Private Water
I was recently talking with Toby Miller, who is an Honorary Professor in the Centre in which I am based, and it came out that in California, and presumably in the US as a whole—the most hyper-capitalist nation on the planet—the issue of the privatisation of water is a taboo topic. As Toby said, “You can’t even think it.”
This seemed incredible until Toby explained that water in the US is seen in terms of a natural right, rather than a resource. When Americans are told that in Britain and other countries the water is owned by private companies, they shake their heads in bewilderment. As they should.
I wonder what it would take for water in Australia to be embedded within a discourse of rights, rather than a discourse of resources? Quite a bit, I assume, given the private investment in infrastructure, and the profitable market for trading in irrigation licences.
Still, it’s nice to dream.
Your Comments
Matthew Smith writes:
This made me think immediately of GATS (see here)
and the global water market: article here
Posted: 8 02 2008 - 16:13 | Permanent link to this comment
Jonathan writes:
I’m currently working on a major water project which has been structured for corporatisation and likely future privatisation.
As an Engineer, I have some insights into the state of water infrastructure in Qld. Our political masters from both halves of the vote-touting classes are now hoping we will believe that global warming has caused governments over the past 20 years to fail to invest in water infrastructure, water security, and water efficiency in the state of Qld.
Next the proposed de-sal for Kawana (or alternative floating mobile version) will be scrapped because we now have 2 years supply in the dams… we’ll save it for just before the next election.
The reason governments have been getting out of service and infrastructure provision generally is that it requires 20-50 year timescale planning. Governments have been getting worse at this since the fifties and TV.
Corporate masters reporting to shareholders can take a similarly short term view, but are far more likely to have a 20 year view, especially if private capital is involved.
The people of Qld are now saddled with 8 billion investment in “water grid” which will be mostly likely sold by governments to private interests who will demand 10-14% return on capital, AND security of non-competion provisions. That is worse than taxation.
Alternatives to the water grid would have been sensible investment in a number of projects over the past 2 decades. We have paid a significant premium for rushing the water grid projects, which have seen components air-freighted from Europe and USA, and much overtime and shift work to meet politically mis-managed deadlines. Currently money is bing wasted hand over fist, and this is contributing to the proposed 7% increase in power charges as powerstations are being forced to pay for water.
So why are we moving to privatise water? Simply because even the vote-touters don’t trust themselves to run it. After their record over the past 20 years, I’m inclined to concur.
Government must just be a lot more noble in the US of A ????
Posted: 12 02 2008 - 20:56 | Permanent link to this comment
John writes:
Jon, if private enterprise is rapacious and governments are inept, it doesn’t leave us many places to go…
Yes, the water infrastructure has been neglected for twenty years, and the current solutions are little more than panicked knee-jerk reactions, but I think I’d still rather have essential services in the hands of the government than under the control of an entity whose only interest is in maximizing profits.
Posted: 14 02 2008 - 21:07 | Permanent link to this comment