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19% Rise for South East Water Customers PDF Print E-mail

19% RISE FOR SOUTH EAST WATER CUSTOMERS DUE TO BRUMBY GOVERNMENT INACTION    

The Brumby Government has remained silent as their mismanagement of the Water Portfolio will see South East Water bills soar by $117 a year from July 1.

It has been revealed that customers of South East Water will be hit with a 19% price rise from Thursday 1 July as the average water bill for Melbourne’s south east families will rise to $742.

Inga Peulich, State Member for South Eastern Metropolitan Region and Shadow Parliamentary Secretary for Communities said Melbourne’s south-east will be one of the hardest hit regions with many families struggling to keep up with the rising utilities prices.

“The local community has recently been hit hard by Brumby Government mismanagement with a 17 percent rise in electricity and 7 percent rise in gas and now with water charges going up 19 percent it shows the Brumby Government has lost control of our basic services,” Ms Peulich said.

“The rise comes after the Brumby Government was caught out granting a 15 percent pay rise to executives from Melbourne Water.”

“We have double standards from the Brumby Government.  On the one hand they proudly grant executive pay rises to Labor Party mates in water board positions and on the other hand deal a massive blow to local families by increasing the water bills.”

The rises are the first stage of charging customers for the building of the desalination plant in Wonthaggi and the controversial north-south pipeline.

It has also been revealed that due to the steep increases in water prices, hundreds of pensioners, unemployed and other concession customers were among the almost 60 households a week having their water flow reduced for failing to pay bills.

“Given the politicisation of South East Water through the showerhead exchange program, which has only been made available to local Labor MPs, it is disappointing that those same Labor MPs did not fight for the community against this drastic rise which many Victorians are struggling to pay,” Ms Peulich said.

“Had the Brumby Government managed the water resources properly or expedited major recycling projects to help guarantee the states water supplies over the past 11 years we would not have the dramatic price hikes we have today.”

REPORT FROM EARLIER THIS YEAR  

A recent Energy and Water Ombudsman report shows that Victorians are feeling the impact of rising water bills, with the Ombudsman receiving more complaints about bills, fees and charges, Shadow Minister for Urban Water Louise Asher said today.

Ms Asher said the May 2010 issue of Resolution, published by the Energy and Water Ombudsman, shows that Victorians are suffering from Labor’s hikes in water bills.

The report revealed that in the period July to December 2009, the Ombudsman dealt with 1,075 cases against the Victorian water authorities. This is an increase of 43 per cent on the same period of the previous year, when only 750 cases were received.

Fifty-two per cent of those cases were in relation to billing, which was also the number one issue.

The report also showed that the number of cases and complaints made against the metropolitan retailers City West Water, South East Water and Yarra Valley Water has steadily increased over the past year.

In the July to December 2008 period, 392 complaints were received. The number increased to 480 in the January to June 2009 period, and to 608 in the July to December 2009 period.

“Bills being too high and fees and charges dominated the complaint categories against the metropolitan retailers. Payment difficulties were also in the top five complaints received,” Ms Asher said.

Ms Asher said these figures show that the Brumby Government’s decision to mandate massive increases in water prices is having a negative impact on Melburnians.

The Essential Services Commission recently announced that water prices are likely to increase by up to 64 per cent from 2009-10 to 2012-13 in order to fund the Brumby Government’s infrastructure projects such as the desalination plant and the Food Bowl Modernisation Project.

The Victorian Parliamentary Environment and Natural Resources Committee Inquiry into Melbourne’s Future Water Supply revealed last year that water consumers will actually be funding almost 90 per cent of the government’s $4.9 billion water infrastructure projects.

“After eleven years in office this Labor Government has failed to ease the burden on Victorians who are continually suffering for Labor’s inability to act and secure water supplies earlier,” Ms Asher said

The Brumby Government’s failure to plan for appropriate water infrastructure has led to a series of ill-conceived projects such as the north-south pipeline, a report released by Engineers Australia shows today.

Shadow Minister for Country Water Resources and Deputy Leader of The Nationals Peter Walsh said the report was a damning assessment of the Brumby Government’s performance across key areas of water infrastructure including potable water, stormwater, wastewater and irrigation.

“The report shows Labor failed to act on the water crisis or to address ongoing water restrictions until it was too late,” Mr Walsh said.

“Taxpayers are now forking out millions of dollars for expensive and unnecessary projects because John Brumby failed to plan for the state’s water needs.

“Worse still, Engineers Australia believes planning to achieve major changes in water supply and use is still not evident, meaning additional desalination plants may be needed in the future.”

In a series of forthright criticisms, the report found:

  • The Wonthaggi desalination plant may not have been needed if other sources of water supply had been pursued seriously since the 1990s;
  • The best value water solution may not have been selected in several major water augmentation projects;
  • The government should have implemented a state-wide urban stormwater strategy;
  • The government’s failure to find uses for billions of litres of Class-A recycled water from the Eastern Treatment Plant is a waste of valuable water; and
  • Water savings from irrigation projects may have been over-estimated.

Mr Walsh said the report backed the Victorian Liberal Nationals Coalition’s calls for increased use of stormwater.

“This report confirms that Labor’s water policies have been wasteful,” Mr Walsh said.

“John Brumby has spent millions of dollars on the north-south pipeline and the Wonthaggi desalination plant when he could have harvested stormwater from Melbourne’s own catchment.”

Mr Walsh said the report also validated concerns that the Brumby Government had overstated the water savings available from its irrigation projects.

“This report confirms that the Brumby Government cannot be trusted to manage Victoria’s water,” Mr Walsh said.

 

A-G REPORT FINDS GOVT WATER AUTHORITIES IN FINANCIAL DIFFICULTY   

25 November - Today’s Auditor-General’s Report – Water Entities: Results of the 2008-09 Audits reveals the Government’s water authorities are not financially sustainable, Shadow Minister for Urban Water Louise Asher said.

The Auditor-General reported that “The financial performance of the water industry has deteriorated over the past four years…” and that “Seven of the 13 regional urban water corporations…generated a loss.” (p.33)

Ms Asher announced yesterday the Government had received over $3 billion in revenue from the four metropolitan water authorities (Melbourne Water, City West Water, South East Water and Yarra Valley Water) since 1999.

Today’s report from the Auditor-General reveals the water authorities have had to borrow funds to sustain these payments to the government. The Auditor-General said “The metropolitan water businesses have also drawn upon short term borrowings to finance the payment of dividends to the state government.” (p.x) The A-G also states “The level of borrowings by Yarra Valley Water is comparatively higher than the other two retailers.” (p.59)

This shows that the Brumby Government ignored the Auditor-General’s warning in his report ‘Results of financial statement audits for agencies with 30 June 2006 balance dates’ (February 2007) that these contributions paid by the water authorities to the government may not be sustainable in the future.

The Auditor-General assessed the Melbourne water authorities as having a high overall financial sustainability risk assessment.

The Auditor-General has also revealed that City West Water, South East Water and Yarra Valley Water are not obliged to provide a performance report and as a result there is a complete lack of public scrutiny. The Auditor-General states “In the absence of a consistent performance reporting regime, the ability of Parliament and the community to compare the performance of the 19 water businesses is inhibited.” (p.xii) The Auditor-General has also advised the Government to develop a performance reporting requirement.

The report has also revealed the Department of Sustainability (DSE) has been hit with expenses in establishing the Desalination Plant project. To date, DSE has spent $159 million and it is expected to outlay a further $162 million on the project.

“Today’s report by the Auditor-General clearly shows the arrogance of this Labor Government in failing to heed the Auditor-General’s warnings years ago that the water authorities were facing financial sustainability issues,” Ms Asher said.

VICTORIANS NEED WATER, NOT ENDLESS ANNOUNCEMENTS -

There is no justification to move Melbourne to Stage 4 water restrictions, despite the Minister for Water’s non-announcement on 20 November that Melbourne will remain on Stage 3A water restrictions, Shadow Minister for Urban Water Louise Asher said.

Stage 4 water restrictions have a trigger point of 29.3 per cent. The current water levels are at 37.9 per cent.

Ms Asher said the Brumby Government has clearly failed Melburnians on the delivery of one of its basic services – water. In 2002, the former Labor Premier pledged that water was a major issue for his government. However, almost seven years on, Melbourne still has no major new source of water.

Labor has been in government since late 1999 and in that time could have:

  • Built a new dam;
  • Built a desalination plant; and/or
  • Expedited recycling projects such as the Eastern Treatment Plant upgrade. The Government has failed to deliver on this upgrade, which means that we do not have sufficient recycled water to use now, for industry, agriculture or for the watering of public gardens and sporting grounds. The upgrade was announced in 2002 but will not be completed until 2012.

The most interesting part of Labor’s non-announcement is the fact that Stage 3A water restrictions will be reviewed in the New Year at the time water is supposed to begin flowing down the north-south pipeline. The 75 gigalitres meant to come down the pipeline for Melbourne has only been guaranteed for 2010 – an election year.

The Brumby Government is setting itself up to act as a ‘saviour’ for Melbourne when the north-south pipeline comes on line in 2010.

“This Labor Government loves publicity stunts and I call on the Minister for Water not to have a taxpayer-funded campaign spruiking the north-south pipeline when he announces Melbourne’s water restriction level next year,” Ms Asher said.

“If the government had done its job properly and supplied Melbourne with water, Melburnians would not be on harsh restrictions,” Ms Asher said.

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