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P3s wrong model

BY DAVID WEIR, THE LEADER-POST MAY 18, 2013

Your May 7 article (Project 'doesn't make any sense': economist), states: "Proceeding with a public private partnership (P3) to upgrade the city's waste water treatment plant is going to cost Regina taxpayers $60 million more than if the city paid for the project itself."

Economist Hugh Mackenzie's study also concluded that even after subtracting the expected federal funding, the P3 model would still be more expensive.

P3s are very costly. In essence, the city is hiring a private operator to borrow money to finance part of the plant.

The private partner must pay higher interest rates to borrow than the city and will expect to make a profit each and every year. In addition, the costs to structure a complex P3 deal are substantially more than the costs of straightforward public borrowing.

The city claims the only available federal funding requires a P3 model. Without P3 strings attached, the proposed $50 million federal contribution could be used to reduce the cost of our $200-million wastewater plant to $150 million.

With a P3, the $50-million federal grant will not be used to reduce the cost of the project to citizens of Regina. It will be misused to pay the higher private interest charges, the profit demanded by the private partner and the higher P3 deal structuring charges - enriching bankers, lawyers and financiers.

The Harper government should help fund infrastructure. But requiring the P3 model squanders our tax dollars to support their friends in business.

© Copyright (c) The Regina Leader-Post

Read more:http://www.leaderpost.com/news/wrong+model/8404735/story.html#ixzz2TtTRi7ad

 

 

Speaker whips P3s in health care

 By Will Chabun, Leader-Post May 16, 2013


P3s are out; the new lingo for what used to be called public-private partnerships is "PFI" - for "private finance initiative".

"We call it 'pure financial idiocy'!" quipped John Lister, a "campaigning journalist" specializing in health care, who delivered a blistering attack on the concept of using private firms to finance and sometimes operate public services like hospitals.

On a speaking and research tour of Canada, Lister said the result of England's current generation of PFIs, in place since about 2002, has been "almost entirely negative".

Politically, they came about under Tony Blair's government, avowedly Labour, but figuring there is a "third way" between doctrinaire socialism and hardball capitalism. It authorized constructions of a network of small hospitals built under PFIs - all apparently built without input from staff and to a single, inadequate design.

As a result, Lister told a news conference Wednesday organized by the Canadian Union of Public Employees - a leader in the political fight against expanded P3s or PFIs in this province - some were built without space for medical secretaries, administrators or other support staff, which had to be put in storage areas without windows or air conditioning.

As well, cleaning, catering, parking and retail shops were handled by private firms under contract, robbing hospitals of the profits from these activities.

Staff could not even hang notice boards or charts as they were told the walls "don't belong to you" and this work had to be done, with a hefty charge, by the private firm owning the building.

Worse, said Lister, who holds a doctorate in healthcare economics and teaches at Britain's Coventry University, the worst element was this: The money to build these too-small hospitals had to be borrowed by private firms at a rate far higher than Her Majesty's government could borrow it. The private firms get their money back from the healthcare trusts - comparable to health regions - through watertight contracts requiring the latter to make payments well into the future.

So a hospital facing hard financial times can't shed contracts. "The only thing you can control is the number of doctors and nurses you employ, and the services you provide," Lister said.

Because of this, and a British government policy against bailing out healthcare trusts, the first one entered bankruptcy in 2005, and had to be rescued by merging it with a second one, then a third, and closing the latter's units and selling them for redevelopment, Lister said. He added that recent reports indicate 22 other trusts with 60 hospitals are in financial trouble.

Another report, brought down last May, said the English system of health-care P3s or PFIs was "unsustainable" and lacks transparency and accountability.

As well, the original investments in hospitals have been sold and resold so that some are in the hands of foreign investors who don't even pay income tax in England, Lister said.

"This is a very, very expensive way to do it," he said. "The money could be better spent on other projects than in lining the pockets of somebody."

© Copyright (c) The Regina Leader-Post

Read more: http://www.leaderpost.com/news/Speaker+whips+health+care/8392176/story.html#ixzz2TfAoDK4w

 

 

 

 

FOR IMMEDIATE RELEASE

 

Monday, May 13, 2013

WORKING PEOPLE’S INTERESTS IGNORED WITH PASSAGE OF BILL 85  

Working people across Saskatchewan were disappointed today to learn that, in spite of the warnings of academics and the concerns of thousands, the Government of Saskatchewan has forced Bill 85 through the Legislature. The sweeping rewrite of provincial labour legislation, drafted without meaningful consultation with working people, can now be brought into force at the whim of the government.

“We, like many people across the province, were extremely disappointed to learn that our government has decided to ignore the advice of Saskatchewan working people and passed Bill 85,” said Larry Hubich, President of the Saskatchewan Federation of Labour. “We have received thousands of messages from parents, students, and other working people that are seriously concerned about the regressive effects of the legislation. The government has an obligation to consult prior to making such fundamental changes, and they have failed to fulfill it.”

Bill 85 was introduced into the Legislature in December of 2012 and will, within a matter of months, fundamentally change the laws for working in our province. Prior to introducing the bill, the government conducted no meaningful consultation with the people that will be most affected and provided little rational for changes that are needlessly contentious and unfair. In response to the proposed legislative changes, which include the elimination of the weekend, stripping some working people out of their unions, and barring others from joining unions entirely, to name a few, the SFL has received thousands of messages of concern.

“Bill 85 is just another example of how our government is willing to put its own agenda ahead of the best interests of Saskatchewan working people. At a time when so many in our province are doing so well, we should not be rolling our standards for work back by decades. There is no pressing reason to make such changes.”

The SFL represents over 98,000 working people across the province in 37 affiliated unions

 

BILL 85

Labour relations may get rockier 

By Murray Mandryk, The Leader-Post May 11, 2013

To always define the Saskatchewan Party government's relationship with labour as rocky is to confine the definition of the word "labour" in a way it shouldn't be confined.

Yes, the word does refer to the "labour movement", "organized labour" and "union labour leadership" that's had a tumultuous relationship with Premier Brad Wall.

But the definition of labour also includes "the human activity that provides the goods and services in an economy". In that context, Friday's monthly labour statistics suggest a spectacular relationship.

April employment increased by 16,700 more jobs than a year ago - a for-the-month record of 548,000 working Saskatchewan people. Unemployment was the lowest in Canada (four per cent). Even the normally discouraging, off-reserve aboriginal employment increased by 1,500 jobs (3.8 per cent), while the aboriginal unemployment rate fell to 12 per cent from 14.5 per cent a year ago.

However, if the Sask. Party government has no "labour problem" when it comes to people finding jobs, it would then seem logical to ask why we need to hastily overhaul 107 year's worth of Saskatchewan labour law and stuff it into one omnibus bill without the proper time to assess the (unintended or otherwise) consequences.

Admittedly, Saskatchewan Federation of Labour President Larry Hubich and other labour leaders haven't done themselves any favours by taking public shots at the Sask. Party government at every available opportunity. But one can also understand the frustration of labour leaders over both the lack of input and the hasty way the Sask. Party is pushing Bill 85 through without proper public hearings.

Of course, ramming through Bill 85 is being pushed by Canadian Federation of Independent Business (CFIB) Saskatchewan director Marilyn Braun-Pollon and other business advocates. Strangely, such lobbyists have been far less eager to see the Sask. Party push through another bill restricting lobbyists that was actually introduced 17 months ago.

But it's just nonsensical to push through this omnibus labour bill - especially in the current economic climate. Consider University of Toronto labour law professor David Doorey, who said in a recent blog that the Sask. Party government's labour policy makes no sense when it comes to addressing Saskatchewan's biggest labour problem of attracting "some 60,000 new workers to the Prairie province in the next 5-7 years to meet the labour demand."

"Labour and employment laws can play a role in this (bid to attract workers)," Doorey writes. "They can help encourage high-paying jobs with stable hours and decent benefits of the sort that workers like."

Instead, Doorey contends Bill 85 "lowers employment standards protections and injects instability and uncertainty into the labour relations climate" because "it reduces statutory protections for workers and undermines collective bargaining rights."

One might take umbrage with a pro-labour academic's assertion that "reducing statutory protections and collective bargaining coverage has never, anywhere, led to higher wages, better benefits, and less precarious jobs." But Doorey does offer valid points that Bill 85 "is a lesson in opacity and ambiguity" and is failing spectacularly in the government's claimed objective "to simplify the law".

The U of T prof further argues that the key to interprovincial migration - arguably, the most important factor in sustaining both job and population growth into the future - is "pursuing policies that encourage stable, full-time, high-paying jobs." To subscribe to laws that most gratify the CFIB and other business groups may not be a solid, long-term employment strategy.

Doorey acknowledges booming natural resources "which do not move in search of lower labour costs" will "not be a deterrent to job creation in Saskatchewan". However, "high wages, good benefits, stable hours" are still key ingredients in attracting workers.

Moreover, should the Saskatchewan job market cool off because of a resource-sector slowdown (which, historically, has been an inevitability in this province), then employees working under weakened labour laws might look for better pay/working conditions elsewhere. As such, a bad Bill 85 could hurt us in the long run, so it's in the long-term interests of us all to make sure we get it right now.

To suggest the Sask. Party government has bad relations with labour is to not explore the full definition of the term. That said, Wall and others would be well advised to remember that "labour" also means more than lots of good jobs popping up in good economic times.

Mandryk is the political columnist for the Leader-Post.

© Copyright (c) The Regina Leader-Post

Read more: http://www.leaderpost.com/business/Labour+relations+rockier/8370608/story.html#ixzz2TER411bZ



 

 

REGINA WATER WATCH

City council believes so much in democracy that they will not release the actual numbers of what the P3 privatization deal will cost taxpayers here in the city. Transparency and accountability from our supposedly elected representatives.

Although the city will not release the figures, Hugh MacKenzie has had a look at the city's plan and prepared a report on his findings. The report can be found at the following link:  http://reginawaterwatch.ca/2013/05/06/report-finds-p3-wastewater-treatment-plant-could-cost-61-million-more-than-public-option/

Read it and let your friends, family and co-workers know about it. Let's keep fighting for accountability and transparency from our elected officials.

 

 

 

Out on the streets to keep Regina safe

A 50-year record snowfall, late spring, and the possibility of a quick melt have CUPE 21members out on the streets. City of Regina outside workers from parks, sewer, and irrigation are working hard to protect low-lying areas ...

http://cupe.ca/municipalities/streets-regina-safe

 Local 21 members photo gallery ...

http://cupe.ca/gallery2/v/CUPE21Sandbaggin_001/

 

 

P3s and infrastructure funding in Canada 

In the April CCPA Monitor there is an article by David Macdonald entitled Flaherty’s 2013 Budget actually cuts infrastructure funding. “---- (his) budget has effectively reduced infrastructure funding from $1.25 billion (annually) to $210 million.”

There is further discussion about how the majority of the regular infrastructure moneys won’t be issued for another seven years and adds “The long delay in infrastructure funding also delays economic stimulus and job creation when they are most needed”.

The (2013) Budget does “renew the P-3 fund at $1.25 billion over five years but this program – which requires joint public and private participation – is very unpopular with most Canadian cities, who seldom make use of it.  It requires them to give control to the corporate partners and pay more in interest on long-term projects. 

The previous P-3 fund incarnation has spent only about 30% of its total allocation.  In fact, half of the previous P-3 fund has no plans for its use at all.  To build on this stupendous failure, as Flaherty has done, is to ensure there will be even more money that the cities can’t or won’t use.

So it appears there are two kinds of infrastructure money----what cities want is being limited and what they don’t want is being pushed!

Catherine

Ralph & Catherine (Gibson) Brooks

 

 

Regina Water Watch

Exemption or Debt Increase

Wilma Staff (former City of Regina Alderman)

https://www.youtube.com/watch?v=I5us7l0bU0s&list=UUALr3TVXfasuSjlzgQvaYzw&index=1

and http://youtu.be/kKnPMM8eaf4

 

Regina City Council wants to privatize our waste water treatment plant 

We need to collect 20,000 petition signatures so the public can have a vote.

The privatization of the waste water treatment plant was not discussed during the election, there was no consultation prior to the decision  and so far the City s refusing to release the whole business case.

EVEN IF YOU ARE UNSURE ABOUT THE CITY'S PROPOSAL, THE PETITION AND VOTE WILL CAUSE A FULL PUBLIC DEBATE.

HERE'S HOW TO HELP

Download the petition at www.reginawaterwatch.ca  Or, contact us, and we will get you copies of the petition. 

Getting signatures from your family and friends is crucial. We have until June 20 to collect signatures. It can be done. In 2007, we collected 26,000 signatures to save our libraries.  

If 200 people collect 100 signatures each, we will reach our goal.  Some people have already collected over 100 signatures.  Please let us know if you will pledge to collect 100   

 Every signature will count.

www.ReginaWaterWatch.ca

Join our Facebook group:  Keep Regina's Water Public.

Leave a message at 306-522-2310

Regina Water Watch is a citizens' coalition whose goal is to keep water public.

 

James A Holmes j.holmes@sasktel.net

 

 

 

Update to Bill 85

This morning's edition of the Huffington Post contained in-depth coverage of Bill 85's potential impact in Saskatchewan and elsewhere in the country. Follow this link to read the Fairwork Saskatchewan's website:

http://www.fairwork.ca/news

 

 

Bill 85:  The Saskatchewan Employment Act

This is real …

Bill 85 will turn the clock back on workers’ rights by 100 years.

The “new” Saskatchewan Employment Act is unfair to workers. 

Stand up for fairness.

www.sfl.sk.ca/knowbill85

 

On December 4, 2012, the government of Saskatchewan introduced its 184-page Bill 85, which will amend 12 pieces of provincial legislation, including The Labour Standards Act,The Occupational Health and Safety Act, and The Trade Union Act.

The newSaskatchewan Employment Act, which Bill 85 will establish, is a sweeping rewrite of Saskatchewan’s labour laws. Unfortunately, the government is proposing, within the span of only a few months, to fundamentally change laws that have evolved over decades in our province.

Bill 85 will eliminate:

  • Weekends
  • The 8-Hour Work Day
  • The 40-Hour Work Week
  • Overtime Pay
  • Stat Holidays
  • Your ability to Join Certain Organizations of Your Choosing
  • Your Ability to Join Demonstrations
  • Your Ability to Access Certain Constitutional Rights

The Government's current plan is to pass Bill 85 in May of this year, unless people across the province make their voices heard.  

Email your MLA, send a message to the Minister of Labour below, and tell your friends and family that we deserve better than Bill 85!

 


Regina Water Watch
CUPE Local 21 - Presentation to City of Regina Executive Council
Regarding the Waste Water Treatment Plant
13 February 2013
 
Word document/pdf:
Local 21 - Presentation to Regina City Council - WWTP
 
Video:
Video - Local 21 Presentation to Regina City Council
 
Regina City Council voted to proceed with a request for proposals for a 30-year P3 (public-private partnership) contract which would see a private company design, build, finance, operate and maintain the city’s new $224.3-million wastewater treatment facility.
Privatizing the operation of Regina’s wastewater treatment facility will tie the city’s hands for three decades. Water is integral to all life. Privatization of any part of Regina’s water system takes water and hands it to a private company to make profit. Citizens lose accountability and control of a vital public resource.
Water is not a commodity. Water is:
  • a human right
  • a common good
  • a public service
  • an essential human need

Sign the petition:

Download and share our petition calling for a public referendum to ensure that our wastewater plant stays in public hands.
 
 
Long live public services!
 Jun 15, 2011 02:37 PM
The public services committee or “intergroup” of the European Parliament has come out strongly in favour of Canada’s public services.  Their recent news release entitled “Long live Canadian public services!” raises concerns about CETA, the proposed Canada EU trade agreement, and the precedent it sets to include all services in the deal.
“Public services are not like other services,” said Chair of the Public Services Intergroup, Françoise Castex. “Their exemption from international free trade agreements removes the risk of their being subject to international competition.” 
Castex called on the European Commission to respect this precedent in their negotiations.
The European Federation of Public Service Unions (EPSU), the largest union federation in the European Union, has been actively lobbying Parliament in support of public services in light of CETA negotiations. EPSU represents eight million public service workers in more than 250 unions.
CUPE and the Council of Canadians continue their CETA cross-country tour in opposition to the deal with stops in three cities scheduled for June. Town hall meetings will be held in Winnipeg, Halifax, and St. John’s.
Meetings have already been held in Calgary, Montreal, Toronto and Saskatoon with plans now underway for the fall.
 
 
BILL 85
Don’t mess with my labour rights. Don’t remove the checks and balances that keep things fair for everyone.
Fewer Protections and Rights for you at Work

The government of Saskatchewan will try to pass Bill 85 into law during this legislative session that ends on May 16. The Saskatchewan Employment Act combines almost 1,000 pages of labour law into fewer than 200 pages. It replaces 12 laws that include the Trade Union Act, Labour Standards Act and the Occupational Health and Safety Act. The new law will affect every worker in Saskatchewan for decades.
Here are some examples of how the fine print will mean fewer rights and protections for you at work:
 1. Drastic changes to minimum workplace standards can leave workers without the right to refuse overtime, less overtime pay and the loss of the weekend.
 - The employer is obligated to pay overtime after 8 hours of work per day only if you work 5 days per week. Bill 85 s. 2-18(2)
- Permits an employer to require an employee to work overtime in excess of 44 hours per week if “unexpected, unusual or emergency circumstances arise”, but those terms are not defined.
Bill 85 s. 2-12(3)
- Changes to minimun hours of rest means many workers will lose the weekend or two consecutive days off . Bill 85 s. 2-13(3) and s. 2-13(5)
 2. The new law removes workers from their union, and the protection and rights the union provides. These exemptions are not recognised by any other Canadian jurisdiction, or by international labour law.
 - Adds three new “confidential” criteria which will exclude many CUPE members from their union and the ability to bargain collectively. Bill 85 s. 6-1(h)
 3. Changes to labour law will remove workers from their rights by taking them out of their unions. Bill 85 will fragment bargaining units and undermine current contract language dealing with supervisor rights.
 - A new provision will classify many workers as supervisors and could require their exclusion from their bargaining unit. Bill 85 s. 6-1(1), 6-11
 4. This new legislation interferes in collective bargaining. It can circumvent unions by allowing a “last offer” vote before any bargaining has even occurred.
- Allows employers to apply to the Board to force a vote on the employer’s “last offer” at any time after a notice to begin collective bargaining has been given. Bill 85 s. 6-36
 5. Bill 85 picks apart unions by adding costly and unnecessary regulations that are a burden on small locals. Bill 85 interferes with union administration and union democratic structures.
 - Requires every local to produce audited financial statements. This will be a financial hardship for many small locals. Bill 85 s. 6-62
 
 

WATER & WASTEWATER
From the Journal of Commerce:
September 2, 2010
FEATURE | Public Works
Saskatchewan no closer to public-private partnership framework
ALLEN WARREN, Correspondent
A quick search on the federal government’s Canadian Council for Private-Public Partnerships (CCPPP) project database will confirm what many already know about P3 project activity in Saskatchewan – there isn’t any.
Along with the Yukon and the Northwest Territories, whose government recently cancelled the private sector role in the Deh Cho Bridge, Saskatchewan is the only provincial jurisdiction in Canada without P3 activity.
Though, it’s not for a lack of interest or effort.
In January 2009, the free market-oriented Saskatchewan Party government set up the P3 Secretariat to explore the viability of public private partnerships by screening any infrastructure project with a minimum cost of $25 million for consideration as a P3.
The government established a separate branch for the secretariat within the Ministry of Government Services and named then-associate deputy minister of health Mike Shaw to lead the committee with the Ministry of Finance as a partner.
The office was disbanded in September 2009, after just nine months. It stated that the P3 model, nor any variation, were a good fit for the Saskatchewan market.
The government said it would remain open to the prospect in the future.
Shaw is now on-contract to provide consultation services to the Saskatchewan Association of Health Services (SAHO) and declined comment on this story.
Now a memory for close to a year, Randy Burton, executive director of communications at finance said that while P3 is dormant in the halls of the Legislature, he maintains that the government hasn’t fully turned the page on P3s.
The secretariat found that in provinces where P3s are used, they are usually applied to complex, large-scale infrastructure projects such as roads, schools and health-care facilities, where a P3 model could lead to significant savings.
Saskatchewan doesn’t have a consistent batch of projects that would match those criteria.
“Upon investigation, it was found that Saskatchewan simply didn’t have enough suitable candidates for the P3 approach to justify maintaining a separate program and structure,” Burton said.
“The Saskatchewan government hasn’t ruled out using the P3 approach at some point in the future, but it was decided to concentrate on finding other savings throughout government through the normal budget development process.”
The traditional understanding of the P3 is one in which the private sector often plays a major role in the maintenance, operation, and sometimes temporary ownership of a public asset for greater operational efficiency, and sometimes also in the design, building, and financing of the asset.
Michael Fougere, president of the Saskatchewan Construction Association (SCA), explained that while SCA membership generally agreed with the provincial government’s decision not to establish a permanent P3 policy framework, its concerns were more complex than a lack of adequate work.
“When our advisory council met with the secretariat, we said we wanted to be involved in any government plan to go ahead with P3s because we didn’t think in absolute terms that it was in the best interests of our industry,” he said. However, he supported the government’s assertion the market is too small.
However, activity like the $224-million South Bridge project in Saskatoon, built by Graham Construction and Flatiron Construction Corp.. would be in the league of a traditional P3, Fougere said.
The six-lane-wide bridge across the South Saskatchewan River will include seven kilometres of four-lane freeway leading up to the bridge and will be the largest public works project in Saskatoon’s history. But, it is not a P3.
It’s not just that most projects are too small, but its also about the province’s construction firms, Fougere said.
“Many of our small to medium-sized general contractors worry about being unable to participate in any kind of a bid that is P3 because they would lose out on that.”
He used the example that bundling high schools together would shut them out from being involved in any sort of a tendering activity. It’s not that Fougere wants to provide fuel for an anti-P3 campaign.
“Historically, this is a lightning rod for some opposition groups,” he said, adding there is concern about risk moving to an unintended party.
“That’s a big concern, but we shouldn’t be afraid of seeing what P3s can offer as long we protect the public interest and  the private interest together,” he said.
The Saskatchewan Government Employees Union launched an anti-P3 campaign after the last election and claimed a moral victory when the secretariat was abandoned.
Fougere insisted the decision not to support a P3 public policy framework in Saskatchewan was and remains the common sense thing to do.
 
 
Protecting public water infrastructure in Regina
MAR 6, 2013 09:51 AM
Concerned Regina citizens gathered for a town hall meeting yesterday to talk about a growing threat to the city’s public municipal infrastructure. Paul Moist, national president of CUPE was joined by Maude Barlow, national chairperson of the Council of Canadians, for a discussion about a proposed public-private partnership slated for Regina. Regina city council recently voted to issue a request for proposals for a P3 waste water treatment plant.
“There is no such thing as a water system in this world that is expendable, and the only way to protect them is to keep them in the public trust,” said Barlow, opening the discussion with the capacity crowd at the Artesian community centre. “As governments lose control to private corporations, more and more around the world decisions on water are not being made by governments.”
Barlow highlighted some of the international experiences with privatized water systems, many resulting in high profits for shareholders, and skyrocketing rates for citizens.
“We want to say, and we will say no, because we value our water,” concluded Barlow. “It is the most important thing we can do now is to keep it in public hands, and say no to these private corporations.”
Paul Moist continued the discussion with an outline of the infrastructure challenges facing Regina and municipalities across Canada. 
“Regina is being forced into this P3 in order to access federal funding. Where I’m from, that is not acceptable,” said Moist, pointing out many on the Regina council supported the P3 because it was the only way to access $58 million in federal infrastructure funding, and they did so with little substantive public consultation. “This is about an absence of public debate. That’s not democracy.”
Moist stressed the importance of waste water treatment to the public health, and rejected claims by some in the city that the P3 was acceptable as long as it didn’t effect drinking water. He also urged the crowd not to back down from these types of arguments, or the proponents of P3s and privatizing public services.
“There is a ton of money to be made in the public sector, and we’re playing with some big players. And if this goes through, a huge chunk of the rates you pay are going to be leaving Regina,” said Moist. “ This debate isn’t over. Now is the time for you to speak up.”
 
 
CUPE COMMUNIQUE  ---  February 13, 2013 - For Immediate Release
CUPE calls for full Public discussion and accountability on wastewater treatment plant (WWTP)
REGINA - CUPE Local 21 told the City of Regina Executive Council that full public disclosure and discussion about the wastewater treatment plant is imperitive. CUPE Local 21 President Tim Anderson presented a short brief at the meeting this afternoon.
"We urge you to pospone your decision and hold public meetings on this issue immediately," Anderson told the Committee. "Water and wastewater is integral to our lives and the public overwhelmingly water services to be dilevered publicly."
Anderson advised the executive council that there is strong evidence that P3s cost more than traditional ways of funding public infrastructure. He cited the example of the City of Monvton that is paying 10% yearly interest rates on its lease terms for its water treatment plant. Private financing in this case means that Moncton is paying an extrea $14.4 million in debt over 20 years on a $23 million capital project.
Another factor that makes privitization of water and wastewater a bad idea is that the public sector retains all the risks when a P3 operator fails or backs out of a project because profits aren't high enough. The British Association of Chartered Certified Accountants reviewed the gobal experience of P3s and concluded that "value for money is difficult to establish convincingly, owing to the higher costs associated with private finance and the high premium payable for risk factor."
CUPE 21 represents about 1,300 permanent and casual employees of the City of Regina who provide important front line services in the areas of public works, parks and recreation, water and wastewater and community services. The union found out on February 8 that the City plans to privatize the new wastewater treatment plant.
Contact:
Tim Anderson at CUPE Local 21 President, 527-8151 (cell)
- Guy Marsden, CUPE National Representative: 525-5874 ext 230
 
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