THE Victorian Government has been forced to approve an emergency increase to the debt caps of four Victorian water corporations – including Wannon Water - following project cost blowouts and revenue shortfalls.
Documents obtained by the Victorian Opposition under Freedom of Information have confirmed in May 2023, treasurer, Tim Pallas received a brief requesting approval of a total of $36.5 million in additional debt across four Victorian water corporations, including:
Wannon Regional Water Corporation – debt increase from $19 million to $37.5 million due to a cost blowout on the Warrnambool Sewage Treatment Plant project.
Lower Murray Urban and Rural Water Corporation – debt increase from $8 million to $14 million due to emergency response costs and lower water usage.
East Gippsland Region Water Corporation – debt increase from $3 million to $5 million due to performance and environmental compliance concerns at the Paynesville Water Recycling Plant.
Goulburn Valley Water Corporation – debt increase from $19 million to $29 million due to increased maintenance costs and decreased water sales.
These emergency debt cap increases are in addition to ordinary annual borrowings made by the treasurer each June and come as the Government took a total of $325.8 million of dividends and capital repatriations from water authorities across 2023-24 as Victoria’s net debt is projected to reach $177.8 billion by 2027.
Finance shadow minister, Jess Wilson, said, “Whether it’s water corporations, hospitals or government departments, Labor continues to shift its record debt onto agencies which only results in poorer outcomes for Victorians.”
Water shadow minister, Tim McCurdy also questioned the government’s competency and how the issue may affect the upcoming State Budget.
“Every year, Labor pulls millions of dollars from water corporations, treating them as cash cows to plug the gaps in the state budget, now the corporations have had to borrow money, which will accrue interest, to carry out essential capital works,” he said.
“Labor must rule out increasing water fees and charges in the upcoming State Budget as Victorians should not have to pay the price for Labor’s financial mismanagement.”
