News

Water Works Quietly Privatized

In Campbell River and beyond, an election issue boils up.

By Quentin Dodd, 13 Oct 2005, TheTyee.ca

waterglass

Who do YOU want running the municipal water systems in your community?

That's the question asked on Vancouver Island and elsewhere in BC as the province's municipal and regional district elections loom next month.

More and more communities are being tempted into striking deals with privately-owned corporations to take programs and services off their books. The contracting out of public water-supply and waste-water-discharge systems has been quietly introduced into some communities without any consultation or notification to municipal taxpayers.

A leading company in the field in B.C. is a wing of Terasen Inc. Terasen's sale to a Texas-based company, pending regulators' approval, would effectively put some public water systems components in the hands of an American firm whose safety record in other endeavours has drawn censure by US officials.

Campbell River concerns

In Campbell River, one of city hall's staff decided to ask for proposals from private firms mainly for the quality-sampling component of the water-supply system. The $36,000 contract was not big enough to require consultation with the town's property owners and taxpayers and even the city council weren't told about it.

When the Canadian Union of Public Employees made it an issue, Mayor Lynn Nash said he knew nothing about it but agreed to look into it. He told The Tyee he would review a report from staff, and added that he had been assured no jobs would be lost.

The mayor's lack of foreknowledge about the request for private contract proposals is not an unusual situation, according to CUPE's Water Watch campaign coordinator Leslie Dickout. Small parts of municipalities' operations can be contracted out without public hearings or consultation. Piece by small piece, essential control of larger operations can be shifted into private hands, Dickout fears. She said providing and disposing of water is an essential public-resource service which should be publicly run.

That was strongly echoed at the tiny public-information meeting held in Campbell River, where speakers expressed concern and said drinking water should not be regarded as a commodity to be bought, sold and bartered by companies for profit.

Terasen deals

Elsewhere on Vancouver Island, as in some parts of the BC mainland such as Surrey, private deals have been quietly made and contracts signed and sealed, sometimes putting parts of water-system operations into the hands of private companies for up to 20 years or more.

In Nanaimo, where most water services in the regional district are handled through the regional district board, a pocket of about 1,600 water users in the French Creek area get their water through Breakwater Enterprises, a private company. To get the highest price though, there was a move to sell Breakwater to Edmonton-based Epcor, rather than the regional district. That threatened to cause problems for a waste-supply system run by the regional district, and the whole mess has now ended up in the hands of the BC Comptroller of Water.

Shortly after Vancouver-based Terasen Inc. was sold to the Texas-based Kinder Morgan company in August this year, the Terasen Utility Service company, a wholly-owned subsidiary of Terasen, was formed to pursue water privatizations in municipal, resort and First Nations communities.

It has since gone on establish water partnerships in the Nuu-chah-nulth and Cowichan nations, contract water-metering for Surrey, buy a half a share of an Alaskan community water system, and secure a 21-year private-public-partnership (P3) deal to operate the City of Langford's sewer system on southern Vancouver Island. Word is that it now has its eye on the much lager Capital Regional District's system.

CUPE election alert

CUPE's Dickout and other labour officials on the island say the issue isn't just about saving unionized jobs. They say the contracting-out and privatizations raise issues for taxpayers, including the prospect of water bills climbing out of reach for some citizens.

In Campbell River, the spark-plug meeting called by the union was told bits of municipal service programs can be parcelled out to contractors by middle-level administrators, with no notice to anybody except, perhaps, upper level management staff - provided that the contract is for less than $50,000. If it is between $50,000 and $100,000, top administrators have to be involved and approve it, and above $100,000 the proposal has to go before municipal council.

The majority at the meeting agreed to draft a resolution to council saying in part that no segment of the municipality's natural resource or utility management programs should be privatized or contracted out.

CUPE is working to make the issue a hot one at election time. The union has started to draft postcards with questions on them, designed to pinpoint whether or not individual candidates support retaining water-supply and waste-water programs and services in the public trust, or whether they would support contracting out parts of them, or maybe even whole systems.

Campbell River journalist Quentin Dodd is a regular contributor to The Tyee.  [Tyee]

47  Comments:

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  • BC Mary

    6 years ago

    Comments on "Water Works Quietly Privatized"

    RED ALERT!! This is too bloody awful for words!

    I was in England during a hot dry summer (1994, I think), a few years after Margaret Thatcher's government had sold off most of Britain's water supply to private corporations.

    And, of course, the public interest suddenly took 2nd place to profit-making. The infrastructure wasn't well maintained. New sources of water weren't being sought or developed. So Britain actually began to worry that the taps in British homes would run dry.

    Only then, did many people realize that water is an absolute human right fundamental to life itself, and should never be available for purchase.

  • skeptikool

    6 years ago

    And if the buyers stock portfolio should happen to contain shares in the local bottled water plant, they would never ever contrive situations leading to dirty water coming out of the faucets.

    Quote:
    ...bits of municipal service programs can be parcelled out to contractors by middle-level administrators, with no notice to anybody except, perhaps, upper level management staff - provided that the contract is for less than $50,000...

    And there would be extreme vigilance regarding any under-the-table shenanigans. Yeah, right.

  • Grumpy

    6 years ago

    Again, the fallacy of privitisation, sell the waterworks, you sell your soul. These right wing 'privitise everything' zealots, will be the death of us all!

  • Fiat lux

    6 years ago

    Privatization of services is the biggest subsidy to special interest sectors, but nobody ever dares to mention it. Especially economists, who always complain about "subsidies" when the beneficiaries are communities.

    Ask the Fraser Inst. !

    Ed Deak, Big Lake.

  • mbraun

    6 years ago

    Have the powers that be forgotten (or do they even know of) the role privatization played in Walkerton?

  • BC Mary

    6 years ago

    Tell us, mbraun: what role did privatization play in the killing of water-drinkers in Walkerton, Ontario, just outside Windsor.

  • Ron Erwin

    6 years ago

    Okay, all I ask is how many of you anti-privatization types out there drink Donsansh or Perrier water that is delivered to you solely by private hands.
    Has anyone ever got sick drinking their water ?

  • Goweropolis

    6 years ago

    Quote:
    Only then, did many people realize that water is an absolute human right fundamental to life itself, and should never be available for purchase.

    Putting on my devil's advocate hat: Couldn't you say the same thing about food? Or a place to live?

  • mbraun

    6 years ago

    BC Mary: what happened was the ontario gov't, in an attempt to cut costs, contracted the testing of water to a private lab. I realize that the water system itself remained a public utility, but testing the safety of the water supply is part of the system. Although regulation was weak to begin with, it was further jeopardized because scrutiny of private companies was nearly non-existent - this was done in order to cut red tape and reduce the "burden" of gov't regulation on private firms. Certainly, the private lab was not solely to blame for this, but if testing the water supply remained part of the public sector, the regulations and procedures would have been in place, but since it was a private firm, they were not.

    RE: another incredibly flawed theoretical link. The standards those companies adhere to are a function of their profit. That is, if they sell dodgy water, who will buy it? The public water supply should not be subjected by market principles - even you must be able to understand that, but perhaps I give you too much credit!

  • mbraun

    6 years ago

    Goweropolis: in fact, i believe that you can say the same about food and shelter - they are fundamental rights of every human being. I could be wrong, but isn't that in some UN Charter?

  • BC Mary

    6 years ago

    mbraun: thanks for the reminder of which part of the Walkerton tragedy fell into private hands.

    What I don't understand is your nasty comment toward me personally ... what the heck brought that on?

    You threw out an oblique comment. I pick up the question, as it seems to relate to the topic under discussion. And you insult me?

  • Ed Seedhouse

    6 years ago

    You either get it or you don't. Selling our public water supplies would be a stunningly stupid idea, period.

    Any politician who even imagines selling off our water supplies will lose my vote forever.

  • Ron Erwin

    6 years ago

    mbraun' yes you are correct, profit will drive safety issues. I mean where is the accountability of Public Sector Union employees ?
    All private entities are driven to quality by their need to profit. It's a perfect system to be embraced by all.

  • mbraun

    6 years ago

    BC Mary: I sincerely apologize if there was any tone of insult in my post. I'm not sure which comment you're referring to. If you're talking about my second paragraph, that was directed toward our friend mr. erwin.

  • loblollyboy

    6 years ago

    Privatise public infrastructure in haste; repent at leisure.....

  • Umslopogaas

    6 years ago

    I do remember the Perrier that was contaminated with benzene Ron Erwin.

    Probably a leftist plot.

  • Steve P

    6 years ago

    Quote:
    You either get it or you don't. Selling our public water supplies would be a stunningly stupid idea, period.

    Because .... ?

    C'mon Ed -- I'm sympathetic to your position, but I need to know reasons to accept an argument. An appeal to faith only preaches to the converted.

    I'd like to know the details of the contract before condemning private ownership of water purification systems: how often they must test for quality; how often they must report to the government and to whom they must report, etc.

    For example, White Rock has a very high quality water supply system, drawn from artesian wells, which has been privately owned for decades. From what I understand, many of the locals are proud of their higher-quality private water and look down their nose on Surrey/GVRD water. Is this wrong? (Mind you, I don't know the details of their responsibility to the public as a utility)

  • BC Mary

    6 years ago

    Well, OK, mbraun ... I thought RE: meant Re:

  • jimmy_laroux

    6 years ago

    Ron,

    Give me a break. The article is clearly about municipal water supply. Do you wash your car with Perrier? Unlikely, I'd wager, so you're really comparing apples and oranges.

  • Ron Erwin

    6 years ago

    jimmy' I know it's about the municipal water supply. What I am trying to say by my reference to bottled water is that these private companies that produce and market bottled water are driven to safety by their need to profit.
    In otherwords, Public Sector Union employees are not nearly as accountable as private sector workers.
    So I don't see a problem here.

  • stinkysalmon

    6 years ago

    I thought water quality sampling was already contracted out to private labs across BC. I only know of a handful of labs that can handle water sampling and none are owned by any level of government. I seem to recall a bidding process for the sampling in Campbell River a few months back. I would say the Tyee is a little behind the times, this is not a new thing. Also, these private sampling companies would have to adhere to the same laws and regulations as any other level of government performing the sampling. We have come a long way since Wakerton but the road is long and bumpy and lets face it the BC gov't has done a crappy job anyways. I do not mind if sampling is in private hands I do have a problem with private companies running water systems. Check out British Columbia Water and Waste Water Society for some good info as to what is going on in BC. Who is out there checking the quality of our lakes? This article is only looking at the small picture. if the Tyee wants fiesty then give us more to chew on.

  • Daniel

    6 years ago

    Ron Erwinposted: 29 Minutes Ago
    jimmy' I know it's about the municipal water supply. What I am trying to say by my reference to bottled water is that these private companies that produce and market bottled water are driven to safety by their need to profit.
    In otherwords, Public Sector Union employees are not nearly as accountable as private sector workers.
    So I don't see a problem here.

    Quote:

    The assumption is that the two are inextricably tied (profit and safety). Why would companies go to great lengths to circumvent existing regulations to their industry in the name of profit?

  • GWNorth

    6 years ago

    to Ron Erwin

    I have been employed in the private sector for over 40 years (Pulp and Paper industry). I know from direct experience that safety and quality take a distant back seat to profit. Private sector companies are accountable to their shareholders only. If the profits are great enough they will do what ever it takes to achive the profit for the shareholders. I have seen effluent and other wastes dumped, violating permits and the fines swallowed because it would have cost more to fix the problem. If you think a private company is going to worry more about the health and safety of its product than about how much profit it can make then you are blind to the reality of private business.

  • scylla

    6 years ago

    Quote:
    The assumption is that the two are inextricably tied (profit and safety). Why would companies go to great lengths to circumvent existing regulations to their industry in the name of profit?

    Which planet have you just come from, Daniel?

  • ursus

    6 years ago

    ron you really are a moron why don't you go drink some water in the congo or move back to the states where you belong.

  • ursus

    6 years ago

    I have worked in most of the Pulp Mills in this Province and yes you are right they are major polluters try to avoid them prefer even Syncrude to a dirty old Pulp Mill.

  • redrivergirl

    6 years ago

    Walkerton, anyone???

  • Tom Lal

    6 years ago

    I think any attempt by this government or any other for that matter is a deplorable abuse of public trust. Having said that I wonder how many know that 100 mile has had private water works from its beginnings, and owned by a Cult no less. The emmisaries own it all lock stock and barrel

  • allan

    6 years ago

    Tom, the Emmisaries(of Devine Light - I believe), once owned just about everything in 100 Mile House, didn't they.

    I would toss that ownership in with the usual mixture you might find in a one-company town where the employer puts in the infrastructure.

    Campbell River is a bit larger than that and has the expertise to run its own affairs using its own tax base.

    What has me wondering though, is how has the mid-level manager who signed the privatization contract managed not to have red flags popping off above his head when he was cutting that deal.

    Perhaps the mayor might send a cautionary memo off to staff urging reviews of contract proposals by people with at least an appreciation of the political ramifications of certain acts before the city has been parcelled out from underneath everyone.

  • skeptikool

    6 years ago

    I've never bought bottled water, and refuse to be suckered.

    The majority would not know if they were drinking water bottled directly from the faucet
    or after passing through a $5 Brita, or somesuch, filter - if that.

    What was it that W.C. Fields had to say about something or other being born every minute?

  • Ron Erwin

    6 years ago

    ursus' Good morning and how are you today ?

  • BC Mary

    6 years ago

    Private vs Public ownership of water systems.

    It occurs to me that hiring (and if necessary, terminating) a private lab. to do water testing for a publicly-owned not-for-profit water system is one thing. Such a contract would be subject to terms, conditions, oversight, and an escape clause.

    A far, far different and more dangerous thing is having the whole water system in private, for-profit ownership where the public has no right of access to either the records, or how they are kept, or anything else.

  • writerdave

    6 years ago

    mbraun, you are completely misguided in your assessment of what happened in Walkerton. Basically all testing of water is done in privately-owned labs (it is a specialized field and far too expensive for each municipality to have the resources to do on their own).

    In Walkerton, the private lab warned the public employees of a problem, which was ignored.

    The following is a link to the Walkerton enquiry report.

    http://www.attorneygeneral.jus.gov.on.ca/english/about/pubs/walkerton/part1/

  • mbraun

    6 years ago

    writerdave, i've read the report too, but you missed my point. I was basically pointing to the fact that privatized firms are not subjected to the same regulation as public service departments. I'm not blaming the private lab at all (I actually believe that they did all they could). I put some of the ont. gov't for two related things: one was privatizing water testing, and two, its principles of reducing red tape and reguations for private businesses. That deadly mix put the public interest in jeopardy - that's were i find some serious problems.

  • Fiat lux

    6 years ago

    Living on a ranch we have our own well and water supply. But what people have to realize is that when certain regional bodies sell water systems to corporations, they also sell All WATERS. Including underground aquifers and rainwater collectins sytems, ofrcing people to pay for the water from their own wells.

    This has happened in may parts of the world, like in Africa and South America, resulting in loss of services and safety, huge charges to the population, cholera epidemics and in the case of Bolivia in revolution and deaths. Now the Bechtel corporation who were kicked out of the country, are suing for loss of indefinite profits.

    Plus, if anybody dares to question the actions of the privatizers, regardless of facts, they're being sued for defamation. This has already happened here in Williams Lake over privatized old people's home care.

    Ed Deak, Big Lake.

  • ROBBINS Sce Research

    6 years ago

    There are some things relating to public safety and public resources that are certainly open to debate with respect to private participation.

    City water should not be one of those.

    Ron E's arguments (I feel) would be better suited to arguments about offshore oil and gas.

  • scylla

    6 years ago

    Boy-oh-Boy, Ed, The times they sure are a-changin' eh? But Dylan never foresaw these.

    It's weird how the times today prompt my memories of the old 60's protest songs.

    "The law is fer perteckshun of the peepul" Yup, Christofferson hit that nail on the head.

  • Fiat lux

    6 years ago

    I could quote an old Hungarian folk song that says: "Poplar trees don't grow to the heaven..."

    What goes up must come down, there are no straight lines in the unverse and one of these days people will have enough and put a stop to this crime wave in the name of economics.

    Regardless of the memorized slogans, that some wind up puppets write on these blogs, cheering on these crooks.

    Ed Deak.

  • scylla

    6 years ago

    In my small town, with water that exceeds by far any safety standards, we see dickheads proudly brandishing the trendy plastic water bottles, paying per liter more than the price of gasoline, and blissfully unaware of the reports which show various contaminations, besides the fact that some of these come from tested municipal sources, so thus are legally sold as "pure".

  • dunngy

    6 years ago

    Hey Ron,to say that profit guarantees quality or safety of a product is the most absurd statement you've come up with.Bopal India,Ford Pinto,silicon breast implants,Enron,Walmart,to name but a few examples.Only my ignorance limits what must be thousands of other examples.

  • skeptikool

    6 years ago

    scylla,

    Easy now! Please leave those "dickheads" alone.
    I'm clearing at least 50 cents a day from those bottles they toss.

  • skumeek

    6 years ago

    its simple,if we ve paid for it,there is no need to sell it

  • scylla

    6 years ago

    My apologies to Daniel, who was obviously being satirical. I missed that he was quoting His Lordship.

    I guess I thought even he couldn't be that stupid, but I'm reminded once again that he is.

  • GJW

    6 years ago

    To add some balance to this story, in Campbell River, city council still has final approval before anything in the water system is contracted out. That's fully in the public eye.

  • kent

    6 years ago

    I live in a Seniors facility where many residents insist on bottled water. So they have these big jugs placed on dispeners so you can fill a bottle to drink in your room. I have always used tap water, as I am familiar with the local supply and know there is nothing wrong with it. Last March I was in hospital for two weeks and was surprised to learn that the hospital uses tap water. When I returned here I asked management why they used bottled water for drinking? The reply was "don't tell anyone, but those jugs are filled from the taps"

    I am quite sure much of the bottled water for sale also comes from municipal taps. Some companies have admitted as much. Quite a profitable business selling tap water for whatever they charge!

  • mikev

    6 years ago

    stinkysalmon wrote:

    Quote:
    I thought water quality sampling was already contracted out to private labs across BC. I only know of a handful of labs that can handle water sampling and none are owned by any level of government.

    In some parts of BC drinking water is tested by private labs, but the majority of it is done at the BC Center for Disease Control, which is owned by the provincial government.

    http://bccdc.org/division.php?item=2

  • anotherchris

    6 years ago

    It seems to me one of the questions that we should be asking is what will happen when Terasen owns the gas and the water? Seeing as the Americans still believe in Manifest Destiny why on earth are we handing over these resources to American concerns?

    I am not one of the people who chooses to pay lots of money for bottled water and I don't want to end up paying the same prices for municipal water which is not all that far-fetched!!

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