Before leaving office, former Prime Minister Justin Trudeau set in motion several privatization projects, hoping his successor will carry them forward. Here’s some of what Justin Trudeau is hoping Mark Carney and the Liberals will see through if they are re-elected later this month.
Privatizing municipal hydro and water
In its December Fall Economic Statement, the Liberal government indicated plans to ease rules restricting privatization of municipal utilities. Currently, private sector ownership is capped at 10%. Investors have been eyeing the steady revenues from residents’ water and hydro bills for a long time. The consequences of privatizing utilities are well-documented: higher user fees and reduced public revenues for municipalities.
Greenlighting a new mega P3 project
In February, the Liberals unveiled plans for high-speed rail between Toronto and Quebec City – but as a public-private partnership (P3). Instead of strengthening VIA Rail, the government will outsource design, building, financing, operations and maintenance of this critical infrastructure to a for-profit consortium including CDPQ Infra and Atkins Réalis (formerly SNC Lavalin), major P3 players with spotty track records. When transit projects are run for profit, planning becomes opaque, community needs are sidelined, and public costs increase.
Promoting airport privatization
In March, the Liberals released a policy statement promoting the privatization of Canada’s National Airport System. Not-for-profit airport authorities are now expected to outsource operations and maintenance, and partner with private investors to create for-profit airport subsidiaries. The government is also looking at allowing private investors—such as pension funds—to own substantial stakes in Canadian airports. These changes would lay the groundwork for privatization of airports, which CUPE and allied unions representing airport workers have warned would drive up costs for travellers, erode wages and working conditions, and prioritize corporate profits over public safety and the public interest.
Mark Carney’s privatization resume:
As a Goldman Sachs investment banker, Carney led the charge in the first attempted privatization of Ontario’s public hydro utility, Hydro One.
As a senior official in the Finance Department, Carney oversaw the sell-off of Canada’s remaining public stake in Petro-Canada, completing its full privatization.
Carney was chair of Brookfield Asset Management, a global giant in privatizing utilities, toll roads, ports, energy, and telecom infrastructure, and a key player in pro-privatization lobbying through the Global Infrastructure Investor Association.
Carney has pledged to cap the size of the public service and cut public spending, without saying how deep the cuts would go.
Carney’s stated goal of “catalyzing major private investment while disciplining core government spending” is just code for more privatization and austerity.
With Mark Carney pushing the Liberals further to the right, CUPE members need a strong NDP in Ottawa now more than ever. The NDP is the only party that will stand up against profiteers and corporate lobbyists to defend our public services and our members who deliver them.