VANCOUVER: The latest job action by the Canadian Union of Public Employees (CUPE) in Vancouver clearly demonstrates how the monopoly provision of services holds the public hostage to unreasonable demands. It is time to give consumers a choice and taxpayers a break; open non-essential city services to public tendering, the Canadian Taxpayers Federation said today.

Job action by CUPE began on Monday July 23, 2007. The City of Vancouver has maintained essential services such as police and fire. However, services considered non-essential, such as garbage collection, are affected. On Saturday, the City of Vancouver rejected the union's offer of a 30% pay increase and a guarantee of no layoffs and other provisions that would prevent the City from effectively managing its workforce cost.

"There is no reason the government should be collecting garbage, running daycares, or operating gyms, libraries, pools, and community centres," said Maureen Bader, BC Director of the Canadian Taxpayers Federation. "We have Canadian examples of how contracting out has saved millions of dollars in other cities, and it can here too"

The City of Winnipeg, for example, saved over $3 million annually by tendering out just over half of the City's garbage pickup. When the City of Winnipeg contracted out collection in the remaining neighbourhoods in 2006, it achieved an additional $2.7 million in savings - in a city with less than 700,000 people.

A report by Winnipeg's Economic Opportunities Commission found that in 2006, the City of Winnipeg lost $5.8 million operating its nine non-profit indoor exercise/pool/facilities. The YMCA in Winnipeg, also a non-profit organization that runs similar facilities, had no deficits. According to the YMCA's 2005 Financial Statements, the organization produced a $929,882 surplus.

"By contracting these services to private providers, the taxpayer will no longer be obligated to fund them and consumers will have the choice to go to whichever company provides the best service at the lowest cost," said Bader.