EDMONTON, ALBERTA--(Marketwire - Oct. 17, 2012) - Following the release of a study by the University of Toronto showing "public private partnerships" add 16% to costs of infrastructure projects - the President of CUPE Alberta is renewing her call to scrap the private building and maintenance of schools.
President Marle Roberts said the study examined 28 Ontario P3 projects worth more than $7 billion. On average, because of the higher borrowing costs incurred by private interests, costs increased 16%.
"The Redford government has been using P3s for the building of new schools," said Roberts. "So taxpayers are charged more than necessary."
Roberts suggested the government chose this model because it keeps debt off the books.
"The Conservatives claim that because we choose this model, we have no debt on it," explained Roberts. "But we are committed to payments for 30 years, and those payments are higher than they need to be."
"No wonder they can't balance their budget."
A copy of the study can be found here: http://cupe.ca/updir/calgary2/downloads/p3study.pdf.