Thursday 16 June 2011

16 June

HERE'S a surprise - Council has decided the water business is best kept where it is.

But what is the real story in this Council decision today?  Have a good look at the resolutions from the special meeting today, when you can.

Council decided today to keep the water subsidy scheme for rate payers and increase it in line with the CPI rise.

And that is marvellous news.

It is one of the best ways to keep down water price rises for rate payers.

Council’s new position is exactly the same position I was pushing months ago.

In March I moved that we not reduce the subsidy as originally planned, but to keep it and actually increase it.

Today’s decision is a vindication of the stance I have taken.

Still, Council had little choice but to make this decision.

In April the State Government imposed a cap on water and sewerage price increases. 

The cap means we have to keep our water subsidy scheme in some form – to get rid it would increase the cost of water beyond the cap imposed by the State Government.

The decision to keep the water business arrangements should be no surprise - but the decision to keep the water subsidy scheme is something that should be celebrated.

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