Question regarding the increase in water charges for low water users due to the Kwinana desalination plant. The Minister refutes the claim of a 60% increase in one year, stating the increase will be phased in over 10 years.

AnsweredQoN 178Legislative Assembly
Asked
8 May 2007
Portfolio
Water Resources

QuestionView source ↗

WATER CHARGES
I have a supplementary question. In view of what I think was the minister’s admission that the minimum water charge would increase to something like 80c or more a kilolitre, and given that the first 150 kilolitres are now charged at 49.3c, will he admit that the cost of water for low water users will increase by in excess of 60 per cent? Mr J.C. KOBELKE

AnswerView source ↗

The member is deriving his percentage from a process that will cover 10 years. I have already indicated that it will take eight to 10 years to bring in the new regime. Several members interjected. The SPEAKER : Order! People who did not hear what the minister said the first time should listen to what the minister is saying the second time so that he does not have to say it a third time. Mr J.C. KOBELKE : I will repeat myself for the benefit of the member. Prior to the construction of the Kwinana seawater desalination plant, this government made it absolutely clear that there would be an extra cost on the use of that water. It was made clear in the figures of two years ago that the average increase in the cost of water would be approaching $50 a year. We took the recommendation of the Economic Regulation Authority to phase that in over quite a large number of years. We did not hit the people with the whole lot in one year. That means that over that 10-year phase-in period we will see an increase each year above the CPI to meet the extra cost of bringing on that water. To say it is a 60 per cent increase in one year when we are talking about a 10-year period is absolute nonsense.
Mr J.C. KOBELKE replied: The member is deriving his percentage from a process that will cover 10 years. I have already indicated that it will take eight to 10 years to bring in the new regime. Several members interjected. The SPEAKER : Order! People who did not hear what the minister said the first time should listen to what the minister is saying the second time so that he does not have to say it a third time. Mr J.C. KOBELKE : I will repeat myself for the benefit of the member. Prior to the construction of the Kwinana seawater desalination plant, this government made it absolutely clear that there would be an extra cost on the use of that water. It was made clear in the figures of two years ago that the average increase in the cost of water would be approaching $50 a year. We took the recommendation of the Economic Regulation Authority to phase that in over quite a large number of years. We did not hit the people with the whole lot in one year. That means that over that 10-year phase-in period we will see an increase each year above the CPI to meet the extra cost of bringing on that water. To say it is a 60 per cent increase in one year when we are talking about a 10-year period is absolute nonsense.
The member is deriving his percentage from a process that will cover 10 years. I have already indicated that it will take eight to 10 years to bring in the new regime. Several members interjected. The SPEAKER : Order! People who did not hear what the minister said the first time should listen to what the minister is saying the second time so that he does not have to say it a third time. Mr J.C. KOBELKE : I will repeat myself for the benefit of the member. Prior to the construction of the Kwinana seawater desalination plant, this government made it absolutely clear that there would be an extra cost on the use of that water. It was made clear in the figures of two years ago that the average increase in the cost of water would be approaching $50 a year. We took the recommendation of the Economic Regulation Authority to phase that in over quite a large number of years. We did not hit the people with the whole lot in one year. That means that over that 10-year phase-in period we will see an increase each year above the CPI to meet the extra cost of bringing on that water. To say it is a 60 per cent increase in one year when we are talking about a 10-year period is absolute nonsense.
Several members interjected. The SPEAKER : Order! People who did not hear what the minister said the first time should listen to what the minister is saying the second time so that he does not have to say it a third time. Mr J.C. KOBELKE : I will repeat myself for the benefit of the member. Prior to the construction of the Kwinana seawater desalination plant, this government made it absolutely clear that there would be an extra cost on the use of that water. It was made clear in the figures of two years ago that the average increase in the cost of water would be approaching $50 a year. We took the recommendation of the Economic Regulation Authority to phase that in over quite a large number of years. We did not hit the people with the whole lot in one year. That means that over that 10-year phase-in period we will see an increase each year above the CPI to meet the extra cost of bringing on that water. To say it is a 60 per cent increase in one year when we are talking about a 10-year period is absolute nonsense.
The SPEAKER : Order! People who did not hear what the minister said the first time should listen to what the minister is saying the second time so that he does not have to say it a third time. Mr J.C. KOBELKE : I will repeat myself for the benefit of the member. Prior to the construction of the Kwinana seawater desalination plant, this government made it absolutely clear that there would be an extra cost on the use of that water. It was made clear in the figures of two years ago that the average increase in the cost of water would be approaching $50 a year. We took the recommendation of the Economic Regulation Authority to phase that in over quite a large number of years. We did not hit the people with the whole lot in one year. That means that over that 10-year phase-in period we will see an increase each year above the CPI to meet the extra cost of bringing on that water. To say it is a 60 per cent increase in one year when we are talking about a 10-year period is absolute nonsense.
Mr J.C. KOBELKE : I will repeat myself for the benefit of the member. Prior to the construction of the Kwinana seawater desalination plant, this government made it absolutely clear that there would be an extra cost on the use of that water. It was made clear in the figures of two years ago that the average increase in the cost of water would be approaching $50 a year. We took the recommendation of the Economic Regulation Authority to phase that in over quite a large number of years. We did not hit the people with the whole lot in one year. That means that over that 10-year phase-in period we will see an increase each year above the CPI to meet the extra cost of bringing on that water. To say it is a 60 per cent increase in one year when we are talking about a 10-year period is absolute nonsense.

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