In WA the water corporation is a government utility,it pays a dividend to the government.
Treasury defends 'dividend raids'
The latest in the special one-off measures revealed in the Mid Year Review is to force the Water Corporation to lift its interim dividend payment to 98 per cent (from 93 per cent) of its expected total dividend payment. The utility is required to pay 85 per cent of its after-tax profit to Government, made up of an interim and final dividend.
Last year the Water Corporation paid $396.6 million in dividends to Government in two instalments: a $363.6 million interim dividend and a lagged $33 million "final" dividend from the previous financial year once accounts were reconciled. The utility will now have to make a bigger interim dividend payment.
This will have the effect of boosting WA Government coffers by at least $10 million in 2012-13, helping to protect its shrinking surplus, but producing an offsetting reduction in future years.
I'm happy we have an alternative source of supply.
Premier Colin Barnett told reporters on Monday the state's South-West had received good rains in June and July but the dams were still at low storage.
He said the desalination plant would ensure water security for Perth and the state's South-West for the coming years while other water supply and saving measures were explored and put in place.
Mr Marmion said dams were climate-dependent, but despite the recent rains were only 25 per cent full.
"On current rainfall predictions there is little likelihood that they will come to our rescue.''
Mr Marmion said the $450 million desalination plant expansion would be "money well spent, guaranteeing water security for Perth and other towns in a drying climate''
