Government can stay in control of public-private partnerships, Sudbury council hears

Morning North3:28Should Sudbury go with more public-private partnerships?

Should Sudbury build more roads and buildings with the help of private companies? The head of a group advocating for more public-private partnerships in the city made a pitch to Greater Sudbury city council. We have some of what he had to say.

Sudbury city councillors heard the case for more public-private partnerships — but not all think it's a good idea these days.

P3s are deals between government and private business that enter into an agreement to build or maintain a public service, road or building. They can include projects like schools, hospitals, highways or transit.

The most recent example of this in Sudbury is the new biosolids plant.

Council heard these types of projects are more likely to be built on time and under budget than regular government projects.

The president of the not-for-profit called the Canadian Council for Public-Private Partnerships told council Tuesday night that a private company can be put in charge of the long-term costs of maintaining the project.

But Mark Romoff noted that when contracts are executed properly, governments can stay in control.

"P3s are not about privatization. And they're not about turning over public control to the private sector," he said.

'Certain models fit'

Some councillors expressed concerns over both the control and potential profits the city might lose if the operations or maintenance of a public facility are put in private hands.

From Maley drive to a new arena, the city of Sudbury has many future projects on the horizon. There are more than a dozen the city is looking to build in the coming years.

But Sudbury city councillor Mark Signoretti was wary about entering into public-private partnerships.

"I'm not a big fan of P3s," he said.

"I know certain models fit. But [the private company] gets skin in the game, after 20 years once their debt or obligations are paid, they can walk away from that and who is left responsible, is the city."

Signoretti said it makes more sense for the city to get funding from other levels of government, rather than through private means.

"When you have both levels of government in our community with Liberal representation, interest rates at an all time low, and a community that's technically in a recession, certain projects may make sense to be done without P3," Signoretti continued.

"The city can secure the financing at a cheaper interest rate than the private sector would be able to."