99-year deal signed by the Mike Harris Tories in Ontario has 93 years to run
Toronto (5 Nov. 2006) - The 99-year Highway 407 privatization deal signed by the former Mike Harris Tories is the gift that keeps on giving to its wealthy private operators, including corporate giant SNC-Lavalin Group Inc. of Montreal.
The international engineering firm has just reported a big jump in third quarter earnings to $42,7 million (28 cents a share) from $27.2 million (18 cents a share) in the same quarter a year ago. One of the main reasons for its rosy financial picture is an increase of $11.4 million in the company's share of profits from the steadily-escalating tolls charged to drivers on Highway 407.
The 108-kilometre highway is run by a consortium called 407 ETR that includes Grupo Ferrovial SA, a Spanish conglomerate, Montreal-based SNC-Lavalin and the Australian Macquarie Infrastructure Group.
The Harris crew responsible for the deal is long gone from Queen's Park but not from public life.
Three of the most prominent ministers from the Harris era in Ontario now sit in the federal cabinet of Conservative Prime Minister Stephen Harper. They include Finance Minister Jim Flaherty, Treasury Board Presdient John Baird and Health Minister Tony Clement.
The Highway 407 deal, signed in 1999, gives the operators the freedom to set tolls at will. Rates have been raised repeatedly and the McGuinty Liberals, who promised to review the deal when they were elected in 2003, have so far done nothing about it.
The Ontario Public Service Employees Union (OPSEU/NUPGE) was a strong opponent of the deal when it was signed and it continues to lobby the McGuinty Liberals to explore new ways to return control of the highway to the public. NUPGE
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