Letter to the Editor: P3s not always best - Winnipeg Sun, Sunday, March 10, 2013
March 11, 2013 at 1:30 PM
In a recent article, it mentions 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 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 article also doesn't discuss the millions of dollars it would cost taxpayers to withdraw from the P3 contract should the private company not fulfill its obligations.
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 public 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
