SLIPPERY WHEN WET
Ratepayers slugged $188m in state water rort
GOLD Coast ratepayers are paying $25 million more to the State Government than five years ago just to drink their own water. Residents are expected to pay $188 million into state coffers this financial year, up 15.5 per cent on 2016-17. Ironically, much of the water comes from our back yard at Hinze Dam, which is 92 per cent full.
GOLD Coast ratepayers are paying $25 million more to the State Government than five years ago just to drink their own water.
A Bulletin investigation shows state bulk water charges have spiked 15.5 per cent since 2016-17. It means the Gold Coast City Council is expected to send $188 million north to William St in Brisbane this financial year for the liquid gold.
Ironically, the water mostly comes from the back yard of Gold Coast ratepayers at Hinze Dam, which is 92 per cent full.
While the state water bulk charges will increase another 3.72 per cent for households this year, the council is maintaining a freeze on its pricing component for a sixth year.
“Although the City is the water service provider, State Government Authority Seqwater owns the bulk water supply and manages all major water supply sources in southeast Queensland, including Hinze Dam and the Tugun Desalination Plant,” a council spokesperson said.
“The state bulk water charge is the wholesale price that Seqwater charges council for the purchase of drinking water, which is then passed directly through to customers.
“The City has budgeted $188,353,000 in the 2020-21 financial year for the purchase of bulk water – which equates to 60,331 megalitres. However, the total amount the City will pay to the State will fluctuate based on actual water usage.”
A search of council’s annual plans reveals:
In 2016-17, the average general rate and water bill for the year was $3347, an increase of 1.8 per cent. The state’s bulk water component was $493, an increase of 2.2 per cent.
In 2017-18, the average general rate and water bill was $3413, up 2 per cent. The state bulk water charge was $505, an increase of 2.6 per cent. This represented 72.1 per cent of the total consumption charges.
In 2018-19, the average general rate and water bill was $3481, a total increase of 2 per cent. The State Government water charge increased to $523, up 3.6 per cent, and represented 72.75 per cent of the total consumption charge.
In 2019-20, the average general rate and water bill was $3549 – a total increase of 1.95 per cent. The State’s water charge again increased to $541, up 3.44 per cent, representing 73.4 per cent of the bill.
In 2020-21, the average general rate and water bill is $3566, an increase of 0.47 per cent. The state water component again increased to $561, a 3.72 per cent boost. It was 74.12 per cent of the total consumption charge.
The Bulletin asked Seqwater why the different increases in bulk water supply had occurred, ranging from a low of 2 per cent to a 3.72 per cent hike in the next 12 months.
Seqwater says the bulk water price is set by the Queensland Government based on recommendations from the Queensland Competition Authority.
“This revenue allows Seqwater to operate the SEQ water grid and complete our capital works program and provide a safe, secure water supply,” a Seqwater spokesperson said.
“Our capital program includes the maintenance of key Gold Coast-based assets including the Gold Coast Desalination Plant, Hinze and Little Nerang dams and the Molendinar and Mudgeeraba water treatment plants.’’
The prices for July 1, 2018 to June 30, 2021 were implemented based on recommendations from the QCA, the spokesperson said.
On the back of a major public protest in July 2011, the council voted to dump water provider Allconnex at a cost of at least $67 million.
Allconnex was a thought bubble of the Beattie government in 2010 designed to “increase both the quality and the efficiency of water and wastewater services in southeast Queensland”.
But the water retailer sparked public outrage in 2010 when it jacked up Coast water prices by 20 per cent and proposed another rise of 15 per cent. Then ratepayers began complaining again after council went from biannual to quarterly bills for water.
The then mayor, Ron Clarke, questioned what the state did with its revenue from selling bulk water. He said his decision to support disconnecting Allconnex was on the understanding that revenue would be used to reduce rates.
Explaining the history of the costs, Mr Clarke said: “The State Government charges have been a bone of contention since they were first announced as they came without explanation how they differed between councils and regions.”