Sunday 8 August 2010

Issues and Concerns Surrounding the Economics of Sewer Systems and Proposals for Zone 3 in Grand Bend Ontario

Hello Minister of the Environment, the Honourable John Gerretsen,

FYI, my contribution today to http://www.woohs.blogspot.com

This note sets down my present thoughts a few of the main issues and concerns that I have gathered from discussions, reading, and personal experiences related to the updating of sewer systems in Zone 3. I include a commentary where appropriate on the economics as I see it.

Many do not see the proposed system as an improvement over what is already in place. The existing individual units can easily be replaced at a lower cost if they mature or become defective. This process works best because it is easily performed and carries minimum risk to the environment and overall economics. It does not rely on centralised decision making other than a review periodically to ensure people are aware of the strength of their existing units. Weak units can be replaced and information shared as to the optimal methods for doing this both economically and environmentally. People are more willing to participate because they can see and understand the consequences. This process is sustainable as properties are bought and sold. New buyers can insist on quality units and sellers can insure units are inspected before properties are sold. Potentially everyone gains.

Other green steps could be attached to individual properties by implementing the European system of grading and surveying properties for energy efficiency and green technologies. A gradual greening of the community can be financed by Retirees and non-Retirees alike.

Retirees, in particular, simply cannot afford to waste money on a useless project with no net economic or green benefit for them.

This is a very serious concern for everyone at all levels. In the present economics, it is improper to take enormous risks with money even though interest rates are low. To gamble or plunge into a high risk project with dubious benefits and what is more alarming net costs or red ink and possible bankruptcy associated with it would be foolhardy to say the least. Yet, that indeed is what people feel very strongly is the case with the overall proposals.

At the very least, an insurance policy for those who might go bankrupt would be prudent. Many residents are retired and don't wish to gamble when interest rates are not giving a decent return and the stock markets are extraordinarily volatile. The uncertainties for savers continues into the long term so careful people will be reluctant to risk savings on something that has a rather checkered history.

The mix of retired and employed persons favours younger employed persons paying for improvements with a freeze on rates for Retirees and perhaps a reduction in overall services to make way for something that is rather marginal for them. Indeed, the economics is against Retirees having to contribute to a centralised type of upgrade as the horizon of benefits ultimately means they lose huge amounts of money at a time when savings are stretched.

The negative costs associated with something that does not bring about a benefit in economic or green terms suggests that the project should be stopped. It is a monumental waste of hard earned savings being spent at a time of severe economic stress.

There does not seem to be any economic justification for a new sewer system in zone 3 which has a very workable system already. In short it is a project that has not been properly assessed in economic and technical terms and local people quite rightly are strongly against it despite consultants reports that may support it's implementation.

Sincerely, RT Lake

Will ye no think kindly on those who would be your friends! May the sun shine with your thoughts, today, and happiness grow in your heart! May you allow yourself some peace of mind.

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