1 Public Infrastructure in Canada: Where Do We Stand? Harchaoui, Tarkhani and Warren, Statistics Canada, November 2003.
2 Ontario's Public Infrastructure Challenge, Ontario Ministry of Public Infrastructure Renewal website (www.pir.gov.on).
3 Financing Capital Expenditures, Len Brittain, Canadian Tax Journal, Vol. 50, No 2 (2002).
4 No Time To Be Timid, Casey Vander Ploeg, Canada West Foundation, February 2004.
5 A Capital Question, Casey Vander Ploeg, Canada West Foundation, October 2003
6 Ibid
7 The State of Infrastructure Policy in Canada: A Report Submitted to Infrastructure Canada, M. Saeed Mirza, March 2003.
8 Ibid, A Capital Question Vander Ploeg.
9 Ibid
10 Ibid
11 Trends in Higher Education, Association of Universities and Colleges of Canada, 2002.
12 New Finance Options for Municipal Governments, Harry Kitchen and Enid Slack, Canadian Tax Journal, Vol. 51, No.6 (2003).
13 Ibid
14 Ibid, Ontario Ministry of Public Infrastructure
15 Ibid, Public Infrastructure in Canada: Where Do We Stand?
16 Ibid, New Finance Options for Municipal Governments.
16 Ibid
19 Ibid, The State of Infrastructure Policy in Canada.
19 Provincial Accounts, Statistics Canada, 2003
20 Total Provincial-Territorial Government Health Expenditures, Canadian Institute of Health Information website (www.secure.cihi.ca).
21 Congestion Charging: A Look at London England, A Report Submitted to Infrastructure Canada, Marni Cappe, September 2003.
22 The Take From Tolls, Lawrence Solomon, National Post, February 27, 2003.
23 Ibid, No Time To Be Timid.
24 Ibid, New Finance Options For Municipal Governments
25 Is the Debt War Over? William Scarth submission to a publication by the Institute for Research on Public Policy, 2004.
26 Infrastructure Financing: A Literature Review of Financing Mechanisms, Infrastructure Canada, January 2004.
27 No Go Zones, Jack M. Mintz, National Post, September 11, 2002.
28 PFI: Construction Performance, Report by the Comptroller and Auditor General, February 2003.
29 Joint Report by Ontario Teachers' Pension Plan and OMERS, 2004.
30 Cleaning up the Past; A National Brownfield Redevelopment Strategy for Canada, National Roundtable on the Environment and Economy, 2003.
31 Ibid
32 Ibid
33 TEBs are hailed in the U.S. as a cheap source of municipal funding, but in our view, the instruments are severely flawed with inefficiency and inequity. First, when it comes to the determination of the yield for TEBs, it will settle at a level that is equivalent to the after-tax return on other competing taxable instruments. This equilibration normally occurs at the level of the average marginal tax rate. As a result, individuals with higher-than-average tax rates enjoy disproportionately higher returns by investing in TEBs, while those with below-average tax rates would actually be at a disadvantage in purchasing TEBs rather than an equivalent taxable bond. Second, the federal and provincial government pay the costs through foregone revenues, which would be less than the interest savings. In Canada, this deficiency would be exacerbated by the importance in the market of foreign and pension investors.
34 Tax Increment Financing (TIF), Professor Craig L. Johnson, Indiana University, November 2002.
35 Tax Increment Financing and Economic Development, Nonproperty Tax Increment Programs, John L. Mikesell, pg. 57-69, State University of NY Press, 2001.
36 Tax Increment Financing and Economic Development, The Use of Debt in Tax Increment Financing, Craig L. Johnson, pg. 71-86, State University of NY Press, 2001.
37 Tax Increment Financing (TIF), Professor Craig L. Johnson, Indiana University, November 2002.
38 The TIF policy we've discussed should not be confused with some hybrid programs in existence in Canada. For example, Ontario has adapted some of the U.S. model through a version known as tax increment equivalent grants (TIEGs). In this program, the City will designate an area in need of investment, however the investment initiative is in the hands of the private sector. If a private consortium decides to invest in the area, and if the land assessment subsequently appreciates, then the government will return a portion of that increment tax to the private consortium in the form of a grant. However, this partial incentive scheme runs into a couple of hurdles. Just because the government deems an area in need of redevelopment doesn't mean that the private sector will decide to invest in that area, because there is no guaranteed return offered by the government.
39 The Public Sector Comparator: A Canadian Best Practices Guide, Industry Canada, May 2003
40 ibid
41 Risk Management in Public Private Partnerships, Mervyn K. Lewis, University of South Australia, 2001.
42 House of Commons, The Private Finance Initiative, October 2003.
43 Public Private Partnerships, UK Expertise for International Markets, International Financial Services, London, 2003.
44 PFI: Construction Performance, Report by the Comptroller and Auditor General, February 2003.
45 And, corresponding to our earlier point, when the private sector delivered this section of the highway late by about three months, it incurred penalty payments.
46 Highway 407 is another example where the government poorly communicated its intent from the onset of the project. What was conceived as a build-operate-manage 30-year P3 contract, was effectively turned into a privatisation structure under a 99-year lease contract. Not surprisingly, the general public felt duped by the government's policy reversal. This, combined with a lack of public disclosure of objectives and contract structure, have left every aspect of the deal open to public criticism - from estimations of the sale value of the highway to toll structures to revenue gains by the private consortiums. Undoubtedly, Ontario is left with a more hostile public environment for future P3 toll road initiatives.
47 Overview of Successful Partnership in the Water Sector, The Canadian Council for Public Private Partnerships and 100 Projects: selected Public Private Partnerships Across Canada, The Canadian Council for Public Private Partnerships and Industry Canada, 2000
48 Public-Private Partnerships in Canada: An Update, C.L. Sugiyama and PH. Harricks, Gowling Lafleur Henderson LLP.
49 Utt, Ronald, D. "How Public-Private Partnerships can Facilitate Public School Construction", The Heritage Foundation Backgrounder, February 1999, No 1257.
50 Successful Transportation: Public-Private Partnerships in Canada and the USA, The Canadian Council for Public-Private Partnerships, November 2002.