Layton hits on health

By Dan Hilborn
Published June 2, 2004


"Innovation, not privatization." With those words, New Democratic Party leader Jack Layton made it clear he is adamantly opposed to private-public partnerships (P3s) in Canada's health-care system.

Bringing his campaign tour bus and a throng of national media to Burnaby-New Westminster NDP candidate Peter Julian's campaign office on Tuesday morning, Layton said the recent closure of Saint Mary's Hospital is just one of the many results of the push towards privatization in the health-care system.

"This campaign is about ideas, and one of those ideas is strengthening our public health care system with innovation, not privatization," Layton said. "Privatization doesn't work for anyone except the corporations who get the contracts."

Layton said the closure of Saint Mary's Hospital was the direct result of two B.C. government decisions - giving tax cuts to corporations, and taking money away from hospitals. "That was the death sentence for this hospital," Layton said.

The NDP leader said the root problem with privatization lies in the fact that corporate shareholders demand profits of between 15 to 25 per cent on their investments. That results in higher costs - whether in terms of user fees or in taxes - to the public, he said.

Layton also pointed to the Fraser Health Authority's plans to build a new P3 hospital in Abbotsford as an example of another potential problem with the P3 system.

"They claim that privatization save money. Well this project proves them wrong," Layton said of the Abotsford hospital. "There is $393 million in debt-servicing money unaccounted for here. That's three times the amount involved with Group Action."

The allegation prompted some of the toughest questioning for the NDP leader during the brief 20 minute tour bus stop.

When one journalist said the Abbotsford contract had still not been awarded, Layton replied: "These are the estimates I've been provided with. If they're wrong, fine. But these companies are making profits of between 15 to 25 per cent. That's the fundamental problem with these partnerships."

Layton, a former Toronto city councillor and past president of the Canadian Federation of Municipalities, said he has prior experience with P3s. He said corporations can sometimes hide their "very high financing rates" within the contracts that politicians are often legally obligated not to discuss.

Layton said cost overruns are common with any government project. And he related the story of how he once bet a colleague that a new domed stadium in Toronto would come in at double the original estimate. "I won the bet, sadly," he said.

Noting that the recent Romanow report on public health care described P3s as "no panacea," and said experiences in both Britain and Australia are proving that P3 systems cost more.

"In Britain, it has resulted in fewer staff, and the companies nickel and dime the patients," he said.

Layton also had criticisms of the other party leaders and B.C. premier Gordon Campbell.

"For Paul Martin, this hospital is a skeleton in the closet. For Steven Harper, it's a blueprint for the future," Layton said of the Abbotsford P3 proposal. "If you like what Gordon Campbell is doing, vote for Paul Martin. But if you love what Gordon Campbell is doing, then vote for Steven Harper."

When asked which party he was most concerned about - the Liberals or Conservatives - Layton replied "When it comes to B.C. the Liberals and Conservatives are so similar. Paul Martin is talking about privatization, Gordon Campbell is implementing it and Steven Harper is advocating it."

Layton also fielded questions on several other topics.

When asked to outline the NDP's policy towards marijuana laws, he said the party supports decriminalization and a "rules-based system" that addresses the problems that come with grow operations, age and driving.

On rapidly rising gas prices across Canada, Layton said he supports the creation of a government energy commission that would require foreign-owned oil companies to explain their pricing policies.

Layton's visit was also covered by rogue student journalist Naardwuar the Human Serviette - a former UBC student radio interviewer best known for his of-the-wall questions. Naardwuar asked Layton for his favourite macaroni and cheese recipe, and then offered him some toys to play with on the tour bus.