March 6, 2010
Privatization – What it Really Means

This week has seen many announcements about the increased role of the private sector in City operations. From City ski hills to bus routes, the spectre of privatization looms large. I think it is very good news that we are able to begin a discussion on the merits of working creatively to deliver services to residents.

The past seven years have been largely defined by an administration whose core principles were that the City was the best agent to deliver services to the public. The result has been an increasingly burgeoning bureaucracy that is viewed as inflexible by the public. This is in contrast to the emerging view that the City has a responsibility to ensure services are available to the public, but does not necessarily have to provide those services directly. I share the latter view. I believe that governments do certain things very well and should continue to do them. In areas where service delivery can be improved governments should partner with organizations that can provide these services more efficiently and effectively.

Municipal governments throughout North America and Europe have also come to this conclusion. Some municipalities have service agreements with the private and not-for-profit sector for most, if not all, core functions, including planning, legal, social services, housing and recreational activities. Governments ensure equitable access either by providing grants to the provider directly or the users. Through establishing service agreements, the government can negotiate quality service indicators that ensure the public is receiving value for the money that they are paying.

This model is not new to the City of Toronto. Now is the time to expand it. Recently the City debated the arena Board of Management model for 8 local ice rinks. It was determined that the relationship worked and that the arena boards provided not only good financial stewardship but were largely responsive to community needs. I believe it is time to extend this model to some of the other 40 rinks managed by the City to see if we can’t improve their operation. It also makes imminent sense to ask a private operator to help manage City ski hills and golf courses. It is also appropriate to partner with not-for-profit groups to help manage City operated day-camps and other social services.

Recently, the City decided to build and operate an organics processing facility – again, this should be done by a private operator. The opportunities for efficiencies are endless with the necessary political will.

It is an exciting time for the City of Toronto and I am pleased to see that these critical issues are being discussed in this very important municipal election.