PRESS RELEASE
| November 27 , 2003 "Crony Privatization" of BC Rail To promote transparency and protect the public interest, Reform BC has published four questions below to be answered by Premier Gordon Campbell and his Liberal colleagues before BC Rail Ltd is privatized to CN Rail and to the benefit of its controlling shareholders and creditors. Question 1. How do BC legislators avoid a conflict-of-interest charge in selecting CN Rail as the successful bidder for BC Rail when their pension fund, bcIMC (a provincial Crown corporation) owns a controlling equity stake in CN Rail? Question 2. CN Rail is buying BC Rail with debt through a syndicated bank loan. How do BC legislators avoid conflict-of-interest charges in that their pension fund, bcIMC, owns controlling equity stakes in Canada's major lending banks, such as the Royal Bank of Canada?
Question 3. Why should citizens allow Members of BC's Legislative Assembly, along with another 345,000 present and retired public servants in British Columbia, to enrich their public pension funds by the sale of BC Rail's public assets at the expense of the remaining 90% of the province's taxpayers?
Question 4. To ensure BC taxpayers see they are getting a fair price for BC Rail's public assets, with no hidden liabilities, the Campbell government had to do what CN Rail had to do which is prepare a post-privatization projection for BC Rail's earnings, cashflow and free cashflow (after deduction of taxes, fees and costs for such things as maintenance and repair of the rail-bed and rights of way!).
Where can the BC public see these cashflow projections before the deal is completed?
Reform BC is demanding clear answers from the Liberal government before the privatization of BC Rail is finalized. In the absence of clear answers, the Reform Party of BC reserves the right to take legal advice before seeking a remedy in the Courts.
Ron Gamble -30-
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