No water price equality for Western Sydney

09 February 2008

The idea that everyone pays the same price for water in Sydney is an illusion, according to a new report released by the Urban Taskforce.

In theory, everyone in Sydney pays for their water at the same rate – $40 a month for a modest level of usage. Its called ˜postage stamp pricing.

 

The report, prepared for a review by the Independent Pricing and Regulatory Tribunal, says that the system of ˜postage stamp pricing is an illusion because homebuyers in new housing areas have to borrow a lot more money to cover the cost of connections to the water grid.

 

A homebuyer may have to borrow an extra $10,000 to cover the cost of Sydney Water charges that are passed onto them when they buy a new home, Mr Gadiel said.

 

This means theyll have to repay an extra $31,000 in loan repayments over the life of the loan, or an extra $85 a month.

 

This homebuyer will effectively be paying three times as much for their water usage, when compared to a home owner in established housing.

 

It means that someone who buys a federation home in North Sydney, or a 19th century Paddington Terrace is only paying a third of the costs faced by a new home buyer in North Richmond.

 

Were asking the Independent Pricing Tribunal to abolish these charges.

 

Water is one of lifes essentials.

 

Theres no reason why Western Sydney families should pay more for water than those living in the East or the North.

 

Sydney Waters development charges are often $10,000 or more, depending on where you live. They generally only apply in newer suburbs.

 

Some examples of water utility development charges are: ¢ In Appin, Wilton, and Douglas Park $9,281 is payable on each new home in a new development.

  • In Cecil Park $10,493 is payable on each new home in a new development.
  • In Liverpool $9,797 is payable on each new home in a new development.
  • In Penrith $9,910 is payable on each new home in a new development.
  • In Minchinbury $6,829 is payable on each new home in a new development.

 

The Urban Taskforce is a property development industry group, representing Australias most prominent property developers and equity financiers.

 

The NSW development industrys annual turnover is $35 billion and employs 180,000 people, accounting for six percent of the States total employment. It is the fifth largest contributor to the State economy.


Media Enquires:
Aaron Gadiel,
Chief Executive Officer,
Phone: 0417 477 904  or (02) 9238 3955


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