Financial plan lacking for sewage project

Economics of treatment project don't add up for reader

Ten of 14 members on the Capital Regional District’s sewage committee are itching to push taxpayers into a huge financial black hole with the CRD’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 – after the CRD proves it works – 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 haven’t signed anything that guarantees their conditional promises. But don’t worry, politicians never go back on their word, do they? And government projects never go over budget, do they?

The proposed system’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 we’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 committee’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. It’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 doesn’t expire until 2014. But promises aren’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

Just Posted

Shamrocks sitting in second spot in Junior A standings

Victoria split games over the weekend and beat the Timbermen Wednesday

Beat the heat at the spray park

Several options across the West Shore

View Royal playground encourages students to connect with nature

Nature playground at View Royal Elementary school also has educational component

New kitchen for Mustard Seed built by volunteers

Members of HeroWork spent nearly a month building a new processing kitchen in Esquimalt

VIDEO: Canadian toddler caught practising hockey skills in crib

Eli Graveline is getting praise from far and wide as the internet freaks out of cute throwback video

Canadian Syrian children’s choir not to attend festival over fears about U.S. travel

Many kids are recent immigrants from countries covered by Trump travel ban

Amalgamation fails in North Cowichan and Duncan

North Cowichan says yes, but Duncan says no

B.C. teacher ends Jeopardy! winning streak, taking home US$69,000

Ali Hasan, from New Westminster, has been gaining fans as a “one-man invasion,” says Alex Trebek

Jett Woo highlights 5 Canucks choices on Day 2 of NHL entry draft

WHL star out of Moose Jaw tabbed in Round 2

In a matter of hours, women in Saudi Arabia will be allowed to drive

Change was announced as a royal decree in 2017 by Crown Prince Mohammen bin Salman

Feds announce measures to protect endangered whale species

Canada’s Whale Initiative is part of the federal government’s $1.5 billion Ocean Protection Plan

COC session vote approves Calgary as potential host for 2026 Olympics

Scott Hutcheson, chair of Calgary’s Olympic bid corporation — called vote a positive step forward

Mounties seize 1,500 pot plants in ‘extensive Shawnigan raid

Mounties searched a property in the 4800-block of Goldstream Heights Drive on May 30

Most Read