Council profits can fund water bill rebates

The Gold Coast City Council could rebate $100 to each household to help pay water bills and would still have more than $70 million left over from the profits of their water business AllConnex.

Energy and Water Utilities Minister Stephen Robertson revealed the figures today as he urged Gold Coast residents to launch their own “Campaign 100’’ to ensure Gold Coast Mayor Ron Clarke honours his promise and returns some of the council’s water profits to ratepayers.

Mr Robertson said a $100 water rebate for Gold Coast households was totally justified after Allconnex Water chief executive Kim Wood admitted today that the Gold Coast City Council profit from the council-owned water business would be “higher than expected this year”.

Mr Robertson said it was only fair for GCCC to give back a portion of the $98million it will make from water bills this year to Gold Coast ratepayers who have seen their latest AllConnex water and sewerage bills soar by more than 20 per cent.

“There's around about 220,000 residences on the Gold Coast. If the Gold Coast Mayor approved a $100 rebate to each of those residences, that would cost the Council no more than $25 million.

“That would still leave them with more than $70 million in profit they could put to other services,’’ Mr Robertson said.

“Moreton Bay Regional Council gave a water rebate to their ratepayers last year. There’s no reason why Gold Coast and other SEQ councils can’t follow that lead.

“Today I call on all residents concerned about rising water bills to launch a Campaign 100 and lobby their council for a $100 rebate on water bills.’’

Mr Robertson said the Government had been given a strong message on water bills from concerned residents at the Gold Coast Community Cabinet last Sunday and Monday.

“It is clear that people are hurting on the Gold Coast in terms of water prices. It is clear that they have no confidence in the Gold Coast City Council and it is clear that they have absolutely no confidence in their Mayor,’’ Mr Robertson said.

“The government understands the current pressure on household budgets and that’s why the Premier has asked me as Water Utilities Minister to look at what additional measures the Government might be able to do to further curb the profiteering that some councils are doing in water.’’

Mr Robertson said the Government had been open and transparent about its bulk water prices.

“The State Government sold water to the councils last year for a $407 million loss. Councils are making profits from water with council water and sewerage charges making up 75 percent of the average household water bill,” he said.

Mr Robertson said if residents disagreed with their latest water bill, they should approach their retailer in the first instance.

“If they are not happy with the outcome, they can contact the Government’s new water and energy ombudsman whose office has the power to investigate disputes between customers and water providers,’’ he said.

Mr Robertson said the government offered a number of other initiatives to help offset rising water bills.

These include:

·Increasing the pensioner rebate to $100

·Introducing legislation that makes sure councils issue water bills that are easy to understand

·Those bills should make it clear what is being charged for water and sewerage services.

BACKGROUND

Gold Coast Bulletin (22/09/10) Cr Clarke said: “…. I will seek to pass a resolution for council to pay all dividends received from Allconnex back to our ratepayers via a credit based water usage.”

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