Friday, April 19, 2024

A final word – Water inequality and District Council of Coober Pedy financial sustainability: Tim Jackson

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Tim Jackson, Administrator, District Council of Coober Pedy, Media Release, 2 February 2023

Since late 2019 Coober Pedy water consumers have been calling on successive State Governments to introduce SA Water pricing in Coober Pedy. This would result in prices being reduced by two thirds.

Unfortunately, no State Government commitment has been secured. In that time Coober Pedy consumers have paid $5 million more for their water than if they lived in Adelaide. This is scurrilous.

During this time the Council has been working diligently to turn around the Council’s finances. The graph below indicates the progress made.

While the Council’s commercial activities – which account for two thirds of revenue and expenditure – are all now operating profitably or at breakeven – our municipal activities are operating at a shortfall and require a significant boost to revenue from rates.

Although this has been flagged since 2019, I have refused to increase rates by more than the movement in the consumer price index each year until the State Government fixes the water inequality issue.

In fact, I went further and held a citizens’ poll to determine if rate increases above CPI should be approved by voters. You strongly supported this position.

Rates do need to go up significantly, but this should only be supported if the cost of water goes down by the same or more.

My recommendation to the new Administrators is that the following question be put to a citizens’ poll:

Do you support significantly increasing municipal rate revenue next financial year to ensure the financial sustainability of the Council provided the State Government simultaneously provides a subsidy which would reduce water charges by at least the same amount?

You should demand a poll and not accept a rate increase above CPI unless water costs are reduced.

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