Local governments should beware P3 pitfalls

Duncan – Re: P3 community centre I have concerns about our elected officials pursuing a P3.

Do they have the expertise to fully assess the risks and benefits? Complicated contracts lead to a long and costly procurement process for P3s.

The federal government has tied capital funding to the use of P3s.

If our elected officials seek funds from the Building Canada Fund they will have to show that the option of using a P3 has been fully considered.

Monitoring and holding private partners to the performance specifications is actually quite costly and difficult to achieve.

Any details not specified in the contract become the responsibility of the government, since it’s the government that ultimately carries the responsibility for the service.

Ronald Aspin has studied the transfer of risk to the private partner and found “when it comes to engaging public-private partnerships it would appear local government is the most vulnerable to exploitation by a better skilled and more experienced private sector in terms of recognizing and allocating risk”.

An example of this is the Canada Line where the private partner carries 10 per cent of the risk as compared to the public 90 per cent.

The impact of international trade agreements is another issue.

Would we want a foreign country operating our community centre? And if we didn’t accept their bid would they sue us under NAFTA’s Chapter 11 or a similar law under CETA or the TPP? The long-term lease payments entered into with a P3 constitute a government liability and so need the consent of the electorate.

Educating the public to make an informed decision will be an absolute necessity.

Donna Cameron

Duncan

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Comments are closed

Just Posted

No doctor assisted death allowed at Hamlets in Duncan

Faith-based company that owns facility believes in sanctity of life

Minivan crashes into Merchants building in downtown Duncan

There is no word yet on the cause of the crash.

Editorial: Give supportive housing the chance to work

Housing first is important, because it can help people to get out of survival mode

Queen Margaret’s School graduates celebrate

Queen Margaret’s School held their Speech Day (convocation) with 15 graduates on site

Community pride always showed in Mansueti’s work

Retirement reflections revolve around so many projects and successes

‘This year is unlike any other’: Trudeau delivers Canada day address

Sophie Gregoire Trudeau and the Prime Minister release video celebrating the national holiday

Canadian engineer detained in Egypt released, needs treatment, family says

Yasser Albaz was detained at the Cairo airport after a business trip in February of 2019

RCMP arrest armed man on grounds near Trudeau residence

Officers descended on the sprawling estate Thursday morning.

Canada Day tractor incident kills three children, injures seven in Quebec

The tractor driver has been arrested following the accident

Longtime Vancouver Island fishing family hooks into local market over wholesale

Locally caught fish are scarce in fishing towns, an irony one Sointula family is working to change

Undercover operation exposes prominent human trafficking problem in Greater Victoria

VicPD’s Operation No More took place in mid-June at a local hotel

Tsilhqot’in Nation demands meeting with feds on declining Fraser River chinook stocks

The Nation wants to partner with DFO to rebuild and recover the stocks

PHOTOS: Dual rallies take over Legislature lawn on Canada Day

Resist Canada 153 highlighted colonization and genocide, Unify the People called COVID a hoax

Most Read