After 15% water bill hike, does the Government still compensate Syabas RM125 million? 31.10.2006

DAP National Deputy Chairman and MP for Kepong urges the Government to reveal whether after the 15% increase in water bill, the Government still has to pay the privatized water company, Syabas, RM125 million. It should also make public the complicated deal between the Government and Syabas.

Dr Tan questions the Energy, Water and Communications Minister Datuk Seri Dr Lim Keng Yaik on the 15% increase in water bill in Selangor and Kuala Lumpur tomorrow. Dr Lim has inherited the complex problem of water privatization , not only in Selangor, but also in other states. Hence, it is necessary for him to reveal the saga of woes, arising from the management of water.

Tomorrow, 42% of households that use less than 20 cubic metres of water daily are not affected by the price hike; 28% of households using between 20 and 30 cubic metres pay 5 to 6% extra and those using more than 30 cubic metres per day face 15% increase. Every person must conserve water. As the present economic situation is not good, 15% increase in water bill is too high. Some suggest that the increase should not be more than 8%.

How does the complexity of the water issue arise? According to Dr Lim, if the price increase starts from November this year, the Government has to pay Syabas RM125 million compensation. If it begins in January, next year, the compensation is RM152 million.

Now, the hike begins tomorrow, does it mean that the tax-payers still pay RM125 million to Syabas? The public are perplexed.