SA Water defends paying almost half a million taxpayer dollars on employee bonuses

Taxpayers have forked out almost half a million dollars for SA Water staff bonuses as the State Government probes whether the utility has inflated water prices.

• 2015: Water workers pocket $1.3m in bonuses over four years
• Burst mains increased by 19.7 per cent in 2018
• 2016: CBD bursts at six-year high
• 2017: Ian Hunter promises $55m to fix burst mains

Taxpayers have stumped up almost half a million dollars for SA Water staff bonuses, while the State Government probes whether the utility has inflated water prices.

Documents obtained by The Advertiser reveal SA Water has awarded $485,000 in special payments to staff over the past three years.

The payments have continued despite Premier Steven Marshall branding them “unacceptable” when opposition leader in 2015.

SA Water has defended the payments, which are built into its enterprise bargaining agreement.

The utility awarded 473 “performance allowances” – one-off payments equal to 1.5 per cent of an employee’s salary – over the past three years, at a cost of $451,610.

The bulk of the payments, revealed under Freedom of Information laws, were made to staff with salaries of more than $70,000.

SA Water denies the payments, made when a staff member is recognised as “as going above and beyond their required role”, are bonuses.

It also paid six staff members “retention payments” totalling $34,217 over the same period. An SA Water spokeswoman said its payment practices were reviewed by its board and in keeping with public sector guidelines.

“We will continue to implement contemporary remuneration approaches to attract and retain the highly skilled people required to operate and manage our statewide organisation,” she said.

SA Water’s spokeswoman said its performance was measured by more than just the number of burst pipes. Picture: AAP / Mike Burton

The Marshall government launched an investigation into SA Water’s pricing structure after winning last year’s state election, having consistently alleged while in opposition that the utility was price gouging.

The inquiry, chaired by former regulator and SA Water chair Lew Owens, is due to report in coming months. High numbers of burst water mains also continue to frustrate the public, with the three highest annual totals of burst pipes since 2010 coming in the last four years.

But SA Water’s spokeswoman said its performance was measured by more than just the number of burst pipes.

“As demonstrated through the two most recent independent performance reviews … we are continuing to achieve positive outcomes for our customers, and perform favourably on a national scale.”

Mr Marshall called for bonuses to be scrapped when The Advertiser revealed in 2015 that SA Water bureaucrats had been paid almost $1.3 million in bonuses over four years.

That amount was inflated considerably by five executives being paid almost $400,000, with those payments coming after the construction of the $1.8 billion Port Stanvac desalination plant and a $400 million pipe connection plan.

Water Minister David Speirs did not comment on the bonuses or whether the Government would scrap them. Mr Marshall is overseas in the US.

Deputy opposition leader Susan Close said the bonuses were “yet another example of Steven Marshall saying one thing before the election, and doing the opposite afterwards”.