The North America Free Trade Agreement (NAFTA) worked its way into a city council rezoning decision on a water bottling plant.

Council voted 5-2 Monday evening to rezone part of Yukon Spring's Alaska Highway property so it can expand its water bottling plant and bring the current operation into conformance with the zoning bylaw.

Councillors Betty Irwin and Dave Stockdale voted against the move.

"This is not totally a local issue,” Irwin told her fellow council members, pointing to the larger issue of selling bottled water as Yukon Spring does.

Water issues over NAFTA have come up for the Federation of Canadian Municipalities, Irwin said.

She said it's important for council to look beyond the rezoning to the larger issue of private water sales and the impact they have on society and the environment.

Her arguments echoed those of territorial NDP Leader Liz Hanson, who wrote to council hours before last night's council meeting.

"As a Yukoner, I support the development of small businesses that contribute to diversifying our economy,” she wrote.

"However, given the fact Yukon lacks a comprehensive water policy, I am concerned that making this decision without looking at all the implications could set a precedent regarding Yukon's water as a commodity.”

Hanson argued the city should at least know what the expansion is proposed for, whether Yukon Spring's market will be in the territory, in Canada or beyond the country's borders.

With most city councillors and, at the territorial level, MLAs, not likely experts on international trade agreements, it's important to have clear and independent advice on such decisions, she stated.

"If, as I understand it, water once bottled for export becomes a commodity under the North America Free Trade Agreement, then I believe we have a duty and responsibility to ensure that we do not create a situation where this free-trade agreement could have jurisdictional rights over our Yukon water,” Hanson wrote.

Further complicating the issue is the free-trade deal being negotiated with the European Union by the federal government, provinces and territories .

"The Federation of Canadian Municipalities is aware that water and water services have been subjects for discussion,” Hanson wrote.

She urged council to defer the decision on the rezoning until after the city receives a briefing by the Yukon government on the impact "in light of NAFTA provisions”.

Coun. Doug Graham and Mayor Bev Buckway were quick to note though, the concerns of FCM over NAFTA are not about bottled water, but rather the export of bulk water and the privatization of municipal water systems.

Yukon Spring already exports its bottled water out of the country, Graham said in responding to the NAFTA concerns.

It's the territorial government which deals with those matters under its water licences, which Yukon Spring currently has, he noted.

Graham, who announced last year he will seek the territorial Liberal nomination in Porter Creek North, also took issue with Hanson's letter. He pointed out other politicians typically take the time to meet with council and discuss their concerns on an issue.

He also argued against Hanson's comment about "a narrow view of the role of city council....” He noted council does not take such a view in voting on matters, but rather considers a number of factors in its decisions.

"I wasn't really happy with that,” he said of Hanson's letter.

In an interview this morning, Hanson said she normally wouldn't send a last-minute letter to the city on such an issue, but had been busy "learning the ropes” in her new role of Whitehorse Centre's MLA.

During the public hearing held earlier this month, no one addressed council on the matter nor wrote to the city about it.

Hanson said when she realized third reading was coming up last night, she quickly took her concerns to the city, though she realized it wasn't likely to change the vote.

Rather, she said, she wanted to draw attention to the issue and the need for a territorial water policy and for any discussion on it or at the federal/international level to include municipalities.

The discussion over international agreements had Stockdale wanting to defer the matter by a couple of weeks to look into it further, a move only Irwin supported, though she noted it likely wouldn't change anything.

Others agreed a two-week deferral wouldn't make much difference and continued to point out it is the territory that deals with water licensing.

"This is about a rezoning amendment,” Buckway said, going on to note the heavy amount of water used in bottling beer and alcohol.

"Clearly, it's a zoning issue,” Coun. Ranj Pillai agreed, adding that no matter his personal discomfort on the overall issue, this stands as a zoning matter.

He also commented where there are overall water issues of concern to the city, there could be discussions with the Yukon government and Larry Bagnell, the territory's MP.

With that, second and third readings of the rezoning passed, with only Irwin and Stockdale voting against it.