Laurie in Question Period
May 1, 2008: Public-private Partnerships
Ms Blakeman: Thank you, Mr. Speaker. A report from the Ontario Health Coalition lists several dozen examples from the United Kingdom and Australia where P3s have failed or were seriously problematic. The U. K. Treasury has published a report from which I quote: “[These] deals were supposed to give us certainty about the long term costs of providing public services. The reality is different.” My question is to the Minister of Infrastructure. Can the minister please explain what evidence this government has that shows that the P3 model is more cost effective and transparent than public financing?
The Speaker: The hon. minister.
Mr. Hayden: Thank you, Mr. Speaker. In fact, not all projects are perfect candidates for P3s, but the selection process that we have undertaken is very thorough. It takes into consideration comparable costs under conventional construction. We do in fact have examples already where it’s given the certainty that people need for infrastructure that they require for many years to come.
Ms Blakeman: Can the minister explain how this government plans to keep the bidding competitive and cost effective when similar examples from the U. K. forced that government to cut public programs to keep up with the high interest charges of the P3 arrangements?
The Speaker: The hon. minister.
Mr. Hayden: Thank you, Mr. Speaker. The P3 model that we use is not based on models that are being referred to in other areas. In fact, it’s based on an Alberta model that ensures that the people that come and bid on our projects for P3s are checked out well ahead of time, and comparisons are made to ensure that the value for Albertans is there not only today but into the future because we’re building for more than just today.
Ms Blakeman: If Alberta is not looking at the examples of P3s elsewhere, then why did the President of the Treasury Board use them as examples the other day?
Given the failures of several Canadian P3 programs, most notably the debacle in Nova Scotia, why is the government stubbornly committed to a financing model that has shown disastrous results in other jurisdictions and uncertain long term debt for future generations?
The Speaker: The hon. minister.
Mr. Hayden: Thank you, Mr. Speaker. In fact, we do look very closely at things that fail in other areas, and we avoid using them.
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