Posted: Tuesday, 21 April 2009

I. Key Points:

• In Budget 2009, the Conservative government announced limited infrastructure funding support for a range of municipal, provincial, federal and First Nations projects.
• It is time for the government to seriously re-evaluate the public-private partnership (P3) model that it has advanced since Budget 2007.
• The "traditional" model of infrastructure development means that the private sector designs and builds the project, while governments finance, maintain and operate the infrastructure. Public-private partnerships (P3s) allow the private sector to finance, construct and operate public infrastructure projects.
• The weaknesses of P3s have been magnified because of the lack of credit and the global financial crisis. Private sector analysts warn that P3s will be "unable to show value for money, meet affordability tests, or even complete their funding."
• This is of serious concern now as Canadian governments cannot afford to waste time in getting infrastructure projects up and running so as to maintain jobs and incomes.
• The Canadian government should support public infrastructure projects that will deliver results quickly and in a cost-effective way. It should seek out public infrastructure projects because they are transparent, accountable and democratically-governed in the communities they serve.

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