TORONTO — Ontario's water and wastewater systems need $34 billion in new investment over the next 15 years along with radical changes in the way they are organized and governed, an independent panel said Friday.

Unless that happens, public health could be at risk, the expert panel concluded.

In its final report to the provincial government, the task force said systems across the province are showing the effects of decades of neglect and underfunding.

"Much of the buried infrastructure is old and failing,'' said Harry Swain, chairman of the panel.

"There are avenues by which you can introduce pathogens into a water supply through inadequate infrastructure.''

However, most municipal systems are too small to be able to afford the trained staff and experts to ensure the highest possible public health standards, Swain said.

Appointed by Public Infrastructure Minister David Caplan in August 2004, the panel concluded that $11 billion needs to be spent now to repair and refurbish existing systems.

Caplan was not available to comment Friday, but a spokesman said he would review the panel's report over the next few months before committing to any of its recommendations.

The report also recommends that users pay a "moderate increase'' for water over the next seven years to sustain the systems' financial stability.

"There should be no huge price shocks,'' Swain said.

The report flows from the inquiry into the May 2000 disaster in Walkerton, Ont., where seven people died from drinking water contaminated with E. coli bacteria.

Rosemary Kelleher-MacLennan, chairwoman of the Ontario Municipal Water Association and a city councillor in Trent Hills near Peterborough, said any increase in water costs would pale in comparison to the costs of unsafe water.

"Water systems are not sexy,'' said Kelleher-MacLennan.

"But if it's left for years to come, there could be a lot of small municipalities that could become critical.''<

The panel found that even though the province has more than enough water, many systems can't get enough because there is little or no co-operation between them.

The report suggests that smaller and northern communities consolidate their water systems into larger, more efficient bodies to get them to the size where they are more economical.

The report also recommends creating a new independent regulatory body to review system business plans and water rates.

Saad Jasim, director of the new Walkerton Clean Water Centre, said the report showed what needs to be done to prevent another water-related public health tragedy.

"We cannot change history (or) what happened to the people in Walkerton, but we have to look into the future,'' Jasim said.

"We cannot allow this to happen any more.''

While no communities currently face a public health risk, Swain stressed the importance of beginning work quickly.

"I imagine (the government) will want to take some time to do it . . . but I hope not forever.''