ST. JOHN'S, N.L. — A billion-dollar problem is staring down the province’s municipalities.
On Friday, dozens of municipal, provincial and federal leaders gathered at the Holiday Inn in St. John’s to discuss wastewater treatment throughout the province.
In 2012, federal wastewater regulations were changed in an effort to help the environment by properly treating wastewater across the country. A total of 197 municipalities in Newfoundland and Labrador are subject to the regulations. According to Municipalities Newfoundland and Labrador (MNL), just 10 are currently in compliance with the rules.
Municipalities that don’t meet the requirements could face stiff fines. The municipalities have had seven years to comply, but have not been able to make the upgrades to date.
The reason? Money.
“We’re looking at a $600-million deficit for the province when it comes to wastewater alone. Drinking water is another $400 million,” said MNL president Tony Keats.
“We’re looking at $100 million a year in infrastructure funding – $100 million we really need. Coming up with our share of the $600 million is just impossible. Dealing with that in the timelines that we got, it’s not going to happen.”
For example, MNL says the Town of Woody Point, with just 249 households, needs $3-million worth of upgrades to its wastewater treatment system in order to comply.
In 2020, St. John’s is also due to face fines due to lacking upgrades to the Riverhead Wastewater Treatment plant. Already, dozens of smaller communities are concerned about facing the fines, though none have been fined to date, Keats said.
For now, Keats says the only solution is to work with the federal and provincial government to find the money and change the date when the penalties come into effect.
“We need to get those dates moved ahead so we have time to get stuff done,” he said.
“We’re behind the eight ball.”
MP Churence Rogers says the federal government is aware of the issue, and is looking for solutions.
“I think it’s a critically important issue. We needed to stress the importance of dealing with this matter. I wanted to see a good discussion to talk about a way forward,” said Rogers.
“We know we have financial challenges, but the other thing is that as municipalities, as the federal and provincial government work together, we need to identify appropriate technology.
What I mean is technology that’s affordable and that can be able to be operated without doing major impact on the budget of these small towns.”
MNL is calling for a doubling of the portion of the federal gas tax that goes to municipalities, better access to lending to allow them to raise money for the projects and one-time funding from all levels of government.
MNL has also called for an increase in the percentage of HST that goes to municipalities as another way to address the issue.
Municipal Affairs and Environment Minister Perry Trimper, who was sworn in to his new portfolio during the meeting, says the province is listening and willing to find a solution.
"It's not like the solution is out there somewhere else. We represent the solution. We have to collaborate."
