Post by diogenes on Nov 27, 2004 12:48:50 GMT -5
any body see a pattern here??
B.C. privatizes bill collection
WebPosted Nov 26 2004 10:02 PM PST
VICTORIA - The B.C. government has signed a 10-year deal, contracting out bill collection services to a private company – EDS Advanced Solutions Inc.
The deal is worth $572 million. And the government says it will mean net savings of $38 million a year for B.C. taxpayers.
"It's about increasing customer service. It's about transferring risk to the private sector," says Revenue Minister Rick Thorpe.
LINK: Government announcement
Starting Dec. 6, EDS will be collecting overdue fines, fees and loan payments – but not taxes. The Ministry of Revenue says there is currently about $800 million that is more than 90 days overdue.
Senior officials insist they're not going to be strong-arming debtors into paying their bills. But they note that if they could only deliver bills on time, they would have a better collection success rate.
LINK: Ministry report on the contract (pdf)
EDS Advanced Solutions is the Victoria-based subsidiary of a Toronto company – which in turn is a subsidiary of a U.S. based multinational.
The 215 government employees who do bill collection now, will be transferred to EDS. But B.C. Government and Service Employees' Union president George Heyman says government could do the job just as well.
"Whether it's a private company or the government there won't be efficiency unless there's the appropriate resources and efficiencies provided by the government," he says.
Heyman is also worried about having a company linked to the U.S handling confidential information – although the government insists all that sensitive data will remain in Canadian hands.