Certainly the issue of water charges is a very sensitive issue on the Gold Coast. For months the Gold Coast City Council has been ducking and dodging, shirking its responsibility in an effort to avoid accountability on this matter. Residents are clearly fed up with the secrecy, buckpassing, inaction and incompetence of the Gold Coast City Council on the issue—and who can blame them? On 1 September last year Councillor Sarroff called for a water bill discount and revealed the projected $2 billion windfall over 10 years from Allconnex dividends. That is $800 million more than it anticipated. It anticipated a $1.2 billion windfall; it will end up with $2 billion.
I want to applaud the Gold Coast Bulletin’s recent water war campaign. Without the accurate and informed coverage of the Gold Coast water bill issue, residents would continue to be treated like fools while the Gold Coast City Council lines its pockets with the massive profits it is making through council owned water retail company Allconnex. The Gold Coast City Council is set to receive $98 million this year alone through council owned water utility retailer Allconnex. Its own figures project that this profit will grow to $218 million in five years. For every dollar paid for water, 24c goes towards the state government’s cost of production of bulk water and 76c goes to the Gold Coast City Council for water and sewerage charges. Residents deserve the truth about what they are paying Allconnex and the Gold Coast City Council through their water and sewerage bills. That is what the Bulletin’s water war campaign is delivering. The campaign is finally forcing the council to come clean on the huge amounts of money it is making from water and sewerage charges.
The Gold Coast City Council’s attempt to blame the state government on the issue has backfired because the truth has surfaced, and only the council can be blamed by not being upfront and honest with the residents about water charges. Residents have been forced to take the matter to the streets, protesting for answers—answers which they are still waiting for. We now have a situation being played out where councillors are being forced to sign a confidentiality agreement to attend meetings on the issue in a desperate attempt to gag them from speaking to the media.
One has to ask the question: what are they hiding and why are they hiding it?
The paltry $50 rebate that council proposed to some ratepayers for their water and sewerage bills is simply not enough, particularly in light of the news that it will be null and void after their rate bills rise by $50. I, along with other Gold Coast Labor MPs, have called on the council to increase the rebate to at least $100. If it agreed to a $100 rebate to each house to help pay the water and sewerage bill the council would still have over $70 million left over. There are just over 200,000 households on the Gold Coast. Instead, council intends to give a paltry $50 rebate to only some residents, leaving the council to pocket more than $90 million in just one year. Council charges make up 76 per cent of the average Gold Coaster’s water and sewerage bill. The fact is—and I have been saying this all along—councils are making huge profits from water bills.
The state government sold water to South-East Queensland councils last year for a $407 million loss. This was confirmed by the CEO of the LGAQ, Greg Hallam—not always a fan of the state government. Even he admitted that the state government was helping to keep the price of water lower by incurring that $407 million loss from bulk water. That means the state is effectively providing a saving of nearly $350 per water connection in South-East Queensland. While the state government subsidises water by $407 million, the Gold Coast City Council makes $98 million just this year. They are obviously embarrassed, as evidenced by the council’s efforts to gag the councillors. Despite this, we announced in December a reduction of water price increases that will grow from $5 to $30 by 2017-18. The Bligh government also provides a $100 water rebate for pensioners. That is up from $40 several years ago.
We are doing what we can because we understand that Queenslanders are doing it tough and that every dollar counts. I ask the Gold Coast City Council to do the same and also to open council meetings to the public, stop gagging councillors and come clean on water charges. If Moreton Bay Regional Council can offer its residents a 50 per cent rebate on household water bills this year, I do not know why the Gold Coast City Council cannot do the same. An LNP plan to link water prices to the inflation rate would result in a $17 billion debt in the same timeframe that it would take the government to pay off the debt.
Great blog. I look forward to the next one.
Mr. Lawlor, Where have you been for the previous months and why have you finally decided to speak up ! is it that your speech has been sent to you from Anna’s office, because it seems the same spin that we get from her.
How about you’re next comment to the people explains,
Is allconnex set up for privatisation to be sold off to say possibly Violia or something alike.
Explain to the public how they are going to afford water now that the state wants their cut in our”Liquid Gold” (Beattie’s words)
Explain to the public how they are going to afford water now that Allconnex wants their cut too.
You and this Government are throwing out lifelines, but this time no one is going to fall for you’re spin. Times Up ! now climb back under the rock with the rest of youre miserable lot.
By the way Pete,
Your statement of,
“We are doing what we can because we understand that Queenslanders are doing it tough and that every dollar counts”
Well M. Lawlor how about you ask Anna nicely to lower the Bulk Water Price, and freeze it for 5 years ! do you know what that is ?
Your blog is no more then spin and BS and that is all any Queenslander can expect from this inept Government.
Where have all the Gold Coast Labour Members been hiding lately, My guess is that you were told to stay away.
“We are coming to get our water back!”
I am a single parent and I AM REQUIRED TO PAY FOR THE Entire WATER RATES ON THE PROPERTY I RENT WHY DO I NOT GET A REBATE? I consider this to be extremly unfair dont forget renters vote as well. also when I went to check the meter it was covered by 4 inches of dirt I suspect this has been like this ever since the property was built I highly doubt this meter has ever been phsyically read by anyone its a farce if you ask me just a pack of thieves
Cool story bro!
How about you explain why it takes 4 separate companies with 4 separate boards and CEO’s making $400K plus to deliver water to the people of SEQ?
How about you explain why the contract with Violia to run the Tugen plant is commercial in confidence and we can’t know the terms or if it was even out bid.
How about you open the books to all 4 companies and show us the total income and outgoings of each so we can judge for ourselves if they are making money and in turn the state is.
How about you tell us was the GCC forced to accept Allconnex and the asset sell of under a $100K a day fine threat if they did not?
Don’t tell us the GCC is all the problem, the state created this monster the state is the one hiding the real figures from us. The GCC has plenty to answer for but state govt has plenty also.
We are not stopping until we get our water back, if that means every Labor MP is looking for a job after the next election then so be it.
The latest Galaxy poll suggests the ALP could lose up to 33 seats at the next election, 51 per cent said they would prefer Mr Newman to be premier compared with 38 per cent for Anna Bligh.
NSW Labor wiped out in last election.
Do you hear foot steps yet Peter? We will not accept your buck passing any more.
GIVE US OUR WATER BACK.
Come on, Peter. Do you really believe that rhetoric you’re spun by your party machine and do you think that the people of the Gold Coast are really that stupid as to pull the wool over their eyes? You talk about residents being treated like fools, yet you treat your constituents with the same contempt you profess the GCCC to have.
Let’s address a few facts here:
The Gold Coast City Council has always made money from water, and in the process, they also managed to keep the prices down all the way up till they were forced into the compulsory resumption by the State Government. Their profits were reinvested back into the community, and they were able to provide us with our water at $1.16 per kl back in 2007 before the State took over our water. The price of water per kl has risen 131% in the past four years since the State became involved.
You mention that for every dollar paid for water, 24c goes towards the state’s cost of production and 76c goes to the GCCC for water and sewerage. But let’s look at what bang for our buck we’re getting. The Qld State Govt resumed GCCC assets (Dam and Desal share) for $786m. The GCCC transferred $4,033 million of assets to Allconnex (not by choice. but under the direction of the State govt Retailers and Distribution Act). You hold 16.3% of the original assets, but take closer to 25% of the revenues whereas GCCC/Allconnex retains 83.7% of the original assets and gets 75% of the revenues. So, please don’t try to bluff the people that GCCC is getting money for nothing.
The argument that the State Govt has invested billions into the water grid is also moot. The benefits of the water grid do not service the Gold Coast people, who are *your* primary constituents. Gold Coasters have been very mindful for a number of years of efficient water use, and while our dam was of concern several years ago, the GCCC took measures to increase the Hinze Dam capacity and take care of our own water needs – which we were prepared to pay for.
Further, you state that the Govt sold water to SEQ councils last year for a $407 million loss. Well, I’ve dug around the four GOC annual reports…..(and by the way, you sure make it hard to analyse them – rather than photocopying reports, have you ever heard of keyword capacity in pdfs? Most corporations use them nowadays)…..anyway I digress. My perusal of the four reports indicate only a $385m loss before deferred tax asset effects of $32m, so I can only locate $354m after tax, you might inform me as to what I’ve missed in the other $53m. What you fail to mention is that QTC interest revenues comprised $412m to fund the $8b of infrastructure the govt invested in linking SEQ water….something that Gold Coasters neither wanted, nor needed. The Gold Coast should not be held responsible for the State’s poor choices.
Further, the Watersecure investment appears to be a black hole. There is $3.3 billion, yes…. $3.3billion of the $8b invested in the desal plant and water recycling of which $100million was recognised in impairment losses over the past two years, because, quite frankly the assets are rubbish! It’s impossible to know if these assets are ever able to provide a profitable return because the management contract with Veolia (which is very likely responsible for most of the expenses, so results in the $44m after tax losses) remains secret from the people of Queensland under a “commercial in confidence” agreement.
It appears that the State Govt model for their GOCs is to recoup the $8b investment in a short time frame, at the same time attempt to pay the QTC loans at just over 7% interest. I know of no other company in a competitive industry funded by majority debt that would be able to recoup their capital investment in that space of time. Yet, as a monopoly and providers of an essential service your “customers” have to suck it up and pay for your government’s folly. And then what? You sell these companies off to the highest bidder?
Right now, the Gold Coast pays $400 a year more than any capital city in the country and three times what New Yorker’s pay. Water and sewerage represent almost 3% of the average take home pay and in many cases much higher as our unemployment at 6.9% is one of the highest in the state, underemployment is high with a large casualised workforce and we have a high pensioner population that can ill afford to have 10% of their pension go toward water.
This is not something you can solely lay at GCCC’s feet for legislation that your government put into place. Their biggest folly was in not seeing the ramifications when signing off on the deal, although if Peter Young is correct and your legislation threatened them with $100,000 fines per day, they had no choice and it would appear that the State has obtained our assets under duress.
So, please…..don’t take the Gold Coast people for fools. Most of them are a lot more educated than what you give them credit for.
Boy oh boy! You’d think you’d made the Allconnex mess all on your own Peter, judging by those comments. Funny how you try to set the record straight & everyone wants to lynch you just for mentioning facts!
How can one tell when Labor politicians are lying ?
They open their mouths !
Very funny John. I think many people would say that of ALL politicians though. People trust politicians like they trust car salesmen…
Jeez. This Lawlor bloke is only trying to explain things. Give him a go. It’s hard enough to make head or tail of this Allconnex mess it as it is. At least he’s trying to explain it and incidentally it’s the clearest explanation I’ve heard yet.
Burt
He is parroting the talking points handed to him by Bligh’s office.
He is not explaining anything, he is giving the party line of half truths and pass the blame for the mess.
The Labor State Govt is hoping enough people like you will take their spin at face value and not look behind the curtain to see what is really going on.
Wake up Burt and see what is really going on and you will see Lawlor’s explanation is not real only what they want to think.
Here Here Monte,
By the way Mr. West and Mr. Marshal, you obviously don’t get out much, Mr. Lawlors comments are riddled with half truths. Suggest you do some research on the matter – then make an informed comment.
This has been a very helpful article. I have been following the Bulle on this and can not believe the amount the council is making on water. I suspect Ros works for the council and others (Monte!) who go on about polling figures and spin etc are either politicians or they work for political parties. Who talks like that eh? Most people want to hear all sides and then they will make up their mind.
Hi Anne,
No, you guessed wrongly, I am a CPA accountant and do not work for council and in fact I’m rather apolitical, voting for independents at every opportunity because I’m pretty much sick of all of them. But what really irks me no end is political spin where Teflon coated governments can buck pass a problem they orchestrated back to Council and take no responsibility themselves.
Did you know that for all these years up till the takeover the GCCC received around $80m a year from water and that cross-subsidised our rates? Water has always been profitable for councils and that’s what keeps other costs low so your rates don’t go up. Since the water grid setup $9 billion has been spent by the State to send our water to other cities. That’s the primary reason why your bill is through the roof. There’s a whole lot more I could say about Allconnex and I’m disgusted with that setup too. But honestly…..I really can’t be bothered anymore, I’ve spent literally hundreds of hours researching this and nobody wants to listen anyway.
Water supply is a monopoly and an essential service and should not be in the hands of a single corporation let alone five of them.
I assure you Anne C I do not work in politics and never have.
I am nothing but a fed up Gold Coast citizen that is sick of all politicians.
I get very sad when people refuse to take the time and look at the real facts instead taking on face value what they are told by people with a vested interest in keeping their high paying jobs and lifestyle going at our expense.
It is time to clean house and start again with a new lot both in the GCCC and State Govt.
Would we even be having this debate if we were still in drought? No, we’d be praising their foresight & not giving a second thought about water costs because we’d be so relieved we even had access to water.
I remember an election promise made by labour to reverse a dam which was called Wolfdene. Around 90% of land had been obtained for its implementation.
A shortsighted political decision that deprived Logan of its water supply does not allow a government to claim a mandate from the Gold Coast ratepayer to pay for a labour party policy failure.
Gary,
This state government had no strategy in place to help save us from drought, Nil!
The GCCC had strategies in place to ensure our best possible chance of surviving as long as practiable, fact!
The State Labour Government did nothing until the Wivenhoe got to below 30%, fact!
Imagine the political fallout should the capital of Qld. have no water!
The state Labour Government siezed our assetts as well as our strategies, paid us pitance, and is now charging us ridiculous prices because WE have to pay for their narrow vision.
Lets see you comment when you are paying $1700 a year for your water. Its only around the corner!! FACT!
I wonder what the people getting cranky about what they pay for water pay for grog each year.
I don’t like the increases, but I reckon this whole debate has been frenzied up by the Gold Coast Bulletin to generate newspaper sales at a time when people are turning off buying papers.
Any time an American government loses favour with the US population they threaten to start a war with any poor country ending in Stan.
This is the same thing really.
I’ve met Peter Lawlor at the races a few times and he is a normal bloke. It’s a pity he’s got to be an apologist fall guy for a blatant media beat up.
And before anyone asks, I buy a slab of VB a week at $45 which is about $2300 a year and about $500 more than my annual water bill and I am writing this reasonably sober.
Frank,
Your attitude is exactly what this state government is counting on,
I very rarely read the Bulletin, so your wrong. the rest of your comments are simply rubbish.
Do yourself a favour, go for a walk around our city and take the time to talk to our seniors and struggling young families who can’t afford to go to the races or buy a slab because they can barely put food on the table, pay their power bills, or in fact afford some of the niceties in life.
If you are not interested in the well being of our community perhaps you should not embarass yourself any more by commenting when you have no idea whats realy going on..
Peter Lawlor should be out listening to his constituents rather than focusing on spreading his party propaganda. Its the people of his electorate that voted him into office. Peter, should remember he is an elected representative of the people, not the party, the people should come first. The water debacle, including the price increases, was forced upon us by the state. Peter, put your constituents before the party, get out and talk to them, you’ll see they are hurting due to these price rises. Not only the water but electricity as well. Stop passing the buck!
In all honesty the argument here is most likely being beaten up by a lot of the young liberals who try and jump on anything with their usual dribble – hence taking away from the real problem. I think it is especially ironic about people here are trying to say to Peter “go out and talk to your constituents”, what is exactly is this blog then?? welcome to the 21st century people.
Anyways, I find it funny watching the GCCC also try and switch sides so blatantly within the last 2 weeks, to avoid any sort of negative connotations. When really it is still there issue and they still sit on the fence. They can say what they like about trying to get rid of the board, but now they are trying to pass the buck again. This time to the other 2 councils, when no doubt they already knew it wouldn’t happen.
So blaming the state Government didn’t work, so lets blame the other 2 councils – fair be it our responsibility to represent the GC people responsibly.
Also going to throw it out there, the current GCCC attitude is that they have a right to make an $80m profit from water annually. Where on the charter does it say they must make a profit? There is the real issue, they think because of the last couple of years they get the same $80m return – they’re entitled to keep it a $80m.
Well seeing the recent economic conditions, has it ever occured to them that they should be taking the economic hit – reducing their profits and trying to refrain from increasing the cost of living?Don’t think this is a simple “state Government bad guy whinge arugment”, this is poor economic management by our GCCC believing they should always be in the positive. In all seriousness, if they actually took a couple of years to maintain rates and not blow cash on useless research proposals, reviews and developments we might actually have extra money. Cut the waste already – yet each councilor wouldn’t dare have their own divisional funding cut, that’s how they show there constituents that they are worth anything…..not by representing them.
Atleast the State Government actually took a hit by building infrastructure to keep people in jobs. But because we go into deficet – it is a big negative. I eagerly await the next general “labor is bad reply” because Peter wrote it. People need to get over themselves a little.
John They dont need to open their mouths.
They talk out their arse most of the time
Just read:
“The government will allow South East Queensland Councils to take full responsibility of their water retail businesses. Changes to the SEQ Water Restructuring Act 2010 will also cap distribution and retail price increases at CPI. This will reduce next year’s proposed increases by water retailers. The Premier said councils will have direct control of water and sewerage charges to their ratepayers.
Premier Anna Bligh During the recent Community Cabinet on the Gold Coast, the Premier promised residents she would look at the options. Now the government is taking action.”
Hopefully this will end the water war once & for all.
Tim, The Bulk Water Price still goes Up and Up and Up, The State Govt is the one thats ripping us of the most. All other states seem to only have ONE water entity, Qld has 4, wonder why that is? The State Govt hopes that there are plenty of uninformed people out there who believe the rubbish that Anna Bligh came up with last week.If you want to believe her, then roll over and go back to sleep. That’s exactly want Anna wants.
Dear Sir/Madam,
Hope you are doing well today by God Grace .I will like to know if do you carry Faucet ?
kindly let me know the brand name and size the price range let me know if there is an extra cost when using my secure credit card and i will be shipping to International Church Ministry (ICM) in to our orphanage home over seas as a gift and i will let the shipping company which has been picking up most of our stuff come and pick it at your store location as soon as i set up with the payment ok . and kindly email me back with your contact phone number ?
Thanks very much
Rev. Michael.
God bless