In Rafe Mair’s column last week, he rails against the lack of public input as the government, acting against the will of the people, moves to privatize BC Hydro. Also last week, a report surfaced recommending the privatization of Hydro Quebec, despite public opposition to such a move.
It’s no surprise these suggestions came from a right-wing government and right-wing think tank (aka lobby group) respectively.
We can expect to see more of this kind of nonsense as those opposed to democratic institutions look to capitalize on the current economic crisis – the timing of both hydro privatization schemes takes a page out of the playbook adroitly illuminated by Naomi Klein in The Shock Doctrine. The shock therapy relies on troubled times – natural disasters or manmade crises, it matters not – to push through an agenda contrary to the public interest.
Given his government’s record, Prime Minister Stephen Harper will undoubtedly attempt to weaken government institutions he opposed on ideological grounds, using the recession and mounting deficit as cover.
Even before the financial meltdown, Finance Minister Jim Flaherty was pushing for the sale of assets, including real estate holdings, as a way to shrink government and to make up for shortfalls in a policy that combined lower taxes (particularly for the upper brackets and corporations) with massive spending increases, largely to buy votes and support ideologically acceptable programs.
Ontarians will recognize this formula as the one cooked up by the Harris government to cover deficits and to advance its financial agenda. As part of that government, including a stint as finance minister, Flaherty advocated the sale of Hwy. 407, which proceeded at great cost to the taxpayer, and also pushed for the privatization of the LCBO, a foolhardy plan that thankfully did not go ahead.
With the blessing of Flaherty and other Harris ministers now in Harper’s cabinet, Ontario saw the fire-sale deals in which assets were traded away for pennies on the dollar. Much of the current mess in the electricity market can be tied to the Tory’s dismantling of Ontario Hydro in preparation for privatization.
We’re still hearing rumblings from Ottawa about the sale of various government office buildings across the country.
On the surface, the move would see the government rid itself of costly upgrades it says are unaffordable.
Selling the buildings would, of course, provide only a one-time cash infusion, certainly at far lower rates than the market would dictate, especially now. In return for the cash from the sale of buildings, the government would then lease back the same office space at a high enough price to cover the new owners’ expenses: mortgage, upgrade costs, taxes and a tidy profit. Only an ideologue could argue that would cost less than renovating buildings that are for the most part paid for, with no mortgages. Put simply, the argument is akin to saying it would make sense to sell your mortgage-free home to somebody else, then continue to pay exorbitant rent to live there.
It’s essential the public not be distracted by the recession and the snow job coming out of Ottawa, which will try to convert public assets to private profit for a well-connected few.
