“The privatization industry want us to believe Social Impact Bonds are ‘free money.' This report shows that, in reality, Social Impact Bonds increase the costs of public services.” — Larry Brown, NUPGE President
Ottawa (24 Nov. 2016) — Responding to the spread of Social Impact Bonds, the National Union of Public and General Employees (NUPGE) has released an updated version of its report entitled Privatization by Stealth.
The report contains information on recent developments, including issues with the Canadian government’s first Social Impact Bond.
“The privatization industry want us to believe Social Impact Bonds are ‘free money’”, said Larry Brown, NUPGE President. “This report shows that, in reality, Social Impact Bonds increase the costs of public services.”
Administrative costs that come with Social Impact Bonds eat up valuable resources
The Canadian government’s first Social Impact Bond project shows how costs will rise. While it is spending up to $2.75 million, only 40 per cent of the money will be going to deliver services for the public. The rest of the money will go to overhead and profits.
Social Impact Bonds: an attack on Canadian values
Our social safety net is based on values that are at the core of our identity as Canadians. Values like our responsibility to look out for each other and the idea that a society is judged by how it treats its most vulnerable members.
But Social Impact Bonds undermine those values.
“With Social Impact Bonds, no matter how good the intentions, the primary goal of social services will be making a profit for investors,” said Brown. “When we put investor profits ahead of the needs of the most vulnerable people in our community, it undermines Canadian values like compassion and responsibility.”
The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 370,000 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