Banking on Privatization: the Canada Infrastructure Bank
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- Published on Tuesday, 20 June 2017 22:15
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A Socialist Project e-bulletin .... No. 1436 .... June 21, 2017
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Banking on Privatization: the Canada Infrastructure Bank
Canadian Union of Public Employees
The Liberal government is promoting the Canada Infrastructure Bank as a new way to provide financing for public infrastructure. But it’s really a new and dangerous way for corporations to profit from public infrastructure and services. The bank will allow corporations and private lenders unprecedented access to -- and power over -- the infrastructure that keeps our communities safe and makes them great places to live.
The Canada Infrastructure Bank (CIB) will support projects that generate revenue for private lenders and corporations, including water and wastewater systems, public transit, roads and electrical utilities. Privatization will lead to higher user fees and tolls. It will also divert significant public funds away from building... and maintaining public facilities, and into private, for-profit pockets.
The Liberals introduced legislation to create the bank on April 11, 2017 as part of the omnibus budget bill. The bank is expected to be up and running in late 2017. CUPE presented briefs opposing the bank at two House of Commons committees, as well as submitting a brief to the Senate committee studying the bank. Our research shows the bank’s for-profit motive could double the costs of building infrastructure, increase the privatization of public infrastructure and impose higher fees and tolls on the public. Privatization will also put pressure on the wages and working conditions of CUPE members who work in the sectors being targeted by the bank, such as public utilities and transportation.