Hon Wendy Duncan questions the WA government's planned water charge increases for regional commercial customers, citing concerns about cost recovery, regional development policy contravention, and potential impact on residential users. The Minister acknowledges the concerns, highlighting subsidies and the impact of climate change on water costs.

AnsweredQoN 456Legislative Council
Asked
14 May 2008
Portfolio
Water Resources

QuestionView source ↗

COMMERCIAL WATER CHARGES — REGIONAL CUSTOMERS
I refer to the minister’s recent announcement of planned increases in commercial water charges for country customers ranging from 58 per cent to 107 per cent over the next five years for key south west and Great Southern communities. (1) Why is the government intent on targeting regional communities with such severe price hikes when country commercial users are already paying about double the amount of their Perth counterparts? (2) Why is the government insisting on full cost recovery for every utility given its so-called commitment to “ensure that recommendations made by the Economic Regulation Authority fully consider the needs of regional residents and businesses”? (3) Can the minister explain why these changes were made in contravention of the government’s regional development policy, which states that “the government has firmly committed to the principle of uniform energy tariffs and water prices to ensure that the cost and availability of energy and water enhances regional Western Australia’s economic competitiveness”? (4) Can the minister guarantee that this commercial increase is not just the thin end of the wedge to the introduction of cost recovery for all residential water users? Hon KIM CHANCE

AnswerView source ↗

I thank Hon Wendy Duncan for providing notice of the question. There is one word that I am not sure of so I will give two versions in the answer. (1) The government is targeting very substantial community service obligations to help subsidise the cost of country water. I am not sure of the word “very”. It could have been intended that that read “every” substantial CSO. I am not too sure about that part of the answer. (2)-(4) With climate change and reduced rainfall, there is no way we can escape people’s water bills reflecting the cost of providing water. This is leading to increased water costs right across the state, both regionally and in the metropolitan area. The Carpenter government is very cognisant of not disadvantaging people living in rural areas. To that purpose, this year’s state budget contains subsidies of $301 million to keep down the cost of water and waste water services in regional areas of Western Australia.
(1) Why is the government intent on targeting regional communities with such severe price hikes when country commercial users are already paying about double the amount of their Perth counterparts? (2) Why is the government insisting on full cost recovery for every utility given its so-called commitment to “ensure that recommendations made by the Economic Regulation Authority fully consider the needs of regional residents and businesses”? (3) Can the minister explain why these changes were made in contravention of the government’s regional development policy, which states that “the government has firmly committed to the principle of uniform energy tariffs and water prices to ensure that the cost and availability of energy and water enhances regional Western Australia’s economic competitiveness”? (4) Can the minister guarantee that this commercial increase is not just the thin end of the wedge to the introduction of cost recovery for all residential water users? Hon KIM CHANCE replied: I thank Hon Wendy Duncan for providing notice of the question. There is one word that I am not sure of so I will give two versions in the answer. (1) The government is targeting very substantial community service obligations to help subsidise the cost of country water. I am not sure of the word “very”. It could have been intended that that read “every” substantial CSO. I am not too sure about that part of the answer. (2)-(4) With climate change and reduced rainfall, there is no way we can escape people’s water bills reflecting the cost of providing water. This is leading to increased water costs right across the state, both regionally and in the metropolitan area. The Carpenter government is very cognisant of not disadvantaging people living in rural areas. To that purpose, this year’s state budget contains subsidies of $301 million to keep down the cost of water and waste water services in regional areas of Western Australia.
(2) Why is the government insisting on full cost recovery for every utility given its so-called commitment to “ensure that recommendations made by the Economic Regulation Authority fully consider the needs of regional residents and businesses”? (3) Can the minister explain why these changes were made in contravention of the government’s regional development policy, which states that “the government has firmly committed to the principle of uniform energy tariffs and water prices to ensure that the cost and availability of energy and water enhances regional Western Australia’s economic competitiveness”? (4) Can the minister guarantee that this commercial increase is not just the thin end of the wedge to the introduction of cost recovery for all residential water users? Hon KIM CHANCE replied: I thank Hon Wendy Duncan for providing notice of the question. There is one word that I am not sure of so I will give two versions in the answer. (1) The government is targeting very substantial community service obligations to help subsidise the cost of country water. I am not sure of the word “very”. It could have been intended that that read “every” substantial CSO. I am not too sure about that part of the answer. (2)-(4) With climate change and reduced rainfall, there is no way we can escape people’s water bills reflecting the cost of providing water. This is leading to increased water costs right across the state, both regionally and in the metropolitan area. The Carpenter government is very cognisant of not disadvantaging people living in rural areas. To that purpose, this year’s state budget contains subsidies of $301 million to keep down the cost of water and waste water services in regional areas of Western Australia.
(3) Can the minister explain why these changes were made in contravention of the government’s regional development policy, which states that “the government has firmly committed to the principle of uniform energy tariffs and water prices to ensure that the cost and availability of energy and water enhances regional Western Australia’s economic competitiveness”? (4) Can the minister guarantee that this commercial increase is not just the thin end of the wedge to the introduction of cost recovery for all residential water users? Hon KIM CHANCE replied: I thank Hon Wendy Duncan for providing notice of the question. There is one word that I am not sure of so I will give two versions in the answer. (1) The government is targeting very substantial community service obligations to help subsidise the cost of country water. I am not sure of the word “very”. It could have been intended that that read “every” substantial CSO. I am not too sure about that part of the answer. (2)-(4) With climate change and reduced rainfall, there is no way we can escape people’s water bills reflecting the cost of providing water. This is leading to increased water costs right across the state, both regionally and in the metropolitan area. The Carpenter government is very cognisant of not disadvantaging people living in rural areas. To that purpose, this year’s state budget contains subsidies of $301 million to keep down the cost of water and waste water services in regional areas of Western Australia.
(4) Can the minister guarantee that this commercial increase is not just the thin end of the wedge to the introduction of cost recovery for all residential water users? Hon KIM CHANCE replied: I thank Hon Wendy Duncan for providing notice of the question. There is one word that I am not sure of so I will give two versions in the answer. (1) The government is targeting very substantial community service obligations to help subsidise the cost of country water. I am not sure of the word “very”. It could have been intended that that read “every” substantial CSO. I am not too sure about that part of the answer. (2)-(4) With climate change and reduced rainfall, there is no way we can escape people’s water bills reflecting the cost of providing water. This is leading to increased water costs right across the state, both regionally and in the metropolitan area. The Carpenter government is very cognisant of not disadvantaging people living in rural areas. To that purpose, this year’s state budget contains subsidies of $301 million to keep down the cost of water and waste water services in regional areas of Western Australia.
Hon KIM CHANCE replied: I thank Hon Wendy Duncan for providing notice of the question. There is one word that I am not sure of so I will give two versions in the answer. (1) The government is targeting very substantial community service obligations to help subsidise the cost of country water. I am not sure of the word “very”. It could have been intended that that read “every” substantial CSO. I am not too sure about that part of the answer. (2)-(4) With climate change and reduced rainfall, there is no way we can escape people’s water bills reflecting the cost of providing water. This is leading to increased water costs right across the state, both regionally and in the metropolitan area. The Carpenter government is very cognisant of not disadvantaging people living in rural areas. To that purpose, this year’s state budget contains subsidies of $301 million to keep down the cost of water and waste water services in regional areas of Western Australia.
I thank Hon Wendy Duncan for providing notice of the question. There is one word that I am not sure of so I will give two versions in the answer. (1) The government is targeting very substantial community service obligations to help subsidise the cost of country water. I am not sure of the word “very”. It could have been intended that that read “every” substantial CSO. I am not too sure about that part of the answer. (2)-(4) With climate change and reduced rainfall, there is no way we can escape people’s water bills reflecting the cost of providing water. This is leading to increased water costs right across the state, both regionally and in the metropolitan area. The Carpenter government is very cognisant of not disadvantaging people living in rural areas. To that purpose, this year’s state budget contains subsidies of $301 million to keep down the cost of water and waste water services in regional areas of Western Australia.
(1) The government is targeting very substantial community service obligations to help subsidise the cost of country water. I am not sure of the word “very”. It could have been intended that that read “every” substantial CSO. I am not too sure about that part of the answer. (2)-(4) With climate change and reduced rainfall, there is no way we can escape people’s water bills reflecting the cost of providing water. This is leading to increased water costs right across the state, both regionally and in the metropolitan area. The Carpenter government is very cognisant of not disadvantaging people living in rural areas. To that purpose, this year’s state budget contains subsidies of $301 million to keep down the cost of water and waste water services in regional areas of Western Australia.
(2)-(4) With climate change and reduced rainfall, there is no way we can escape people’s water bills reflecting the cost of providing water. This is leading to increased water costs right across the state, both regionally and in the metropolitan area. The Carpenter government is very cognisant of not disadvantaging people living in rural areas. To that purpose, this year’s state budget contains subsidies of $301 million to keep down the cost of water and waste water services in regional areas of Western Australia.

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