Independent study to put highways privatization under the microscope

To mark the 20th anniversary of the privatization of highways maintenance on this day in 1988, the B.C. Government and Service Employees' Union (BCGEU) says it has engaged an independent firm of financial professionals - including respected forensic accountant Ron Parks - to conduct a comprehensive, independent review of B.C.'s highway privatization model.

"There's growing public concern about the worsening state of our provincial highways and bridges," says BCGEU president Darryl Walker, whose union represents 2,000 highways maintenance workers employed by a patchwork of private contractors across B.C.

"So we've asked for an objective outside analysis to conduct a review on a range of issues."

These include determining whether:

• privatization has saved British Columbians money or cost taxpayers more;
• maintenance standards have improved or declined over the last 20 years;
• the privatization model has measured up to the promises made in 1988.

Parks will be joined by chartered accountant Rosanne Terhart in leading the investigation, from the Vancouver-based firm Blair Mackay Mynett Valuations Inc. Their review is expected to be complete by February 2009.

Parks was part of the last investigation into privatized highways maintenance services carried out in 1993 by the Ministry Of Transportation and Highways. That review determined that privatized maintenance was not cost efficient, and would never have been implemented if proper research and impartial analysis been carried out.

Community concerns about highways and bridge maintenance will be featured at the Union of B.C. Municipalities convention in Penticton next week, where delegates will debate a resolution calling on the Campbell government to improve highways maintenance standards and toughen oversight of private contractors.

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For more information contact Chris Bradshaw, BCGEU Communications