SEARCH
HomeJoin UsNewsGrievanceLegalBargainingContact UsLinksSearchFrancais 
Ministry of Transportation Privatization
    January 31, 2001
 

  Lobby Notes: Points to make when lobbying MPPs.

On Nov. 2, the Ontario government introduced a bill in the legislature called the Road User Customer Service Act, 2000. The sole purpose of the bill is to set the stage for the privatization of services provided by OPSEU members in the Ministry of Transportation. On Nov. 17, the Ministry issued a Request for Qualifications to begin privatizing 900 driver examiners across the province. On Dec. 5, the Ministry announced the privatization of Licensing & Control, affecting another 120 members.

Why privatize?

The government has not provided a single solid reason for the further privatization of MTO services. The fact is, the government is privatizing for ideological reasons. They simply don’t believe in an accountable public service that protects the safety and confidentiality of all citizens. They believe in private profit, not the public good. If the next privatization turns out the way others have already turned out in this Ministry under this government, it will be a disaster. It will make our roads more dangerous. It won’t save money. It will put confidential records into the hands of private operators. It will open the door to corruption.

The 1999 provincial auditor’s report: The government has a lousy track record on MTO privatization

The first thing the Tories privatized was highway maintenance. The 1999 provincial auditor’s report had this to say:

  1. The privatized highway maintenance was poorly managed  "Although some performance measures had been developed, the Ministry needed to improve its procedures to measure and report on program effectiveness. The Ministry's procedures were not adequate to ensure that the outsourcing initiative was managed with due regard for economy and efficiency nor to ensure compliance with legislation, policies, and contract terms and conditions."
  2. Privatization costs more. "The Ministry had not achieved the target savings of 5% on the four outsourcing contracts we reviewed, which covered about 20% of the province's highway system." In fact, three of the four contracts examined actually cost more with a private operator in charge, and the four cost more overall.
  3. Extra work was awarded without tender. "Subsequent to awarding highway maintenance contracts, the Ministry engaged the contractors to perform additional work without tender and offered these contractors surplus ministry vehicles and equipment without going through the required public auction."
  4. Privatized roads were dangerous roads. "There were concerns that individual patrol areas were too large to adequately monitor the work of contractors to ensure that provincial highways were safe, usable and protected from untimely deterioration."

Private companies and public dollars

  1. Increased danger 

When it comes to providing public services, the profit motive creates pressure for private companies to cut corners in order to boost profits. In the case of crucial services like our roads, cutting corners can mean the difference between life and death.

We’ve seen what happened with our drinking water system after they privatized ministry of Environment labs. The same thing can happen in MTO if we privatize driver exams and safety inspections.

When wheels started flying off trucks on the 401, the government responded appropriately by hiring more inspectors and doing blitzes to check up on trucks and truckers. They did not send a memo to truck companies asking them to do a better job of maintenance and hope that worked! Nor did they hire the organization representing truckers to do the policing!

  1. Breach of privacy

MTO collects a lot of personal information around drivers’ licences – in addition to name, address, and physical data, there are medical restrictions and other information. Public servants are bound by an oath of secrecy. The private sector is not. This kind of personal information could be very profitable in the wrong hands.

  1. Corruption  

A driver’s licence is a requirement for many jobs, a vital piece of identification, a valuable document. This means that already driver examiners are tempted by bribes on a regular basis. If this service is privatized and staff are paid less, the temptation will be greater. A private operation (or its employees) could run a profitable black market in illegal identification with access to the means of producing drivers’ licences – especially with the lax management practices seen with highway maintenance.

Ontario brought driver examinations in from the private sector in the mid-1950s to solve problems related to corruption. In Canada, only Alberta has private driver testing. Newfoundland toyed with the idea recently, but wisely dropped it.

  1. Private profits and public losses

The government makes about $10 million a year from driver examinations. This is the attraction for the private sector (which would be allowed to set its own fees and retain the revenue). This is money that should be used to improve the safety of our roads, not as private profits. This is a donation from taxpayers to private companies.

Conclusion

The privatization of road user safety is part of a larger Conservative agenda to destroy the Ontario Public Service and allow private companies to pick its carcass clean.

Since its birth, Ontario has maintained a proud tradition of a public service that is democratically accountable yet independent from partisan politics.

It has protected the safety and confidentiality of Ontarians.

That era is coming to an end with bills such as the Road User Customer Service Act and similar initiatives related to water safety, correctional services, air ambulance, and many other core public services.

Rather than blaming current problems on public administration, the government should take responsibility for managing the public service for the benefit of all Ontarians, not just the few who happen to share this government’s views.

Return to MTO Campaigns Index Page


 

 

Ontario Public Service Employees Union, 100 Lesmill Rd. Toronto, ON M3B 3P8  (416) 443-8888  www.opseu.org