Saturday, May 27, 2017

On Public-Private Partnerships

Much has recently been written about the Trudeau government's plan to establish an Infrastructure Bank whose putative purpose is to leverage private sector money to help fund projects. One can legitimately ask why that is necessary, given the record -low rates at which the government can currently borrow money.

Trapinawrpool provided a Twitter link to an analysis that should give everyone pause. Perhaps its most salient point is this:
It appears that public private partnerships (P3s), and not low-cost financing, will be the focus of the bank. The likely impact will be interest rates of 7 -9% on Infrastructure Bank projects, instead of 0.8 per cent, the current federal borrowing rate.

In other words, the proposed structure will increase interest costs by a factor of 10: 8% instead of 0.8%. Those higher costs will be paid by governments, by higher user fees, or both. Municipalities are not blind to this issue, preferring public financing due to its lower costs and improved control over public infrastructure.
For a quick look at the forces of unfettered capitalism that may very well be unleashed by the cozy relationship that Mr. Trudeau seems intent on fostering and furthering with his corporate pals, the American experience with such dalliances may prove instructive, especially when the report describes the field day private interests are having with toll roads they financed:

Clearly, Canadians should be very, very worried about what lies ahead under Mr. Trudeau's plans.


  1. Shhhh, Lorne. A lot of Liberals like to imagine their party is progressive.

    1. You know my philosophy, Mound: Better a bitter truth than a sweet lie.

  2. Trudeau wants to implement his neoliberal policies to their fullest Lorne.He has not been given the mandate by the voters to do this, but so what, it's not the people that voted for him that matter.

    The infrastructure bank is a purely neoliberal financial elite construct, sold to Trudeau as a rational solution to repair and create new infastructures.

    Trudeau is completely in over his head. I don't think he has a clue what neoliberalism is. He just accepts what his advisors tell him and you can rest assured that they tell him that neoliberalism is a progressive system that grows the economy and benefits all and he, a progressive himself will be seen as a man of the future by going full speed ahead in implementing neoliberal policy. I also think there's a part of Trudeau that wants to impress his advisors by showing how quickly he can implement their recommended neoliberal policies.

    Trudeau is a front man for corporate and military special interest groups both domestically and globally. My guess is they pay him alot of attention especially on the international stage. Getting control of Canada's wealth would be quite a coup for these elites. Who would have thought that the Prime Minister of Canada is gleefully laying the neoliberal groundwork for these domestic and global elites to then simply claim control of Canada's wealth, especially its resources.

    Trudeau's advisors and the corporate elite now know they can manipulate him to do what they want and when they want it.
    If Trudeau is allowed to realize the near completion of his neoliberal agenda the ravages of this country, including the destruction of its sovereignty will be all that's left.

    The only thing that may be able to stop him, in part anyway, is The Charter of Rights and Freedoms. How ironic!

    1. While Justin is hardly the intellectual that his father was, Pamela, I think you are being too easy on him in suggesting that he doesn't know what neoliberalism is. In both domestic and international situations (i.e. trade deals), he shows his fondness for the neoliberal agenda. Not once, for example, has he or his minions answered the question of why the investor dispute settlement mechanisms in NAFTA are a good thing. The only reason that provision hasn't yet been implemented in the CETA deal is that it requires the approval of all 38 national and sub-national European jurisdictions first. One can only hope they value their sovereignty more than Trudeau and his acolytes do.

    2. You're probably right Lorne. I tend to describe Trudeau as being almost oblivious to what he is doing, which does not make him responsible for his own actions.

      I have a friend who tells me I'm wrong and Trudeau knows exactly what he is doing. Whether Trudeau has the knowledge or not of what he's advocating is the part of him I find the hardest to grasp.I find him very hard to read specifically in the area of what he knows or what he doesn't know.

      Eventually I'll figure it out and if I come to the conclusion that for the most part he does know what he's doing, then I'll have to say that his actions make him the ultimate betrayer of the Canadian people.