KEY POINTS:
Metrowater chief executive Jim Bentley has admitted that Auckland City Council's hunger for bigger dividends is the main reason for a 9.1 per cent rise in water bills this year.
That is on top of a 9.6 per cent increase just 10 months ago.
Together, the rises have taken the average household water bill from $800 to $1000. Large households, including many low-income families, will have to find an extra $400 or more a year.
The higher water bills are on top of a planned 33 per cent rise in rates in the first term of Mayor Dick Hubbard and his City Vision/Labour-controlled council.
Stung by criticism of household rates rises of 11.4 per cent and 13.4 per cent in the first two years, the council has been looking at new funding sources such as increased Metrowater dividends and loans to keep rates down in election year.
The Herald understands that Metrowater is about $5 million shy of an $18 million payout to the council at the end of this financial year, which has led to the latest price increase.
Reasons behind Metrowater's profit slump include lower growth in demand and an increase in the amount of water lost through leaks.
Mr Bentley refused to comment on the profit slump, saying it was "confidential information" and consumers would have to wait until the end of the financial year in July.
Councillors have also denied consumers access to information about Metrowater's problems by discussing regular financial updates behind closed doors in the finance committee.
Mr Hubbard, who promised more "openness, transparency, honesty and accountability" at the start of his mayoralty, yesterday was reluctant to discuss the financial problems at Metrowater and price rises of 19 per cent in two years for the 142,000 customers in Auckland City.
The mayor said he was not at the committee where the latest price increase was discussed and had not had a chance to go through the background papers. "It is on my list of things to go through tomorrow."
Finance committee chairman Vern Walsh, whose City Vision ticket promised at the 2004 elections to keep water bills "fairly priced", could not be reached for comment.
Mr Bentley said the biggest single factor in this year's 9.1 per cent rise was the $18 million dividend payout to the council but more than half the increase was due to other factors such as increased capital works and operating costs. The dividend contributed a bigger proportion to last year's 9.6 per cent increase, he said.
Last year, Mr Bentley made it clear at the top of his press release that the council was to blame for much of the 9.6 per cent increase. This year, he left the main reason for the 9.1 per cent price increase at the bottom of a list of reasons at the end of his press release.
Citizens & Ratepayers Now leader Scott Milne said this council had increased the water dividend nearly fourfold from $5 million to $18 million.
