Keep wastewater management public, urges CUPE

Most Regina residents want the treatment of wastewater to be a public service, CUPE 21 President Tim Anderson told  the city's executive council recently. 

 

The City announced plans February 8th to privatize the new wastewater treatment plant. 

"We urge you to postpone your decision and hold public meetings on this issue immediately," Anderson said.

 

Anderson told executive council members that there is "strong evidence" that P3s cost more than traditional ways of funding public infrastructure.  The City of Moncton is paying 10 per cent yearly interest rates on its lease terms for its privatized water treatment plant, he said, amounting to an extra $14.4 million in debt over 20 years on a $23 million project.

 

The public sector, said Anderson, retains all risks when a private operator fails or backs out of a project if profits don't meet expectations.  He said a global study of public-private partnerships (P3s) by the British Association of Certified Accountants concluded that "value for money is difficult to establish convincingly, owing to the higher costs associated with private finance and the high premium payable for risk factor."