The Quebec Federation of Labour told a panel Thursday that the Charest government should scrap legislation that aims to promote public-private partnerships.

The Liberals are promoting so-called P3s in order to draw on private capital for major work, such as highway construction. It believes the arrangement will help save millions of dollars.

But Quebec Federation of Labour president Henri Massé said sooner or later, those costs will come back to haunt taxpayers.

"We are very afraid if the government sets its responsibilities aside and the private [sector] decides for the future, for the next 30, 35 years," Massé told the government panel studying the partnerships.

Massé also said partnerships for highway and hospital construction, which have been tried in other parts of Canada and the world, do not work.

He told government officials about a $650 million dollar public-private highway in New Brunswick that turned into a $2.7 billion bill for tax payers.

Private sector already working for province

Quebec is considering partnering with the private sector to build chronic care facilities, highways, prisons and hospitals. It already subcontracts to private companies, including work in the Laval metro extension.

Quebec treasury board President Monique Jerome-Forget said Massé has his facts wrong. She told the panel that four out of five P3s end up being cheaper than using taxpayers money alone.

Outside the National Assembly, unionized steel workers had come to the opposite conclusion. They held a demonstration to show their displeasure over possible public-private partnerships., citing job losses if the private sector gets involved.