Proposed new legislation will improve transparency, accountability, of Public-Private Partnerships (P3's)
May 29, 2012 at 11:09 PM
Dave Gaudreau, MLA for St. Norbert (right) speaks at
Local 500 Central Council meeting regarding proposed
Accountability and Transparency Legislation
At long last, the Province has recognized the need for greater transparency and accountability in the disclosure of the plans and financial decisions related to public-private partnerships (P3's) for major capital projects.
Dave Gaudreau, MLA for St. Norbert spoke about the newly proposed legislation at the Local's Central Council meeting on May 28.
"This legislation is the first of it's kind in Canada," said Gaudeau. "While it doesn't prevent P3's, it will help ensure taxpayers are consulted and kept informed about the project details from start to finish."
The proposed legislation would require public sector entities, including the government of Manitoba and municipalities that wish to enter into public-private partnerships (P3's) for projects, to:
•conduct a detailed risk and value-for-money analysis to determine if a P3 arrangement provides the best value for the money,
•consult with the public before proceeding with the bidding process,
•appoint an independent fairness monitor to oversee and review the bidding process,
•publicly report the terms of the P3 contract, and
•provide regular status reports during the term of the partnership.
The legislation would require public consultation prior to deciding to proceed with a public-private partnership agreement.
A public-private partnership is a long-term agreement where responsibility for financing, operations or maintenance of a major public sector capital project is transferred to a private sector partner. P3s are generally used for larger-scale assets that are designed and built by a private sector company for government. Research indicates P3's generally cost more over time because private firms face higher borrowing costs. P3's also lock governments into long-term contracts with no flexibility to meet changing needs. Private profit, not public interest, drives investments.
