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WATER ABLAZE - Patagonia Sin Represas

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water in order to increase the sale of bottled water might well<br />

become apparent, resulting in higher prices for the consumer<br />

as well as very serious environmental pollution, caused by<br />

millions of plastic bottles.<br />

• Whenever public services are privatised, horrendous system<br />

costs are incurred: price increases, value-added tax, land<br />

transfer tax when land is acquired, higher interest rates on<br />

borrowed money, guaranteed profits, risk surcharge, profit<br />

taxes, trade tax as well as soft costs for consultants and similar<br />

services. Add to all this the indirect system costs such as pay<br />

cuts and the subsequent loss of spending power, redundancies<br />

and the rising number of unemployed people who have to be<br />

supported by the welfare systems.<br />

• Through the act of privatising public services, the state and the<br />

business sector enter into insider deals with one another and<br />

democracy is increasingly undermined.<br />

• The privatisation of public services encourages and in fact<br />

leads to certain forms of lobbying and corruption as well as<br />

violations of contract award regulations, the promotion of<br />

areas not regulated by the law, the bypassing of parliaments<br />

and councils, the betrayal of interests and striving for personal<br />

gain.<br />

228

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