Main menu:

History of RPE Thought

Posts by Tag

RSS New from the CCPA

  • Study highlights ‘uncomfortable truth’ about racism in the job market December 12, 2018
    "Racialized workers in Ontario are significantly more likely to be concentrated in low-wage jobs and face persistent unemployment and earnings gaps compared to white employees — pointing to the “uncomfortable truth” about racism in the job market, according to a new study." Read the Toronto Star's coverage of our updated colour-coded labour market report, released […]
    Canadian Centre for Policy Alternatives
  • Uploading the subway will not help Toronto commuters December 12, 2018
    The Ontario government is planning to upload Toronto’s subway, claiming it will allow for the rapid expansion of better public transit across the GTHA, but that’s highly doubtful. Why? Because Minister of Transportation Jeff Yurek’s emphasis on public-private partnerships and a market-driven approach suggests privatization is the cornerstone of the province’s plan. Will dismembering the […]
    Canadian Centre for Policy Alternatives
  • 2018 State of the Inner City Report: Green Light Go...Improving Transportation Equity December 7, 2018
    Getting to doctors appointments, going to school, to work, attending social engagments, picking up groceries and even going to the beach should all affordable and accessible.  Check out Ellen Smirl's reserach on transportation equity in Winnipeg in this year's State of the Inner City Report!
    Canadian Centre for Policy Alternatives
  • Inclusionary housing in a slow-growth city like Winnipeg December 3, 2018
    In Winnipeg, there is a need for more affordable housing, as 21 percent of households (64,065 households) are living in unaffordable housing--according to CMHC's definition of spending more than 30 percent of income on shelter.  This report examines to case studies in two American cities and how their experience could help shape an Inclusionary Housing […]
    Canadian Centre for Policy Alternatives
  • True, Lasting Reconciliation November 21, 2018
    For the first time, a report outlines what implementation of the United Nations Declaration on the Rights of Indigenous Peoples could and should look like at the provincial level. This report focuses on implementation in BC law, policy and practices. Fundamental to the UN Declaration is an understanding that government must move from a “duty […]
    Canadian Centre for Policy Alternatives
Progressive Bloggers

Meta

Recent Blog Posts

Posts by Author

Recent Blog Comments

The Progressive Economics Forum

P3 or No Federal Funding: A Third Option for Regina Wastewater?

The Queen City’s water debate has boiled over since I last blogged about it. City Council decided to build a new wastewater-treatment facility as a public-private partnership (P3), but a group of concerned citizens gathered 24,000 signatures to force a referendum on whether to “publicly finance, operate and maintain the new wastewater treatment plant for Regina.”

There has been much debate about the City’s anti-democratic tactics as well as the substance of the P3 proposal. The City Clerk overstepped Saskatchewan’s Cities Act in a desperate attempt to invalidate the petition. Since Council conceded that it would hold a referendum, the City has been pouring resources into the (pro-P3) “No” campaign.

Both sides of the debate seem to have accepted the premise that federal funding is tied to the project being a P3. The “No” campaign contends that rejecting the P3 means rejecting up to $58.5 million (a quarter of project costs) from the P3 Canada Fund.

The “Yes” campaign has argued that public financing, operation and maintenance is a better deal even without federal support. In Thursday’s Leader-Post, the Old Man noted that the promised P3 Canada Fund grant would not even offset the profit and higher interest charges incurred by the private partner.

Interestingly, Finance Minister Jim Flaherty’s recent Leader-Post commentary did not state that the P3 Canada Fund is the only federal money available. He indicated that the City chose the P3 option and then applied to P3 Canada. That begs the question of why the City couldn’t decide against the P3 option and then apply to a different federal infrastructure fund.

As I point out in the current edition of Prairie Dog magazine, the 2013 federal budget unveiled a new Building Canada Fund, which does not strictly require P3s, the month after City Council chose the P3 option.

The classic Big Lebowski line, “New shit has come to light!,” seems appropriate to a debate about sewage. So, did City Council revisit its decision in light of this new shit?

The Mayor tells Prairie Dog, “That doesn’t come into play until the current Building Canada Fund is finished and that doesn’t happen until at least 2014. So we’re looking well into the future.”

It’s not true that we have to wait for the existing Building Canada Fund to deplete. Already-committed money will continue flowing from it for years after the new Building Canada Fund becomes available in 2014. (See the “Existing program funding” line in Table 3.3.1 of the federal budget.)

The 2014-15 fiscal year is only seven months away. It’s not clear that Regina would get P3 Canada money any sooner than that, since Ottawa will not write the cheque until after construction starts.

In any case, the timing of the federal contribution is not critical. Borrowed money will cover the project’s upfront costs and be repaid from utility bills over the coming decades. Whether those multi-decade loans are locked in at the City’s AA+ interest rate or at a private partner’s higher interest rate is far more important than whether the federal cheque arrives in 2013, 2014, 2015 or even 2016, when the new plant must be operational.

P3 apologists are trying to characterize a “Yes” vote as turning away federal funding. In fact, voting “Yes” would give the City of Regina a strong democratic mandate to seek federal funding without P3 strings attached, which is entirely possible within Ottawa’s existing fiscal framework.

Enjoy and share:

Comments

Comment from Thomas Bergbusch
Time: August 28, 2013, 9:14 am

Excellent summary.

Write a comment





Related articles