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Cost blowouts and overruns in projects managed by the Brumby Government’s 19 water authorities are widespread, a new report tabled by the Victorian Auditor-General in State Parliament today shows.
Shadow Minister for Country Water Resources and Deputy Leader of The Nationals Peter Walsh said the Water Entities: Interim Results of the 2009-10 Audits report was further proof the Brumby Government’s waste was leading to higher water prices.
“Families in regional Victoria are facing skyrocketing water bills of up to $1000 a year because the Brumby Government is throwing money down the gurgler,” Mr Walsh said.
“The Auditor-General’s report shows about 15 per cent of capital projects controlled by the Brumby Government’s water authorities have run over budget while 10 per cent have experienced delays.
“The report blames the blowouts on project defects, a failure to properly estimate the size and complexity of projects, poor labour productivity and a lack of change management practices.
“The Brumby Government’s wasteful practices and its failure to properly manage these capital works are impacting on water prices.
“Coliban Water will raise an additional $4.9 million in revenue from its customers this year by charging them an extra 17 per cent for their water.
“Barwon Water customers are also paying 10 per cent more than last year because of cost overruns on projects like the Melbourne-Geelong interconnector.
“The Brumby Government’s mismanagement has left Barwon Water customers paying for the project’s $60 million cost blowout,” Mr Walsh said.
Mr Walsh said the report also revealed that money outstanding to creditors had increased by $239 million, or 39 per cent, on the previous year.
“At June 30 last year, government-controlled water entities owed about $800 million,” Mr Walsh said.
“These revelations are particularly concerning given the Auditor-General’s report in November last year which found seven of the state’s 13 urban water authorities were running at a loss,” Mr Walsh said.