There was a picture in the newspaper the other day of Ontario Finance Minister Charles Sousa. He was looking so smug and self satisfied as though all was great in the sphere of provincial finances. It seemed to contradict the forecasts that Ontario’s economy is struggling and we are at least $100 billion behind in updating provincially funded infrastructure. That is replacement and upgrades costs for outdated bridges, highways, commuter trains and transit, hospitals, courts, provincial parks facilities and other infrastructure across the province.
The only problem with this figure is that Charles and the Premier seem to have no idea where the money is to eventually come from. Sure, they mention public-Private partnerships (3P), Trillium Funds and Green Bonds but these schemes just delay costs. Ultimately, the public still has to pay.
There is certainly no fourth ‘P’ for panacea in public-private partnerships. SkyDome in Toronto was one of the first experimental 3P ventures in Ontario and the province gave away its portion as something of a gift to a private sector that hardly needed the taxpayers’ charity. We can commit to 3P relationships to get anything built but somebody still has to pay for it.
It is even more important if you use tax-free bonds to fund public projects that there be a recognizable cash flow with which to pay the interest and ultimately retire the bonds. Charles Sousa is a banker and he can explain that better than this observer.
What worries us about the approach the Whigs are using is that Sousa and Wynne continue to disparage selling beer and wine in convenience and food stores. Far more money can be gained from these new tax revenue streams than is presently earned through the archaic, outmoded Brewers’ Warehousing operations.
In the same way, selling off the Liquor Control Board operations would gain one-time billions as well as an increased revenue stream from the private sector jobs created. Conversely, selling off the province’s General Motors stock is just killing the goose and getting nothing further for the taxpayers’ investment. Charles should remember that he is working with the taxpayers’ money and he should show more respect.
The Wynne Whigs have another few months before they present their Spring Budget. They should bear in mind that that will be the time when the taxpayers can do some spring house cleaning at Queen’s Park. They should take heed.
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Copyright 2013 © Peter Lowry
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