heavy storms or a greater frequency of nature's worst. Although

maintenance costs would be higher than present ccsts, the public purse

would at least have a cap on costs.

There are two specific down sides of the fixed budget method of
contracting out services. It could well result in reduced service as profit is
maximized. Privatization cannot be acceptable to British Columbians if it
leads to services being performed by Corporations thinking only in terms of

profit, not the people who rely on those services.

Or the fixed budget method could mean the inability of the contractor to
keep pace with persistent and repeated storms which would tex the fixed
budget contract well past its limit. Such a situation would create a serious
conflict of interest situation so private operators would be forced to make

decisions while torn between the desire to profit and the need to do one

more clearing run during a snow storm.

There is, of course, one other possible scenario. The contractor does the
bridge and road maintenance function at the same cost as at present. The
profit is made by a substantial reduction in the workers’ wage. Reduced
purchasing’ power of workers in our community will result and can only
mean lower sales and an overall economic decline in the community.

On Vancouver Island, for example, the nearly 350 highways workers
contribute over $11 million annually in wages. The economic impact on
island communities from these workers is in excess of $22.7 million a year
with a total job impact of nearly 550 jobs. Such economic losses are

neither beneficial to us as workers nor to community businesses as viable

entities.