Ten of 14 members on the Capital Regional DistrictB次元官网网址檚 sewage committee are itching to push taxpayers into a huge financial black hole with the CRDB次元官网网址檚 treatment project, despite the lack of a sensible, conservative financial strategy.
B.C. promises to pay its one-third share of the $783-billion cost when the project is finished B次元官网网址� after the CRD proves it works B次元官网网址� and after the federal government contributes its one-third share. CRD taxpayers will cover the other third, plus any cost overruns.
The province and feds havenB次元官网网址檛 signed anything that guarantees their conditional promises. But donB次元官网网址檛 worry, politicians never go back on their word, do they? And government projects never go over budget, do they?
The proposed systemB次元官网网址檚 effective life is 20 years, give or take. Components such as the concrete should last a long time, unlike other components such as the capacity. The technology could well be obsolete before the plant is complete and the benefits are nil.
If weB次元官网网址檙e stuck with high cost overruns, reneged promises, operating costs and interest, the potential financial drain on CRD taxpayers could cripple the local economy. The sewage committeeB次元官网网址檚 legacy could be skyrocketing property taxes and utility bills, negatively impacted property values and a higher cost of living, potentially causing people to move out of the region.
Approving the project without an appropriate financial plan is beyond poor judgment. ItB次元官网网址檚 irresponsible, dangerous, high risk and grossly negligent.
Nine days ago, Finance Minister Jim Flaherty forecast higher federal deficits that put election promises in doubt. A week later, he pledged more cash for Victoria, noting that the Building Canada Fund doesnB次元官网网址檛 expire until 2014. But promises arenB次元官网网址檛 worth squat.
The CRD can hope for the best, but should provide for the worst by signing sewage-water-tight financial agreements with B.C. and the feds before going a step further. Financial plans B, C and D would help, too.
Norman Clark
Victoria
