City eyes P3 to build new police station

Hey there, time traveller!
This article was published 08/06/2012 (4959 days ago), so information in it may no longer be current.

Mayor Sam Katz called the province’s proposed changes to public-private partnerships “undemocratic” and said the overhaul is an attempt to satisfy unions.

Two weeks ago, Manitoba Finance Minister Stan Struthers introduced Bill 34, which would impose a standard set of rules upon major capital projects financed with the help of private-sector construction companies. The new legislation would require all levels of government — including the province — to conduct cost-benefit analyses and engage in public consultation before going through with any P3 worth more than $20 million.

This morning, Katz called on the province to put the proposed changes on hold so the details and full impact of the new rules can be discussed. He said the province is supporting the changes because unions have expressed concern P3s will take away jobs from unionized workers.

Katz said P3s have helped the city finance major infrastructure projects such as the Chief Peguis Trail extension, which was completed on budget and one year ahead of schedule. He called the proposed bill “undemocratic” and said it will hinder Winnipeg’s ability to enter these types of agreements.

“Why would you want to fix something that’s not broken?” he said.

The province will start hearing public presentations on the P3 bill on Monday. Katz said city officials will appear in delegation.

Katz’s comments came the same day the city released an administrative report which recommends Winnipeg use a public-private partnership to finance construction of the new South District police station. Katz said he believes the project will not be in jeopardy as the proposed changes have not become law yet.

Fort Rouge Coun. Jenny Gerbasi said it’s not just union officials who are concerned about the transparency and cost of P3 projects. Gerbasi said members of council have previously expressed concern about public-private partnerships, notably the Veolia project.

Gerbasi said the initial Veolia contract proposal would have seen Winnipeg’s water department managed and maintained by a private firm, which meant any financial details requested would have been “blacked out,” even to members of council. She said the public outcry about the Veolia contract started the discussion surrounding the transparency of these deals.

“It’s not out of nowhere,” Gerbasi said, noting she’s known about the pending legislation for the last two years.