Water Infrastructure Financing Act Benefits Corporations the Expense of Taxpayers

http://www.commondreams.org/newswire/2009/05/14-13


Statement of Food & Water Watch Executive Director
Wenonah Hauter


WASHINGTON - May 14 - "Today, the U.S. Senate Committee on Environment and Public Works approved S.1005, the Water Infrastructure Financing Act. The bill contains language that would, for the first time, allow private wastewater utilities access to funding from the Clean Water State Revolving Funds (CWSRF). This proposed change to the law would essentially allow private wastewater utilities to benefit from public funding. The burden of this modification, however, would ultimately fall on consumers, because private wastewater utilities charge customers as much as 80% more than do their public counterparts. Under this bill, consumers would be left to subsidize these utilities through both taxes and higher user rates.

"Privatization is not an efficient means of rejuvenating ailing wastewater systems. From high costs and inefficiency to unaccountable and irresponsible operators, a deluge of problems has swamped communities that have turned their wastewater systems over to the private sector. This is because corporations prioritize earnings over quality and stockholders over consumers. They seek returns by cutting corners and hiking rates, and further pad investor pockets by downsizing workforces and stripping away worker benefits. Inflated prices, higher household bills and lost jobs are the last thing families need in these challenging economic times.

"Congress should reject language in the Water Infrastructure Financing Act that subsidizes and incentivizes such corporate abuse. If taxpayers front the money for these programs, they should be the primary beneficiaries."
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More companies 'to big to fail"?????????????