Letter to the Editor: Did the Disraeli Bridge P3 Really Deliver Value For Tax Payers Money?
March 07, 2013 at 3:23 PM
It was reported in a recent article, that the city saved $47.7 million on the Disraeli Bridge public-private partnership (P3) project. It goes on to say that due to its success, the city plans on using more P3s in the future.
What the article doesn’t say, however, is that there were only two bidders involved. It is generally accepted that a minimum of three bidders is required in a competitive process. The other problem is that the size, complexity and financial commitment involved with this P3 arrangement, excluded participation by the smaller construction firms and suppliers in our city, thus, reducing competition.
The other important factor about P3 deals is that the details on the business arrangements are kept in secret despite tax payer’s money being spent.
Winnipeg’s infrastructure deficit is an important issue and one that should be of concern to all citizens. However, the Mayor’s declaration that P3’s will allow us to stretch our budget dollars and provide significant savings to the taxpayer is a fallacy.
There are a number of discussion papers and analysis produced by organized labour and other agencies such as the Canadian Centre for Policy Alternatives (CCPA) that expose the risks related to P3s and how they work against the public good. Case after case in Canada and around the world, illustrate that P3s can lead to higher long term costs for taxpayers, a loss of control of public assets, and greatly diminished public accountability.
The solution is simple. It’s time for a national long-term infrastructure funding strategy to ensure our community assets and services continue to be publicly owned, operated and delivered on a not for profit basis now, and for future generations.
Mike Davidson
President, CUPE Local 500
