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Nestle Attempts to Privatize

N. California Headwaters

by Simeon Newman / September 2007 issue of Socialist Action newspaper

 

 

McCLOUD, Calif.—Future wars will be fought over water, some people claim. In fact, struggles have already surrounded this vital resource. 

 

In 2003 on the flank of the southern Cascade peak, Mt. Shasta, the local government of the town of McCloud signed a backroom contract with Nestlé Waters North America. The legally binding contract, good for 50 years and renewable to 100, says that the people of McCloud would need to ration their water in times of need so Nestlé can bottle their fill. 

 

The contract between Nestlé and McCloud's Community Services District was signed before the legally required environmental review process was done. Because of this violation the contract was first overturned in court. Then, still without the environmental review process completed, it was revalidated. 

 

Subsequently, Nestlé has drafted an environmental impact report (EIR) that is devoid of science. Scientists say there is no mention in the EIR of the vitality of the local watershed, which feeds into the Sacramento River: baseline data, which does not exist, would be the first step for assessing the impact of the plant. 

 

Nestlé's plan to bottle 522 million gallons per year in the one million square foot plant has been condemned by virtually all those involved, except Nestlé and the McCloud local government. The amount of spring water to be extracted is stated in the contract, but the amount of groundwater that can be pumped from the basin is unlimited. This works as a convenient way for Nestlé to get in and start bottling. 

 

But the effects of the project will cause "groundwater drawdown," a draining of the aquifers. Nobody knows what effects drawing down the aquifer will have, but any honest person must admit that it will affect surface water, well water, and regional biota. 

 

The fake EIR provides pseudo-scientific legitimacy to the water privatizers' claim that opening up McCloud's resources to privatization will provide jobs. McCloud is an economically depressed town. It was a "thriving" mill town some decades back, but as the trees became scarcer the mill made cutbacks after cutbacks. In 2003 the mill shut down for good. 

 

Certainly unemployment is a problem in McCloud. Nestlé claims it will provide 240 jobs with an average starting wage of $10 an hour. But for the highly automated water-bottling industry, these jobs would be replaced with machines as soon as the bosses could afford it. Privatizing their water in trade for temporary low-wage employment is a bad deal for the people of McCloud. 

 

For Nestlé, selling small bottles of pristine spring water is a quick way to get even richer. The company will have to pay 1/64 of a cent for each gallon of spring water, which will then be divided into small bottles and sold in gas stations for $5 to $10. 

 

The privatization of McCloud's water would truly be a watershed event. The springs that feed the town of McCloud are essential tributaries to the Sacramento River. After the river enters the Sacramento Valley, it is the main source of water for California's agriculture. For these reasons it is necessary to make sure that the water remains in public hands. 

 

But as the local government has clearly demonstrated, it is not enough to have the servants of the capitalist class in public office control the people's water. They have demonstrated that they are perfectly willing to trade a peoples' water—considered by many a human right—for an abstract idea of economic viability. 

 

Letting multinational corporations move in and take the cake is nothing new. And each time these neoliberal policies have been tried, they have been found to have no benefit for workers. They have never helped develop infrastructure that fulfils human needs. 

 

Neoliberal policy in general, and this project in particular, works out to be a wonderfully profitable deal for the capitalists. It is especially good for the rulers since workers will foot the bill for the upkeep of roads and the waterline, making the whole thing possible, through their taxes. 

 

This project must be viewed in the context of global-warming trends. The source of water for people in the area, and in the region, is the surrounding mountain snowfields and glaciers, which are melting as temperatures rise. This year will surely go on record as one of the driest for the region. The showdown is inevitable: water for profit, or water for environmental health and human needs. 

 

Human Needs, Not Profits!