Hunter and Central Coast Water Price Investigation Nobbled by State Government Interference

Saturday, 19 July 2008 00:49

TEC Urban Campaigner Mr Leigh Martin said “With Hunter Water proposing a new dam that will require massive prices increases for Hunter and Central Coast customers any investigation should consider whether the dam is needed and the price rises justified. The government, however, has nobbled the IPART review by preventing the Tribunal from considering this key question”.

IPART commenced its inquiry to set Hunter and Central Coast water prices for the next three to five years. Normal practice is for water agencies to be required to demonstrate whether proposed capital expenditure is justified. A directive by the Minister for Water Utilities Nathan Rees, however, has restricted the Tribunal to considering only the most cost effective way to build and operate the dam and prevents any consideration of whether it is even needed in the first place.

“With Hunter Water storages close to full despite the worst drought on record and Gosford-Wyong water securing its supply through the Mardi-Mangrove pipeline any proper investigation would conclude that Tillegra Dam is an expensive and environmentally damaging white elephant,” Mr Martin said.

TEC has labelled the Ministerial directive a serious assault on the independence of the pricing tribunal and a travesty of the IPART process.

“It makes a mockery of IPART’s independence and the price setting process if the government can effectively ensure it gets the outcome it wants. Hunter and Central Coast residents can have little confidence in the result of this review and can expect to pay a heavy price through their water bills in coming years unless the Government abandons this interference,” Mr Martin said.