Whitehorse Daily Star

Public-private partnerships secrecy' rapped

The opposition was on attack during Tuesday's question period in the legislature on the issue of public-private partnerships (P3s) for future projects in the territory.

By Whitehorse Star on April 20, 2005

The opposition was on attack during Tuesday's question period in the legislature on the issue of public-private partnerships (P3s) for future projects in the territory.

Both the NDP and the Liberal party accused the government of planning to use P3s for not just the pending bridge in Dawson City but for other large-scale projects.

P3s are agreements between the government and a private sector organization, usually for the purpose of providing public infrastructure projects.

Liberal Leader Pat Duncan said the mobile communications solutions project (MoCs) planned to replace the outdated multi-departmental radio system may be a P3.

Steve Cardiff, the NDP MLA for Mount Lorne, said he has concerns about the Whitehorse Correctional Centre rebuild project becoming a P3.

During question period, the government repeatedly said the Dawson bridge is being used as a pilot project to determine the feasibility and process of using P3s in the future. However, there are no P3 projects occurring in the Yukon, the government said.

In an interview Tuesday Premier Dennis Fentie said the NDP his former party is misleading the public on the issue of P3s.

He said the process of determining if a P3 will be used in Dawson City will be open and accountable to the public. If it's decided that the project will be a public-private partnership, he added, Yukoners will be told exactly what that means.

A document discussing P3s published by the Department of Economic Development says the partnerships are a viable option for the government to acquire and maintain assets while often delivering a better service faster and at a lower cost.

NDP Leader Todd Hardy argued Tuesday, however, that there's evidence to suggest P3s are not in the public interest.

Cardiff said in an interview Tuesday afternoon that in regards to a P3 being used for the new correctional facility, his main concern is for the health and safety of the workers.

A memorandum of understanding between the government and the Kwanlin Dun First Nation for building the facility may be an indication of a future P3 because of the Kwanlin Dun Development Corp.'s partnership with SNC-Lavalin through Epcom, Cardiff said.

SNC-Lavalin is one of the top five engineering and construction companies in the world.

'For (SNC-Lavalin), building a bridge in Dawson or a correctional facility is something they could put on their Visa card. They could probably do it with coffee money,' said Cardiff.

The example of the compromised standards of jails in the United Kingdom and the United States show how the P3 system can lower safety standards and employee wages, said Cardiff.

He added that P3s are a way to off-load problems to the private sector, and 'there has been this move to warehouse people in these facilities.

'P3 is not about value; they are an ideological position the government is taking,' he said.

Though there are risks involved in P3s, Duncan said in an interview today, her main concern is about the process being used for the MoCs project.

Duncan pointed to a debate in the House on March 29 as evidence MoCs may become a P3.

During the debate, Highways and Public Works Minister Glenn Hart stated, 'We are looking at trying to get the best bang for our buck for the Yukon taxpayer, and one of the issues we are looking at is the possibility of using a P3.'

The request for qualifications for the project mirror those for the Dawson City bridge further suggesting this may be another P3 project, Duncan said.

She said she is further concerned because Fentie committed in the legislature to never using P3s without a policy in place.

'They don't have a policy,' she said. The government is relying exclusively on Partnerships BC, which may not be familiar with issues related to the territorial land claim's Umbrella Final Agreement, she added.

'The government also committed to public consultations, and they haven't done that,' she said.

Said Hardy: 'The public doesn't know what is happening. It's so secretive.'

He said the government indicated the Dawson bridge would be built as a P3 last year, but is now denying it and insisting it's just a pilot project.

'The government is having a duplicity happening here,' he said.

Cardiff said Tuesday that having worked in construction, he finds it hard to imagine a company would put in the time and effort to present a proposal if it hadn't been provided some kind of assurance the project would be a P3.

However, Fentie maintained that no decision has been made. He added P3s are a mechanism that have been very successful in other jurisdictions and that in the Yukon, P3s will not be used for hospitals, schools nor jails.

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