❓ Mr. Kelly questions the Minister for Water about alleged overcharging on wastewater services and whether unspent funds constitute price gouging. The Minister refutes the claim and highlights inconsistencies in Mr. Kelly's stance on ERA recommendations.
AnsweredQoN 824Legislative Assembly
QuestionView source ↗
WATER CORPORATION — WASTEWATER ASSET MAINTENANCE
824. Mr D.J. KELLY to the
Minister for Water:
I have a
supplementary question. The minister mentioned the Economic Regulation
Authority. The ERA also said that the government was overcharging by 20 per
cent on wastewater charges. Is the public right to assume that if the
government is not spending that on assets, it is in fact price gouging?
824. Mr D.J. KELLY to the
Minister for Water:
I have a
supplementary question. The minister mentioned the Economic Regulation
Authority. The ERA also said that the government was overcharging by 20 per
cent on wastewater charges. Is the public right to assume that if the
government is not spending that on assets, it is in fact price gouging?
AnswerView source ↗
Absolutely not.
Mr D.J. Kelly : Did the ERA say that?
The SPEAKER : Member for Bassendean!
Mr D.T. REDMAN : I am assuming that the member is asking us
to support the ERA's recommendations on how we should charge for
wastewater.
Mr F.M. Logan interjected.
The SPEAKER : Member for Cockburn!
Mr D.T. REDMAN : Is that what the member is asking? In the
supplementary question, the member made the point that the ERA had made a
recommendation to government and that we should support it. The ERA also made a
recommendation to government that we should move away from gross rental value
for managing water assets. Does the member support that?
Mr D.J. Kelly : No.
Mr D.T. REDMAN : No!
Several members interjected.
The SPEAKER : Members! Thank you. Continue, minister.
Mr D.J. Kelly interjected.
The SPEAKER : Member for Bassendean!
Mr D.J. Kelly : Are the two linked?
Mr D.T. REDMAN : I find it staggering that the member for
Bassendean stands on the high moral ground by claiming what we should be
responding to as far as the ERA report goes, and then does not support a piece
of information that the ERA recommended to government.
Mr D.J. Kelly : They are two distinct issues.
The SPEAKER : Member for Bassendean!
Mr D.T. REDMAN : I make the point that prior to this year,
the government has not raised the level of water and wastewater charges to
those recommended by the ERA. If we were to follow its recommendations, we
would have a really volatile price structure that government and customers
would have to respond to. We have been very cautious in ensuring that if prices
rise, as they have done over time, we smooth them out and make sure it is not
volatile to changes in the market conditions, which is what the ERA uses to
recommend price structures to government.
Mr D.J. Kelly : Did the ERA say that?
The SPEAKER : Member for Bassendean!
Mr D.T. REDMAN : I am assuming that the member is asking us
to support the ERA's recommendations on how we should charge for
wastewater.
Mr F.M. Logan interjected.
The SPEAKER : Member for Cockburn!
Mr D.T. REDMAN : Is that what the member is asking? In the
supplementary question, the member made the point that the ERA had made a
recommendation to government and that we should support it. The ERA also made a
recommendation to government that we should move away from gross rental value
for managing water assets. Does the member support that?
Mr D.J. Kelly : No.
Mr D.T. REDMAN : No!
Several members interjected.
The SPEAKER : Members! Thank you. Continue, minister.
Mr D.J. Kelly interjected.
The SPEAKER : Member for Bassendean!
Mr D.J. Kelly : Are the two linked?
Mr D.T. REDMAN : I find it staggering that the member for
Bassendean stands on the high moral ground by claiming what we should be
responding to as far as the ERA report goes, and then does not support a piece
of information that the ERA recommended to government.
Mr D.J. Kelly : They are two distinct issues.
The SPEAKER : Member for Bassendean!
Mr D.T. REDMAN : I make the point that prior to this year,
the government has not raised the level of water and wastewater charges to
those recommended by the ERA. If we were to follow its recommendations, we
would have a really volatile price structure that government and customers
would have to respond to. We have been very cautious in ensuring that if prices
rise, as they have done over time, we smooth them out and make sure it is not
volatile to changes in the market conditions, which is what the ERA uses to
recommend price structures to government.
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