Manukau Water Ltd Has Successful 12 Months
Manukau Water Ltd Has Successful
Manukau City (23 November, 2007) – Manukau Water Limited has had a successful first twelve months of operations as a Council Controlled Organisation.
The company has issued its report for the period from 3 July 2006 – when it became a CCO - until 30 June 2007. The report highlights that the company had a smooth transition from a Council business unit to a Council Controlled Organisation over this period, and achieved this without disruption to its customers.
During the period Manukau Water Limited’s financial performance exceeded budget by $1.63 million, or 20%, in recording a loss of $6.6 million against a budgeted loss of $8.23 million.
The company’s controllable costs were under budget by $1.36 million, or 9.3%. Controllable costs exclude those costs such as Watercare Services Limited charges for water and waste water (which are set under a 3 year contract) and depreciation and interest costs neither of which can be managed in the short term.
Manukau Water Limited chairman James Hill said the performance was particularly pleasing as the principal reasons for establishing Manukau Water Limited were not so that it might earn profits but rather that it might operate more efficiently and thereby provide better services to the ratepayers and people of Manukau.
“To have controlled costs well within budget is therefore especially gratifying,” Mr Hill said. “In fact, our costs were around $2 million lower than comparable years,” he added.
Mr Hill noted that Manukau Water Limited met or exceeded 22 of its 26 Statement of Intent performance targets.
“The company is taking action to address those areas where targets weren’t met and I am confident these actions will satisfactorily address those matters,” he said.
Manukau Water Limited Chief Executive Raveen Jaduram said the company is well placed to continue to build on the success of its first 12 months as a CCO.
“We are determined to provide high quality and cost effective water and wastewater services to the people of Manukau and I believe we will continue to improve our efficiency,” he said.
“Becoming a CCO has made us a much more transparent organisation and I believe that our customers will continue to benefit from the intensity and focus that this brings,” he said.
About Manukau Water
Manukau Water Limited is responsible for the management of the public water distribution and wastewater collection systems for the people of Manukau. The company serves approximately 338,000 people living in an area covering 552 square kilometres from Mangere, Pakuranga and Howick in the north to Manurewa in the south. It manages infrastructure assets worth nearly $1 billion.