“The report released by the Auditor General of Nova Scotia points to some rather serious discrepancies in the handling of P3 contractual obligations,” said John Percy, Leader of the Green Party of Nova Scotia.  “This P3 partnership was touted as being an effective cost-saving measure, but has, instead, cost the taxpayers of this province dearly.  Rather than dwelling on generators and desk ornaments, I would like to see the media delve into the non-compliance and contractual payment issues outlined in the report.”

Some background from the report:

·        The school public-private partnership contracts examined during this audit represent a significant financial obligation to the province totalling approximately $830 million over their 20 year life. 

·        …we cannot conclude on whether key calculations supporting contract payments are correct or whether many services paid for are received.

·        Our audit identified instances in which child abuse registry and criminal record checks, fire safety inspections, and emergency first aid and CPR training were not completed by the developers as required under the service contracts. Contract terms do not address significant areas such as audit access for the Province; measurable levels for all services; monitoring compliance with contract terms including required documentation; and an adequate payment adjustment system when contract terms are not complied with.

·        Two developers subcontracted their responsibilities under their service contracts for certain schools to the regional school boards. These subcontracts effectively transfer the risks for the operation and maintenance of the schools assumed by the developers in the service contracts back to government. Regional school boards are delivering contracted services at a lower cost than that paid to the developers. Over the 20 year life of the contracts the estimated difference in payments between the developers and regional school boards is approximately $52 million. In addition, regional school boards need to do a better job ensuring that all money owed to them by the developers is received. We noted instances in which amounts received by the regional school boards did not comply with contract terms; these will result in significant financial recoveries for the Boards.

“In these troubled economic times when governments are scrambling for every dollar and education budgets are stretched paper thin, we have an unacceptable situation compounded by contractual non-compliance from our private partners.  Instead of always going for the low hanging fruit and railing about a model of the Hector on someone’s credenza, let’s go after the real dollars that are owed to the province.”