P3 Corporate Collapse Highlights Risks of Privatization

Details: Published on Sunday, 29 November -0001 16:00; Written by editor

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A Socialist Project e-bulletin ... No. 1544 ... January 21, 2018
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P3 Corporate Collapse Highlights Risks of Privatization

Canadian Union of Public Employees

The collapse of Carillion, a global privatization corporation, illustrates the risky nature of public-private partnerships (P3s) and contracting out. Carillion is involved in 10 P3s across Canada, primarily in hospitals in Ontario, Saskatchewan and the Northwest Territories. Two hospitals are still in development.

It is unclear how Carillion’s equity stakes and facilities management contracts in many Canadian P3s, as well as the contracted-out services they provide, will be dealt with as part of the company’s asset liquidation. The Canadian Union of Public Employees (CUPE) believes the infrastructure and services in which Carillion plays a role should be brought back under public control -- all public infrastructure should be publicly financed, owned, maintained... and operated. The UK government has committed to provide funding to maintain public services carried out by Carillion staff, subcontractors and suppliers. The company’s 6,000 workers in Canada should have their work contracted in, with good wages and working conditions.

Carillion was the lead company in the consortium that built the P3 Brampton Civic Hospital, a project the Ontario Auditor General found to have cost $200-million more than if the province had borrowed to build it publicly. A more recent auditor’s report found that 74 P3 projects cost the province $8-billion more than if they had been procured publicly.