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Ministry of Transportation Privatization
    January 12, 2001
 

  Road users beware

On Nov. 2, the Ontario government introduced the Road User Customer Service Act, 2000. The sole purpose of the bill is to allow the privatization of virtually all services provided by OPSEU members in the Ministry of Transportation (MTO).

The next move was to issue a "Request for Qualifications" on Nov. 17 to begin the process of privatizing 900 driver examiners across the province. According to the MTO, If Bill 137 is not passed the Ministry can’t award the contract to a new service provider.

On Dec. 5, MTO told about 120 Licensing Service Program staff (an offshoot of Driver Examination) that a Request for Proposals for their work would be released in the next few months.

While the government said its intent was to privatize driver examinations, the bill allows it to privatize any service involving road safety, including truck inspection, highway construction safety, enforcement of the Dangerous Goods Transportation Act and more – pretty much all MTO work done by OPSEU members.

(For OPSEU’s legal analysis of the Bill, see Analysis of the Effects of the new Road User Customer Service Improvement Act, 2000)

What’s the logic? There is none

The government has given no reasons for privatizating these MTO services.

It is being done only for ideological reasons.

The Conservatives 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.

This privatization risks a similar disaster to others already completed. It will make our roads more dangerous.

Here’s the history elsewhere

In Canada, only Alberta has privatized driver examinations. Corruption, inconsistency of services, and inaccessibility of driver examinations are major problems there. Virginia, which has privatized driver examinations, has had its system investigated by its own Joint Legislative Audit and Review Committee. The investigation fourn it fraught with danger and corruption. Newfoundland toyed with the idea recently but wisely dropped it.

Ontario’s Provincial Auditor reported in 1999 that this government’s track record on earlier MTO privatization is problematic. The first privatization was highway maintenance. The auditor found privatized highway maintenance was poorly managed, that privatization cost more, that extra work was awarded without tender, and that privatized roads were dangerous.

Areas of concern:

1. Public safety
The profit motive creates pressure for private companies to cut corners. For crucial services like roads, cutting corners can make the difference between life and death.

We’ve seen what happened with drinking water after they privatized Ministry of the Environment labs. Similar results could stem from privatized driver exams and safety inspections.

When wheels started flying off trucks on Highway 401, the government responded appropriately by hiring more inspectors and doing blitz checks on trucks and truckers. Public safety demands this kind of response, and this kind of public responsibility.

2. Breach of privacy
MTO collects personal information around drivers’ licences: name, address, physical data, medical restrictions and more. Public servants are bound by an oath of secrecy to respect the privacy of this information. The private sector is not. This data could be very profitable in the wrong hands.

3. Corruption
A driver’s licence is a requirement for many jobs, a vital piece of identification, a valuable document. Driver examiners are regularly tempted by bribes to pass an unqualified driver. If the service is privatized and staff are paid less, the temptation will be greater. A private operator could run a profitable black market in illegal identification with access to the means of producing drivers’ licences.

Ontario brought driver examinations in from the private sector in the mid-1950s to solve problems related to corruption. Reversing the move does not make sense.

4. 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 could set its own fees and retain them). This money should be used to improve the safety of our roads, not to profit shareholders. This would be a straight transfer of dollars from taxpayers to private companies.

Conclusion

The privatization of "road user safety" is in line with the Conservatives’ other moves to destroy the Ontario Public Service and allow private companies to pick its carcass clean.

Ontario has a strong tradition of public service that is democratically accountable yet independent from partisan politics. This has long protected the safety and confidentiality of Ontarians.

Bills such as the Road User Customer Service Act will end that. So will similar initiatives related to water safety, correctional services, air ambulance, and many other core public services. Rather than blaming the public administration, the government should take responsibility for managing the public service for the benefit of all Ontarians.

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