Commercialization a wrong practice
It's wrong to encourage the commercialization of the urban water supply sector, says an article on the website of China News Service. Excerpt:
The news about a possible increase in water prices in urban areas has for obvious reasons drawn the attention of the public. Some experts say even a 30 percent increase in water prices would be justified, something that urban residents say is not acceptable.
The vital question is who on earth controls our water resources. We live in a world running short of resources and controlled by the market. This means prices of all resources will keep rising, and those who control the resources will have the final say in setting their prices.
In terms of overall arrangement of water resources in China, some local governments don't seem to know how to control resources and serve the public as well.
First, the country's water resources face the risk of being controlled by foreigners. Since 2002, when China lifted the ban on foreign investment in the urban water supply sector, overseas companies have invested heavily in the industry.
Statistics show overseas funds make up 10 percent of the total investment in the water supply and waste water treatment sector. It may not be a large percentage, but the growing influence of foreign water companies needs to be addressed.
Second, more and more domestic water supply companies are selling their business to overseas investors for the lure of the lucre. Since overseas firms pay a higher price to buy out the domestic companies, they have to raise prices further to make a good profit.
The best way to protect water is to levy waste water treatment charges and adopt a progressive way of collecting the fees. To put it simply, the more you use, the more fees you pay. It's better than increasing water prices in the name of protecting water.
(China Daily 07/29/2009 page9)
