Plenty of catchwords and rumours have been spread during the last few months. The time is ripe for the facts to be clarified and the interest groups involved to be identified.
State of emergency due the water crisis – "I never want to have to read this headline in Austria," said OVGW managing director Robert Koeck lately in the framework of a panel discussion on liberalisation/privatisation of water management hinting at the deregulation of the electrical power market in California that went wrong. In times when the catchword "liberalisation" is equated with the hope for cheaper services or is seen at least as partial substitute for curtailed subsidies for groundwater clean-ups, it is not astonishing that this subject is being discussed in water management, too.
The facts
The current discussion is taking place in consideration of the following facts:
The new EU Water Framework Directive (WFD) states that water is not a normal merchandise but an inherited good that has to be protected, defended and handled in an appropriate way.
As to the greediness of other European states for Austrian drinking water often suspected in the past, the Head of Sector within the EU Environment Directorate-General Helmut Bloech clearly stated in the frame of the OVGW panel discussion: “… at the same time the WFD does neither interfere with administrative structures or ownerships nor with the sovereignty relating to water resources. The abstraction of Austrian water against the will of the Austrians was never and is not at issue. There is neither a legal basis for it nor a political will.”
As to the sectors of drinking water supply, wastewater collection and treatment, the WFD as of 2010 provides for a European-wide obligation for real costs that has not yet been introduced in European countries (not so in Austria).
As to the sale of water by Austria it could be assumed that the bottling of water is less in the fore, since the development of new labels and the preparing of the potential markets would require huge sums. The addition of “external waters” to communal supply systems is supposedly favoured. Experts like water engineer Helmut Jung (University for Agricultural Sciences, Vienna) underlines in this connection the huge quality differences between waters and – in the case of the “liberalisation of systems” – the problems of quality assurance and legal problems to be expected. All these problems can be technically solved, however, Jung also points to the costs arising for the system operator. In addition, questions in connection with consumer desires have to be answered – e.g.: Will those who have ordered water really get it, or rather may those who have not ordered water possibly get some?
Last, but not least: are (mostly) French companies waiting at the Austrian borders, which understand by privatisation probably profit maximisation in the first place and therefore look at water management – particularly in domestic cities – with greedy eyes? On the other hand there are the small structures of domestic water management in settlements which are faced with increasing financial pressure and which want to prompt Federal Minister Wilhelm Molterer to create larger units.
The fellow players
Meanwhile the following interest groups have crystallised in Austria:
Federation of Austrian Industry (IV); it has taken up the cause of "liberalisation of water markets" and installed a special working group for lobbying. The IV expects more transparent prices from increasing competition. They plead for the abolishment of subsidies. The export of domestic drinking water, according to the IV, shall lead to "more prosperity in Austria"; and the export of know-how to an "increase in the net product".
The Austrian Forest Administration (OeBf AG) also wants to actively participate in the water market. It is presently looking for a new "partner". Many lakes in Austria have lately come under the ownership of the OeBf AG.
A critical observer of the current discussion is the Verband Gas&Wasser (Austrian Association for the Gas and Water Sector), which has elaborated a position paper on its position.
Clearly opposing the selling-off of water supply to foreign providers is the Vienna Labour Chamber (AK). It therefore rejects the sale of EVN-shares (relating to NOeSIWAG) to an international power giant. In the classical water privatisation countries – England and France – the liberalisation of markets has led to distinctly higher water prices. Therefore the AK emphasises: “The consumer is entitled to safe water and energy supply, this has to remain a public task.”
Some Austrian providers (partly with foreign partners) of know-how in water engineering have already concluded "public-private partnership" models for the construction and operation of treatment plants. To be also mentioned in this context are the Verbundgesellschaft-subsidiary NOVUM Wassertechnik GesmbH. The VA-TECH subsidiary WABAG has already become a player on foreign markets – like NOVUM and the Municipal Department 31 – Vienna Waterworks. (Source: aqua press Int. 02/2001) Mag. Christof Hahn
Information & Contact: OVGW - Austrian Association for the Gas and Water Sector Schubertring 14 A-1010 Vienna Tel. +43 1 513 15 88-0 Fax +43 1 513 15 88-25
