Average Redlanders face water prices rise of $30 a year, recommends report

PROPOSED water price rises were becoming unsustainable for local businesses and residents, according to Oodgeroo MP Mark Robinson.

The Queensland Competition Authority report on bulk water prices had recommended a price increase of over 9 per cent or $88 more over three years for Redlanders.

“This price hike makes our water increases the largest in south-east Queensland,” Mr Robinson said.

“Labor are the enemy of small business and all those struggling to pay their bills.

“On the Gold Coast (Commonwealth Games) trading should be buoyant for small businesses but Labor’s poor planning and a careless attitude toward small businesses has wreaked havoc.

“Likewise Redlands businesses will suffer further from Labor’s mistakes, with the latest price hike to water bills.

“This is just another example of Labor’s mismanagement of the economy, with rising unemployment and debt and no answers to ease the cost of living pressures of everyday Queenslanders.”

Mr Robinson said businesses had to make ends meet to survive, so they had to pass on higher costs to consumers or cut staff, resulting in job losses.

“They cannot just go out and borrow more money as Labor governments do,” he said.

EARLIER:

THE opposition has accused the state government of misleading consumers over rising water prices as Redlanders face a 9.3 per cent increase.

Opposition treasury spokesman Tim Mander said the government had promised that water bills would not increase yet south-east Queenslanders faced major price rises over the next three years.

The Queensland Competition Authority has recommended residents pay on average $50 to $90 more for their water which is three to five times the inflation rate. 

Mr Mander said that before the election Labor said: “There was no expectation that lower water consumption by SEQ consumers inevitably meant higher water bills. The price impact from lower demand will largely be offset by continued cost savings.”

Mr Mander said the government knew the price hike was coming but buried its announcement until the middle of the Commonwealth Games.

The government determines bulk water prices across the 11 SEQ council areas and last year directed the QCA to review costs and recommend prices.

QCA chairman Professor Roy Green said bulk water charges accounted for about 30 per cent of an average household’s water and sewerage bill.

Historically water prices had varied from council to council but a single common price for a kilolitre (1000 litres) was expected to apply by the end of the decade.

“Eight of the councils in SEQ have already reached the common price, with the Sunshine Coast, Noosa and Redland city needing to make up some more ground,” Professor Green said.

“The state government has asked the QCA to present two pricing options, one that would see the common price reached by all councils in 2019-20 and another where the common price would be reached in 2020-21.

“Under the first option, the price for Sunshine Coast and Noosa would increase by 8 per cent in 2018-19, 7.4 per cent in 2019-20 and 2.5 per cent in 2020-21, while the price for Redland city would rise by 9.3 per cent, 8.5 per cent and 2.5 per cent.

“Under this option, the bulk water component of an average household’s bill in Redland city would be $38.08 for each of the first two years and $12 in 2020-21.

“Under the second option, the common price applying to the group of eight councils would rise by 3.5 per cent in each of the three years, resulting in increases for the average household of $16 to $17 each year.

“The second option would provide more gradual increases for the other three council areas – over a three-year span instead of two – with Sunshine Coast and Noosa seeing price increases of 6.5 per cent, 6.1 per cent and 5.7 per cent, while Redland city consumers would see rises of 7.3 per cent, 6.8 per cent and 6.4 per cent.

“This would see average households facing increases of about … $30 each year for Redland City.”

Professor Green said that, in response to severe drought, the government took control of bulk water supply from councils in 2008.

The state government is yet to decide whether to accept QCA recommendations.

In February, Redland mayor Karen Williams said council would support the second option.