Winnipeg water-utility privatization worries citizens

A plan at Winnipeg City Hall to involve private companies in the operation of the city's water utility is coming under fire from a citizens' organization.

On July 22, city council will vote on a plan to revamp the way the utility is run and funded.

"A new strategic partnership is being considered for the sewage plant upgrades, allowing us to tap into world-class knowledge to improve our ability to operate and maintain our system," Coun. Harvey Smith is quoted as saying in the minutes of a council meeting in June.

'We're concerned about where this is going. We're also concerned because the city is pushing this through aggressively with very little public consultation.' —Mira Karunananthan, Council of Canadians

The partnership will include the sale of a portion of the city's water utility to a private company. According to the city, this will help with the growing infrastructure costs. Information on companies interested in the deal has not been released.

In the new deal, water utility prices would be set by the province's public utilities board, which currently sets prices for hydro, public insurance and all water and waste utilities outside of the city.

Currently, city council sets the prices for water and waste in the city.

Mira Karunananthan, the national water campaigner for the Council of Canadians — a citizen's organization that works to promote progressive policies on fair trade, clean water, energy security, and public health care — said the involvement of private companies in the operation of water services could lead to hikes in water rates.

"We're concerned about where this is going," she said. "We're also concerned because the city is pushing this through aggressively with very little public consultation. So rather than inform and educate the public, they are marketing and selling it to the public."

Mayor Sam Katz said the rates will not necessarily go up as a result of the change. He said that allowing the utilities board to set the rates will "protect us from future [city] councils trying to raid the water utility, which, you know, has taken place in the past. We're looking at setting rates that are fair and reasonable," said Katz, in a city council document.

Karunananthan has further criticisms of the plan, condemning it for not treating water as a human right; accessible and inexpensive.

"The federal government has lagged behind on its duties. It hasn't fulfilled all of its obligations, and we think there needs to be provincial pressure," she said.

"Manitoba has a framework in place, because we have here in Manitoba a water stewardship ministry, so we think Manitoba is a good place to start."