$7.4M POURS OUT

Consultants’ bill surges by $2.2m in just one year

THE region’s water body spent more than $7.4 million on consultancies worth $10,000 or more last financial year, a jump of more than $2.2 million on 2016-17.

Barwon Water’s annual report revealed that “in 2017-18, there were 87 consultancies where the total fees payable to the consultants were $10,000 or greater.”

“The total expenditure incurred during 2017-18 in relation to these consultancies was $7,459,860 (excluding GST),” it said.

Barwon Water Managing Director Tracey Slatter said 2017-18 “was an unusual year because Barwon Water had to undertake its five-year price submission and it was the year we acquired Barwon Asset Solutions … to deliver our maintenance services locally”. She said this financial year Barwon Water was projecting to spend $5.9 million on consultancies.

In 2016-17, there were 73 consultancies where the total fees payable to the consultants were $10,000 or greater, the previous annual report said.

The total expenditure incurred in relation to the consultancies $5,256,548, excluding GST.

Barwon Water’s total operating expenses for 2017-18 were $216 million, a revenue increase of $18 million.

“Barwon Water spent $7,459,860 on consultancy fees, about $6 million of this was on business operational requirements, including work on infrastructure projects, environmental studies, risk assessments and other regulatory activities,” Ms Slatter said.

“We assess our project portfolio each year and how best to resource this cost effectively.”

Ms Slatter said they were pleased with the Barwon Asset Solutions acquisition.

“Barwon Asset Solutions is now a 100 per cent locally based maintenance services company that will ensure local skills, knowledge and experience are kept in our region”.

“Importantly, it will ensure the most efficient and costeffective way of delivering Barwon Water’s maintenance services, which will help to keep our customers’ bills low.”

The annual report said “Barwon Asset Solutions replaced our previous partnership with Perth-based company Programmed Facilities Management”.

“We’re extremely pleased that all Programmed employees transitioned to Barwon Asset Solutions,” it said.

About $800,000 was spent on consultancies fees establishing Barwon Asset Solutions, Barwon Water said.

Ms Slatter said the “other one-off project that does not attract yearly spend was the preparation of our Price Submission, which sets our prices for the next five years”.

“Barwon Water undertook an extensive 18-month community-engagement program to ensure our prices and priorities reflect the values and aspirations of our community,” she said.

“As a result of this process, the average bill for the average customer will increase by less than half a per cent over the next four years.”

The price submission had consultancies fees of about $400,000, Barwon Water said.

“Another project that has attracted greater consultancy requirements in the shortterm, but will deliver long- term benefit for our customers, is our innovative program (to) redevelop our surplus land assets to gain greater financial return,” Ms Slatter said.

“In 2017-18 we continued to deliver strong and financially sustainable results — operating within our allocated budget and reducing debt — while at the same time continuing our commitment to keeping prices low and delivering affordable water services to our customers,” Ms Slatter said.