Mayor Ron Clarke says water bills could be cut by at least $170 a year
WATER bills could fall by at least $170 a year if an audacious challenge by outgoing Mayor Ron Clarke is adopted by an incoming council.
Cr Clarke, who will retire at the council election on March 31, said a report to be handed down before a full contingent of Gold Coast City councillors today paved the way for future water and wastewater service fee reductions.
The report by auditing firm KPMG is expected to show there would be minimal additional cost to the $27.2 million already allocated by the council to disconnect from Allconnex Water and re-establish Gold Coast Water.
The council decided in June to pull out of Allconnex Water after a vigorous outcry from residents over significant increases to water bills.
But the decision sparked further criticism after accusations the disconnection could cost ratepayers more than $200 million.
Cr Clarke said the KPMG report, which he endorsed yesterday, proved such accusations ''had always been nonsense'', with the final cost expected to come in at just over the $27.2 million already set aside in the 2011/12 Budget.
''This is great news for ratepayers,'' Cr Clarke said.
''(Councillors) have all the weapons now to do what they should be doing.
''I believe the new Gold Coast City Council should insist on a reduction of at least $170 per annum for its residents.
''Surely Gold Coast Water can be as efficient as Unity Water (the supplier for Brisbane residents).''
Cr Clarke said Gold Coast residents currently paid $308 more per year for water than their Brisbane counterparts.
''I believe that is far too high and that is why the whole resolution to take over from Allconnex came about,'' he said.
''I think this puts us into a position where we can have that price reduced from next financial year.''
Cr Clarke said the $170 reduction would be gained via a reduction in service charges as opposed to bulk water charges which are dictated by the State Government and unable to be altered.
But Cr Bob La Castra, who on Friday described council's decision to opt out of Allconnex as ''the worst decision in the history of local government'', said he could not fathom the mayor's interpretation of the KPMG report.
''KPMG must have written two reports and sent one to the mayor for his eyes only because I don't know how he could interpret what he's put in his media release if he's read the same report that I've read,'' Cr La Castra said.
''That is from another planet, it is not even close. You could not come to that conclusion from the report I've read.''
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Source: http://www.goldcoast.com.au/article/2011/11/28/369371_gold-coast-lead-story.html
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