Taxpayers of Hamilton have experienced first hand what happens when private companies control public operations. In December 1994, Hamilton privatized its water and sewage system to a private company, Philip Utilities Management Corporation (PUMC). When this ten year, $180 million contract was signed, it was the largest privatization of its kind in North America.

In the immediate years to follow, PUMC cut the workforce to half. This resulted in declining maintenance and service until January 1996, only two years after the private company had taken control. 180 million litres of raw sewage poured into Hamilton harbour and backed up into more than 115 homes and businesses. The private company refused to take responsibility for the worst disaster ever to affect the system. Hamilton had no choice but to pick up the legal and clean-up bills.

Private companies are much less reliable than government. It is very hard for a government to go bankrupt, but as we see on the news it happens all the time with corporations. Two years after the sewage spill, in 1998, PUMC got into financial problems. Its debt rose to about $1.1 billion US. They couldn't pay their bills.

In May, 1999, Philip Services sold Hamilton 's water system to Enron for $70 million. Over the past ten years five different companies have owned Hamilton 's water services, making accountability for costs and spills impossible.

When private companies control public services, they take none of the risk but all of the money. Hamilton 's' private water system expires at the end of 2004. Today , Hamilton is still the only big city in Canada to have privatized this essential service. Instead of learning from history, Hamilton plans to sign a ten year contract with another private company, American Water Services Canada Corp. The city will pay them $20 million a year.