The federal government has agreed to cover revenue losses if a multi-million dollar new bridge project connecting Windsor, Ontario and Detroit, Michigan does not generate enough money in tolls. An existing bridge between the two cities has seen a 40% decline in traffic since 9/11. The NDP is concerned the requirement that corporate shareholders recieve a profit from the project will be too costly to taxpayers and is suggesting the project be built with public boonds instead.
Forensic accountant, Ron Parks has co-authored a report that evaluates four P3 projects completed in BC, The Canada Line, Sea-To-Sky Highway improvements, the Diamond Ambulatory Care Centre and the Abbotsford Regional Hospital for their financial costs. His findings show that P3's are substantially more expensive than the public option due to hidden costs.
The city of St. John has voted to end contracts with private trash collection companies. Council decided to make trash collection a city-operated service after a financial analysis showed the city would save money. The projected savings amount to $500,000 annually. The city is also considering moving to a pay per service model, which would encourage households to reduce their garbage, rather than the current method of covering costs through property taxes.
}At the Union of BC Municipalities conference, municipal leaders passed the Blue Communities resolution, "the resolution asks for the federal government to provide funding for public water infrastructure and delivery projects and "unhook" funding for water infrastructure and maintenance projects from public-private partnerships (P3s)." Most BC municipalities have publicly owned water facilities and leaders want to make sure that continues, to be recognized as a "Blue Community, " a municipality "must recognize water as a human right.
In today's Sun, columnist Stephen Hume concludes that BC Ferries high tariffs are the real cause of passenger decline, not the sinking US economy.
Privatization of Canada's search and rescue operations will be discussed at an upcoming August meeting between government-procurement officials and representatives from aerospace firms.Currently search and rescue operations are carried out by the Department of National Defense and the Coast Guard. No clear reason has been given for privatizing the service and some fear it is simply ideology that is forcing the move, rather than safety of operations. Read
Finavera Renewables Inc., a little-known company with light cash reserves was awarded 4 of BC Hydro's coveted clean electricity purchase agreements. They were picked to develop 4 wind farms near Tumbler Ridge and Chetwynd, and will stand to make annual profits of $25 million or more over their 30-year contract with BC Hydro. Read the full story in The Tyee.
A Winnipeg city councillor is planning to put forward a motion to ensure that none of the city's water sewer system can be privatized without a public referendum. This move comes in response to confusion regarding the city's plan to enter into a private-public partnership to manage water supplies. Read the full story in CBC News.
A Vancouver merchant who alleges she lost $900 000 due to reduced customer access during Canada Line construction was awarded $600 000 in court today. The merchant sued three levels of government, two government agencies and one construction company and won the case based on the judge's ruling that the Canada Line project disregarded the impact of its developments on the plaintiff. Read the full story at CBC News.
P3s, or public-private partnerships, have funded major projects such as the Canada Line and the Abbotsford Hospital. Some, including the Campbell government, say that P3s save taxpayers millions in building costs. Critics however argue that P3s cost taxpayers more in the long run, and projects should be government financed. Read more about each side of this issue in the full CTV report.
