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www.oakvillebeaver.com · OAKVILLE BEAVER Wednesday, April 14, 2010 · 10 Opponents say AFP model inflates construction costs Continued from page 1 Speaking to an audience of about 40 people, Mehra was one of three panelists who took part in a public forum to discuss the proposed new Oakville hospital. The event was organized by Concerned Citizens of Oakville and Halton for Community Health Care. The panelists took aim at the funding for the new 457-bed hospital, planned to be built on a 50 acre site on the northwest corner of Third Line and Dundas Street. They argued that the provincial Alternative Financing and Procurement (AFP) model, which relies on private financing to cover the Province's share of the project, results in hospitals that are much more expensive than those, like Peterborough, built with public financing. The Town of Oakville has been asked by Halton Healthcare Services (HHS) to contribute $200 million toward the local share, to be funded through a 30-year tax levy on all residents and businesses, beginning in 2015. Town councillors are still considering the request and are expected to make a decision on April 19. If a tax levy is approved, HHS hopes to raise the remainder of the local share through a fundraising campaign ($60 million) and services like parking and retail outlets at the hospital ($270 million). While Thursday's meeting was originally billed as an opportunity for residents to learn more about the tax levy request, organizers were unable to convince Town, hospital or provincial representatives to participate. That left panelists talking about their concerns with the AFP funding model. Hugh Mackenzie, an economic consultant and research associate with the Canadian Centre for Policy Alternatives, said the fundamental problem with the AFP model is that it results in far higher financing costs than a publicly-funded project. Not only is the borrowing cost several percentage points higher than the government could itself borrow for, the projects also typically result in fees being paid to private consortiums, who arrange the financing, he said. "For this to make any sense at all, there has to be a huge advantage elsewhere in the project to pay these increased costs," said Mackenzie, who suggested that independent study of such publicprivate partnership projects has not found those advantages, but has highlighted disadvantages such as a lack of flexibility with projects. The third panelist, local resident John Scheel, echoed Mackenzie's concerns about the cost of financing projects through an AFP model. While no one from the Town attended the meeting in an official capacity, Oakville councillors Jeff Knoll, Marc Grant and Keith Bird were in the audience. Knoll told the panelists that he has serious concerns about the hospital, but is also feeling the pressure of the public desire for a new and improved health care facility in Oakville. He also said he is worried about the need for the Town to come up with its $200 million immediately. If financed over the next 30 years, that would almost double the Town's cost, he noted. "We're not getting all the information, frankly," said Knoll. "There is a gun to our head and I resent it deeply." While construction on the hospital is scheduled to begin in 2011, a complete plan for raising the local share is required before the Province will allow the project to be tendered. Mackenzie said the decision being made by councillors on April 19 is a political decision, and that voters will also make a political decision during the next municipal election in October. He added that the Province is also susceptible to political pressure. Meeting organizers videotaped the session and said it would be posted on YouTube under "Oakville hospital public forum." Their Signature Plus Series Signature Plus features: · Planks up to 8 foot lengths · A titanium enhanced finish · Sunshield protection · Antimicrobial protection · An ultra clear finish · A 35 year wear warranty Introduces You Just Couldn't Buy Better! Now through April 30th Come see why a Signature Plus floor is the best in the industry! Offer Available at: Signature Plus Flooring. 59 Bramalea Rd., Brampton Savein-stock % 10 on all 905-450-6268 1-866-450-6268 bramptonhardwood.com