Privatization & P3s

Privatization is the shifting of ownership, management or provision of assets and/or services from the public to the private sector. Privatization is first and foremost about guaranteeing profits for companies at the expense of Saskatchewan people.

 

We all pay more with privatization, and it takes many forms:

  • Selling-off a Crown Corporation or public asset;
  • Contracting out a service to a private firm or third party rather than keeping the service internal or in-house;
  • Outsourcing – another term for contracting out a service;
  • Public-Private Partnerships (P3s) – another term for private ownership or control of community infrastructure and services. With P3s, governments enter into costly contracts that are essentially rent-to-own schemes rather than building and maintaining community infrastructure directly.

Evidence shows that privatization increases costs, and leads to lower quality and a reduction in service levels. We also lose control and accountability with privatization – profit making becomes the sole priority rather than serving the needs of our communities.

Handing over control of services and infrastructure to corporations is a political goal of those that stand to profit from privatization and not a real solution to infrastructure and service needs. That’s why we are often bombarded by a heavy duty sales pitch.

There is a better way. Saskatchewan people know they can count on public services to make life more affordable and deliver the services we need to improve our communities and our quality of life.

Did you know? A Canadian Centre for Policy Alternatives’ 2010 study revealed that an individual Canadian consumes on average $16,952 in public services per year. It’s a benefit that is often overlooked.

 

Privatization in Saskatchewan since 2007
The following is a short summary of the privatization that has occurred since 2007 and is not an exhaustive list.

Crown Corporations

  • 14 Crown Corporations entities sold-off;
  • 4 Power Purchase Agreements signed with private companies – privatizing electricity generation;
  • 24 areas of Crown Corporations were contracted-out; and
  • 6 government policies were enacted restricting Crown Corporation growth.

Health Care

  • CT scans and surgical procedures contracted-out to a for-profit company;
  • Government-backed P3 project for long-term care in Saskatoon, known as Amicus, opened its doors;
  • Saskatoon Health Region’s laundry outsourced to for-profit company in Alberta;
  • Outright privatization of health care laundry services in Saskatchewan (closure of public health care laundry facilities in Prince Albert, Weyburn, Yorkton and Moose Jaw announced – over 300 jobs will be lost).
  • P3 announced for new Saskatchewan Hospital in North Battleford.

 

Other P3s announced:

  • Civic Operations Centre in Saskatoon
  • Bypass road in Regina
  • Two new bridges in Saskatoon
  • Nine joint-use (public/separate) schools in Regina, Saskatoon, Warman and Martensville
  • Long term care facility in Swift Current

 

 

 

Privatized liquor could cost province millions: report

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New report confirms privatizing liquor stores will cost Saskatchewan millions in lost funds for public services and communities.

The Saskatchewan government maintains that their proposed privatization of the province’s liquor retailing system will not result in diminished government revenues. However, a new joint study by Alberta’s Parkland Institute and the Saskatchewan Office of the Canadian Centre for Policy Alternatives demonstrates that even with the existing mark-up and taxation regime in place, the government stands to lose millions in potential revenue under a privatized liquor system.

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P3s: Pay more, get less

P3sPublic Private Partnerships—or P3s— is the name given to a method of privatizing services and facilities. In a typical P3 deal, the government pays for-profit private corporations to finance, design, build and/or operate facilities.  The government typically commits to lease a P3 facility and use certain services for a period of 30 years or more.

P3s are first and foremost about corporations making profit at the expense of taxpayers, and governments are never wise to use them.

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