A group of Ottawa social service agencies say they will hand out free crack pipes to drug users at the agencies' own expense despite threats from at least one city councillor that they could lose their municipal funding if they do so.

"We have a very good working relationship with the city of Ottawa and all our funders and I'm very confident that that relationship will continue," said Jack McCarthy, executive director of the Somerset West Community Health Centre at a news conference held by his and nine other agencies on Tuesday.

The groups were announcing their plan to take over the city program aimed at reducing the spread via crack pipe sharing of HIV and hepatitis among drug users, and continue it until at least the end of the year.

The program, which received $15,000 funding annually from the province and the city, was cancelled by city council earlier this month.

Taking it over will cost each of the agencies involved about $9 per day, they estimate.

Orléans Coun. Bob Monette told CBC last week that he will vote against providing city funding to any group that continues to hand out the pipes despite council's decision to end the program.