XN000022-1983-02-18 — Page 2

FRIDAY, FEBRUARY 18, 1983

NEW SCALE OF WATER CHARGES

******

A NEW SCALE OF WATER CHARGES WILL BE INTRODUCED FROM APRIL 1 TO HELP OFFSET INCREASING COSTS.

ANNOUNCING THIS TODAY (FRIDAY), THE DIRECTOR OF WATER SUPPLIES, MR TOM TOMLINSON, SAID THE EFFECT OF THE NEW CHARGES WOULD BE MINIMAL FOR THE VAST MAJORITY OF CONSUMERS AND WOULD NOT SHOW UP IN BILLS UNTIL AUGUST.

MR TOMLINSON SAID SOME 21 PER CENT OF ALL DOMESTIC CONSUMERS WOULD CONTINUE TO PAY NO WATER CHARGES AND ANOTHER 67 PER CENT WOULD BE REQUIRED TO PAY AN EXTRA $1 OR LESS PER WEEK. ONLY ABOUT FOUR PER CENT OF DOMESTIC CONSUMERS WOULD PAY AN EXTRA $2 OR MORE PER WEEK.

IT HAS BEEN DECIDED THAT THE FREE ALLOWANCE TO DOMESTIC CONSUMERS OF 4 000 GALLONS PER FOUR-MONTHLY BILLING PERIOD PER FLAT SHOULD REMAIN UNCHANGED. MR TOMLINSON SAID MOST RESIDENTS OF PUBLIC HOUSING ESTATES WOULD BENEFIT FROM THIS FREE ALLOWANCE.

+WATER CONSTITUTES A VERY SMALL PART OF THE HOUSEHOLD BUDGET AND THE EFFECT OF THE REVISED CHARGES ON THE CONSUMER PRICE INDEX IS EXPECTED TO BE LESS THAN 0.1 PER CENT,+ HE POINTED OUT.

TURNING TO TRADE SUPPLIES, MR TOMLINSON SAID ABOUT 60 PER CENT OF ALL TRADE CONSUMERS WOULD PAY NO MORE THAN $1 PER WEEK EXTRA FOR THE WATER CONSUMED. A SMALL MINORITY, EQUIVALENT TO HALF A PER CENT, OF TRADE CONSUMERS WOULD FACE AN INCREASE OF $100 OR MORE A WEEK.

MR TOMLINSON ALSO ANNOUNCED THAT THE TEMPORARY CONCESSIONARY RATE FOR TRADE CONSUMERS USING MORE THAN 6 000 UNITS PER FOUR- MONTHLY BILLING PERIOD WOULD BE EXTENDED FOR ONE MORE YEAR FROM APRIL 1.

+THIS WILL GIVE THESE CONSUMERS FURTHER TIME TO INTRODUCE MEASURES TO ECONOMISE IN THEIR USE OF WATER.+

HE SAID THAT FOR MOST TRADE CONSUMERS, WATER CHARGES REPRESENTED ONLY A SMALL PART OF THEIR TOTAL OPERATING COSTS, SO THE INCREASED CHARGES WOULD NOT HAVE A SIGNIFICANT IMPACT.

SALT WATER FLUSHING WILL ALSO REMAIN FREE OF CHARGE. WHILE FRESH WATER USED FOR FLUSHING WILL BE CHARGED AT $4.2 PER UNIT, THE $24 DEDUCTION FROM THE RESULTANT CHARGE WILL BE INCREASED TO $27.6 SO AS TO PROVIDE FREE OF CHARGE THE SAME QUANTITY OF FRESH WATER FOR FLUSHING AS IS CURRENTLY ALLOWED.

/MR TOMLINSON