Public-private partnerships cost governments more

NDP Health Critic Lorraine Michael

NDP Health and Community Services critic Lorraine Michael (MHA, Signal Hill-Quidi Vidi) continues to express concern about government’s proposal to proceed with public-private partnerships (P3s) for the province’s pressing long-term care needs.

Michael points out that several other provinces have already learned the lesson that P3s in many cases have actually increased what provinces have to pay for vital services.

“Last week the Premier declared that the Department, the Minister and Government have looked at the experience with privatization of long-term care in other provinces and they think P3s will save this province money,” Michael said in the House of Assembly today.

“But Auditors General in Nova Scotia, New Brunswick, Quebec and Ontario report that P3 facilities have gone way over budget because of the high cost of private borrowing and the need to build in more profit.

“I ask the Premier has he looked at all the evidence of the higher costs of P3 facilities or just what P3 proponents want him to see? Is he aware of reports showing that new P3 hospitals in Ontario are way over budget, and the cost has to be borne by the government?”

Another example, Michael says, is the privately designed, built and managed health facility in Montreal that cost $1 billion more than if it had been built using government procurement.

Associated Caucus Members: 

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