Finland is leaving door open for water supply privatisation, warn activists, opposition members

A GOVERNMENT BILL for precluding the privatisation of water supply has come under criticism from the ranks of the opposition. Helsingin Sanomat on Sunday reported that the authors of the citizens’ initiative that set off the legislative project are d

By: helsinkitimes.fi

Oct 08 2024
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Finland is leaving door open f

A GOVERNMENT BILL for precluding the privatisation of water supply has come under criticism from the ranks of the opposition.

Helsingin Sanomat on Sunday reported that the authors of the citizens’ initiative that set off the legislative project are disappointed with the approach the government has taken to implementation. The government bill stipulates that municipalities must not relinquish control over their water supply or wholesale water supply facilities, a wording the authors believe leaves the door open for outside investors.

“We don’t think this aligns with the spirit of the initiative. This is surprising because the initiative was approved unanimously in parliament and got positive statements from parliamentary parties,” Joona Mielonen from Kotka said to Helsingin Sanomat.

The initiative had received almost 89,200 statements of support from the public prior to winning over parliament in 2021.

Also opposition lawmakers have voiced their concern that the bill could enable outside investors to acquire stakes of up to 49.9 per cent in municipal water companies, according to the newspaper. Pinja Perholehto (SDP) on Sunday said Finland can under no circumstances take the risk of allowing investors to make decisions about its water resources.

“If municipalities could sell 49.9 per cent of water supply operations to private entities, there is a threat that private investors’ demands for returns start steering the operations ahead of the needs of citizens,” she cautioned in a press release.

“We must not create a situation where investor interests take precedence over citizens’ right to reasonably priced water.”

Keeping water supply in public ownership is also a matter of security and security of supply, viewed Veronika Honkasalo (LA).

Petri Honkonen (Centre) questioned if the National Coalition has learnt anything from Fortum, a majority state-owned energy company, selling its electricity distribution business to a consortium of investors – later named Caruna – in 2014. Then-Prime Minister Jyrki Katainen (NCP) assured, along with members of his cabinet, that the divestment would result in no price hikes – an assurance that was proven misguided as soon as in 2015.

“Did the National Coalition learn nothing from its Caruna deal? I won’t tolerate allowing financiers to run our water supply,” he stated in a release.

Honkonen argued that, similarly to electricity networks, water supply is a natural monopoly with no viable competition-based alternatives. “If prices are raised to increase, citizens have no choice but to cough up and hold their tongue,” he said.

Tere Sammallahti (NCP) has expressed his frustration with the eagerness of opposition lawmakers to whip up fears about the water supply act reform.

Accusations that the National Coalition is selling the water supply infrastructure to large Chinese investors are certainly “racy and emotive” but not true, he wrote, citing the widespread support for the citizens’ initiative as evidence that concerns about natural monopolies ending up in the wrong hands are shared by the entire Finnish Parliament.

“Finland is going through tough times, and Finns’ concerns about the control of national assets are justified. These concerns can’t be alleviated if the opposition spreads inaccurate rumours in hope of scoring political points,” said Sammallahti.

Aleksi Teivainen – HT