Ten of 14 members on the Capital Regional DistrictB´ÎÔª¹ÙÍøÍøÖ·™s sewage committee are itching to push taxpayers into a huge financial black hole with the CRDB´ÎÔª¹ÙÍøÍøÖ·™s 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´ÎÔª¹ÙÍøÍøÖ·“ after the CRD proves it works B´ÎÔª¹ÙÍøÍøÖ·“ 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´ÎÔª¹ÙÍøÍøÖ·™t signed anything that guarantees their conditional promises. But donB´ÎÔª¹ÙÍøÍøÖ·™t worry, politicians never go back on their word, do they? And government projects never go over budget, do they?
The proposed systemB´ÎÔª¹ÙÍøÍøÖ·™s 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´ÎÔª¹ÙÍøÍøÖ·™re 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´ÎÔª¹ÙÍøÍøÖ·™s 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´ÎÔª¹ÙÍøÍøÖ·™s 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´ÎÔª¹ÙÍøÍøÖ·™t expire until 2014. But promises arenB´ÎÔª¹ÙÍøÍøÖ·™t 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