TTIP- TURNING ON THE TAP OF WATER PRIVATISATION

TTIP- TURNING ON THE TAP OF WATER PRIVATISATION

Last Saturday saw thousands marching against the hated and unjust water charges yet again. Alongside this great demonstration of people power many were also protesting against TTIP, or the Trans-Atlantic Trade and Investment Partnership, as part of a massive worldwide “Global Day of Action” against it and similar 'free' trade agreements, with over 750 protests worldwide.

The water charges and TTIP are closely linked. TTIP is a trade and investment treaty currently being negotiated between the European Union and the USA, in almost complete secrecy, and more or less completely at the insistence of large multi-national corporations and business lobbyists. TTIP aims not only to remove regulatory “barriers” such as labour rights, food safety rules, and health and environmental protection, but also to force EU countries to privatise public services such as health, education and water. In spite of empty European Commission claims to the contrary, the US government has explicitly confirmed that it will use TTIP to prise open these European public services for the benefit of US private investors!

Water privatisation around the world has proven to be a disaster for ordinary people, resulting in a lack of infrastructure investment, tariff hikes and environmental hazards. At the same time it's been a cash cow for big business- in the UK for example, water companies have made £11 billion in profits in the last 6 years, and while water bills have risen by 50% in real terms since the industry was privatised in 1989, some areas have seen a fourfold increase in the number of households flooded with sewage.

TTIP will attempt to 'lock-in' water privatisation, making it almost impossible to restore it to public ownership or for governments to intervene on behalf of their citizens. It includes a provision called ISDS (Investor-State Dispute Settlement) which has been used in the past by corporations to sue countries for loss of profits due to government action or caused by reversing earlier privatisations. When Argentina froze utility rates (including energy and water) and devalued its currency in response to its 2001-2002 financial crisis, for example, it was subject to over 40 lawsuits from big companies including CMS Energy (US), Suez and Vivendi (France), Anglian Water (UK) and Aguas de Barcelona (Spain). By the end of 2008, awards against the country had reached a total of US$1.15 billion. And just this month, Argentina was ordered by an ISDS-style corporate court to pay $405 million in compensation to water giant Suez, for reversing the privatisation of Buenos Aires' water supply after the corporation asked for a 60% rise in water prices!

TTIP would also open up public procurement contracts to the private sector and international competition, meaning that social, environmental or “public good” targets in public procurement would be removed. A private monopoly can fix its price at an unaffordable level, as Bechtel did in Bolivia, leading to a popular uprising, the termination of the contract and the toppling of the government.

But due to massive demonstrations and public opposition, the tide is turning! In the last 15 years more than 180 cities in 35 countries have taken back control of their water services. And thanks to protests like those last Saturday, an increasing number of public representatives are distancing themselves from TTIP, while public and political opposition is growing here and abroad. There can be little doubt that the current government is setting up Irish Water for privatisation in the future, underlined by its resistance to a constitutional referendum to permanently retain Irish Water in public ownership, so it's absolutely vital that the resistance to both it and TTIP is maintained and expanded, and as the Bolivian experience has demonstrated people power can win!

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Upcoming Event – MAY DAY – International Workers Day.

Next Friday May 1st is May Day – The Dublin Council of Trade Unions has organised a May Day demonstration assembling at Parnell Square at 6.30 and marching to Liberty Hall at Beresford Place. Speakers to be announced. Trade unions, communities will take centre stage on International Workers Day.

The theme of this years May Day demonstration, Solidarity with European working people, will capture all the resistance and struggles at home and abroad to make the rich shoulder the burden of the crisis they have created.

For more info please check Dublin May Day 2015