No evidence that P3s will save money or be in best interest of province’s people

Yesterday government announced that it will use a public-private design, build, finance, and maintenance model – a P3 – to build the Waterford hospital replacement.

Today in Question Period, NDP Leader Gerry Rogers said this will be the fourth one government has commissioned.

“I ask the Premier, when Auditors General across the country have reported P3 models have cost far more than they should have, why does he persist in saying P3s will be good for the province?” Rogers said.

Rogers says EY was paid $1.7 million to evaluate the best financial model for building a P3 facility in Corner Brook. EY drew up comparison budgets and then recommended a P3 project. Government then gave the same firm the procurement contract for this new project.

“Can he explain this very apparent conflict of interest?” Rogers asked of the Premier. “Will he invite the Auditor General to review the P3 contracts now going forward and report to the House on her findings?”

NDP House Leader Lorraine Michael says the people of the province are learning too late that the Muskrat Falls boondoggle could have been avoided if all the facts had been made public.

“I ask the Premier, before he embarks on multiple mini-Muskrats, will he make all P3 financial documents public, so it can be determined if these projects are truly saving money, and are in the best interests of the people?” Michael said.

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For further information, contact Zaren Healey White, Director of Communications, 729-2137 (o) or 693-9172 (c).

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