A Dunsborough business owner and Vasse MLA Libby Mettam have criticised recent Water Corporation increases for non-residential consumption.
Whalers Cove Villas manager Tony Miller said he couldn’t understand the significant difference businesses in Dunsborough were charged compared to Busselton, which were serviced by Busselton Water.
“First we were notified of the six per cent increase across board from the budget, then they were putting us up a step, which equates to 15 per cent hike, and now they've alerted us we are going up to step 12 from nine, which is a 37 per cent increase, not allowing for further cost increases that next year the government might put on it,” he said.
“Excuse me, wages haven't gone up, they are not drilling more bores, not putting in more pipe work, they’ve cut staff so where is the justification for it.
“We are trying to maintain a lush looking garden, we water twice a week for 10 minutes and our owners still call us up and say is our meter wrong and it purely because of the cost per kilolitre, not the consumption. From my reading of Busselton Water, non-residential pay $1.70 a litre, not $6.50.”
Vasse MLA Libby Mettam said business owners in Dunsborough had every right to feel upset about the additional increases in the price of water.
“The reason the previous government supported Busselton Water Plan for Dunsborough consumption is that it would provide a more cost-effective and efficient way of delivering water for consumption, putting downward pressure on water pricing,” she said.
“We have seen Water Corporation consistently increase the rates for non-residential – in the case of Dunsborough, consumption was at step six in 2014-2015 and is heading now for 12, step 10 is $5.45. By comparison the commercial water rate for Busselton Water is currently at a flat $1.70 rate.”
“This does not include the 6 per cent increase as well, which is effectively price gouging, increasing the cost of water bill to pay for other costs within government.”
A Water Corporation spokesperson said in 2009 the state government introduced reforms so that water use charges for non-residential customers reflected the cost to operate and maintain infrastructure in each regional town.
“This is based on the principle that cost reflective prices encourage customers to use water wisely,” they said.
“Each town is assigned to one of 15 steps depending on the cost of supply, with step 15 being the highest cost to supply. When this pricing structure was introduced, some town water supply schemes were a long way from the step they should be in to reflect the cost of service.
“To minimise the impact on customers, town water supply schemes are moved incrementally (one step per year) towards the step that reflects their costs.
“In 2018-19, water use charges for non-residential customers in Dunsborough and Yallingup have moved up one step from a step nine to a step 10.”
The change now means non-residential customers in Dunsborough and Yallingup will pay $5.457 for 1,000 litres of water in 2018-19, whereas last financial year, they paid $4.727.
In May 2017, Water Minister Dave Kelly announced a proposed transfer of ownership of Dunsborough water and Busselton drainage assets from the Water Corporation to Busselton Water would not proceed.
His statement at the time said the previous government had indicated in-principle support for the proposal prior to fully considering a whole-of-government business case and investigations since the by Labor Government had revealed there would be significant financial and legal implications for the state.
Mr Kelly told the Mail the planned takeover would not have helped lower fees for users.
“It is important to note that the planned takeover would not have helped lower fees for users. Under the takeover proposed by the previous government, there was never a commitment to reduce water charges in the Dunsborough area.
“The fundamental problem with the takeover proposal was that Busselton Water was told by the previous government they would receive Water Corporation assets worth tens of millions of dollars for free.
“Ultimately that cost would have been met by all WA taxpayers.”
