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A Capital Idea

Author: Adrienne Batra 2007/01/24
WINNIPEG: The Canadian Taxpayers Federation (CTF) welcomes news from the City of Winnipeg's Capital Budget that most of the major infrastructure upgrades will be done through Public Private Partnerships (P3s), but cautions all projects must be transparent for public accountability.

"The CTF has championed the idea of P3s for some time now and we are pleased the Mayor and Council are showing some much-needed leadership and getting our crumbling roads and bridges fixed," said CTF Manitoba Director Adrienne Batra. "Since Council has delayed significant repairs over the past 10 years, Winnipeg has a long way to go, but outsourcing the work with P3s is good start."

P3s means taxpayers aren't saddled with major costs up front and will see the private contractor build, maintain or run the project for an annual fee. P3s are planned for three new police stations, upgrading the Disraeli Bridge and expanding McGillivray Boulevard. " What is unique about a P3 contract is that it has some form of financial and quality assurance to protect taxpayers," said Batra. "This model is increasingly gaining currency as international evidence demonstrates."

To ensure taxpayers are getting the best value for their money, the CTF recommends when the City of Winnipeg enters into a P3 arrangement, the private contractor is made aware of the need for public disclosure of the contract. Under Manitoba's Freedom of Information and Protection of Privacy Act (FIPPA), third parties are protected under a confidentiality clause. "This has the potential of undermining transparency and accountability when it comes spending taxpayer's money but the city can insist on a full disclosure clause in each of these contracts," concluded Batra.

The City of Winnipeg's capital budget aims to spend over $425 million in the 2007 fiscal year.

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