Wednesday, 20 March 2024

Water policy

David DAVIS (Southern Metropolitan) (12:17): (472) My question is also to Minister Shing, as Minister for Water. I refer to PAEC’s report 2021–22 and 2022–23 Financial and Performance Outcomes, specifically finding 91. In 2021–22, the report states:

… four metropolitan water corporations paid a combined total of $301 million in dividends and capital repatriations to the general government sector, followed by $80.2 million in dividends in 2022–23. Budgeted capital repatriation payments, totalling $209.9 million for 2022–23 were deferred to 2023–24 at the request of … Treasury and Finance.

That is a total of $591.1 million. Minister, isn’t this the cause of high household water rates, as the government sucks the blood out of our water corporations to cover its surging deficit?

Harriet SHING (Eastern Victoria – Minister for Housing, Minister for Water, Minister for Equality) (12:18): Mr Davis, you present me with a somewhat tricky situation here in answering your question. It is either a very short answer or an opportunity for me to in fact use the allotted time and take much more time in order to address the issues that you have raised. Let me start with the short answer: no. Let me then go on to the longer answer. You have combined in this sort of pseudo-biblical way an effort to create a metaphor of blood and water. I am not sure where that was intended to go, but what I will confirm for you, Mr Davis, is that here in Victoria –

David Davis interjected.

Harriet SHING: Okay. ‘Victorians are concerned about their water bills’ is what you are talking about? Right, they sure are. I am very pleased, Mr Davis, to assuage any concerns that you might have and indeed be promulgating about the water bills that we have in comparison to other jurisdictions. We have the lowest water bills in Australia, Mr Davis.

Members interjecting.

Sonja Terpstra: On a point of order, President, the level of noise in here is next level, and I cannot hear the minister’s answer.

The PRESIDENT: The minister will be heard in silence.

Harriet SHING: Thank you very much. Mr Davis, when we do talk about pricing – I am loath to have to go there again, but I will to assist you in understanding where we sit – we know that Melburnians’ water bills are $88 below Sydney, $83 below Canberra, $107 below Adelaide, $920 below Darwin, $658 below Perth and $540 below south-east Queensland. We also know from the ESC’s report of 2022–23, Mr Davis, that the typical Victorian residential water customer received lower bills in 2022–23 compared to the previous year. Statewide the typical bill for owner-occupiers decreased by about $10 to $986 and for tenants it decreased by $18 to $428. Mr Davis, again, I have just read out to you the statistics around how much people are paying for water in Victoria –

David Davis interjected.

Harriet SHING: When you say ‘too much’, it is the lowest in Australia. I am really keen to make sure our water corporations continue to deliver on the benefits and that they make sure they are focused toward delivering.

It is also about reducing waste and making sure we can identify leaks. Mr Davis, we are looking at South East Water having delivered 1 million digital meters for water by 2029–30. That is billions of litres of water, Mr Davis, and that is about making sure we are also keeping household bills low and identifying network challenges. The ESC sets prices, Mr Davis. I do not know how many times I can say it, but you would be wise to listen.

David DAVIS (Southern Metropolitan) (12:21): The minister went nowhere near answering the fact that these could be lower and that they are higher than they should be. Nonetheless, I ask the following question: noting that the government has already said that $209.9 million will be torn out of our metropolitan water authorities in 2023–24, will the minister now rule out any further dividend or capital repatriation being torn out of Melbourne water authorities prior to 30 June this year?

Harriet SHING (Eastern Victoria – Minister for Housing, Minister for Water, Minister for Equality) (12:22): Mr Davis, what a pivot from you. First, having failed to make any sort of case around water bills and pricing, because you are not actually using facts in the way in which you are drafting your question and are off on some kind of random frolic, Mr Davis, again I just want to make sure that you are aware of and you understand the nature of capital repatriation and dividends payments –

David Davis interjected.

Harriet SHING: Well, Mr Davis, I will take you up on that interjection. If you understood – if you actually understood – the way in which capital dividends and repatriation work, Mr Davis, you would understand that all 18 of our water corporations are financially sustainable, and the Auditor-General –

Renee Heath: On a point of order, President, I believe the minister is debating. Could you bring her back to the question?

The PRESIDENT: I think the minister was being relevant to the question. It was very hard for me to even hear her because the person that asked the question started yelling at her. I will get the minister to continue.

Harriet SHING: Thank you very much. With the remaining time I have, Mr Davis – I am happy to go here time and time again should you wish – most water corporations have less debt on their balance sheets than the equivalent entities in the private sector. All of our water corporations are financially sustainable. I will see you again for this question next sitting week.