Federation President says recent report on P3 privatization schemes should be cautionary 

By Amy Morris
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August 9, 2017

(Halifax, NS) – The president of the Nova Scotia Federation of Labour says a recent report by the Canadian Centre for Policy Alternatives (CCPA) should raise alarm bells for Nova Scotians. Danny Cavanagh says, “It’s a good reason to stop any privatization scheme for a hospital in Halifax. Let’s not even waste any money by looking at another privatization scheme that wastes tax dollars.”

A recent report (Aug 8, 2017) by the CCPA that tell us that using P3 privatization schemes for three British Columbia hospitals that are currently under construction will cost the public $262 million more than using public procurement, and over the life of the projects, using P3s for the three hospitals will cost $3.11 billion. In contrast, public procurement would only have cost $2.85 billion.

“That’s why we must build infrastructure through a public means using unionized trades and own and operate the hospital at the end of the day. Nova Scotians said no to toll highways, and we think once they understand how these schemes bilk them as tax-payers, they will agree with us that using P3s are just bad deals for tax-payers,” says Cavanagh.

“People need to be concerned that, as pointed out in the CCPA report, costs for P3’s get manipulated to make P3s schemes appear cheaper, when they are not. According to the report, Partnerships BC claimed that using P3s would save $250.3 million with assumptions that artificially inflate the cost of public procurement and make the P3s appear to be a great deal, and that’s wrong.”

“We also believe that any, and all, privatization schemes in the province should be transparent. Meaning, all documents, information and accounting processes be made public. Taxpayers are shouldering the cost, and they deserve to be assured that there are no secrets, and all information is available for anyone to see.”

“We have just gone down the road of paying almost a billion dollars more for P3 schools in Nova Scotia. It’s safe to say, the public wasn’t getting the complete information in that process, and about the true costs of those P3s, so let’s not make the same mistake with hospitals and or in health care,” concludes Cavanagh.

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For more information or to arrange interviews contact: NSFL President Danny Cavanagh @ (902) 957-0822

To view, the CCPA report Click Here 

 The Nova Scotia Federation of Labour is the provincial voice of the Labour Movement, representing 70,000 members in over 400 union locals.

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