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CUPE is raising serious concerns about the future of social programs in Canada as the Harper Conservative government pushes for more private sector involvement. The union is calling for an open public discussion on the use of for-profit business models to finance and deliver public social services.

In November 2012, Diane Finley, Minister of Human Resources and Skills Development Canada (HRSDC), announced that the Conservative government was looking for ideas which use for-profit private financing to address social and environmental initiatives. This approach - known as the social financing model or a social impact bond - allows corporations to profit from financing privatized social programs at public expense.

CUPE points out several major issues with the social financing model that have been experienced throughout the world, including concerns about the economic sustainability, fairness and risks associated with this model.

Instead of acknowledging the flaws in the privatization schemes, Social Impact Bond supporters are proposing governments provide incentives or guarantees to encourage people to invest in them. In other words, subsidize privatization schemes. Ottawa (08 Aug. 2014) — The first Social Impact Bond privatization scheme has failed to meet its initial target.

Jun 1, 2016

The Pallister Government’s first provincial budget offers minor improvements to many important areas of the public sector, says CUPE Manitoba. “We are pleased to see this government’s continuation of funding to health care, education, post-secondary education, and social services,” says Kelly Moist, president of CUPE Manitoba. “In an environment where cuts would have been the ‘easy way out’, we are pleased that this government listened to Manitobans, and has instead maintained or increased funding to many key public services”.

by Graham H. Cox

The first detailed critical analysis of the growing global market in social impact bond projects and reveals that they are the latest new ‘buy-now-pay-later’ scheme to privatise public services and the welfare state. Details 30 financial and public policy flaws in these projects. Proposes an alternative strategy consisting of government and public sector plans for early intervention and prevention; Public Service Innovation and Improvement Plans at departmental or service level; and trade union/community alliances to develop strategies and scope for transnational action.