Main menu:

History of RPE Thought

Posts by Tag

RSS New from the CCPA

  • CED in Manitoba - The Video January 29, 2018
    Community Economic Development in Manitoba - nudging capitalism out of the way?
    Canadian Centre for Policy Alternatives
  • With regional management BC’s iconic forest industry can benefit British Columbians rather than multinational corporations January 17, 2018
    Forests are one of the iconic symbols of British Columbia, and successive governments and companies operating here have largely focussed on the cheap, commodity lumber business that benefits industry. Former provincial forestry minister Bob Williams, who has been involved with the industry for five decades, proposes regional management of this valuable natural resource to benefit […]
    Canadian Centre for Policy Alternatives
  • Community Economic Development in Manitoba - a new film January 16, 2018
    Cinameteque, Jan 23.  7:00 pm - Free event Film Trailer CCEDNET-MB, CCPA-MB, The Manitoba Research Alliance and Rebel Sky Media presents: The Inclusive Economy:  Stories of Community Economic Development in Manitoba
    Canadian Centre for Policy Alternatives
  • Winnipeg's State of the Inner City 2018 January 3, 2018
    Winnipeg's community-based organizations are standing on shakey ground and confused about how to proceed with current provincial governement measurements.  Read the 2018 State of the Inner City Report.
    Canadian Centre for Policy Alternatives
  • Our Schools/Our Selves: Winter 2018 is online now! December 18, 2017
    For the first time, this winter we are making Our Schools/Our Selves available in its entirety online. This issue of Our Schools/Our Selves focuses on a number of key issues that education workers, parents, students, and public education advocates are confronting in schools and communities, and offers on-the-ground commentary and analysis of what needs to […]
    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