Skip to main content

Liberal problems come from their turn to the right

As two Liberals on the (presumed) left of the party declare their intention to run for the leadership, it bears recalling that almost all of the major problems the Liberals have faced in the last few years have come from attempts to re-position the party to the right.

First, Premier McGuinty (and  departing Finance Minister Dwight Duncan) supported moves to privatize public services. This led to a series of failures and scandals that angered the public:
Mississauga gas plant
  • Overpaid private contractors at eHealth; 
  • Scandalous, hidden extra costs at the Brampton "public private partnership" (P3) hospital; 
  • Bloated salaries, highly dubious corporate payments, and limited public oversight enabled at ORNGE by privatization;  and
  • A massive corporate payout after the Liberals opened up energy production to for-profit corporations
Indeed, the Globe reports that the corporation that won the  now infamous Mississauga gas plant project (cancelled at great expense during the last election) was actually in the process of suing Ontario Hydro when it won the bid. The corporation eventually took $10 million from the government for this lawsuit. (But what's that between friends?)

Moreover this corporation paid an incredible 14% interest for construction cost loans for the plant. Capital costs are a major expense in construction projects and this is much, much more than the cost of capital for a public project (over the summer the government was able to borrow at a rate of 1.65% for seven year bonds).  While P3 capital costs are always very pricey, this is a whole new level.

Luckily (for the corporation, not the public) the government kindly agreed to boost their guaranteed revenue by 50%!

At that rate, perhaps it was a bargain to pay hundreds of millions to kill the deal.

It was also a turn to the right when McGuinty and Duncan attacked free collective bargaining in August.  The Liberals were, in effect, tearing up their brand as the party of social consensus.

Notably, this was immediately followed by a sharp fall in the polls for the Liberals as teachers and other labour groups began to return fire over the loss of a core civil right won over decades of struggle.  Shortly, the exit of McGuinty and Duncan followed too.

Will we see any re-thinking by the Liberal leadership candidates of this right wing direction?  There is little sign of it yet.  But time will tell.

Comments

Popular posts from this blog

Ford government fails to respond to 72% increase in COVID inpatient days, deepening the capacity crisis

COVID infections continue to drive up hospital costs and inpatient hospitalizations in Ontario. For the most recent fiscal year (April 1, 2022- March 31, 2023) hospital stays related to COVID cost $1.221 billion, according to new CIHI data.   This is about 4% of total hospital spending, creating a very significant new cost pressure beyond the usual pressures of population growth, aging, inflation, and rising utilization.   Costs for COVID related hospitalizations increased 22.2% in Ontario in 2022/23 from the previous fiscal year, rising from $999 million to $1.221 billion.  That rise is particularly notable as the OMICRON spike of late 2021 and early 2022 had passed by the the 2022/23 fiscal year.   The $222 million increase in COVID hospitalization costs came in the same year as the Ford government cut special COVID funding and, in fact, cut total hospital funding by $156 million.     In total, there were 60,653 COVID hospitalizations in Ontario in 2022/3, up from 47,543 in 2021/2. 

More spending on new hospitals and new beds? Nope

Hospital funding:  There is something off about the provincial government's Budget claims on hospital capital funding (funding to build and renovate hospital beds and facilities).    For what it is worth (which is not that much, given the long time frame the government cites), the province claims it will increase hospital capital spending over the next 10 years from $11 billion to $20 billion – or on average to about $2 billion per year.   But, this is just a notional increase from the previous announcement of future hospital capital spending.  Moreover, even if we did take this as a serious promise and not just a wisp of smoke, the government's own reports shows they have actually funded hospital infrastructure about $3 billion a year over the 2011/12-2015/16 period. So this “increase” is really a decrease from past actual spending. Even last year's (2016-17) hospital capital funding increase was reported in this Budget at $2.3 billion - i.e. about 15% more th

The hospital crisis: No capacity, no plan, no end

While Canada has achieved universal public healthcare coverage, that does not mean conservative forces have given up trying to erode that coverage and expand corporate care where it does not currently exist. The battle has become particularly intense in Ontario under the Ford Progressive Conservative government, which is implementing serious cuts to the level of care and moving to bring in for-profit mini-hospitals. Inadequate Staffing.   Less and less of hospital spending is on staff.   Employee compensation as a share of hospital expenditures has consistently shrunk in Ontario. This is not some immutable law of hospital development.  It is in stark contrast with the rest of Canada, where compensation has become a larger share and now accounts for 67.1%. Hospitals in provinces other than Ontario now have 18 percent more staff per capita than hospitals in Ontario. Overall, if Ontario had the same staffing capacity as the other provinces and territories, there would be another 33,778 full t