❓ Mr. Kelly questions the Minister for Water about water price increases exceeding inflation and whether government revenue raising, rather than cost recovery, drives these increases. The Minister defends the increases, citing developer contributions, efficiency drives, and subsidies for regional areas and concession holders, arguing the revenue is reinvested into essential services.
AnsweredQoN 747Legislative Assembly
QuestionView source ↗
WATER
CORPORATION — 2015 ANNUAL REPORT
747. Mr D.J. KELLY to the
Minister for Water:
On behalf of the member for Mandurah, I would like to
acknowledge president of the Mandurah RSL Dave Mabbs who is in the Speaker's
gallery today with other members of the committee. Welcome.
I refer to the Water Corporation's 2015 annual report
that shows a net payment to government of $335 million for 2014–15,
which is $90 million higher than the previous year and more than double what it
was in 2012.
(1) How can
the minister justify water price increases to consumers of more than the rate
of inflation each year since her government was elected?
(2) Does this
record payment to government not show that the government's water price
increases of more than 60 per cent since 2008 have been all about revenue
raising rather than recovering costs?
CORPORATION — 2015 ANNUAL REPORT
747. Mr D.J. KELLY to the
Minister for Water:
On behalf of the member for Mandurah, I would like to
acknowledge president of the Mandurah RSL Dave Mabbs who is in the Speaker's
gallery today with other members of the committee. Welcome.
I refer to the Water Corporation's 2015 annual report
that shows a net payment to government of $335 million for 2014–15,
which is $90 million higher than the previous year and more than double what it
was in 2012.
(1) How can
the minister justify water price increases to consumers of more than the rate
of inflation each year since her government was elected?
(2) Does this
record payment to government not show that the government's water price
increases of more than 60 per cent since 2008 have been all about revenue
raising rather than recovering costs?
AnswerView source ↗
I thank the member for the question.
(1)–(2) The
Water Corporation's annual report was tabled in this house today, and
the figures the member referred to are for the 2014–15 financial year.
It shows that the Water Corporation delivered a net accrual to government of
$335 million. That was slightly higher than we expected, and there are a number
of reasons this has occurred. In that period we had a record high of developer
contributions. We have also, as members have heard me speak about in this
house, an ongoing task for the Water Corporation board and management to drive
efficiencies to ensure that we are delivering the best outcome for taxpayers.
In that period we also had a more competitive construction market, so some of
our contracts came in under what was expected.
The member did not talk about the
fact that we as a state government deliver $573 million worth of operating
subsidies back into the Water Corporation to ensure that regional and
metropolitan households pay the same rates, that we support our concession card
holders and that we provide for and support our pensioners. Can I just point
out that the member opposite is saying that this is a cash grab; I have heard
him say that outside this house. The Water Corporation is one of 16 public
corporations that deliver six per cent of the state government's
revenue. It is one of 16 within that six per cent total budget. It is a small
proportion of the state government's revenue. The net accrual to
government is $335 million, and the member understands and knows very well,
because we have this conversation in the house every time an annual report is
tabled, that that funding goes back in to delivering hospitals, teachers,
police, housing and roads. It is invested back into this state government and
taxpayers for the benefit of Western Australians.
(1)–(2) The
Water Corporation's annual report was tabled in this house today, and
the figures the member referred to are for the 2014–15 financial year.
It shows that the Water Corporation delivered a net accrual to government of
$335 million. That was slightly higher than we expected, and there are a number
of reasons this has occurred. In that period we had a record high of developer
contributions. We have also, as members have heard me speak about in this
house, an ongoing task for the Water Corporation board and management to drive
efficiencies to ensure that we are delivering the best outcome for taxpayers.
In that period we also had a more competitive construction market, so some of
our contracts came in under what was expected.
The member did not talk about the
fact that we as a state government deliver $573 million worth of operating
subsidies back into the Water Corporation to ensure that regional and
metropolitan households pay the same rates, that we support our concession card
holders and that we provide for and support our pensioners. Can I just point
out that the member opposite is saying that this is a cash grab; I have heard
him say that outside this house. The Water Corporation is one of 16 public
corporations that deliver six per cent of the state government's
revenue. It is one of 16 within that six per cent total budget. It is a small
proportion of the state government's revenue. The net accrual to
government is $335 million, and the member understands and knows very well,
because we have this conversation in the house every time an annual report is
tabled, that that funding goes back in to delivering hospitals, teachers,
police, housing and roads. It is invested back into this state government and
taxpayers for the benefit of Western Australians.
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