PRIVATIZATION FACTS

It's as clear as...

• Since water went private in France in 1984, customer fees have increased by 150 per cent. The French now pay up to three times more for a gallon of water than Canadians do.

• Since water service was privatized in Britain, domestic water and sewerage bills shot up by as much as 67 per cent a year (that happened in 1990 and 1994). Among the 10 water and sewerage companies, price increases have ranged from 54 to 108 per cent for water and from 52 to 122 per cent for sewerage.

• Générale des Eaux was prosecuted in 1994 for supplying water unfit for consumption due to excessive nitrates and pesticides. A French government-sponsored report revealed that 5,210,000 French consumers were supplied with water that is "bacteriologically unacceptable".

• In Grenoble, France the former mayor and an executive of Suez Lyonnaise des Eaux both received prison sentences for receiving and giving bribes to award the water contract to a subsidiary of Suez Lyonnaise. Two executives of Générale des Eaux were convicted of bribing the mayor of St. Denis. In mid-1996, at least five out of 13 directors on the board of Générale des Eaux were under investigation for corruption.

• Residents of Tucuman in Argentina have accused Générale des Eaux of delivering contaminated water while doubling the cost of water services, according to the Financial Times.

• Hamilton-Wentworth Region in Ontario has one of the few privately-operated wastewater systems in Canada. In 1995, 180 million litres of sewage water backed up into Hamilton harbour and neighbouring homes and businesses. The incident occurred while there was a reduction in the workforce and poor maintenance by the operator, Philip Services.

• In 1994, Indianapolis turned over its two wastewater plants to United Water Resources, part of the Suez Lyonnaise group of companies. In the first year of operation the company slashed a proposed budget of $30.1 million to $17.6 million. The savings came at the expense of jobs. Staff was cut from 328 to 176.

• Ontario plans to sell the Ontario Clean Water Agency, which has operated many small and medium sized water and wastewater facilities in Ontario. Without OCWA, many small communities will be at the mercy of private corporations for their water.

• Municipalities have traditionally financed water works and other infrastructure through federal and provincial funding and by floating municipal bonds. They are enticed by the private sector claim that it can finance infrastructure projects more cheaply. Yet municipalities can borrow money more cheaply than corporations.

• Remember that private corporations rarely invest much of their own capital in water services projects. They usually borrow the money from banks and other lending agencies, often with loan guarantees from governments.

Ban Bulk Water Exports

Time is fast running out for Canada to head off a lawsuit by a U.S. company that could cost Canadians millions of dollars and lead to our losing control of the country's fresh water, says an alliance of national organizations. More than 20 groups met today to discuss the threats posed to Canadian fresh water by commercial trade and privatization.

The alliance, which includes the Council of Canadians, the Canadian Union of Public Employees, the Canadian Environmental Law Association and the West Coast Environmental Law Association, has sent a letter to Prime Minister Chrétien outlining their concerns and urging government action on a lawsuit launched last December by California-based Sun Belt Inc. Sun Belt is suing Canada for lost profits under the North American Free Trade Agreement (NAFTA) because of an earlier British Columbia decision preventing the company from exporting billions of litres of fresh water from the province to California. Under NAFTA, Canada has 90 days in which to resolve the Sun Belt challenge or risk losing the suit; sixty of those days have already elapsed.

“Time is running out,” said the groups in their letter. “Nothing is more essential to public health, security and well-being than water. Yet, in recent months, our governments have remained silent while there has been a proliferation of schemes for the bulk export of water for private profit. We call upon you to act in the public interest and ban the bulk export of water.”

“It is wrong – environmentally, economically and morally – to engage in the large-scale trade of water,” said Maude Barlow, chair of the Council of Canadians. “Water is a public trust; it belongs to the people. No one has the right to profit from it at someone else's expense.”

“This is a very clear issue of the public interest versus private profit,” said Judy Darcy, national president of the Canadian Union of Public Employees. “We must protect water from being privatized and ensure that control of it remains in the public sector. That is the only way to ensure Canadians continue to have clean, affordable and sustainable supplies of fresh water.”

“Companies like Sun Belt see water as the oil of the next century,” said Sarah Miller of the Canadian Environmental Law Association. “Allowing water to be traded away is certain to harm the environment since it will inevitably place growing numbers of lakes and rivers beyond the reach of governments and the rule of law. Canada must act now.”

 

CUPE urges Newfoundland MPs to fight for public water projects

OTTAWA -- Newfoundland and Labrador's water services are in dire need of public investment and it's about time the federal government provides the funding the province and the municipalities urgently need. That's the message the Canadian Union of Public Employees (CUPE), Newfoundland and Labrador Division delivered to several Atlantic-area MPs.

President of CUPE Newfoundland and Labrador Wayne Lucas and vice- president Donna Ryan delivered their message during a visit to Ottawa this week. The lobby was part of CUPEs nation-wide campaign calling on the federal government to invest $2 billion a year to upgrade water systems across the country.

According to Ryan, public investment is vital to protect the environment and ensure Canadians have access to clean safe water.

"Multinational corporations would like nothing better than for the federal government to divest itself of this responsibility," says Ryan. "Our water services are in desperate need of improvement. If foreign-owned corporations get involved, they will hike prices and cut services."

A handful of large corporations already own and control water facilities in France and Britain. Once in control these companies have drastically increased prices, violated environmental standards and cut deeply into the workforce.

Lucas stressed that the need for federal government investment in Newfoundland and Labrador is critical.

"St. John's harbour is literally a cesspool. We've been dumping raw sewage into North America's oldest harbour for 500 years," says Lucas. "Many communities across this province don't even have access to clean safe water. When is the federal government going to dip into their multibillion-dollar surplus and provide the funding we need to fix this mess?"

CUPE got assurances to pursue the matter from both Norman Dole, the Conservative MP for St. John's East and Charles Hubbard, chair of the Atlantic Liberal Caucus. The two CUPE officials are arranging meetings with other Newfoundland and Labrador MPs, hoping to get a clear commitment from the federal government.

 

For more information please contact:
Wayne Lucas or Donna Ryan at (613) 238-6000
Richard Janecky at (613) 237-1590

opeiu 491
December 10, 1999

The fight to stop the privatization of water is a national priority within CUPE’s Public Works! Campaign. When corporations sell water for profit, the quality, access and safety of municipal water supplies are endangered and the future of our water resources is threatened.

To protect public control of our water, CUPE is supporting the Water Watch campaign. Jointly with the Council of Canadians, the Canadian Environmental Law Association, the West Coast Environmental Law Association and other unions, social and environmental groups, we are committed to defending water as a public trust.

• Stop the privatization of municipal water services, both drinking water and wastewater treatment.
• Mobilize CUPE members and local communities to protect public control of water.
• Put pressure on municipal councils to assure public ownership and operation of water and wastewater facilities.
• Put pressure on federal and provincial governments to provide needed funding for expansion and upgrading of municipal water services.
• Prevent the bulk export of water through legislative action by the federal and provincial governments.
• Promote water conservation and the protection of water quality and natural habitats.
• Link the Water Watch campaign to the broader Public Works! campaign.

  

  

CUPE locals across Canada are being encouraged to create Water Watch committees. These committees will reach out to the public – making them aware of our concerns and enlisting their support – and put pressure on elected officials to protect and adequately fund public delivery of water services.

Water Watch committees will bring together CUPE members, community activists, environmentalists and local allies. To help in organizing these committees and developing a plan of action, this kit includes background information and a statement of principles for the Water Watch campaign.

Click here to find a listing of all the documents in the Water Watch Site.

CUPE National has set up a toll-free line to support Water Watch campaign. Call 1-877-CUPE-H2O (1-877-287-3426) to keep us informed of developments in your community or to ask for materials or support for your committee.

As well, you can obtain additional information by e-mailing [email protected] or writing to CUPE National at 21 Florence Street, Ottawa K2P 0W6.

CUPE stepped up its campaign to fight the privatization of water December 8, calling on the federal government to invest $2 billion a year to upgrade water systems across the country.

In a news conference on Parliament Hill, National President Judy Darcy said “huge off-shore corporations are waiting to bail out cash-strapped municipalities and take control of water and waste facilities across Canada. When that happens, the record shows prices will go through the roof.”

David Hall, a water expert from the UK who heads the privatization research unit of Public Services International, echoed that warning.

“Prices have soared through the roof when private sector corporations took over the water system in Britain,” he said. “There have been many instances of people having to go without.”

“We are urging the federal government to invest $2 billion in each of the next five years in a national water infrastructure program to upgrade water systems across Canada and protect the public interest,” said Darcy.

It is estimated that $100 billion is required over the next 20 years to upgrade and expand water and wastewater treatment facilities in Canada.

A lobby of federal MPs by members of the National Executive Board was disrupted when all MPs were required in the House of Commons to vote down 471 Reform party amendments to Bill C-9, dealing with the Nisga’a treaty.

Over the coming weeks, CUPE locals will be seeking opportunities to meet with their MPs in their ridings to stress the urgency of this demand. There are indications that the federal government is open to the idea of a renewed infrastructure program but the concern remains that they may support P3s rather than require that the public funds be invested in public infrastructure.

Citizens Environment Alliance Joins Water Watch Campaign

WINDSOR, 1/21/99. The Citizens Environment Alliance of SW Ontario (CEA) has joined the Canadian Union of Public Employees (CUPE), Canadian Environmental Law Association, and the Council of Canadians to form a common front to protect water. Called the Water Watch Campaign, this campaign will also involve other social activists, trade unionists and environmental groups across Canada.

Objectives of the Water Watch Campaign include:

• Stop the privatization of water, both drinking water and waste water treatment.
• Mobilize CUPE members and local communities to protect public control of water.
• Put pressure on municipal councils to assure public ownership and operation of water and waste water facilities.
• Put pressure on federal and provincial governments to provide needed funding for expansion and upgrading of municipal water supplies.
• Support measures to promote the conservation of water and protect water quality.

However, the first target of the campaign is to pressure the federal government to honour its promises to prohibit the bulk export of water. This needs to be accomplished through federal legislation banning large scale water exports (including water export by tanker) and by ensuring that trade and investment agreements (such as NAFTA and the proposed MAI) do not threaten Canada's water.

CUPE locals will be encouraged to create Water Watch Committees to monitor threats to public control of water and waste water services. These committees will draw upon the strength of local activists and environment groups, such as the CEA, to expose the threat to water services and mobilize opposition against privatization of water services.

In 1997 the Ontario government passed Bill 107 - The Water and Sewage Services Improvement Act, which paved the way for the sell-off of public control of much of Ontario's drinking water supplies to private sector companies. This is being done through legal changes, budget cuts and devolution of powers to municipalities This bill was passed even though polls indicated that 76% of Ontarians said water should remain in public control.

CUPE has established a Water Watch hotline 1-877-CUPE-H2O (1-877-287-3426). This toll free line is designed to establish a link between CUPE National and local Water Watch Committees, providing information and support and allowing them to report in on local developments.

In mid February or early March there will be a series of one-day "teach-ins" that will focus on strategy and tactics and to prepare for a National Water Summit. A possible date for this would be June, 1999. As issues of privatization are directly linked to international trade deals and globalization, a global summit on water and privatization would be the logical follow-up to the national summit.

National Water Summit To Open In Ottawa: Federal Government Must Finally Address The Water Crises

OTTAWA -- More than 200 Canadians will begin a national water summit in Ottawa Friday, serving notice that water is an issue that can no longer be ignored. The summit, the first of its kind, will develop policies and actions to counter water being commodified, privatized and overused.

The summit's objectives were outlined today by Maude Barlow, Council of Canadians chairperson; Judy Darcy, national president of the Canadian Union of Public Employees; and Jamie Linton, prominent environmental writer.

By 2025, as many as two-thirds of the world's people will face severe water shortages, making water one of the world's most precious and potentially profitable resources. Indeed, the World Bank says, “the wars of the next century will be about water.” Knowing the profit water holds, global corporations are trying to buy water systems and establish trade policies that encourage water's mass export.

“This is not an issue the country with the most fresh water and longest coastline can afford to ignore,” said Barlow. “The federal-provincial water accord the federal government is proposing won't work. Unless the federal government does its job and bans water exports – which only it can do – the accord is a plan full of holes.”

The conference will hear from international experts on why commodifying water won't help conservation – but will help make massive water companies even richer. Those companies already own drinking water systems in Britain and France.

“Water is simply not for sale,” said Darcy. “Where it's been sold, people have paid more and the environment has suffered. We cannot allow for-profit water in Canada and urgently need federal investment in public water infrastructure today so municipalities aren't forced to auction off Canada's water to a massive water corporation.”

“Water is not a commodity, it is an essential need and a public trust,” said Linton. “We must set targets for water conservation here in the Great Lakes and set an example of how to live within the limits of our watershed. Large-scale water removals from an ecosystem will have unpredictable and harmful consequences and must not be permitted.”

The summit runs until Sunday with the aim of forcing the federal government to address the water crisis it is choosing

First Water Watch Summit Ends In Ottawa: Privatization, Export And Conservation Top Agenda

OTTAWA - More than 200 Canadians from across the country today ended the first national summit that will put water on the national agenda. With European multinationals poised to own drinking water and sewage treatment; with the federal government refusing to act on banning bulk exports; and with the second-highest water consumption rate in the world, delegates agreed the time to act is now.

"We're calling on the federal government to act," said Judy Darcy, national president of the Canadian Union of Public Employees. "It's too late once our water is privatized, when prices rise, the poor get cut-off and the environment suffers. But unless there is immediate federal assistance for municipalities in upgrading their systems, the Liberals will be partners in crime as Canadians are robbed of their most valuable resource."

Darcy noted that a trillion litres of raw or partially treated sewage is dumped into Canada's water every year. With ecosystems already delicate, the environmental impact is potentially huge, leading the summit to adopt a policy of conservation as well as public ownership and operation of water.

"Canada can't keep up its current level of consumption," said Peter Muldoon, executive director of the Canadian Environmental Law Association. "We must end water pollution immediately and set a goal of a 25% cut in water consumption by 2010

Muldoon said the proposed mass export of water, from lakes and rivers, would be an environmental disaster. With already alarmingly low water levels in the Great Lakes, allowing tankers or pipelines to ship Canada's water away is a dangerous prospect.

"Water is up for grabs despite Canadians' wishes and the environmental truth," said Maude Barlow, chairperson of the Council of Canadians. "The federal government's plan to ban bulk exports is full of holes – it simply does nothing to prevent Canada's water becoming a commodity for export. We cannot afford to let trade deals do to water what they have done to gasoline additives like MMT. Canadians will never forgive the Liberals if they let our water drain away", concluded Barlow.

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