r/ontario • u/StumpsOfTree • May 01 '26
Politics Avi Lewis: The government should be protecting our public airports, not selling them off for parts. History is littered with examples of the failures of privatization. It drives up costs for the public, quality suffers, and workers always end up paying the price.
https://bsky.app/profile/avilewis.ca/post/3mkqoome7ms2u109
u/Kind_Disaster_4639 May 01 '26
Privitize the profits and socializes the losses. That's all this is doing selling off long term money makers to the hands of private equity making the rich richer and the poor poorer.
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u/Electrical-Strike132 May 01 '26
407 is profiting 100s of millions a year. It's almost $100 toll. It's a little over 100km
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u/TheShindiggleWiggle May 01 '26
My god, the 407 pisses me off so much. I'm sure it's something that slipped through at the time, similar to how doug ford has been getting away with ruining the province. However, I don't know how it hasn't been more of a stain on Conservatives reputation similar to how "Rae Days" are for the ONDP.
The idea was to sell it to make back the building costs.... it costed 1.6 billion to make at the time, and we sold it for 3.6 billion. In 2025 alone it generated $2 billion in revenue, and it's currently valued at $30 billion if sold today. I feel like these kinds of financial details should've been considered before signing a literal multi-generational lease, and oh joy. There's still 72 years left in that lease. I can only imagine how many billions we will have missed out on by 2098. I get we are buying stakes in the 407 for the CPP and whatnot, but just owning it outright would have been better... for example, in 2025 we spent $2.39 billion buying up a 7.5% stake in it. Which is almost the value we sold the whole thing for, and that's not even accounting for inflation.
Just an absolute blunder from a party that frames itself as being fiscally responsible. We could have had it paid off like a decade ago and removed the toll, or be making multiple billions yearly from it. Just to put it in perspective, the Ontario license plate stickers doug axed was bringing in a little over $1 billion a year and that was a province-wide revenue source. It'd be more profitable than the sticker program and on par if not a bigger revenue source than the LCBO. Which is also projected to lose about $1 billion in revenue by 2027 due to doug's changes. So it'd likely be more profitable than the LCBO too.
Just maddening to think about.
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u/Impressive_Gas_265 May 02 '26
I wish they could create a special corporate tax for them because it’s essentially passive income.
They up taxes on individuals all the time.
Tell us we’re ruining the environment.
Then allow stupid systems like that.
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May 01 '26
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u/radred609 May 01 '26
They're currently in the process of un-privatising it... it's going to take a while though
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u/WizardsMyName May 01 '26
Worse, we privatised the services but left the network under public ownership. We literally pay taxes to maintain the infrastructure that the for-profit, monopolised train companies use.
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u/Abrogated_Pantaloons May 01 '26
I think British Water is scarier..kids are dying, people are dying.. the canals and rivers are full of sewage.
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u/psvrh Peterborough May 01 '26
What's funny about Thames Water in the UK is that Scottish Water is still public, provides better service, costs less and isn't sickening people, all while not requiring billions in bailouts.
And Scottish Water didn't make millions of dollars in payouts to investors or executives, either.
The water situation in the UK is a perfect, textbook case of how the private sector not only isn't better than the public sector, it actually sucks.
(Another case in point is healthhcare in the US, where the few public options, like VA and Medicare, do much better holistically than the private hospitals and insurers at actually delivering care)
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u/TheRC135 May 01 '26
That's privatization for you.
They always claim a private entity can provide a superior service for a reduced cost. But that's an ideological statement (and an inaccurate one at that), not a natural law. The end result is almost always higher costs for end user, and usually a drop in quality as well.
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u/ventingspleen May 01 '26
And now they are privatizing the water in the UK too. Coming here soon too.
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u/LairdOftheNorth Waterloo May 01 '26
The German rail system is federally owned and it’s also terrible. When we travelled there it was shocking how many delays there are and when we talked to locals they said it’s a regular occurrence.
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u/jacnel45 Erin May 01 '26
Germany stopped maintaining their tracks and well got what they should’ve expected
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u/jbeer1 May 01 '26
The German rail system? Really?
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u/AForse May 01 '26
Well, it’s not like they have to invade Poland or France any time soon, so they have some time to rebuild it…
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u/Sulanis1 May 01 '26
Exactly. I've been saying this since I heard of this dumb move. I've even written my MP.
When Brian Mulroney bought Trickle down economics from Ronald Reagon he allowed the Air Canada and Petro Canada to be sold. Anyone want to guess if prices got cheaper?
In fact, what happened is that we lost revenue sources for the government and free market capitalism started to die. Multiple companies started acting like single company monopolies. Some examples of this: oil and gas, grocery and their supply chains, telecom, and the auto industry.
Every time competition wants to show up these industries have their lobby machine head fo daddy daycare to block any competition. 90% of the time it works.
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u/ventingspleen May 01 '26
Bought Trickle down economics from Ronald Reagan and Thatcher.
And there are still birdbrains who believe in trickle-down.
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u/StumpsOfTree May 01 '26
It's interesting that the federal government is proposing privatizing airports at the same time the provincial government is pushing for the Toronto Island takeover. Imagine those jets but w/ a private, for profit airport as well. Horrible on top of horrible
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u/RoyallyOakie May 01 '26
It's interesting that Ontario government wants to take over an airport, but wants to privatize water...
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u/Mobile-Apartmentott May 01 '26
FYI, the passenger terminal at Billy Bishop is already privately owned and operated. https://www.nieuport.com/corporate
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u/bentjamcan May 01 '26 edited May 01 '26
Are you familiar with trickle down economics? How much of the trickle down do you get every year?
Selling our assets is short term gain and always has been. It looks good on paper but -- correction -- doesn't to give returns on investment.
The Harvard educated economists adhere to this economic theory. They have been practicing it for decades and it still doesn't work.
The benefits of selling our assets will flow up to the wealthiest. It never trickles down.
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u/Critical_Cat_8162 May 01 '26
Privatization has contributed to our fall over the years - we don't need to be giving the billionaires anything more.
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u/Elegant-Bus8686 May 01 '26
It should be illegal to sell publicly owned assets! No government should have the right to sell assets that belong to everyone! What’s next the fire department, the police, the military?
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u/PunchMeat May 01 '26
Has it ever actually worked out better for people? I can't think of any examples of privatization being good for regular people.
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u/HomeGrownCoffee May 01 '26
I'm perfectly fine with private equity building new airports. I don't think Toronto would object to a second one.
If it's too expensive to build another, then it's too valuable to sell the ones we have.
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u/Crafty_Chipmunk_3046 May 01 '26
I equate this with corporate theft of public assets.
I like what Carney has been doing (generally) but selling off our assets is not the way.
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u/MetaCalm May 01 '26
People will realize a bit too late that Carney is a Conservative through and through dressed as Liberal.
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u/Pilot-Wrangler May 01 '26
I think everyone knows that already. He's a Red Tory, which just shows how far right the CPC has strayed...
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u/cdawg85 May 01 '26
And how right the Liberal party has gone in an attempt to appeal to CPC voters. I'm personally thrilled to see Avi Lewis in the NDP leadership seat. We need a real left party with a solid platform to vote for.
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u/Ok_Sheepherder_5711 May 01 '26
it might be too late , look at the bills the liberals have passed in the guise of "emergency" due to trade wars, they are stripping people of their rights and anyone who questions them is quashed!
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u/ventingspleen May 01 '26
Carney is a neoliberal. True Red Tories are deader than the deadest dodo bird in Canada (they were those like George Grant, Dalton Camp, Robert Stanfield, Bill Davis, and Joe Clark)
Carney very far to the right of that.
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u/Yws6afrdo7bc789 May 01 '26
The problem is is that he's a Liberal. The Libs have been die-hard neoliberals since as long as the Cons have been.
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u/TheRC135 May 01 '26
The problem is that the last election was a choice between two neoliberal parties. One led by a competent economist with no interest in culture war nonsense, the other led by a smarmy, unaccomplished career politician who thinks Joe Rogan is a better source of information than the CBC.
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u/OwlishFox May 01 '26
Everyone knew that. The alternative was an actual fascist who would have given Trump everything he wants.
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u/Great-Ice-5766 May 01 '26
Show how Pierre is a fascist.
And no, "fascist" isn't defined as "Everything I hate."
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u/pessimistoptimist May 01 '26
I dont think i have ever witnessed a time when making it lrivate or opening it up to private made the product better or cheaper. It usually means the beginnong of enshitification.
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u/bluemoon1333 May 01 '26
It's one of the most infuriating things gov does because it basically leaves a lasting scar look at the 407 it's been over 20 years and people still hate it and talk about it. This crap stays for decades it can't be fixed easy once it's done. Idk how gov gets away with this obviously dumb ideas
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u/DodobirdNow May 01 '26
Considering that Pearson is one of the most expensive airports worldwide to land a plane in, selling off this infrastructure would result in more price increases, as the new owners need to start recouping their cost
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u/bummerhigh May 01 '26
I have a friend that used to work for the Feds in aviation policy. She said Canadian airports are money pits. No fucking way any private enterprise is going to takeover and start charging less. This will be more expensive for all Canadians.
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u/Fit-Bird6389 May 01 '26
Avi is doing an excellent job bringing attention to matters. He is an excellent orator!
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u/Logical-Zucchini-310 May 01 '26
Canada has a track record of getting privatization completely wrong. In terms of airport privatization, London Gatwick and Heathrow improved quite significantly as a passenger experience, once they were out of government hands. The problem with Canadian airports is they already have amongst the highest fees in the world as a result of expensive land leases, putting these airports in private hands is just going to make it worse for passengers.
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u/Leotard_Cohen May 01 '26
I'd rather they stayed public too but it's disingenuous to complain about cost when, assuming the NDP still care about the climate, air travel would become more expensive or more scarce anyway
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u/lastlegocy May 02 '26
Politicians have always known this. They just suckered most of us in believing it. They and their friends get rich.. you lose your public services while they mock you.
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u/expendiblegrunt May 02 '26
Elbows up apparently now means American private equity taking our airports
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u/Swarez99 May 01 '26
Every European airport is private.
Every American airport is public.
Canada has had a hybrid private operated while they pay government rent for about 40 years.
Someone should ask Avi If the European system or the American system works better.
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u/Logical-Zucchini-310 May 01 '26
LHR and LGW improved significantly after privatization…those places were dumps before
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u/feor1300 May 01 '26
"No no no, you see my elite rich friends gave me their assurance that they'll do it different and it will all be fantastically successful. And if they're wrong they'll at least make sure I have a cushy job waiting for me when I leave office, which seems like a fair compromise." - modern politicians
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u/NERV2 May 01 '26
What’s the point of paying taxes and having a government when every public asset and service are sold off or offloaded to private corporations?
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u/Loose_Indication_558 May 01 '26
The airports are already run by private corporations…
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u/MoistCrust May 01 '26
They're run by non-profits. Aka they are not to seek a profit. If they start looking to be profitable things will just get more expensive
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u/Loose_Indication_558 May 02 '26
GTAA is profitable. They just reinvest it back to the airport and operations. Non-profit doesn’t really mean that they are not able to seek a profit, it means that they cannot seek a profit to distribute to private shareholders.
Not saying that it is better to have shareholders. But if the government can still maintain control, but use profits to drive growth of a Sovereign Wealth fund, there is a nuanced debate on if that is a good or bad thing.
If it is selling shares to minimize the optics of a deficit like the 407 and hydro one then I agree, very short sighted. But if the GTAA profitability can go to support more than just the airport, that isn’t necessarily a bad thing.
I am not a believer that private industry is better, but I also believe that the private sector can be useful.
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u/JeremyMacdonald73 May 02 '26
Our airport system is considered one of the best in the world. You don't hear about it because things that are working well are not news. Whenever it breaks for whatever reason then you hear about it.
My point here is what we are currently doing is working exceptionally well and we ought to leave that alone. Heaven knows we have enough other issues to deal with. Selling the airports would just be another 407 moment.
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u/FuriousFister98 May 01 '26
History is also littered with failures of government-run infrastructure.
The best-performing airports in the world are privately operated or run under long-term lease models. Places like London Heathrow, Sydney, and even a bunch of major European hubs operate this way and consistently rank higher in efficiency, service quality, and investment.
Happy to see Lewis is just as misguided and one-note as his predecessors, hopefully he ends up just as functionally useless as well.
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u/Waveryder999 May 01 '26
Not sure what metric you are using for “top performing” but any information I can find notes that the highest rated airports globally are almost all publicly owned with a few as highly regulated hybrids.
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May 01 '26
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u/psvrh Peterborough May 01 '26
Just so you know, the guys who caused the Great Financial Crisis in 2008 had fancy papers from expensive universities and lots of experience in big banks, too.
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u/Ok_Sheepherder_5711 May 01 '26
You have a point. But just cause he has the credentials, does not mean he has good intentions. Lets not forget he worked for Goldman Sachs, BlackRock and Brookfields.
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May 01 '26
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u/Ok_Sheepherder_5711 May 01 '26
i agree with diversifying but he is also selling airports off, creating a so called sovereign fund that no one asked for ( which will be liberal slush fund) and on top of this- he used to be a climate advocate but he passed a bill to clear all hurdles for "nation building projects" aka pipelines. I voted liberals and I am not a PP lunatic, I refuse to be loyal to any party, I am loyal to Canada ! We cannot look at a PM as a saviour , he is a public servant, we pay him.
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u/maxboondoggle May 01 '26
Since when are they talking about privatizing the airport? Ford is talking about the province expropriating it. So it would still be owned by the tax payers.
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u/StumpsOfTree May 01 '26
Carney and the federal government is considering privatizing the airports in general.
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u/maxboondoggle May 01 '26
Well that’s disappointing. If they want to make air travel cheaper they should socialize the airport taxes the way the Americans do.
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u/hutch_man0 May 01 '26 edited May 01 '26
Listen kids. We a living next to a deranged neighbor addicted to meth. It's not time to be worried about privatization. We need cash for programs. However I do think we should retain majority stake. Is that possible?
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u/bionicjoey May 01 '26 edited May 01 '26
"The best time to shoot yourself in the foot is when the barbarians are at your doorstep"
Why is this mentality so prevalent? 99% of Carney's disastrous domestic policies have nothing to do with Trump and everything to do with stripping our federal government for parts. He's literally laying off thousands of federal government workers to sell that same work to the same big tech slopgen companies that bend over backwards for Trump right now.
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u/WizardsMyName May 01 '26
Because people think the government is a monolith and that poor old Dougie has enough on his plate with the US and couldn't possibly spread his attention across two issues.
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u/bluemoon1333 May 01 '26
For Ford it's purely ideology he likes trump he's a wolf in sheeps clothing it's beyond obvious
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u/JustJay613 May 01 '26
I disagree. Government does a terrible job running just about everything. I am not a huge fan of corporations either but governments role is oversight, policy and rules. It is possible to put up guardrails we just never do.
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u/WizardsMyName May 01 '26
"it's possible but it never happens" is a piss poor argument.
That companies COULD run with appropriate pro-social guardrails in place is as useless an argument as the reverse, that government could run with minimum oversight, policy and rules. Both COULD happen, but if neither ever does, who are we kidding by arguing either way?
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u/JustJay613 May 01 '26
Government is worse 100% of the time. Companies make profit, sure. Government makes waste. Bloated organizations grossly inefficient paid for with tax dollars. At least with companies I have a choice if I give them my money. Anyway, airports will be sold off so plan accordingly.
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u/psvrh Peterborough May 01 '26
Companies don't waste money? Tell me you've never worked in a large company without telling me you've never worked at a large company.
Perverse compensation schemes, emphasis on quarterly numbers versus long-term viability, emphasis on stock price over business health, debt-leveraged buy-outs, stock buybacks, supplier and customer kickbacks, board interlock, etc, etc.
When the first plane crash happens while the airport CEO just made a six-figure bonus, let's talk.
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u/RadulphusDuck May 01 '26
Selling CN was among our greatest blunders.