Water

[threadhead]

Public warned water may go private
by John Campbell

The Independent

The private sector "could end up owning" public water systems in Ontario if
the provincial government adopts the "misguided recommendations" of a water
strategy expert panel, Trent Hills councillor Rosemary Kelleher-MacLennan
said last week in her last official statement as the chair of the Ontario
Municipal Water Association (OMWA).

Speaking at the association's annual meeting May 1 in Toronto, Ms.
Kelleher-MacLennan called upon Queen's Park to reject the proposals of the
panel in its report, Watertight: The Case for Change in Ontario's Water and
Wastewater Sector, "and to enshrine in legislation the fundamental principle
that the province's water systems are to remain publicly owned."

Of particular concern to the OMWA is a recommendation that counties, single
tier municipalities and regional municipalities prepare business plans on
how they will amalgamate water systems within their boundaries (and beyond)
to achieve greater cost-efficiencies. An Ontario Water Board would be
created with authority to approve the plans or demand changes.

The panel states "it should be open to municipalities to organize their
water and wastewater services as corporations," either as non-profit or
for-profit.


Corporatized utility a worry

The "corporatized utility model, where the municipality owns the
corporation, offers the greatest benefits in terms of governance,
transparency, financial sustainability and accountability."

"We see that as opening the way to dismantling public ownership," Ms.
Kelleher-MacLennan said.

Privatization, in turn, "could lead to exorbitant rates" because the company
would need to provide a return on investment for shareholders. It could also
open the door to the "export of our water," she said in an interview.

Ms. Kelleher-MacLennan told The Independent the OMWA is taking "a strong
stand" because there has been "little movement" by the government in
response to the concerns it raised after the report was released last July.

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