Call for water subsidies to help cut Coober Pedy Council’s $7.5 million debt

The State Government should subsidise the cost of water in Coober Pedy to help dig the town out of its $7.5 million debt, the council’s chief executive says.

Coober Pedy Mayor Les Hoad and chief executive Colin Pitman. Picture: Tricia Watkinson

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The State Government should subsidise the cost of water in Coober Pedy to help dig the town out of its $7.5 million debt, the council’s chief executive says.

Colin Pitman says it costs about $8.50 per kilolitre to supply water in Coober Pedy – almost three times the $3.37 per kilolitre paid in Adelaide.

However, the council removes some of the burden for locals by subsidising the fees, at a cost of about $500,000 each year.

Supplying water is much more expensive in Coober Pedy as the council manages a local system, drawing water from the Great Artesian Basin and treating it through desalination and reverse osmosis before being pumping it to locals’ properties.

The Government covered part of the supply cost in other rural areas, Mr Pitman said, but not in Coober Pedy, where the council managed the district’s system.

“We’re asking (Environment Minister) David Speirs that we have the same benefits of rural pricing that the rest of the state has,” Mr Pitman said.

“It would have a significant effect on the council’s financial position.”

Mr Pitman said water costs were a burden on the council, along with other non-core council business such as managing the town’s airport.

The embattled opal town’s council was axed in January, barely two months after council elections following longstanding financial problems.

Tim Jackson, former chief executive of Playford Council, was appointed administrator to try and turn the district’s financial fortunes around.

Coober Pedy is among councils in the midst of finalising their draft 2019/20 budgets.

Mr Pitman, who has continued his role while the elected members are suspended for 12 months, said “significant” rate rises and potential service cuts were under consideration to try and reduce debt.

Other regional and remote councils get their water supplied through SA Water infrastructure.

But a State Government spokesman said there were a number of council-owned water schemes across SA.

“Councils, as owners of these assets, are required to manage these appropriately to ensure their long-term viability,” the spokesman said.

“The State Government is aware of the issues Coober Pedy Council is facing and will continue to discuss options available.

“Any proposal needs to be carefully considered against the impacts on South Australian taxpayers.”

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