❓ A parliamentary question seeks details on fee reviews within agencies under the Minister's portfolio, focusing on cost recovery and any resulting fee adjustments. The answer reveals varying degrees of fee review activity and cost recovery discrepancies across different agencies.
AnsweredQoN 4190Legislative Assembly
Asked
9 October 2018
Member
Portfolio
Water; Fisheries; Forestry; Innovation and ICT; Science
QuestionView source ↗
For each agency, department, authority and Government Trading Enterprise under the Minister's portfolio: (a) how many reviews of their agencies’ fees and charges have been conducted since 17 March 2017; (b) did any of these reviews identify any fee or charge that is above cost recovery; (c) if yes to (b), could you please provide: (i) a list of the fees or charges identified; (ii) the amount the fee or charge was above cost recovery; and (iii) the reason for the fee or charge being above cost recovery; (d) did any of these reviews result in an increase in any fee or charge that was above cost recovery; and; (e) if yes to (d), could you please provide: (i) a list of the fees or charges that were increased; (ii) the amount that the fee or charge increased; (iii) how much above cost recovery was the new fee or charge; and; and (iv) the reason for the fee or charge being above cost recovery; and (f) if yes to (b) have any fees or charges been reduced as a result of the identification of over recovery: (i) if yes, what were the fees and charges that were reduced, and what was the amount each fee or charge was reduced?
AnswerView source ↗
Answered
27 November 2018
Responded by
Minister for Water; Fisheries; Forestry; Innovation and ICT; Science
Response time
15 days
Aqwest (a) Reviews of fees and charges are conducted yearly as part of the State Budget process. (b) Government policy is to consider price increases in the context of cost reflectivity for its total business. Currently, Aqwest’s cost reflectivity for the business as a whole, is 107%. (c)(i)-(iii) Not applicable. (d) Not applicable. (e)(i)-(iv) Not applicable. (f)-(i) Not applicable.
Busselton Water (a) Two, June 2017 and June 2018 (b) Yes (c) (i) 2017-18 Change of Tenancy (includes meter reading): $44.00 (ii) $1.49 (iii) Labour cost slightly reduced relative to previous year (d) No (e) (i) Not applicable (ii) Not applicable (iii) Not applicable (iv) Not applicable (f) Yes (i) 2017-18 Change of Tenancy (includes meter reading): $44.00 reduced to $42.60
ChemCentre (a) One (b) Yes (c)(i) MOUs with WA Police and State Coroner’s Office for forensic science analysis (ii) $413k. (iii) Additional charges to maintain forensic capability at an agreed level (d) Yes (e) (i) MOU with State Coroner’s Office (ii) $62k. (iii) $13k (iv) Additional charges to maintain forensic capability on an agreed level (f) No (i) Not applicable.
Department of Primary Industries and Regional Development Department of Fisheries (a) No review was completed between 17 March 2017 to 30 June 2017, when the Department of Fisheries ceases to exist. (b) – (f) Not applicable
Department of Primary Industries and Regional Development (a) – (i) Please refer to Legislative Assembly Question on Notice 4179.
Department of Water and Environmental Regulation Department of Water (a) One (b) No (c)(i) – (iii) Not Applicable (d) No (e) Not Applicable (f) Not Applicable
Department of Water and Environmental Regulation (a) Four (b) Yes (c) (i) - (ii) [See tabled paper no.] (iii) The Department of Water and Environmental Regulation administers a number of tariffs, fees and charges under the Environmental Protection Act 1986.
• Controlled waste The controlled waste service was over-recovered in 2017-18 due to over recovery of electronic tracking fees of controlled waste. Environmental Protection (Controlled Waste) Amendment Regulations 2012 prescribed new annual fee increases of approximately 4 per cent based on projected consumer price index for a five year period. Over recovery of electronic controlled waste tracking fees was partly offset by under recovery of paper based controlled waste tracking fees and controlled waste license fees. The Department will undertake a comprehensive review of all tariffs, fees and charges as part of the 2019-20 review. • Prescribed premises The fees administered under Part V Division 3 of the Environmental Protection Act 1986 are a nominally full cost recovery model through charging fees to regulate emissions and discharges to the environment through works approvals and licences for prescribed premises in Schedule 1 of the Environmental Protection Regulations 1987. Under the fee structure established in 1987, costs associated with the assessment of works approvals are under-recovered with the balance of total costs for the regulation of prescribed premises recovered through prescribed premises licence fees. This effectively amortises the recovery of the Department’s cost for both the works approval and licence over the life of the prescribed premises. (d) Yes (e) (i) – (iii) [See tabled paper no.] (iv) Licence fees (premises component and emissions component) were increased on 1 July 2018 by 14 per cent to better reflect the recovery of costs associated with administration of the licensing regime. The fee increases (which include increases to fees for works approvals, registrations and amendments) were designed to increase the level of cost recovery for all prescribed premises fees from 89 per cent in 2016-17 to an estimated 96 per cent in 2018-19. The longstanding fee structure for regulation of prescribed premises is designed to under-recover works approvals costs, which are the first stage of the licensing process. Full cost recovery of costs associated with the assessment of a works approval would create a barrier to entry, particularly for smaller business, and may create a perverse disincentive to adoption of best practice technologies, which are likely to have higher capital costs. The licence stage allows proponents to minimise annual fees by reducing emissions, providing an economic incentive to achieve a desirable environmental outcome. The Department will undertake a comprehensive review of all tariffs, fees and charges as part of the 2019-20 review. (f) No (i) Not Applicable
Forest Products Commission (a) One. There was an increase against the Consumer Price Index of 1.02% for timber inspection fees (power poles and sleepers) on 1 July 2017. (b) No. (c) Not applicable. (d) No. (e) – (f) Not applicable.
Department of Jobs, Tourism, Science and Innovation Please refer to Legislative Assembly question on notice 4174.
Office of Digital Government (a) – (i) Not applicable, as the Office of Digital Government does not impose fees and charges for its services.
Water Corporation (a) Reviews of fees and charges are conducted yearly as part of the State Budget process. (b) Government policy is to consider price increases in the context of cost reflectivity for its total business. Currently, the Water Corporation’s cost reflectivity for the business as a whole, is 97%. (c)(i)-(iii) Not applicable. (d) Not applicable. (e)(i)-(iv) Not applicable. (f)-(i) Not applicable.
Busselton Water (a) Two, June 2017 and June 2018 (b) Yes (c) (i) 2017-18 Change of Tenancy (includes meter reading): $44.00 (ii) $1.49 (iii) Labour cost slightly reduced relative to previous year (d) No (e) (i) Not applicable (ii) Not applicable (iii) Not applicable (iv) Not applicable (f) Yes (i) 2017-18 Change of Tenancy (includes meter reading): $44.00 reduced to $42.60
ChemCentre (a) One (b) Yes (c)(i) MOUs with WA Police and State Coroner’s Office for forensic science analysis (ii) $413k. (iii) Additional charges to maintain forensic capability at an agreed level (d) Yes (e) (i) MOU with State Coroner’s Office (ii) $62k. (iii) $13k (iv) Additional charges to maintain forensic capability on an agreed level (f) No (i) Not applicable.
Department of Primary Industries and Regional Development Department of Fisheries (a) No review was completed between 17 March 2017 to 30 June 2017, when the Department of Fisheries ceases to exist. (b) – (f) Not applicable
Department of Primary Industries and Regional Development (a) – (i) Please refer to Legislative Assembly Question on Notice 4179.
Department of Water and Environmental Regulation Department of Water (a) One (b) No (c)(i) – (iii) Not Applicable (d) No (e) Not Applicable (f) Not Applicable
Department of Water and Environmental Regulation (a) Four (b) Yes (c) (i) - (ii) [See tabled paper no.] (iii) The Department of Water and Environmental Regulation administers a number of tariffs, fees and charges under the Environmental Protection Act 1986.
• Controlled waste The controlled waste service was over-recovered in 2017-18 due to over recovery of electronic tracking fees of controlled waste. Environmental Protection (Controlled Waste) Amendment Regulations 2012 prescribed new annual fee increases of approximately 4 per cent based on projected consumer price index for a five year period. Over recovery of electronic controlled waste tracking fees was partly offset by under recovery of paper based controlled waste tracking fees and controlled waste license fees. The Department will undertake a comprehensive review of all tariffs, fees and charges as part of the 2019-20 review. • Prescribed premises The fees administered under Part V Division 3 of the Environmental Protection Act 1986 are a nominally full cost recovery model through charging fees to regulate emissions and discharges to the environment through works approvals and licences for prescribed premises in Schedule 1 of the Environmental Protection Regulations 1987. Under the fee structure established in 1987, costs associated with the assessment of works approvals are under-recovered with the balance of total costs for the regulation of prescribed premises recovered through prescribed premises licence fees. This effectively amortises the recovery of the Department’s cost for both the works approval and licence over the life of the prescribed premises. (d) Yes (e) (i) – (iii) [See tabled paper no.] (iv) Licence fees (premises component and emissions component) were increased on 1 July 2018 by 14 per cent to better reflect the recovery of costs associated with administration of the licensing regime. The fee increases (which include increases to fees for works approvals, registrations and amendments) were designed to increase the level of cost recovery for all prescribed premises fees from 89 per cent in 2016-17 to an estimated 96 per cent in 2018-19. The longstanding fee structure for regulation of prescribed premises is designed to under-recover works approvals costs, which are the first stage of the licensing process. Full cost recovery of costs associated with the assessment of a works approval would create a barrier to entry, particularly for smaller business, and may create a perverse disincentive to adoption of best practice technologies, which are likely to have higher capital costs. The licence stage allows proponents to minimise annual fees by reducing emissions, providing an economic incentive to achieve a desirable environmental outcome. The Department will undertake a comprehensive review of all tariffs, fees and charges as part of the 2019-20 review. (f) No (i) Not Applicable
Forest Products Commission (a) One. There was an increase against the Consumer Price Index of 1.02% for timber inspection fees (power poles and sleepers) on 1 July 2017. (b) No. (c) Not applicable. (d) No. (e) – (f) Not applicable.
Department of Jobs, Tourism, Science and Innovation Please refer to Legislative Assembly question on notice 4174.
Office of Digital Government (a) – (i) Not applicable, as the Office of Digital Government does not impose fees and charges for its services.
Water Corporation (a) Reviews of fees and charges are conducted yearly as part of the State Budget process. (b) Government policy is to consider price increases in the context of cost reflectivity for its total business. Currently, the Water Corporation’s cost reflectivity for the business as a whole, is 97%. (c)(i)-(iii) Not applicable. (d) Not applicable. (e)(i)-(iv) Not applicable. (f)-(i) Not applicable.
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