The Newfoundland and Labrador Employers' Council says public-private partnerships, or P3s, are the way to do business, and the province is too broke to think otherwise right now.

Premier Dwight Ball announced Friday that government will build an acute-care hospital next to the forthcoming 120-bed long-term care home in Corner Brook.

Both facilities will be constructed following the public-private partnership, with Ball saying this approach will mean a seven per cent savings for the province, even though government is tight-lipped about the hospital's budget.

Richard Alexander, executive director of the Employers' Council, says the P3 model is tried, tested and true in the rest of Canada.

"[There's an] 86 per cent higher chance probability that public-private partnerships are delivered on time and on budget," said Alexander, who says this is the best bet for taxpayers right now.

The Employers' Council is pleased with the P3 approach to build the hospital but disappointed that elements such as laundry and food services were excluded from the partnership process.

CUPE opposed to use of model

The Canadian Union of Public Employees in Corner Brook is protesting plans for both the hospital and long-term care home with a P3 model.

Alexander said there have been 250 P3 projects in Canada over the last 40 years, including the Confederation Bridge, which connects Prince Edward Island to the mainland.

He said Newfoundland and Labrador has been the only province to not use this model.

According to Richard Alexander, there have been 250 P3 projects in Canada, including Prince Edward Island's Confederation Bridge. (CBC)

However, Corner Brook Mayor Charles Pender, who also sees the benefit of the private-public partnership, tweeted during the hospital announcement that other buildings in the west coast city were also constructed this way.

"If I recall correctly the main building at Grenfell Campus was also built this way and later turned over to government," he said.

<a href="https://twitter.com/BerniceCBC">@BerniceCBC</a> if I recall correctly the main building at Grenfell Campus was also built this way and later turned over to Gov. —@charlespendercb

More innovative, higher value

Meanwhile, Alexander said western Newfoundland deserves better health care and cannot afford to wait another 10 years for it.

"Change is always difficult," he said.

According to the Employers' Council, the private sector has a better chance of meeting deadlines and coming in on budget.

Alexander adds that if a project runs over budget, the burden then is not on taxpayers.

Another positive, said Alexander, is that the people who take on the projects will be required to maintain the infrastructure over its lifetime.

"You get a building that's more innovative, with a higher value," he said.

Alexander hopes to see more P3 projects in the province, citing a new prison and Waterford Hospital as examples of infrastructure that is needed now and could be done through public-private partnerships.