No plans for water tariffs revision - Gatt

There are no plans for water and sewage tariffs to be revised, Public Investments Minister Austin Gatt said in parliament yesterday.

He made the declaration three times as he introduced a two-day debate on the financial estimates of the Water Services Corporation.

The minister praised the corporation for improving its efficiency and said significant investment was being made to continue to improve water quality and for the treatment of sewage. The latter, he said would entail a capital investment of almost Lm45 million.

In his review Dr Gatt said the WSC had a staff of 1,644 - 1,044 in the water section, 600 in the sewage section.

Its recurrent expenditure was Lm25.2 million. It had a capital expenditure of Lm6 million from local funds and another Lm6.5 million from EU funds and the Italian financial protocol. The WSC, the minister said, was one of the most, if not the most efficient entity within the civil service.

Every year, the corporation received a government subvention which had started as Lm14 million seven years ago but had gradually gone down to Lm8.6 million last year. The subvention for next year was to be Lm7.8 million.

The reduction was brought about while tariffs remained unchanged, the WSC improved its efficiency and water quality was improved.

Dr Gatt said the corporation had to spend Lm20 million to produce and distribute water. Another Lm5 million were spent by the drainage section.

For next year, the corporation's revenue was projected to remain unchanged and expenditure was also to remain on the same level.

The minister said unaccounted for losses were still at an unacceptable level and should go down.

The estimates, he cautioned, were made on the basis of the price of oil at last year's level.

Dr Gatt said several initiatives were in hand which should improve efficiency.

Meters were being replaced and eventually readings and billing would be made more efficiently, enabling clients to better plan their payments.

The WSC, along with Enemalta, had embarked on a campaign to collect payments for long pending bills, although the problem at the WSC was less serious than at Enemalta.

Turning to tap water quality, Dr Gatt said, European levels had been reached in the level of nitrates, except for Mosta, Qormi and Marsa. The situation with regard to the presence of chlorides was also improving but there was still quite a bit to be done.

In Gozo, the polishing plant was producing tap water that was as good as bottled water. Malta was to have a similar plant but one had to keep in mind that everything cost money since Malta did not have naturally good water.

Spending to improve quality had to be shouldered and there would come a time when it would no longer be possible to continue reducing government subsidies, Dr Gatt said.

Referring to water losses in the system, he said that while in Gozo current levels were acceptable, in Malta further reductions were needed.

On the drainage section, he said that this section had grown to 600 people when it needed just over 300.

He said that the corporation would be purchasing machinery so as to reduce outsourcing.

The corporation, he said, intended to forge public-private partnerships to enable it to replace its basic infrastructure.

Dr Gatt said that nearly Lm45 million would be spent over the coming years on the building of sewage treatment plants, with some of the funds coming from the EU and from Italy.

The plants would produce some 65,000 cubic metres of water, costing 17c per cubic metre. The question which had to be answered was how this water would be used. Should it be pumped out to sea or should it be further processed to be used as second class water, at a cost of up to 44c per cubic metre?

The second option would necessitate some investment in distribution systems, but, more importantly, a change of mentality would be needed for this water to be used, Dr Gatt said.