❓ Mr. Kelly questions the Water Corporation's increased dividend to the government despite reported capital expenditure shortfalls and the CEO's pay increase exceeding government policy. The Minister explains the dividend increase is due to increased developer contributions, non-standard work, and efficiency drives, while the CEO's pay is the board's responsibility.
AnsweredQoN 659Legislative Assembly
QuestionView source ↗
WATER CORPORATION — ANNUAL REPORT
659. Mr D.J. KELLY to the Minister for
Water:
I refer to the Water Corporation's
annual report, which shows a $105 million, or 75 per cent, increase from last
year in net dividends to government, and previous reports of shortfalls in
capital expenditure of $900 million.
(1) How can there
be a massive increase in the net dividend to government when the Water
Corporation says that there is a clear capital underspend?
(2) Why has the
government allowed the chief executive officer of Water Corporation a 3.2 per cent
pay increase in excess of the government's wages policy?
659. Mr D.J. KELLY to the Minister for
Water:
I refer to the Water Corporation's
annual report, which shows a $105 million, or 75 per cent, increase from last
year in net dividends to government, and previous reports of shortfalls in
capital expenditure of $900 million.
(1) How can there
be a massive increase in the net dividend to government when the Water
Corporation says that there is a clear capital underspend?
(2) Why has the
government allowed the chief executive officer of Water Corporation a 3.2 per cent
pay increase in excess of the government's wages policy?
AnswerView source ↗
(1) This is
something that is raised every year when the Water Corporation's annual
report is tabled; there is usually a question about the dividend that is paid.
We prefer to talk about the net accrual to government, and that is exactly what
the member is referring to. The net accrual to government was larger than
anticipated; the member is quite correct. The reason is related to the fact
that there has been a significant increase in developer contributions over the
previous year. There has also been an increase in the amount of non-standard
work. The corporation has done some work for the federal government, for
instance, on the Cocos (Keeling) Islands and Christmas Island, which would not
have been anticipated when the original document was created. The Water
Corporation also has an ongoing program of efficiencies, so it is continually
trying to drive down its operating expenditure within the organisation to
ensure that taxpayers get the best value for dollar in the work that it carries
out on behalf of the government and the taxpayer. It has had a decrease in its
operating expenditure, and that all leads to an increase in the net accrual to
government. That is the explanation that has been provided to me, and it is a
good thing. When that net accrual, that dividend, comes back to government, we
spend it on vital infrastructure and services for the people of Western
Australia. We are talking about investment in teachers, nurses, hospitals and
valuable infrastructure and services across the state.
(2) In answer to
the member's question about the increase in the CEO's salary,
it is actually the board that sets the CEO's salary; I have no
responsibility in that space. The board has responsibility for executive pay,
and the executive pay would have been part of an enterprise bargaining
agreement that was signed long before I was minister. My advice to the board
going forward is that it needs to be cognisant of the financial circumstances
we find ourselves in in this state when it makes its determinations.
something that is raised every year when the Water Corporation's annual
report is tabled; there is usually a question about the dividend that is paid.
We prefer to talk about the net accrual to government, and that is exactly what
the member is referring to. The net accrual to government was larger than
anticipated; the member is quite correct. The reason is related to the fact
that there has been a significant increase in developer contributions over the
previous year. There has also been an increase in the amount of non-standard
work. The corporation has done some work for the federal government, for
instance, on the Cocos (Keeling) Islands and Christmas Island, which would not
have been anticipated when the original document was created. The Water
Corporation also has an ongoing program of efficiencies, so it is continually
trying to drive down its operating expenditure within the organisation to
ensure that taxpayers get the best value for dollar in the work that it carries
out on behalf of the government and the taxpayer. It has had a decrease in its
operating expenditure, and that all leads to an increase in the net accrual to
government. That is the explanation that has been provided to me, and it is a
good thing. When that net accrual, that dividend, comes back to government, we
spend it on vital infrastructure and services for the people of Western
Australia. We are talking about investment in teachers, nurses, hospitals and
valuable infrastructure and services across the state.
(2) In answer to
the member's question about the increase in the CEO's salary,
it is actually the board that sets the CEO's salary; I have no
responsibility in that space. The board has responsibility for executive pay,
and the executive pay would have been part of an enterprise bargaining
agreement that was signed long before I was minister. My advice to the board
going forward is that it needs to be cognisant of the financial circumstances
we find ourselves in in this state when it makes its determinations.
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