Report Finds Need for Improved Public Services, Not More Privatization

Jun 26, 2020

CLC Task Force releases new report about new forms of privatization

Meeting the needs of Canadians requires improved public services, not new forms of privatization. That’s the message from a new report – For the Public Good: The growing threat of privatization and workers’ proposals to protect our future – released yesterday by the Canadian Labour Congress (CLC) Task Force on New Forms of Privatization.

The Task Force was first established as a result of resolutions submitted at the last CLC Convention and was created to respond to new forms of privatization in Canada. The MGEU, through our National Union (NUPGE), was represented on the Task Force.

Over the past three years, it examined the rise of new forms of privatization, including social impact bonds (SIBs) and new federal agencies that facilitate privatization, such as the federal government’s Canada Infrastructure Bank (CIB), FinDev Canada and the Social Finance Fund, as well as the role of pension fund and other investor participation in privatized infrastructure.

The report documents the harmful impacts of private, for-profit public service delivery and ownership / operation of public infrastructure, while highlighting the value of strong, well-funded public services, programs and facilities.

The pandemic in Canada and experiences around the world over the past few months have reinforced, more than ever before, the urgent need to keep our public services and institutions public, as the report points out.

“As Canadians weather the COVID-19 pandemic, the importance of the public sector and public services has never been clearer… The COVID-19 pandemic and economic crisis have highlighted that a strong, equitable and accessible public sector is essential in responding to emergencies and will be absolutely critical in the months and years ahead as we strive for a prosperous, sustainable and just economic recovery.”

The report provides recommendations to improve public services and calls on governments to:

• Strengthen and expand public services and infrastructure for all;
• Expand public revenue;
• Expand and enhance public services;
• End the financialization of and the facilitation of privatization globally; and
• Expand public control over infrastructure development.

It also includes recommendations about the need for greater tax fairness, including addressing the use of loopholes and tax havens by large corporations and the wealthy, which starve public services of funds and set the stage for privatization.

The CLC says the report contains immediate actions to address threats and provides a long-term vision to build a sustainable and equitable public sector.

Read the Summary Statement here.

Read the Full Report here.

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