NSW govt accused of push on water prices

20 May 2012, 2:46 pm   -   Source: AAP

The NSW opposition has accused the government of pushing for a Sydney Water proposal that would see households paying 30 per cent more.

NSW Treasury is putting pressure on the independent pricing regulator to allow Sydney Water to bunk up prices 30 per cent, the opposition says.

Labor's water spokesman Luke Foley has seized on NSW Treasury submissions to the Independent Pricing and Regulatory Tribunal, asking that Sydney's water supplier be allowed to make heavy profits.

Such a proposal would see water prices increase by $335 over four years, translating into a 30 per cent rise over that time.

"That revenue comes from the households of Sydney," he told reporters in Sydney on Sunday.

"There's a hidden agenda here to try and put pressure on the independent regulator to increase prices, much, much more than IPART recommended back in March and the O'Farrell government has wanted to keep that from the public."

Treasurer Mike Baird needed to tell Sydney households what bill increases were being proposed.

"My concern is the very pressure that's coming on IPART now, not only Sydney Water making a submission but the big guns of NSW Treasury putting in not one but two submissions seeking that extra revenue," Mr Foley said.

In April, Sydney Water asked IPART for an increase in capital costs that would reap it an extra $570 million over four years.

Sydney Water claims consumer price increases would be far less than 30 per cent.

Finance Minister Greg Pearce said it was important to keep water prices low and maintain water quality.

The government had made that clear in its submission to IPART, he said.

"IPART sought submissions from all stakeholders as part of an independent process," Mr Pearce said in a statement.

"The NSW Government will respect the outcomes of IPART's final determination in June."

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