The BC Liberals say that partnering with private companies on major infrastructure projects, like Abbotsford Hospital or the Canada Line, has saved taxpayers millions.
These P3 projects, also known as public-private partnerships, are created when a private company finances, builds, and operates a project -- with taxpayers then making payments to the company for several decades in return for them bankrolling it.
This compares with the traditional model of infrastructure project where a company just builds the project while the government finances and operates it.
The Liberals say all P3 projects they've initiated have been built on time and on budget.
Nine such projects have already been completed and seven are under construction in B.C.
Forensic accountant Ron Parks, who was hired by the Canadian Union of Public Employees to review the government's P3 policy, has concerns.
"The budgets are too high and they're on time, but there's no reason why any project can't be on time if there's an incentive," Parks said.
Parks has experience looking critically at government policy having previously investigated the Bingogate scandal that brought down NDP premier Mike Harcourt.
The forensic accountant was brought in to crunch the numbers for the P3s to see if they really save money for taxpayers.
He believes his research says no. Part of the problem, he found, was the cost of financing these mega projects.
"The government can borrow at rates that are significantly lower than the private sector," he said.
"Why saddle a future generation with more than we have to, and if P3s are doing that they're not really a success story."
According to government reports that compare the P3 cost to what it would have cost under a traditional model, the BC Liberals say P3s have saved taxpayers $340 million.
The Liberals say P3s allow the private sector to carry the risk, but companies add that risk into the pricetag for taxpayers.
They continue to be committed to P3s when they make business sense.
And they have the qualified support of University of British Columbia economist Dr. Tom Ross of the Sauder School of Business.
"There's an increasing consensus developing that P3s for roads make a lot of sense," he said. "P3s for more complicated projects like health facilities could be more problematic, because what is a hospital going to look like in 25 years?"
Many observers say it's just too early to declare P3s a success or a failure.
The NDP position is it would pursue government financing of new projects rather than P3s.
Interestingly, the Liberals wanted the new Port Mann to be a P3 but the company couldn't get financing. So the Campbell government took over that project. And even though it's no longer a P3, the Liberals announced during the election campaign that it would finish early and be cheaper because of government financing.
For the full report on P3s by forensic accountant Ron Parks, click here.
For the B.C. government's report on P3s, click here.
With a report by CTV British Columbia's Mi-Jung Lee.
