Water costs to skyrocket

The State Government’s decision to acquire bulk water assets currently owned by councils, will have massive increases in future costs for the residents and ratepayers of this region.

Mayor Abbot said the increase in water costs is inevitable and Council now need to put plans in place to tackle the situation and help manage the impact.

“There can be no hiding from the fact that we are now in a position over the next 10 years that water prices will increase dramatically,” Cr Abbot said.

“Ratepayers will see an increase from the current 95 cents per kilolitre to $8.60 per kilolitre in this time.

“It is important that the community is fully aware of the costs associated with turning their taps on and the forecast of what is yet to come.

“The best thing we can do to help the community prepare for this impact is to work with them on more ways we can improve the conservation of water.

The Deputy Premier and Minister for Infrastructure and Planning has advised the Chief Executive Officer in writing that indicative bulk water charges to the Sunshine Coast region will increase each year reaching $2,755ML for 2017/18, or $3,444/ML if indexing for inflation is applied at the same rate as used by the State Government for 2008/09 and 2009/19. This means indicative bulk water charges will increase by 359% over the next 10 years.

Queensland Bulk Water Supply Authority (QBWSA), established to manage water catchments, dams and treatment in South East Queensland, now supplies council with bulk treated water (as of 1 July 2008) for distribution to ratepayers by Council’s water business.

However this will only be until 30 June 2010 when Council’s remaining water assets will be transferred to a new distribution company.

Council today resolved to engage in the establishment of an interim company in preparation for this transfer.

Regional Director of Finance and Corporate Services Greg Laverty said that this in an interim arrangement for Council where we will remain responsible for retail water pricing and service provision until the restructure of distribution and retail businesses occurs by 30 June 2010.

The interim arrangements will see each of the 10 SEQ Councils hold a single $1 share in the company. A new Shareholders Agreement and Constitution will be agreed to prior to 1 July 2010 to set the objectives of the operational distribution entity as well as the equity that each council will hold.

Between now and 1 July 2010 important work is underway to determine this Council's share in the company and how the company will provide services to our community and that of the broader South east Queensland.

In parallel we need to ensure the community is given time to prepare for the significant price increases by modifying its water usage behaviours.