’s Auditor General reviewed 74 P3 projects and concluded that they cost the province $8 billion more than if they had been procured publicly. The majority of this— $6.5 billion—was due to higher private-sector financing costs. She also questioned the main justification for using P3s–the assertion that they transferred risk to the private sector. … Read more…

Across Canada, some governments are promoting privatizing public infrastructure and services through public-private partnerships, also known as P3s. In a P3 deal, private corporations make a profit from financing, operating and/or maintaining public infrastructure projects. Municipal or provincial governments, school boards or health authorities sign contracts with private corporations to design, build, operate and sometimes finance infrastructure and deliver services that were once public. These contracts can last 30 years or longer. Working with our allies, CUPE has helped keep many vital services public, because we know they keep our province strong. P3s are privatization, pure and simple. There are many reasons public works best to build and maintain long-term care facilities, hospitals, water and wastewater treatment facilities, schools, transit systems, roads, bridges and other vital assets. Here are 10:  P3s cost the public more Private, for-profit corporations get involved with P3s to make a profit for their shareholders. Those … Read more…