Critic fury over almost $1m SA Water bonuses paid to hundreds of staff

Taxpayers awarded almost $1m worth of bonuses to SA Water staff for “extraordinary” River Murray flood work despite no other crisis workers earning any lucrative financial rewards.

Submerged properties along the bank of the Murray River at Blanchetown. Picture: Murray River Flood Experience / Cameron Kelly

Taxpayers funded almost $1m worth of bonuses to hundreds of SA Water staff for “extraordinary” River Murray flood crisis work – despite no other agencies involved earning such rewards, official figures show.

As households face rising water bills due to “failed” water infrastructure policy, data released under Freedom of Information laws reveals nearly $2.5m in special public money payments were made to agency staff over the past five financial years.

Amid record spending for all the state-owned utility’s incentive payments – awarded on top of generous salary packages – more than $902,300 “above target allowances” were bestowed to 926 staff in 2023/24.

The state government said the “performance” payments – almost quadruple the public amount paid the previous year – were for “extraordinary response to the flood emergency”.

No other major agencies that responded to the flood crisis handed out such rewards, which critics said “stinks”.

Senior government sources said while public sector bonuses were less common than in private business, payments were made to retain “exceptional” staff or those who achieved beyond-standard work in challenging circumstances.

No SES, Environment Department nor Green Industries workers received incentive payments. Picture: Dean Sewell/Oculi

SA Water, which defended its overall payment system that is built into its negotiated worker agreements, said an average $985 “performance allowance” was paid out.

The State Emergency Service, which was the “control agency” during the unprecedented crisis in late 2022 and early last year, has not paid out any bonuses.

Neither did the Environment Department, which provided official flooding advice, nor the Green Industries agency, which has managed the clean-up, award additional cash to staff.

Critics attacked “unnecessary extravagance” in a cost of living crisis and despite the state suffering an acute housing shortage.

Independent Upper House MP Frank Pangallo condemned SA Water for “splashing out the cash to well-paid workers for doing the job they get good money for”.

“This stinks as bad as their dilapidated treatment works at Bolivar,” he said.

“SA Water is a big cash cow for the government and it will need to justify this unnecessary extravagance.”

Mr Pangallo, who will question SA Water executives at a parliamentary hearing, said building projects were “grinding to a halt and the costs of housing developments are rising because of SA Water’s sloppy and slack approach in doing its job effectively”.

“How can SA Water possibly justify these bonus payments when they cannot even carry out their prime responsibility of providing the urgent and necessary water and sewage infrastructure to meet the state’s projected housing construction needs?” he said.

“During a cost of living crisis, the government and taxpayers are now being forced to bail out their lack of vision, planning and management skills with higher water and sewage bills.”

Premier Peter Malinauskas in June revealed average water bills will rise by $85 annually to fund a $1.5bn water and sewer infrastructure surge to unlock 40,000 home allotments within four years.

SA is experiencing a housing shortage, some of which due to a lack of water infrastructure. Picture: Stephen Brookes

The Premier, who said most of the spending would fund connections to northern greenfield developments, labelled water and sewerage connection failures to Adelaide’s growing north a “public policy disaster” from SA Water.

“At some point or another, someone’s got to have the courage to bite off the challenge and do something about it because SA Water’s approach up until this point has been a failed policy,” he said in February.

“When you’ve got homes ready to be built that aren’t, simply because of a lack of trunk water infrastructure that has an enormous long-term impact.”

The FOI shows 1677 workers shared the spoils of almost $1.8m “above target allowances” between 2018/19 and last financial year.

The one-off payments are equal to up to 2 per cent of an employee’s salary.

No such payments were allocated in 2020/21, records show. The majority were middle-ranked workers earning nearly $100,000, with the highest being paid almost $130,000.

Frank Pangallo criticised the payments. Picture: NCA NewsWire / Brenton Edwards

Premier Peter Malinauskas, with Prime Minister Anthony Albanese watching, has criticised SA Water’s lack of planning. Picture Dean Martin

Almost $452,000 in “market allowances” were paid to 39 staff over that same time.

A further $235,853 in “retention allowances” were paid to 47 workers including highly specialised engineers.

More bonus money was allocated in all categories last year, making the five-year total $2.47m.

A burst water main at the intersection of North Terrace and Frome Rd in June. SA Water defended incentive payments. Picture: Brett Hartwig

Housing and Urban Development Minister Nick Champion, who was handed responsibility for SA Water in a recent cabinet reshuffle as part of his new “super” ministry, said remuneration was a matter for the SA Water board and executives.

He added: “I have been advised by SA Water the contributing factor for the increase was the extraordinary response to the flood emergency.

“Everyone saw the images and devastation caused by the River Murray flood event and SA water staff worked incredibly hard to support the community.”

An SA Water spokeswoman said executives approved all retention allowances and its board authorised every performance payment, the scope and relevance of which were regularly reviewed.

“One-off performance allowances are made to SA Water employees in recognition of an individual’s work … which is deemed above and beyond their usual role or tasks,” she said.

She said in 2022/23 “a large part of our organisation was involved in a significant volume of extraordinary and ongoing work to prepare and respond to the River Murray flooding emergency”.

“Like many public sector organisations, we also provide allowances from time to time to some of our people to retain their in-demand skills and expertise which are critical to operating an essential service in a competitive employment market,” she said.

“These payments are usually targeted at specialist functions such as engineering.”