❓ Mr. Kelly questions the Minister for Water regarding water loss reported by the Auditor General, funding cuts to the Water Corporation, and the effectiveness of the 'Fresh Water Thinking' campaign. The Minister defends the government's actions, citing efficiencies and ongoing investment in infrastructure.
AnsweredQoN 21Legislative Assembly
QuestionView source ↗
WATER CORPORATION — AUDITOR GENERAL'S
REPORT
21. Mr D.J. KELLY to the
Minister for Water:
I refer to the report released by the Auditor General today
that shows that the Water Corporation lost 43 billion litres of water in 2012–13.
The report also states that the scale of the water loss will diminish its
credibility as an advocate of water saving amongst its customers.
(1) Why has
the minister's government ripped over $350 million from the asset
investment program for the Water Corporation?
(2) Why did
the government spend $1.5 million on its Fresh Water Thinking campaign asking
customers to save water when the Water Corporation itself is losing so much
water?
(3) How much
will people's water bills increase due to the government's
refusal to adequately manage its own agency?
REPORT
21. Mr D.J. KELLY to the
Minister for Water:
I refer to the report released by the Auditor General today
that shows that the Water Corporation lost 43 billion litres of water in 2012–13.
The report also states that the scale of the water loss will diminish its
credibility as an advocate of water saving amongst its customers.
(1) Why has
the minister's government ripped over $350 million from the asset
investment program for the Water Corporation?
(2) Why did
the government spend $1.5 million on its Fresh Water Thinking campaign asking
customers to save water when the Water Corporation itself is losing so much
water?
(3) How much
will people's water bills increase due to the government's
refusal to adequately manage its own agency?
AnswerView source ↗
(1)–(3)
I thank the member for the question. There are a couple of issues in there.
Obviously, we have seen the report from the Auditor General handed down today,
and we have had a short opportunity to go through it. Our view at the moment is
that it is generally positive, but with some constructive recommendations. As
always, we welcome the interest of the Auditor General in our business. There
is no doubt that the people of Western Australia have every right to understand
that we are managing a very precious resource effectively and efficiently. The
Water Corporation and its business are incredibly complex. It delivers over 350
billion litres of high-quality drinking water across a very large area. In
fact, it is one of the biggest areas in terms of its spread; it is over more
than 2.5 million square kilometres. We operate over 33 000 kilometres of water
mains, and that is in addition to the sewer mains, the wastewater treatment
plants and the wastewater pumps. It is a complex business. When we look at what
the Auditor General has made recommendations around, we see that it is generally
positive. There are some constructive recommendations.
Several members interjected.
The SPEAKER :
Member for West Swan, I call you to order for the first time. I ask you, the
member for Cannington and the member for Warnbro to stop continually making
snide comments amongst yourselves while people are speaking. It does not escape
my attention.
Ms M.J. DAVIES :
Thank you, Mr Speaker.
I think we have a good track record. I am pleased to note
that the Auditor General acknowledged in the report, despite the high-profile
burst we had in Wellington Street last year, that our overall rate of leaks and
breaks is the lowest when compared with 10 other water utilities that are
approximately the same. We are always within the operating licence that we
operate under and we comply with those standards and have done so for the past
five years at least.
The member spoke about the fact that we ripped funding out of
the asset investment program. I am assuming that he is referring to the numbers
in the midyear review. I can state today that there have absolutely not been
any cancellations or deferrals of programs in our maintenance or operation
programs. The same programs will be delivered at a reduced cost. This
government is about finding efficiencies within the budgets that we already
have; we are delivering the same projects. There are three factors that
influence the numbers that have come through the midyear review that the member
was referring to. It is about the rate of inflation when the budget was first
devised and those rates of inflation are now lower. We have also seen some
changes in the economy, which means we found some efficiencies in the
contractors and the suppliers that we will be utilising over the forward
estimates. Again, I put on record that the Water Corporation is consistently
looking to find efficiencies.
Several members interjected.
The
SPEAKER : Members!
Ms
M.J. DAVIES : They are clearly not interested in the answer.
What I am trying to impress is that the Water Corporation is
constantly looking for efficiencies with its own organisation so that it can
deliver better value for money to the taxpayers. I am 100 per cent behind the
Fresh Water Thinking campaign; it is absolutely right and proper that we
encourage people in the drying Western Australian climate to work towards
reducing our use in our households and industry. There are some comments in the
Auditor General's report about improving our rate of leaks and bursts.
I am told the Water Corporation has made an increase in its asset investment
program from $9 million up to $44 million a year. Therefore, we have already
started to address some of the issues that have been identified in that report.
I am very confident that we will be able to work constructively through those
recommendations and that we will be able to meet the time lines that the
Auditor General suggested in his recommendations.
I thank the member for the question. There are a couple of issues in there.
Obviously, we have seen the report from the Auditor General handed down today,
and we have had a short opportunity to go through it. Our view at the moment is
that it is generally positive, but with some constructive recommendations. As
always, we welcome the interest of the Auditor General in our business. There
is no doubt that the people of Western Australia have every right to understand
that we are managing a very precious resource effectively and efficiently. The
Water Corporation and its business are incredibly complex. It delivers over 350
billion litres of high-quality drinking water across a very large area. In
fact, it is one of the biggest areas in terms of its spread; it is over more
than 2.5 million square kilometres. We operate over 33 000 kilometres of water
mains, and that is in addition to the sewer mains, the wastewater treatment
plants and the wastewater pumps. It is a complex business. When we look at what
the Auditor General has made recommendations around, we see that it is generally
positive. There are some constructive recommendations.
Several members interjected.
The SPEAKER :
Member for West Swan, I call you to order for the first time. I ask you, the
member for Cannington and the member for Warnbro to stop continually making
snide comments amongst yourselves while people are speaking. It does not escape
my attention.
Ms M.J. DAVIES :
Thank you, Mr Speaker.
I think we have a good track record. I am pleased to note
that the Auditor General acknowledged in the report, despite the high-profile
burst we had in Wellington Street last year, that our overall rate of leaks and
breaks is the lowest when compared with 10 other water utilities that are
approximately the same. We are always within the operating licence that we
operate under and we comply with those standards and have done so for the past
five years at least.
The member spoke about the fact that we ripped funding out of
the asset investment program. I am assuming that he is referring to the numbers
in the midyear review. I can state today that there have absolutely not been
any cancellations or deferrals of programs in our maintenance or operation
programs. The same programs will be delivered at a reduced cost. This
government is about finding efficiencies within the budgets that we already
have; we are delivering the same projects. There are three factors that
influence the numbers that have come through the midyear review that the member
was referring to. It is about the rate of inflation when the budget was first
devised and those rates of inflation are now lower. We have also seen some
changes in the economy, which means we found some efficiencies in the
contractors and the suppliers that we will be utilising over the forward
estimates. Again, I put on record that the Water Corporation is consistently
looking to find efficiencies.
Several members interjected.
The
SPEAKER : Members!
Ms
M.J. DAVIES : They are clearly not interested in the answer.
What I am trying to impress is that the Water Corporation is
constantly looking for efficiencies with its own organisation so that it can
deliver better value for money to the taxpayers. I am 100 per cent behind the
Fresh Water Thinking campaign; it is absolutely right and proper that we
encourage people in the drying Western Australian climate to work towards
reducing our use in our households and industry. There are some comments in the
Auditor General's report about improving our rate of leaks and bursts.
I am told the Water Corporation has made an increase in its asset investment
program from $9 million up to $44 million a year. Therefore, we have already
started to address some of the issues that have been identified in that report.
I am very confident that we will be able to work constructively through those
recommendations and that we will be able to meet the time lines that the
Auditor General suggested in his recommendations.
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