Laurie in Question Period
April 28, 2008 - Public-private Project Funding
Ms Blakeman: Thank you, Mr. Speaker. Out-of-control spending, no savings, and now more debt. Treasury Board documents show that the intent of this government is to put Alberta back into debt using the P3 model. My questions are to the President of the Treasury Board. What concrete proof – reports, analyses – can be offered to support the argument as to why the government is choosing to put current and future Albertans into P3 debt rather than using its own financing?
Mr. Snelgrove: Mr. Speaker, it’s quite simple. History has shown in many, many other areas around the world – particularly Australia, New South Wales, and many of the English counties, where they have developed a P3 model – that it gets people into schools faster. They’re maintained for a period of 30 years. They’re turned over to the boards in good shape in 30 years. The total cost of both the building and the maintenance is controlled for up to 30 years. One only has to look at the Anthony Henday project to realize what a tremendous savings there is.
Ms Blakeman: So no reports and no analyses. All right, then, President of the Treasury Board, how is it economically feasible to pay higher private-sector borrowing rates, which are longer term and have higher interest rates, than to use our own triple-A credit union to finance projects?
Mr. Snelgrove: Well, I don’t know; my credit union is pretty good, but I’m not sure if it’s triple-A. Mr. Speaker, if the hon. member wishes to have a reasonable discussion about the facts, then she needs to premise her question on something to do with the facts. Very little, if any, of her statement is truthful. If you want to know, the government does cost comparators for every project we do.
The Speaker: The hon. member.
Ms Blakeman: Thank you very much, Mr. Speaker. Well, again to the President of the Treasury Board: with declining natural resource revenues, how does the government plan to pay for the longer term and higher interest rate debt that the P3 arrangements are going to hang on all of us?
Mr. Snelgrove: There is probably the best advertisement for never voting for them: to ensure that we don’t have declining resource revenue, Mr. Speaker. The prudent management of money both short term and long term is exactly what this government has been very successful with. We have invested very strategically in both financial and infrastructure projects, some in a conventional build, some in a P3, but it’s all on behalf of the average Albertan.
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