A
Art Mann
Guest
Edward Norton is one helluvan actor, but you, my friend, are one helluvan insightful cynic:
Alas, your history is not quite accurate. In fact, the Ontario government gave a 99-year lease on the 407 to a Canadian consortium of companies in 1999 for $3.1 billion. That group later sold the majority share to a Spanish conglomerate, which still reaps majority of revenue, etc. There's also a Montreal group that holds a significant portion of ownership, as well as the Canadian Pension Plan, which bought a 10% share for $900 million 2 years ago, presumably making the road worth $9 billion in 2010.
You are absolutely right, we could have got that $3.1 billion back and more. Probably within just the time frame since the Ontario government gave it away at such a ridiculous bargain.
Why is the real question. And the answer is not only annoyingly simple, it also reflects the simplistic minds in control of the province at that time.
The 407 was completed in 1997, at a cost of $1.6 billion. Two years later, as the Harris government was looking for re-election. Trumpeting "fiscal responsibility" and "balanced budget" and (their beloved phrase) the "common sense revolution," they flogged the highway for a so-called 100% profit.
Hard to imagine anything more short-sighted, basically killing the goose that lays the golden eggs.
But that's the nature of privatization, which Tory governments love so much. Call it instant gratification. Cash in the coffers which looks good on today's spread sheets. Fuck the future generations.
Forget about the fact that in less than 10 years from giving away the lease, that highway would generate a half-billion bucks revenue annually. Just brag about conservative values and fiscal prudence and "common sense revolution."
Why worry about the bills your kid and mine will have to foot. At least Mike Harris got re-elected. By a whopping majority in 905 as it turns out, somewhat ironically.
. . . . . . . . . . . .
Edit: While I was writing this, Sheik came up with some more specific details, so apologies for wandering into the Department of Redundancy Department.
Alas, your history is not quite accurate. In fact, the Ontario government gave a 99-year lease on the 407 to a Canadian consortium of companies in 1999 for $3.1 billion. That group later sold the majority share to a Spanish conglomerate, which still reaps majority of revenue, etc. There's also a Montreal group that holds a significant portion of ownership, as well as the Canadian Pension Plan, which bought a 10% share for $900 million 2 years ago, presumably making the road worth $9 billion in 2010.
You are absolutely right, we could have got that $3.1 billion back and more. Probably within just the time frame since the Ontario government gave it away at such a ridiculous bargain.
Why is the real question. And the answer is not only annoyingly simple, it also reflects the simplistic minds in control of the province at that time.
The 407 was completed in 1997, at a cost of $1.6 billion. Two years later, as the Harris government was looking for re-election. Trumpeting "fiscal responsibility" and "balanced budget" and (their beloved phrase) the "common sense revolution," they flogged the highway for a so-called 100% profit.
Hard to imagine anything more short-sighted, basically killing the goose that lays the golden eggs.
But that's the nature of privatization, which Tory governments love so much. Call it instant gratification. Cash in the coffers which looks good on today's spread sheets. Fuck the future generations.
Forget about the fact that in less than 10 years from giving away the lease, that highway would generate a half-billion bucks revenue annually. Just brag about conservative values and fiscal prudence and "common sense revolution."
Why worry about the bills your kid and mine will have to foot. At least Mike Harris got re-elected. By a whopping majority in 905 as it turns out, somewhat ironically.
. . . . . . . . . . . .
Edit: While I was writing this, Sheik came up with some more specific details, so apologies for wandering into the Department of Redundancy Department.
