The State Government is standing firm against providing any concessions for agriculture in its new water-pricing strategy, despite some producers facing annual water bills of up to $100,000.
In the wake of an announcement that water prices in South Australia would increase by 26.3 per cent on average from July 1 to help fund key projects such as the State’s new desalination plant, Water Minister Paul Caica said the government acknowledged that the recent rises in water prices had placed pressure on large water consumers.
“While the government has not given specific concessions to large users, price increases for 2011-12 have focused more on fixed charges (such as the supply charge) rather than the second tier,” he said.
“Non-metropolitan customers pay annual water charges that are the same as those for metropolitan customers despite SA Water’s country operating, maintenance and capital costs being higher than those for the metropolitan area.
“The government pays an annual community service obligation payment to SA Water, which is forecast to be about $106 million in 2011-12, to reflect the non-commercial nature of this pricing arrangement.”
Mr Caica said the desalination plant would ensure water security for the entire State and, in times of drought, SA Water would be able to use its River Murray licence to deliver water to regional areas and use desalinated water for metropolitan areas.
“Improved water security for the State also allows the government to cater for SA’s growth,” he said. “The government is also investing through SA Water in long term planning for the State’s water supplies, water and wastewater main relays and new pump stations.”
But SAFF president Peter White said the new water prices would raise the cost of production significantly, with no compensation at the consumer end.
But he said there was some opportunity for the government to provide some concessions for agriculture in the new water prices.
