The thing is, incompetence and stupidity is a hallmark of both public and private sector institutions, but generally the public sector is much more transparent, so you get to see the incompetence in real time. Private sector institutions are every bit as bad, but they're not beholden to the public in the same way, so all the corruption, stupidity, etc goes on behind closed doors and may never see the light of day. Why do you think we have so little information on what exactly has gone wrong with the Crosstown?
I don't know about you, but if giving the job to people with brains is not on the table (it usually isn't), I'd rather take the transparent bozos without a profit mandate, thanks.
Actually, I would dispute elements of this, although in the end we reach similar conclusions by different means.
The disclosure that a private company must undertake to raise capital is substantial, and there is less room for evasive answers. Bay Street has a pretty intrusive system of investment analysts and ratings - and if a company gives insufficient explanation, their ratings are downgraded, leading to consequences in borrowing costs and investor demand/share price - and ultimately shareholder non-confidence. This structure is backed up by laws governing regulatory-mandated filings and public disclosure. Some games get played - but ultimately if a CEO misleads investors, they get sued - or they go to jail.
Whereas in politics - spin is everything, and one can obfuscate and refuse to answer for a very long time. (Although, as this situation demonstrates, the truth may eventually out, and the crime of screwing up a project is far less serious than the crime of lying about it). Metrolinx’ annual report and MD&A documents are audited but without the same legal onus of truthfulness and full disclosure. One has to ask how a failure of this magnitude was not fully disclosed in those reports (as they would have been in the private sector) and how an independent auditor would certify the books with such a major deficiency not flagged.
To my mind, the root cause of the Crosstown failure is indeed the lack of transparency, which allowed whatever problems have emerged to remain undisclosed, and which enabled government to remain silent and hands-off when their fiduciary duty to the taxpayer required them to impose corrective action.
If I were running things the changes I would make are:
- the removal of Ministerial privilege such that all communications between the Ministry and ML are in writing and discoverable
- the requirement for ML to respond to FOI requests fully and promptly
- the restructuring of P3 contracts to provide for independent third-party oversight and audit, with the power to disclose and comment publicly and issue periodic reports on progress, financial spend against target, and contractor performance including any areas of concern or dispute between the parties
- all scope changes and change requests to be discoverable and put on the public record
-all claims submitted by contractors for variance to price or completion dates to be discoverable and a matter of public record
- ML Board meetings to be held in public session with in-camera sessions limited to matters where this is traditionally and commonly the case eg personnel decisions, requests for direction from solicitors re litigation or negotiation
If this kind of governance existed around ML’s management, P3 would be a viable way to get work done and prevent ML from becoming an even bigger and less responsive monolith.
The problem with P3 in the current model is that it firewalls government from accountability. Crosstown is supposedly an infrastructure project - but to the Province it’s only an opportunity to create a political narrative. The obsession with maintaining a favourable political narrative has allowed the hard cold facts about the project to be suppressed…… except that, with trams still not running, some amount of truth ultimately leaks out.
TTC screwed up elements of TYSSE, but ultimately fessed up and faced the music. With Crosstown, the games are still going on.…. this failure is the result of an entirely misplaced governance structure and politicallycentric culture.
- Paul