Foreign Financiers Help Themselves To $35B Of Canadian Tax Dollars

The contracts often specify future benefits that the private sector partner (e.g. SNC Lavalin) know will be lucrative, but which do not have an openly announced dollar value. The benefit could be the right to levy tolls for thirty years, or it could be a monopoly over future repair work. In the case of toll highways, it could be the right to set tolls at a high level.

Just ask anyone who lives in the GTA about Highway 407, where SNC Lavalin and the other owners ratchet up the price of travel year after year.

It is true, however, that these types of infrastructure projects come in closer to budget when the private sector manages them, rather than the government. The private sector project overruns tend to be about 30% less. But you can write a design/build contract in the "normal" way that encourages the limitation of overruns.

Always remember, SNC Lavalin is motivated by profit, not the desire to assist the public. They were not reimbursing employee contributions to the Liberal party out of a desire to uphold democracy. Ultimately their profits will be guaranteed by the taxpayer under these PPP schemes, even if the government rhetoric is to the contrary and talks about how SNC is assuming all kinds of risk.

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