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dam-l SA water privatization/LS
Two things, a story and a commentary>
DRAFT WATER REGULATIONS AIM TO PRIVATISE SUPPLY
CAPE TOWN June 8 2000 Sapa
Draft regulations which will allow local authorities to appoint private
companies to provide water services, were released by Water Affairs Minister
Ronnie Kasrils on Thursday.
Addressing a media conference in Parliament on the eve of his department's
budget vote in the National Assembly, Kasrils said the regulations would
help his department provide water services to rural areas.
"We will now be able to regularise the situation where I currently do local
government's job." The regulations cover "matters which must be regulated by
a contract between a water services authority and a water services
provider", he said.
Their stated aim is to encourage efficient, affordable, economic and
sustainable access to water services for all consumers.
On whether a move towards privatisation might cause the consumer price of
water to increase, special adviser to the minister, Janet Love, said there
might be increases in certain municipal areas where services were
underdeveloped.
"However, in the long term tariffs should come down due to increases in
efficiencies," she said.
Kasrils said privatisation was a sensitive matter.
"Many trade unionists, NGOs and others are fearful that allowing the private
sector into water provision will have a negative impact on the poor.
"The private sector, for its part, is concerned that the approach taken in
our Water Services Act is anti-business.
"These (draft) regulations should help to clarify our intentions," he said.
Public-private partnerships for the provision of water services had been
successfully adopted in other countries.
Jokingly referring to his "red past", Kasrils said even the Cuban capital
Havana had entered into a public-private partnership for its water supply.
"If Fidel (Castro) can do that, why can't I?" The draft regulations will be
published in the Government Gazette on June 12.
A period of three months - until September 15 - has been allowed for public
comment and submissions.
Reacting to the draft regulations, the Rural Development Services Network
(RDSN) said water service delivery in South Africa was in a "serious crisis
of unsustainability".
"The... proposed regulation is setting the pace for the consolidation of
profit-led delivery, which can only amount to non-delivery of a basic water
supply to communities, especially rural communities," RDSN said.
The regulation made water a commodity, instead of providing for a right to
water.
http://www.anc.org.za/ancdocs/briefing/nw20000609/37.html
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Friday June 9th, 2000 1:30pm
The South African Municipal Workers Union (SAMWU) is very concerned about
statements made by the Minister of Water Affairs and Forestry, Ronnie
Kasrils, yesterday.
The Minister, while releasing draft regulations which will allow local
authorities to appoint private companies to provide water services,
announced that publi-private partnerships would be set up to provide water
in the country's rural areas.
SAMWU will rigorously oppose these regulations and will seek to engage with
the Minister at the earliest date.
The union believes that these regulations undermine clause 19.2 of the Water
Services Act which says water must be delivered by local government, and
not the private sector. The regulations also undermine the spirit of the
act, which is firmly in favour of water as a public service and not a
commodity.
The union sees the Minister's statement that the Water Services Act is
"anti-business" as ridiculous. Water is not a business or a profit making
good but a basic human right and a service necessary to sustain life.
Although the new regulations have not yet been subject to the normal process
of public comment, they are making far reaching proposals that could see
water being delivered by private companies on the basis of financial
sustainability, not need. 30 year privatisation contracts are also
suggested.
Lengthy private water contracts have failed all over the world. Last month
Grenoble City Council in France fired the private water company, brought the
water back under the control of the municipality and cut prices.
That the regulations are gazetted patricularly in the context of rural areas
is extremely problematic. The introduction of private companies as
acceptable water service providers means that many rural citizens will never
get access to running, but privatised water. The new regulations say that
local government is allowed to outsource the responsibility for water
delivery to a private provider and this is going to sabotage poor and rural
areas where there is no possibility of people being able to pay high prices
for water.
SAMWU fully supports the views taken by the Rural Services Development
Network that water should not be privatised and that all citizens need a
minimum of 50 litres per person per day free of charge. The union will
strongly oppose any increases in the price of water, as special adviser to
the minister, Janet Love, said might occur in areas where services were
undeveloped.
./ends
For comment, please phone Lance Veotte of SAMWU on 021 6971151
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Lori Pottinger, Director, Southern Africa Program,
and Editor, World Rivers Review
International Rivers Network
1847 Berkeley Way, Berkeley, California 94703, USA
Tel. (510) 848 1155 Fax (510) 848 1008
http://www.irn.org
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