The Minister of Municipal…

The Minister of Municipal Affairs and Housing recently stated, “Our government is building a more prosperous, resilient and competitive economy by fighting costly delays and regulatory burdens that slow the delivery of homes, roads and infrastructure that communities need.”

Allowing corporations to assume control of water and wastewater infrastructure may accelerate construction timelines, particularly if regulatory oversight is reduced. While corporations may offer short-term financial relief and operational expertise, their involvement often raises concerns regarding equity, transparency, and public accountability – principles that are foundational to water and wastewater services as public goods.

In the Ontario Place redevelopment, the provincial government removed key regulatory requirements, including environmental assessments and heritage protections. This expedited the project and increased its appeal to private investors such as Therme. However, critics, including Ontario’s Auditor General, have argued that these changes compromised transparency, accountability, and long-term sustainability. The result is increased financial burdens for taxpayers and diminished public control over valuable public assets.

Should the Minister wish, a list of North American case studies is available, detailing outcomes across several dimensions where corporations have assumed ownership or operational control of water and wastewater infrastructure. These examples suggest that eliminating regulatory safeguards is not a viable solution. The most effective models maintain public ownership, even when adopting corporate governance structures.

To mitigate the risks of profit-driven decision-making undermining public health, affordability, and environmental sustainability, a robust regulatory framework is essential. Such a framework should enable public corporations to contribute capital and expertise while ensuring that water and wastewater infrastructure remains a public trust – not a commodity.

Key areas requiring careful consideration include:
• Legislative and Regulatory Oversight
• Contractual Safeguards
• Governance and Accountability
• Public Engagement and Consultation
• Economic Regulation
• Environmental and Social Controls
• Asset Management and Long-Term Planning

If the Minister proceeds with the proposed legislation, Ontarians desire to know how their interests would be protected before any regulations are passed.