What is it about privatization that makes politicians forget math?

In Regina, Premier Wall muses about private liquor stores. In Toronto, Premier Wynne sells-off Ontario’s Hydro One. And in Winnipeg, an editorial urges the Conservative opposition to debate Manitoba Hydro privatization.

But what’s the reason for this?

It’s hard to see how it helps us as consumers or taxpayers.

According to Ontario’s independent Financial Accountability Office, a few years after the Hydro One sale “the Province’s budget balance would be worse than it would have been without the sale.”

That’s because Hydro One, which operates the province’s electricity grid, pays a $750 million dividend into provincial tax coffers each year. That dividend keeps taxes down and pays for health care and education.

But the Liberals’ plan to sell 60% of Hydro One will cut that regular, annual dividend payment by about $400 million. In return it’ll get a one-time payment of about $4 billion. Pretty basic math shows that after about 10 years, Ontarians will be poorer for this deal.

Unfortunately, this is only Ontario’s latest electricity blunder.

In 2002, an Ontario household paid $43 for 1,000 kilowatt hours of electricity. Then Ontario started switching to private power plants and deregulation. Then came the boondoggles. And now it costs $175 for 1,000 kilowatt hours at peak time.

These prices put jobs at risk. They pinch family budgets.

Manitoba has kept to a different path. They’ve kept their electricity system Crown-owned. And, instead of paying a dividend to the treasury, Manitoba Hydro’s goal is to keep electricity prices low.

The result? A Winnipeg household pays just $84 for 1,000 kilowatt hours of electricity.

Who’s got it right? You be the judge.

So if it’s not math, what drives premiers to privatize?

Twenty years ago Alberta Premier Klein privatized liquor stores, promising cheaper booze for all.

A 2011 report by Colin Boyd, University of Saskatchewan Emeritus Professor of Management, showed that promise failed. He showed beer, wine and liquor generally have a higher price in private Alberta stores than in Saskatchewan’s SaskLiquor-run stores.

A more recent study by the Canadian Centre for Policy Alternatives confirmed it. Of 13 common brands checked, all had a higher mean price in Alberta than SaskLiquor stores.

That math doesn’t work for you. But maybe it does for someone else.

Privatization created Edmonton-based Liquor Stores N.A. Ltd. Now it’s the biggest publicly-traded booze retailer in North America. With 175 stores in Alberta alone, it earns $660 million.

Jim Dinning, who was Treasurer in Ralph Klein's government when liquor stores were privatized, is Board Chair.

Liquor Stores NA doesn’t have any stores in Premier Wall’s Saskatchewan. But in recent years it’s donated almost $14,000 to Wall’s political party. Is big booze looking to expand and bring Alberta prices east?

And selling Ontario’s Hydro One is expected to bring $20 million to bank-based brokers on Toronto’s Bay Street. Selling-off Manitoba Hydro would be another sweet bonus cheque. Is it coincidence that this plan came in a report from a council led by a former bank CEO?

The math works for them.

But our government works for us. Before any politician sells-off electricity companies or liquor stores, they need to show us a business plan. And prove how the math benefits us.

- Tom Parkin is a frequent NDP media commentator