Harbour Cleanup

From: dannyc@ns.sympatico.ca (Danny Cavanagh)
To: "ww sust-mar Mailing" <sust-mar@chebucto.ns.ca>
Date: Sun, 28 Jan 2001 18:31:02 -0400
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Return-Path: <sust-mar-mml-owner@chebucto.ns.ca>

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The following are some key points that must be raised with HRM council
members by HRM residents and others as well. The harbour issue is likely the
biggest project that HRM council will ever undertake. You may have some
opinions or other concerns such as the type of treatment being considered. I
am asking that you send a message with you concern and in that message ask
to keep the waste water treatment plants as publicly owned and operated
system. Council members E-mail address are on the HRM web site as well as
phone and mailing addresses. Letters to the editor are also welcome on this
subject. Anyone who requires additional information can contact me at
dannyc@ns.sympatico.ca

Many thanks.


Point 1:  For-profit services cost consumers more

Experience shows that when corporations control vital public services, the
costs to consumers rise.  For example, in 1995, one of the firms that are
bidding to control the HRM wastewater plants, Suez Lyonnaise des Eaux,
signed a contract to supply water to the city of Casablanca.  The contract
provided for a hike in water prices of 10-15% and in wastewater disposal of
60%!

1. How will members of Council guarantee that consumers won't be gouged?
Why pay for corporate profits when the HRM could operate the plants
directly?


Point 2:  For-profit services cost taxpayers more

Experience also shows that financing costs are higher for corporations.  For
example, in the Casablanca contract, Suez was criticized because it invested
little of its own funds, relying instead on financing from the banks.  But
corporations pay higher interest rates than governments do, so taxpayers end
up paying more money to cover higher interest payments as well as profits.

The HRM should finance, own and operate the plants directly.  It could
borrow the funds more cheaply from the Municipal Finance Corporation.

2. How is the Harbour cleanup being financed?  How will members of Council
control costs? If the financing is coming from consumers and governments,
why should a corporation(s) control the plants?  Why doesn't the HRM borrow
from the Municipal Finance Corporation and reduce costs?

3. How much does the HRM expect to save with a privatization scheme?


Point 3:  Today wastewater; tomorrow water

To get their foot in the door, corporations are bidding on wastewater
treatment with a long-range goal of profiting from water services.  And it
isn't just that they want to profit from selling water to the residents of
Halifax.  They also have one eye on the export market.  Water is covered by
NAFTA so companies with holdings in the U.S. are looking to sell our water
where it will earn the highest profit.  Once it's diverted south of the
border, it will be next to impossible to get it back.  Suez will be more
concerned about their healthy profit margins than healthy drinking water for
Canadians.

4. Why is Council creating an opening for corporations to profit from the
sale and export of water?


Point 4:  Public can do it better, cheaper

It's been proven time and again that private public partnerships are not
good for taxpayers. The P3 schools in Nova Scotia were a taxpayer rip-off.
Privatization of highways has also been stopped.  Giant water corporations
are known for submitting low cost bids with big promises of great and
wonderful things.  Once they're in control, the promises disappear and the
costs to local residents rise.

The Halifax Water Commission runs an excellent water system that is publicly
controlled and operated.  It delivers pure, clean water that exceeds
Canadian guidelines.  It's self-sustaining and highly efficient.  As well,
the HRM operates the Mill Cove and other wastewater treatment plants
directly itself.  Again, it's a high quality, cost-effective operation.

5. Why doesn't council support a publicly operated and controlled wastewater
system?


Point 5:  Council can't escape its accountability

The water corporations have a sorry record around the world of price hikes,
sewage spills, environmental disasters and corruption.  For example, in
1995, a French court confirmed that the water contracts awarded to Suez in
Grenoble in 1989 were fixed.  As a result, the mayor received a five-year
prison sentence for taking bribes and high-level managers with Suez were
convicted of corruption.  The contract has since been renegotiated, forcing
Suez to stop extra user charges and return majority control of the water
concession back to the city.

6. HRM Council members will be held accountable for every wrongdoing,
environmental infraction, rate increase or corner cut by the water
privateers.  While staff seems to be promoting privatization, it's Council
members who will be held to account.

7. Council members are elected to make decisions in the public interest.
Privatization of water and wastewater services hasn't worked in other parts
of the world and it won't be any different in Halifax.  Public control and
operation is the only option to ensure an accountable and trustworthy
system.

8. What are you doing as a member of HRM Council to protect the public
interest?  How will you ensure that local residents and taxpayers won't be
given the run around by a corporation that is accountable to its
shareholders?



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