HALIFAX — A bid for more hockey time in Halifax could leave city council skating on thin ice.

The request for proposal for four new ice pads should be good news; instead, an agitated union is angry over the city's proposal to build the rinks using private-public partnerships, or so-called P3s.

"There are at least half-a-dozen recent examples of P3s in the recreation sector that have been flops," declares John McCracken, a spokesman with the Canadian Union of Public Employees in Atlantic Canada.

According to CUPE research, Halifax is merely the latest Canadian municipality to examine building recreational facilities using a P3 model. The union argues that such partnerships have already failed in other cities.

"Look at what happened in Ottawa, in Edmonton," McCracken says. "Let's learn from their mistakes and let's not be sucked in by this siren song from the private sector."

Doug Rafuse, Halifax's manager of facility management, counters with examples of successful arenas in Sackville and Dartmouth, both of which operate with community non-profit boards. He notes the four new rinks could cost between $30 million and $40 million to construct. "That's a huge chunk of change."

P3s operate with the private partner agreeing to secure private financing for a project. In return, that company is then entitled to revenues such as user fees, which the government pays to the company over the life of the contract.

Critics say that the benefits of private sector involvement in public projects — improved efficiencies, reduced costs and faster project timelines — have never panned out.

Edmonton's $106-million Southwest Recreation Centre began in 2007 as a P3. But after cost estimates continued to climb even while the private partner suggested the project would have to be scaled down in size, the city manager recommended dropping private involvement.

"The storyline for me is if it sounds too good to be true, it probably is," says Bill Moore-Kilgannon, executive director of Public Interest Alberta, a group lobbying against P3s. Moore-Kilgannon said debates over who would build the centre and how delayed the project, costing millions more over time.

"These things are not all they are cracked up to be and they end up costing more in the long run," Moore-Kilgannon says. "Edmonton's built many sports arenas over the years. It's not rocket science. This new model is not saving us any money."

Ottawa's Ray Friel Recreation Complex was built as P3, but after its completion in 2005, the private company involved in the project approached the city and said it wanted out.

Aaron Burry, Ottawa's director of parks and recreation, said the arena didn't provide the kind of returns the company was anticipating. CUPE says the transfer of the rink back to the city saddled Ottawa with an unexpected $12-million in debt.

Despite the fact the city ended up operating the arena, Burry says Ottawa isn't reluctant to continue pursuing P3 deals. He notes a large part of P3 deals is the transference of risk to the private sector. "At the end of the day, if a private sector partner cannot tolerate that risk, then you have to look at what are the longer-term implications."

Larry Blaine, the CEO of Partnerships BC, concedes that P3s in the short-term may end up costing more than publicly funded projects. However, he argues that the increased investment in and concentration on the structuring of the partnership quickly pays off with faster construction times. "P3s are complicated," he says. "There is a skill set required."

While Prince George, B.C. appears to have no complaints with its new Charles Jago Sports Centre (built for approximately $30 million and opened in 2007), other B.C. cities haven't had as positive an experience with their arenas.

The City of Cranbrook ended up having to absorb cost overruns after its private partner had difficulties securing financing and meeting construction deadlines. Then ownership of the project changed several times before the P3 failed, leaving Cranbrook with the highest debt level in the province, according to CUPE.

Burry says the key to making P3s work is ensuring the business case is sound before entering into the agreement. "It's not a matter of choosing one option over another. It's making sure the option is well-understood and the advantages of the partnership have been clearly stated and properly vetted."

But McCracken isn't as convinced. "At the very least, what we'd say to (Halifax) council and the mayor is, you'd better do your homework because there have been countless examples of recreation P3s that have gone wrong.

"Our members have kids who play hockey and ringette and we'd love to see some new arenas in Halifax. But, when you look at the hard economics of it, P3s are not the way to go."