Revisiting Water and Wastewater Utility Privatization

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Prepared for the Government of Ontario Panel on the Role of Government. This paper reviews recent setbacks for privatization and explores the reasons behind Canadian municipalities’ reluctance to contract out operations of their water and wastewater utilities.

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The New Environmentalists

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Tom Adams, Elizabeth Brubaker and Lawrence Solomon are three leading intellectuals in an umbrella organization – Energy Probe Research Foundation (EPRF) – that is influencing the views of a new generation of policymakers about a host of interrelated issues that include environmental protection, energy, urban planning and foreign aid. These folks can’t be dismissed as politically left or right of centre.

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508 reasons to privatize water

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Four hundred and seven. That’s the number of municipally owned water treatment plants that failed Ontario inspections in the year ending March 31, 2003. More than two years after contaminated water killed seven people and sickened 2,300 in the town of Walkerton, Ont., 61% of the province’s water plants still got failing grades in training, sampling, disinfection or water quality. That’s an astonishing figure. And it’s proof that public water provision isn’t working in Ontario.

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Private water runs dry

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Last month, Halifax Regional Council pulled out of a deal with a private consortium formed to curb the sewage pollution that has long soiled Halifax Harbour. The agreement’s unravelling – exacerbating a Canada-wide retreat from water and wastewater privatizations – spells bad news for the health of Canadians and the health of the Canadian environment. An anatomy of the breakup shows that Canada’s local governments have a long way to go before they reach the level of sophistication needed to chart their way in privatization waters.

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Canada’s best public policy books vie for award

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The short list for the Donner Prize was announced yesterday, highlighting the year’s best Canadian public policy books including titles on global warming, drinking water, immigration, prisons and globalization. Environment Probe Executive Director Elizabeth Brubaker`s Liquid Assets: Privatizing and Regulating Canada’s Water Utilities was among those listed.

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A different shade of green

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One spring day five years ago and a few thousand kilometers away, Elizabeth Brubaker saw the signpost to a new environmentalism. She had flown to the UK in March, 1997, to study what had happened to that nation’s water supply since the industry had been privatized. As the executive director of the Toronto-based advocacy group Environment Probe, she contacted an assortment of British green organizations ranging from Surfers Against Sewage to the more established Friends of the Earth.

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Abusing the public’s trust

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Public Citizen, Ralph Nader’s signature organization, and the director of its environment program, Wenonah Hauter, assert that privatization "is not, and never will be, the solution" to Canada’s water woes (Water is a Right, letter, Jan. 20). For another point of view on the merits of water privatization, I refer readers to Ms. Hauter’s erstwhile colleague, Alex Tsybine.

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A thirst for privatization

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The World Bank, in 1998, called privatization "a defining feature of the last two decades." Popular candidates for early privatizations included telecommunications and electric power utilities. Water and wastewater utilities soon followed, haltingly at first and then with greater momentum. If water was, as the Financial Times’s John Barham suggested in 1997, "the last frontier in privatization around the world," it was a frontier that was being aggressively explored.

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Liquid Assets, Privatizing and Regulating Canada’s Water Utilities: Book Review

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This book, released on November 6, 2002, calls for the privatization of Canadian water utilities as they have "not served Canadians well, are underfunded, badly operated, and ineffectively regulated". Brubaker, an environ-mentalist, states that "hundreds of municipal systems threaten public health and the environment."

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From sea to slimy sea

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For three days in September, a mechanical failure at Winnipeg’s largest sewage treatment plant sent the waste from 370,000 people spewing, untreated, into the Red River. The putrid mixture of human, household, and industrial wastewater poured into the river at the rate of 230,000 cubic metres a day, poisoning the water, threatening fish, creating a stench, and alarming downstream residents who feared that the contamination could seep into their wells.

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Liquid Assets: Privatizing and Regulating Canada’s Water Utilities

By Elizabeth Brubaker

This book argues that public provision of water and wastewater services has not served Canadians well. Based on successes in other jurisdictions, it calls for the privatization of utilities and examines the conditions — such as competition, effective regulation, legal liability, and union support — necessary to make privatization work.

Published in 2002 by the University of Toronto’s Centre for Public Management.

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