ISKANDAR PUTERI, July 3 — The Johor government wants consultation prior to any water tariff increases by the federal government, said State International Trade, Investment and Utility Committee chairman Jimmy Puah Wee Tse.
He said this was important because water tariff increases were a sensitive issue in Johor.
“A consensus through meetings and briefings should include all stakeholders as it is important for the state government to justify any increase in water tariffs.
“The tariff structure depends on several factors such as the amount of government subsidies, services rendered to customers, service coverage, population density, landform and raw water quality,” said Puah.
The Bukit Batu assemblyman was replying to Hahasrin Hashim (BN-Panti) and Abd Taib Abd Bakar’s (BN-Machap) questions at the Johor state assembly in Kota Iskandar here today.
On Hahasrin’s supplementary question regarding the water tariff increase in Johor, Puah said the state government would not raise water tariffs and would instead try to reduce them.
Earlier this year, Water, Land and Natural Resources Minister Dr Xavier Jayakumar was reported to have said that water tariffs could be raised gradually this year in line with the government’s efforts to restructure the water supply services industry in the country.
Puah said in order to reduce the impact of tariff increases, the state government had taken several initiatives including federal loan payment to Putrajaya through lease rental scheme by Pengurusan Aset Air Berhad (PAAB) amounting to RM189.4 million for the rural water supply development project for the year 2000 and earlier.
“In addition to that, the state government is in the final stages of negotiations with Putrajaya to abolish the remaining balance of RM145 million in the Asian Development Bank (ADB) for the development of water infrastructure in the state.
“The state government also proposed that the federal government reconsider the rate of lease payments imposed on Ranhill SAJ Sdn Bhd, which is lowered from 5 per cent to 3 per cent for assets acquired by PAAB,” said Puah.
He explained that the state government wanted some elements in the tariff structure to be reduced so as not to burden the community, but at the same time, ensuring the water supply industry develops positively.
Puah added that the state government also paid attention to the less fortunate by providing free water of up to 10 cubic metres to those eligible under the Below 40 Scheme (B40).
As of May last year, 162,557 water utility account holders in Johor enjoyed free treated water at a cost of RM6.5 million.
“For the hardcore poor, water operators in the state are implementing their corporate social responsibility by continuing the free water rebate of 25 cubic metres with a total of 1,113 recipients,” explained Puah.
