Published Tuesday, 13 March, 2007 at 11:55 AM
Deputy Premier, Treasurer and Minister for Infrastructure
The Honourable Anna Bligh
BLIGH SLASHES WATER PRICE INCREASES
March 13, 2007
The State Government will forgo $1.5 billion in projected water revenues over the next 10 years to slash proposed water price rises for south east Queensland consumers, Deputy Premier and Treasurer Anna Bligh told Parliament today.
Ms Bligh said the Queensland Water Commission’s draft pricing advice released last Friday was based on the recovery of the full cost of the infrastructure over five years on a commercial basis, in accordance with the National Water Initiative principles.
But she said the unprecedented level of water infrastructure under development as part of the largest urban drought response in the nation’s history was of a magnitude well beyond anything envisaged under NWI.
“Preliminary Treasury analysis shows that lowering the rate of return on water assets from 7% to 4% and extending the price path from five years (as recommended by the QWC) to 10 would halve the price increase for SEQ households,” Ms Bligh said.
“It would mean that the average bill would increase from $350 to $525 in real terms (excluding normal inflation) over 5 years rather than to $733 under the Commission’s recommendations.
“That is a rise of less than 50 cents a day at a time the Government is delivering a $7billion-$9billion infrastructure package to drought-proof south east Queensland.”
Ms Bligh said she had made it clear last week that the Government considered the QWC’s proposed increase to be “too much, too soon”. “This is a much better result for consumers.”
She called on Prime Minister John Howard to match Opposition Leader Kevin Rudd’s pledge to contribute $408 million towards the $1.7 billion Western Corridor Recycled Water Pipeline. “That would further reduce the cost to be passed on to households.”
Ms Bligh advised SEQ mayors who are playing political games over proposed prices rise to take a leaf out of the State Government’s book and investigate what cost savings they could pass on to their ratepayers.
“If councils followed our commitment, and reduced their return on investment for new water infrastructure, consumers would pay less still,” Ms Bligh said.
Contact: Deputy Premier’s Office 3224 6900
The State Government will forgo $1.5 billion in projected water revenues over the next 10 years to slash proposed water price rises for south east Queensland consumers, Deputy Premier and Treasurer Anna Bligh told Parliament today.
Ms Bligh said the Queensland Water Commission’s draft pricing advice released last Friday was based on the recovery of the full cost of the infrastructure over five years on a commercial basis, in accordance with the National Water Initiative principles.
But she said the unprecedented level of water infrastructure under development as part of the largest urban drought response in the nation’s history was of a magnitude well beyond anything envisaged under NWI.
“Preliminary Treasury analysis shows that lowering the rate of return on water assets from 7% to 4% and extending the price path from five years (as recommended by the QWC) to 10 would halve the price increase for SEQ households,” Ms Bligh said.
“It would mean that the average bill would increase from $350 to $525 in real terms (excluding normal inflation) over 5 years rather than to $733 under the Commission’s recommendations.
“That is a rise of less than 50 cents a day at a time the Government is delivering a $7billion-$9billion infrastructure package to drought-proof south east Queensland.”
Ms Bligh said she had made it clear last week that the Government considered the QWC’s proposed increase to be “too much, too soon”. “This is a much better result for consumers.”
She called on Prime Minister John Howard to match Opposition Leader Kevin Rudd’s pledge to contribute $408 million towards the $1.7 billion Western Corridor Recycled Water Pipeline. “That would further reduce the cost to be passed on to households.”
Ms Bligh advised SEQ mayors who are playing political games over proposed prices rise to take a leaf out of the State Government’s book and investigate what cost savings they could pass on to their ratepayers.
“If councils followed our commitment, and reduced their return on investment for new water infrastructure, consumers would pay less still,” Ms Bligh said.
Contact: Deputy Premier’s Office 3224 6900