There was a recent article in the Chicago Tribune that speculated about the wisdom of a proposed lease of the Chicago water system to a private company. The reaction to this has been skeptical at best and outright hostile at worst. This is not without reason. What then happens when the pumping, purification and distribution of water is turned over to for profit companies? There are dozens of municipalities that have regretted privatizing aspects of the city services and bought out the contracts at a severe penalty.
Unlike parking meters or the Skyway, leasing the municipal water service lives on a entirely different scale. Clean water is perhaps the most precious and essential resource that we have. Human Beings cannot live more than just a couple of days without water and for most of human history it has been considered a human right to have access to clean water.
There is a notion that has gained a lot of traction in recent decades that the private sector can handle things more efficiently than the public sector. In some cases this is true. There have been government agencies that have been extraordinarily frustrating to interact with that when the same function outsourced to private contractors became much more efficient, accountable and customer friendly. This does not apply to everything however and there are some things that it should never be applied to. One is the military, two is food inspection and three is water treatment.
With budget shortfalls reaching a crisis level the possibility of privatizing water treatment at and getting 400 million a year for 75 years in return is understandably appealing to the city. But the economics of it will almost certainly lead to a rate increase for customers. How else could a private company run the system while paying a 400 million dollar annual lease and still make a profit?
More importantly, why privatize anything that is so important to the well being of each and every human being living in the city of Chicago. Human beings can only go about 3 days without water. The city of Chicago has been providing clean water for 120 years. From the building of the water intake cribs out in the lake to the reversing of the Chicago River or the Deep Tunnel Project the Public sector has gone to tremendous lengths to secure and maintain a legacy of clean water for Chicagoans and their neighbors. Do we really trust a for-profit company will do what is needed in the future? Will they be as accountable for this public good as a local government agency?
This is one instance where that question should be asked and asked again no matter what the answer is.
Comments
The author makes glittering generalities but does not substantiate them. For example: "There are dozens of municipalities that have regretted privatizing aspects of the city services and bought out the contracts at a severe penalty." Specific examples, please. "...for most of human history it has been considered a human right to have access to clean water." Substantiate with sources and examples, please. Same comments for the following: "This does not apply to everything however and there are some things that it should never be applied to. One is the military, two is food inspection and three is water treatment." And finally, the concluding statement -- "This is one instance where that question should be asked and asked again no matter what the answer is." -- begs the question: Huh?
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