Canadian Union of Public Employees (CUPE)

Canadian Union of Public Employees (CUPE)

June 12, 2009 09:00 ET

CUPE MEDIA ADVISORY-P3s Even More Expensive Since Financial Crisis: Report

Media conference Monday, June 15

NORTH BAY, ONTARIO--(Marketwire - June 12, 2009) - The cost penalty paid by governments for financing hospitals and other public infrastructure projects through public private partnerships has jumped substantially since the onset of the financial crisis, says a report to be released Monday by the Ontario Council of Hospital Unions (OCHU/CUPE).

Economist Hugh Mackenzie's report, Bad Before, Worse Now: The Financial Crisis and the Skyrocketing Costs of Public Private Partnerships (P3s), documents how the financial crisis has made P3s an even more expensive and risky way to build public goods like hospitals, roads and schools.

WHAT: Media conference on report on P3s since financial crisis
WHO: Hugh Mackenzie, Economist
Michael Hurley, President, OCHU
WHERE: Best Western Hotel, 700 Lakeshore Dr., Ontario "A" Room
WHEN: Monday, June 15, 2009, 10:00 AM

A financing cost disadvantage that had reached as much as 60% in the early stages of the credit crunch has now reached 83%, even assuming that P3 operators are prepared to accept lower rates of profit than they were earning previously. That means that governments can afford to invest 83% more in infrastructure projects if they are publicly financed than if they were privately financed.

Despite the disastrous economics of this approach to financing, the McGuinty government remains fully committed to this funding model for vital institutions like hospitals - a funding model that increases costs by hundreds of millions of dollars for every large project.

Contact Information

  • CUPE Communications
    David Robbins
    613-878-1431 (C)