red said:
given the incredibly bad deal the gov't got in selling the 407 - i won't drive on it.
Well, yes and no.
The 407 as it is, err, was supposed to be was brought out by Bob Rae and his roving band of socialists. At the time, it made sense.
You want a highway quick? Fine, you have to pay for it.
It was supposed to be Design, Build,
Finance, Operate. The successful bidder was to run the highway for 25 years, then it was to revert to the province whereupon the tolls would come off.
Great idea.
The contract was issued and bids were taken. The successful bidder was Canadian Highways International Corporation, or CHIC for short. Essentially it was Dufferin and Armbro Construction.
But here's the funny part, the finance part got dropped by the wayside and the government had to underwrite the loans. They set up something called "Transportation Capital" so that the money would not appear as a government expenditure and would not be part of the debt. (Sort of like what the Americans are doing in Iraq.)
Anyway, they built the damn highway and they ran it, but the government owned it.
Then along comes Mike Harris.
And he and his cronies decide, we need some quick cash to finance those tax cuts we promised, so were are going to sell the 407 to the highest bidder. The hitch was that the successful bidder had to extend the 407 in the East to Pickering and in the west to Burlington.
Now here's the bitch. Instead of reverting to the province in 25 years, the Conservatives under Harris switched gears and put it up for sale for 100 years.
Yep, 100 years. To make matters even more funny, the corridor which had sat empty for 30 years that was supposed to be Higway 403 was suddenly rebadged 407. Now how the fuck they managed that, I have no idea.
There were 3 or 4 bidders I believe.
The successful bidder was a consortium lead by SNC Lavalin but the real power behind it all was Ferrovival from Spain. A company that owned toll roads all over the world. Lavalin was just a minority partner along for the Canadian content ride.
So, bottom line, the Spaniards offered the government of Ontario the best deal of anyone, so they got to own the damn thing.