Is the legal standoff between the Ontario government and 407 ETR a sign partnerships between the public and private sectors don't work? The deal is in the hands of lawyers for both sides and legal action is threatened.
No big problem, says an area advocate of linking the public and private sectors. Such partnerships are becoming common and problems are relatively few, he says.
"There can be certain glitches in any type of agreement . . . these things happen," says Larry McCabe, administrator of the town of Goderich and a board member of the Canadian Council for Public-Private Partnerships.
McCabe says he's not aware of the details of the ETR deal but it's one of the biggest public-private deals he has seen. And he's not surprised there is a learning curve involved.
Many governments, strapped for cash, management staff and/or expertise have entered agreements with private business to provide new or existing services.
In London, Global Spectrum has a 50-year deal to operate the $45-million John Labatt Centre, for instance. No problems have emerged, at least so far. The city has private operators for its water supply systems, recycling, street light replacement and countless other functions. No problems there, either.
While the Ontario-ETR relationship is in the hands of lawyers, such breakdowns are not the norm, McCabe said. The trend is toward greater partnering.
In his own town of Goderich, a not-for-profit corporation was established to take over the harbour from the federal government and redevelop it. A private company operates its water and sewer plants and another runs Goderich recreation programs and will manage the new $19-million aquatic centre that opens this week.
McCabe insists there are "strong benefits" from public-private partnerships and the fight over the 407 increasing its tolls won't be a setback for a well-established trend.