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The NSW government has been accused of reaping massive dividends from water utilities while customers struggle with higher bills, after a report found annual water profits had almost doubled.
The NSW Auditor-General said profits from the four largest water utilities in 2009/10 increased to $584 million from $300 million in the previous financial year, providing the government with a $55 million increase in taxes and dividends.
The profits for Sydney Water, Hunter Water, the Sydney Catchment Authority and State Water Corporation all increased in the last financial year, auditor Peter Achterstraat said.
ydney Water had the largest rise, with its after-tax profit reaching nearly $446 million from $250 million.
The increased profits came despite falls in water consumption and could be attributed to rising prices and cost efficiencies, he said.
"In relation to the four main water authorities, the consumption of water per capita has fallen, but charges have increased, profits have increased and the contributions to government have increased," Mr Achterstraat said.
Water Minister Phil Costa downplayed the almost doubling of Sydney Water's profit, which was attributed to a change in its accounting practices.
"The dollars have of course gone up a little but not a lot," Mr Costa said.
"What is happening, when you balance it over the two years that we've had the change in (accounting) policy, it is still fairly stable."
Mr Costa also defended the $205 million dividend paid by Sydney Water to the government.
"The dividend that comes through from Sydney Water ... is very small for the amount that we do," he said.
"The dollars that are returned as dividends go straight back to infrastructure and services across NSW, as well as money going back into Sydney Water's own infrastructure.
"It's a dividend that is put back into assets and resources across NSW."
The NSW Opposition accused the government of ripping millions in dividends from Sydney Water, while consumers paid higher bills.
Under a determination by Independent Pricing and Regulatory Tribunal (IPART) a typical residential bill from Sydney Water increased by 11.2 per cent in 2009-10, and by seven per cent this financial year.
In 2011/12 the average bill is expected to increase by 5.3 per cent.
"The Keneally Labor government has ripped almost $1.4 billion off the Sydney Water Corporation in the past decade," Opposition spokeswoman for Natural Resource Management, Katrina Hodgkinson, said.
"Meanwhile, Sydney Water customers continue to be hit by skyrocketing rates."
The auditor's report on the Department of Environment, Climate Change and Water also found Sydney Water continued to cut the amount of water lost through leaks.
The utility curbed the loss by more than 3000 megalitres to 35,323 megalitres in 2009/10, almost half the amount of water lost in 2002/03.
The success was credited to Sydney Water's leak detection program, which undertook inspections and repairs of almost 22,000 kilometres of pipe in the latest financial year.
© 2012 AAP |
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