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Public warned water may go private John Campbell - The Independent VIA theFilter.ca \|\| June 05, 2006 The private sector "could end up owning" publicly-owned 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. 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. The panel noted there is nothing inherently wrong with water and wastewater assets being in private hands. There "is no necessary connection between ownership and performance. Whether the assets are publicly or privately owned, it is the details of management and operations that dictate excellence with respect to public health, environmental quality and cost containment. These matters are best handled through a business-like, corporate structure." Ms. Kelleher-MacLennan said in an interview that privatization "could lead to exorbitant rates that are not necessary to maintain a public water system" but are needed to provide a return on investment by shareholders. It could also open the door to the "export of our water," she said. Article Posted at www.KnowledgeDrivenRevolution.com (In her last speech as association chair, delivered at the conference May 2, Ms. Kelleher-MacLennan said Canada "must take steps now to establish a framework for meeting the rising water needs in the United States without compromising (its) own health and future." "A barrel of fresh water is more central to life than a barrel of oil, and I urge all of us to face this issue now, lest the next generation face it unprepared," she said. "After all, we want to continue to have a harmonious and prosperous cross-border relationship for many generations to come.") Ms. Kelleher-MacLennan told The Independent that the OMWA decided it was time to take "a strong stand" in public because there has been "little movement" by the government in response to its concerns since the report was released last July. Although Minister of Infrastructure Renewal David Caplan told the conference that his government was "looking at legislation to keep water public," that assurance has yet to be made in writing, Ms. Kelleher-MacLennan said. She's worried that when the ministry prepares its white paper on the panel's recommendations, there will be more "fine tweaking" of the proposals that cause the association concern than the "revamping" that's needed. The OMWA, which represents 200 municipal water providers serving more than seven million water consumers (about 80 per cent of the provincial population), argues an Ontario Water Board is "an unnecessary and heavy-handed intrusion by the province into municipal decision-making." "It's the local ratepayers who are affected by the organization and financing of these water assets, and that's why local accountability should be preserved," Ms. Kelleher-MacLennan said. "It will add a costly and unwanted level of bureaucracy that will have to be paid by local residents. Why should these decisions be made in Toronto?" The province's Clean Water Act (Bill 43) has drawn stinging criticism for the powers it will give designated authorities for the protection of source water but "it will not have near the impact " the panel's recommendations will have should they be implemented, Ms. Kelleher-MacLennan said. They could "change the future of our province, of our country." About KDR \| \| Home \| \| Weekly Features Archive	Weekly Weekly Features Archive
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Public warned water may go private

John Campbell - The Independent VIA theFilter.ca || June 05, 2006

The private sector "could end up owning" publicly-owned 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. 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.

The panel noted there is nothing inherently wrong with water and wastewater assets being in private hands. There "is no necessary connection between ownership and performance. Whether the assets are publicly or privately owned, it is the details of management and operations that dictate excellence with respect to public health, environmental quality and cost containment. These matters are best handled through a business-like, corporate structure."

Ms. Kelleher-MacLennan said in an interview that privatization "could lead to exorbitant rates that are not necessary to maintain a public water system" but are needed to provide a return on investment by shareholders. It could also open the door to the "export of our water," she said.

Article Posted at www.KnowledgeDrivenRevolution.com

(In her last speech as association chair, delivered at the conference May 2, Ms. Kelleher-MacLennan said Canada "must take steps now to establish a framework for meeting the rising water needs in the United States without compromising (its) own health and future."

"A barrel of fresh water is more central to life than a barrel of oil, and I urge all of us to face this issue now, lest the next generation face it unprepared," she said. "After all, we want to continue to have a harmonious and prosperous cross-border relationship for many generations to come.")

Ms. Kelleher-MacLennan told The Independent that the OMWA decided it was time to take "a strong stand" in public because there has been "little movement" by the government in response to its concerns since the report was released last July.

Although Minister of Infrastructure Renewal David Caplan told the conference that his government was "looking at legislation to keep water public," that assurance has yet to be made in writing, Ms. Kelleher-MacLennan said. She's worried that when the ministry prepares its white paper on the panel's recommendations, there will be more "fine tweaking" of the proposals that cause the association concern than the "revamping" that's needed.

The OMWA, which represents 200 municipal water providers serving more than seven million water consumers (about 80 per cent of the provincial population), argues an Ontario Water Board is "an unnecessary and heavy-handed intrusion by the province into municipal decision-making."

"It's the local ratepayers who are affected by the organization and financing of these water assets, and that's why local accountability should be preserved," Ms. Kelleher-MacLennan said. "It will add a costly and unwanted level of bureaucracy that will have to be paid by local residents. Why should these decisions be made in Toronto?"

The province's Clean Water Act (Bill 43) has drawn stinging criticism for the powers it will give designated authorities for the protection of source water but "it will not have near the impact " the panel's recommendations will have should they be implemented, Ms. Kelleher-MacLennan said.

They could "change the future of our province, of our country."

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