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Price of water held again

Price of water held again

The cost of wholesale water supply to Hutt, Porirua, Upper Hutt and Wellington city councils has been held for the next 12 months, Greater Wellington confirmed yesterday.

Greater Wellington manages water collection, treatment and supply to the four cities. The charge for this service has been set at $25,623,531, including GST, for the year to 30 June 2007. The water levy has now been held or cut for 10 successive years, with the last price increase in July 1996.

Rex Kirton, chairman of Greater Wellington's Utility Services Committee, said the decade-long price freeze continued to be good news for water users.

"Since our last price rise, inflation has averaged about two percent a year. Holding the levy again means the region's cities continue to pay less than 50 cents for every 1,000 litres they use and that certainly helps them to hold down consumers' water bills."

While the water levy is unchanged for the coming year, the contributions for Porirua and Upper Hutt will increase slightly from 1 July 2006, as each used an increased share of the total quantity of water supplied by Greater Wellington last year. Hutt and Wellington will pay reduced levy contributions over the coming 12 months.

The wholesale water supply contributions for the year to 30 June 2007, including GST, are: Hutt City Council $6,393,191; Porirua City Council $2,867,588; Upper Hutt City Council $2,467,996; Wellington City Council $13,894,756.

Cr Kirton said that while a price rise for water had been averted for the last decade, cost pressures were likely to see the levy increase from July 2007.

"Power, insurance and rates have all gone up over recent years and we've already brought in most of the useful efficiency gains open to us. Water use is also increasing, so we're nearing the point where the levy will have to rise, to provide the level of service the community wants."


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