Two days before water tariffs are scheduled to rise sharply, State Comptroller Micha Lindenstrauss is trying to prevent the 25% hike. Lindenstrauss took part in today's State Comptroller's Committee meeting and discussed the water rates reform. He presented a professional opinion that he had prepared at the request of the committee.
The Comptroller's report said that, "Investigations by the State Comptroller's office indicates findings that raise serious questions about some of the components of the tariffs. It seems that the new tariff is supposed to finance the lag in investment in infrastructures over a number of years, a component that was previously allocated separately by the Ministry of Finance, and the inefficiency in setting up (municipal) water corporations in the numbers required."
According to the Water Authority and the Ministries of National Infrastructures and Environmental Protection, and the members of the State Commission of Enquiry on Israel's Water raising water rates is vital. They see it as crucial in upgrading the country's water infrastructures, most of which has been implemented, and the costs involved in switching to a water supply system based on desalination.
However, the State Comptroller insists that the new water rates were fixed by defining cost in the broadest possible way, and includes past and present infrastructure costs. Lindenstrauss said, "In this way the costs have mainly been placed on household consumers instead of budgeting through the state budget, which would enable flexibility in imposing the cost in a differential way, which takes into account population without the ability to pay and the weaker members of society."
He added, "Putting up the water tariff hits the weaker sectors of society and the public cannot agree to this."
Minister of National Infrastructures Uzi Landau insists that the sharp rise in water tariffs must go ahead. He said, "There is no escape from making water more expensive to meet the needs of the population. It is also important to impose the drought tax and I will strive to ensure that the public continues saving water."
MK Miri Regev urged the government to accept the State Comptroller's report and not raise rates.
But Water Authority director Prof. Uri Shani said that without raising the tariff it would not be able to meet the water demands of the country.
Published by Globes [online], Israel business news - www.globes-online.com - on December 30, 2009
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