A new scheme called Asset recycling, which has been gaining some traction in conservative circles around the globe, has made its way to Canadian shores. Though promoted as a way for governments to pay for new infrastructure without raising taxes, it’s in reality just another ploy in which hard working Canadians, like you, fork out the money, while the wealthy few reap the benefits.
So what is asset recycling, anyway?
An asset −a public utility or corporation for example − is “recycled” when a government or corporation either sells or mortgages it to generate money for new investments.
“That doesn’t sound so bad…”
Well, unfortunately, it means that instead of having revenues from the utility reinvested in public programs that we depend on like health care and education, the profits will be lining the pockets of investors and banks. Even worse, in order to maximize profits, the first order of business will be to cut workers’ wages and benefits.
Our first battleground is in Ontario, where Kathleen Wynne’s Liberals are looking to privatize – or “recycle” − three of Ontario’s most robust public companies: LCBO, Ontario Power Generation and Hydro One. And they’ve even assigned a banker, ex-TD Bank CEO Ed Clark, to lead the transition.
We’ve built these public institutions over decades with hard-earned tax dollars and their strength allows us to deliver the services we depend on. There are many ways to generate the revenue needed to fund new projects, but selling our most solid public companies is not one of them.
CUPE will be on the front lines fighting to keep public control over essential public infrastructure. For more information, please download our fact sheet below.