XN000022-1979-02-14 — Page 5

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WEDNESDAY, FEBRUARY 14, 1979

+UNRECORDED CONSUMPTION IS REPRESENTED BY THE DIFFERENCE BETWEEN THE TOTAL INPUT OF WATER FROM TREATMENT WORKS INTO DISTRIBUTION IN A GIVEN PERIOD AND CONSUMPTION BY INDIVIDUAL CONSUMERS OVER THE SAME PERIOD.

+UNRECORDED CONSUMPTION IS ESTIMATED AT 26 PER CENT OF TOTAL WATER CONSUMPTION AT PRESENT, THE PRINCIPAL COMPONENTS BEING LEAKAGE IN THE DISTRIBUTION SYSTEM, ILLEGAL DRAIN-OFF THE MEASUREMENT ERRORS OF METERS, CONSUMPTION FOR FIRE-FIGHTING, LOSSES THROUGH BURST MAINS AND IRRECOVERABLE WASH WATER FROM TREATMENT WORKS.

+A FIGURE OF 26 PER CENT FOR UNRECORDED CONSUMPTION MAY APPEAR LARGE, BUT WHEN THE REMEDIAL MEASURES BEING TAKEN BY THE DIRECTOR OF WATER SUPPLIES ARE FULLY IMPLEMENTED THIS FIGURE WILL PROBABLY BE REDUCED TO ABOUT 20 PER CENT, WHICH

IS NOT UNREASONABLE IN COMPARISON WITH CITIES AND WATER AUTHOR IT IES ELSEWHERE.+

HOWEVER, MR. HADDON-CAVE STRESSED THAT THE DIRECTOR OF WATER SUPPLIES WAS NOT COMPLACENT AND IS EXPLORING WAYS AND MEANS OF IMPROVING ACTIVITIES TO REDUCE LOSSES.+

TURNING TO THE COLLECTION OF WATER CHARGES, THE FINANCIAL SECRETARY HAD THIS TO SAY: +MODERNISATION OF THE WATER ACCOUNTING SYSTEM IS IN HAND BY COMPUTER ISING THE BILLING FUNCTION AND COMPUTER ISED TRADE ACCOUNTS ARE ALREADY BEING ISSUED.

+WHEN ALL THE ACCOUNTS ARE COMPUTERISED, IT WILL BE POSSIBLE TO PROVIDE EVEN MORE EFFICIENT AND RAPID SERVICE TO CONSUMERS, AS WELL AS PROVIDING MANAGEMENT INFORMATION WHICH CANNOT BE PROVIDED AT PRESENT OR PROVIDED BY LABORIOUS MANUAL METHODS.

+FULL COMPUTER ISATION WILL IN TURN ENABLE THE WATERWORKS TO PURSUE BAD DEBTS MORE EFFECTIVELY AND TO ENSURE RAPID ACTION IS TAKEN FOR THE COLLECTION OF OUTSTANDING ACCOUNTS.+

ON SUGGESTIONS THAT THE LOK ON PAI DESALTER BE PHASED DOWN AND EVENTUALLY DISPOSED OF SO AS TO ELIMINATE A LARGE PROPORTION OF THE GOVERNMENT'S (PROJECTED) ANNUAL DEFICITS ON THE WATERWORKS ACCOUNT. MR. HADDON-CAVE SAID : +1 HAVE ALSO BEEN TOLD THAT THE RATE AT WHICH WE DEPRECIATE FIXED ASSETS HAVE BEEN INFLATED", THUS CONTRIBUTING NEEDLESSLY TO THE PROJECTED DEFICIT IN THE WATERWORKS ACCOUNT, AND THAT A SURPLUS WOULD EMERGE IN THE FORECAST PERIOD, EVEN AT CURRENT LEVELS OF CHARGES, IF A MORE REASONABLE VIEW WERE TO BE TAKEN ON DEPRECIATION.

+1 AM AFRAID THAT THE SHORT ANSWER TO MR. TIEN'S SUGGESTION IS THAT WE CANNOT DISPOSE OF THE DESALTER BECAUSE IT CONSTITUTES A GUARANTEED SOURCE OF SUPPLY WHICH WE HAVE TAPPED IN TIMES OF DROUGHT,

+FOR EXAMPLE, IN THE LAST FIVE AND A HALF MONTHS OF 1977-78, WHEN THE DESALTER WAS IN FULL OPERATION, ITS DAILY OUTPUT REPRESENTED MORE THAN 18 PER CENT OF DAILY CONSUMPTION DURING THOSE MONTHS.

/+NOTWITHSTANDING.....