PPP: We should be Pondering Privatizing Profits at the Guertin Arena
This letter was published in Le Droit, on April 3, 2009
 The late Robert Guertin must be turning in his grave with the construction saga surrounding the new arena in Gatineau, apprehensive that the new building could be named the PPP Arena – Plentiful Privatized Profits.
PPPs are another route private enterprise has taken to shed its traditional role as the builder of public buildings and instead take the place of designers, managers and promoters, thereby reaping the benefit of public funds that have been paid in. If we ask ourselves what interest the city has in this story, the answer would be Pretty Paltry Profits, especially for we taxpayers.
We have learned that all of this went down with no call for tenders and that hidden expenses were not included in the equation. The City will be responsible for insurance costs, taxes and interest; and, to boot, it will pay management fees to the Olympics, which could climb to $100 million by 2035.
As you can see, it is a Partially Prepared Project that was accepted, because the PPP sirens are so shrill that our elected officials have a difficult time saying no.
But indeed we must stand our ground and support the dissenting councillors. Why should a privately managed company manage a public building? After all, it’s a building that should belong to Paul, Pauline and Peter, not to Alain Sear and to the Olympics.
Cities such as Gatineau and Ottawa have enough resources and expertise to build and manage their arenas, and the public-private partnerships add nothing. This is especially true given that Gatineau has already put aside $14 million of the $28 million required for construction. This clearly shows that a PPP arrangement is not necessary, because attempts are made to justify these projects, more often than not, based on the rationale that governments do not have to set aside huge sums of money. But Gatineau already has 50% of the funding it needs, and the remainder can be borrowed at a far better rate than any private enterprise or management company could obtain.
Ottawa has been burned by PPPs that have cost far more to taxpayers than anticipated. In 2007, City administrators recommended that $1.2 million be paid to buy out the Bell Sensplex lease and to terminate a partnership for the Ray Friel Centre in Orleans, while absorbing a $12-million debt.
I agree totally with the demand by dissenting councillors for an investigation to look into this contract that was signed in haste, with no consultation with citizens to speak of. The City of Gatineau administration should be ashamed of itself for considering a private-public partnership at a time when the economic slowdown has forced us to examine proven solutions that do not funnel into the Pockets of Private Promoters the valuable dollars Gatineau taxpayers must shell out for such a facility.
Let’s say no to PPPs and yes to public services provided by and managed by the public sector.
Maria Fitzpatrick
Regional Executive Vice-President – National Capital Region
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