Parks Canada

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Contents

Executive Summary        2

Background        3

Overview        3

Concerns        4

Stakeholders        4

Union Representation        4

Canadian Rocky Hot Spring Employees        5

Community Residents        5

Government        6

Federal        6

Provincial        6

Other        6

First Nation Groups        6

Non-Government Organizations        6

Community Associations        7

Alternatives        7

The Canadian Rocky Hot Springs remain under Parks Canada operation        7

The Canadian Rocky Hot Springs do not remain under Parks Canada operation        7

Recommendations        8

Implementation Plan………………………………………………………………………………………………………………………10

Conclusion...............................................................................................................................................10

Executive Summary

Overview

A streamlining of the federal service through federal budget cuts impacted Parks Canada. With a decrease in resources, Parks Canada made the decision to privatize the operation of three hot spring sites.

Following the announcement, several concerns have emerged from stakeholders, including:

• Compromised integrity of the sites
• Negative impact on the natural resources
• Rise in admission price
• Lower standard of service
• Retention and Compensation of Employees
• Access restrictions
• First Nations Land Claim in Radium

Recommendations

We recommend that Parks Canada continue with the process of privatizing the Canadian Rocky Mountain Hot Springs.  The following suggestions, which are explained in further detail within the report, will aid in the mitigation of risks associated with this proposal:

1. Lease Agreements

• Public release of Proposal Criteria
• Employment Security
• Employee Salary and Benefit Package
• Limits on Fee Increases
• Discounted Pricing for Local Residents
• Usage Guidelines

2.      Consultation

• Proposal Evaluation Committee
• Community Information Sessions
• Collaboration with the Public Service Alliance of Canada (PSAC)

Background

On April 30th, 2012, Parks Canada announced the decision to privatize three hot spring locations in the Canadian Rockies^[1].  

The three sites affected include the Banff Upper Hot Springs in Banff National Park, Radium Hot Springs in Kootenay National Park and Miette Hot Springs in Jasper National Park.  The hot springs were discovered over a hundred years ago and have become a popular tourist attraction that all ages can enjoy.  

The sites currently employ approximately 42 Parks Canada staff members, which would be affected by the change.  

Single admission fees for adults vary amongst the site and range from $6.05 to $7.30.  

Overview

Parks Canada, like many other government agencies, was impacted by federal budget cuts.  Parks Canada is facing an elimination of 638 positions, leading to a decrease in the quality of service found in most parks and historical sites^[2].  With decreased resources, Parks Canada made the decision to privatize the operation of three hot spring sites.  

Parks Canada made the decision to privatize based on the following reasons:  

• In order to increase operational efficiency and better focus on their core mandate; which is to preserve Canada’s historical sites.
• The private sector is better equipped to meet the demands of the tourism market, as they can devote more attention to maintaining the operation of each facility^[3].
• Improved marketing efforts may increase hot spring attendance, which would stimulate the tourism industry and lead to new job opportunities^[4].  

The proposed solution is that Parks Canada would retain ownership of the properties and transfer the operation of the sites through long-term lease agreements to a group in the private sector.  The request for proposals will include site guidelines that outline what is permissible and acceptable for the facilities.  The competitive selection process and lease negotiations are expected to be complete by the end of 2013^[5].            

From the perspective of the issue life cycle, the privatization of the hot springs would currently fall under prominent.  Throughout the past year, awareness has been increasing as the media has taken an interest in the topic.  Parks Canada has clearly outlined their position on the issue along with their intentions.   As well, alternate groups have formed to voice opinions and respond to the current plan.

Concerns

The main concerns revolve around the fact that Parks Canada announced this decision without first consulting stakeholders.  In addition, little information is available about the lease agreement until the successful leasee is identified, which is causing additional uncertainty from stakeholders.  

Many stakeholders are concerned that the integrity of the sites will be compromised and there will be a negative impact on the natural resources^[6].  However, Parks Canada has noted that it is only the hot spring operations that will be privatized.  All other areas of the National Parks will remain under the control of Parks Canada, who will continue to maintain the facilities and ensure these historical sites are available for public enjoyment.  As well, the successful leasee will be required to follow certain guidelines and meet stipulations to ensure the hot spring sites are preserved^[7].  

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