P3 model wrong choice for QEII redevelopment | National Union of Public and General Employees

P3 model wrong choice for QEII redevelopment

“Nova Scotians have already wasted hundreds of millions of dollars on other costly P3 projects — more than 30 schools, toll roads, and the Burnside jail, just to name a few. Why are we going down this road again?" — Jason MacLean, NSGEU President

Halifax (04 Oct. 2018) — Stephen McNeil’s Liberal government in Nova Scotia announced their QEII redevelopment plans, which includes the eventual decommissioning of part of the Victoria General site, and the construction of 5 new health care buildings in the Halifax area, using a P3 model.

P3 projects are known for costing more 

This means that a private company will be paid to, not only design and build the province’s central health care facilities, but they will finance and maintain the project for 30 years.

“We have needed new health care facilities in this province for a very long time, but this government has chosen the most expensive way to get this project done,” said Jason MacLean, President of the Nova Scotia Government and General Employees Union (NSGEU/NUPGE).

“Nova Scotians have already wasted hundreds of millions of dollars on other costly P3 projects — more than 30 schools, toll roads, and the Burnside jail, just to name a few. Why are we going down this road again?," MacLean said.

NSGEU/NUPGE pleased for the investment in health care but P3s are the wrong answer 

This government’s own former Deputy Minister of Health, Peter Vaughan, is on the record as saying P3 projects are a bad idea. In a document obtained via Freedom of Information, he wrote:

It is difficult to find examples of successful P3s where there are no criticisms. In audits by provincial auditors general, it’s been discovered that for Nova Scotia

  • Roads: An estimated more than $300 million in tolls were produced on the Cobequid Pass for a deal in which private financiers put up $66 million. The government is paying an effective Interest rate of 10 per cent for 30 years, twice its rate of borrowing.
  • Schools: The Dept of Education was criticized for its lack of effective oversight and management of contracts.
  • Department of Health and Wellness: in numerous audits, DHW has been criticized by the Auditor General for its challenges in providing effective oversight and holding entities accountable.

“While we are glad to hear that the public and our members, who deliver care in these buildings each and every day, will finally have safe, new facilities to work and receive treatment in, it is deeply disappointing that this government has decided to allow private companies to profit off of our public health system,” said MacLean.

The NSGEU/NUPGE  is committed to working with the employer, the Nova Scotia Health Authortity, to ensure our members’ jobs will be protected when construction is complete on these new facilities.


NUPGE

The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 390,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring our common wealth is used for the common good. — NUPGE

 

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