Sydney Water under fire for credit rating downgrade

JUST a week after we revealed Sydney Water’s plan to dump raw ­sewage into NSW’s pristine waterways, the government-owned utility is again under fire.

• BAIRD’S SEWAGE PLAN IS A REAL STINKER
• UNTREATED SEWAGE INTO OUR WATERWAYS

JUST a week after The Daily Telegraph revealed Sydney Water’s plan to dump raw ­sewage into the state’s pristine waterways, the government-owned utility is again under fire — this time over the downgrading of its credit rating.

It has emerged that Sydney Water paid the government ­almost $1 billion in dividends, and last week its managing ­director Kevin Young’s $715,000-a-year salary was confirmed until 2019.

Ratings agency Moody’s Investor Service downgraded the organisation’s rating to AA3, and issued a negative outlook.

“The negative outlook ­reflects the uncertainty as to whether the state will manage Sydney Water’s capital structure in a manner consistent with the rating parameters,” Moody’s analyst Mary Anne Low said.

In 2013-14, the utility paid $539 million in dividends and tax-equivalent payments to the state government. That soared to $911 million last year — apparently breaking a promise by former premier Barry O’Farrell in 2011 when he pledged to freeze power and water dividends for four years.

An exclusive report in The Daily Telegraph last weak ­revealed Sydney Water had plans to pump effluent into Sydney’s waterways — including Sydney Harbour — through 25 overflow pipes.

Premier Mike Baird came under fire over the plan, with Opposition Leader Luke Foley (below) accusing the government of taking far too much money out of the utility in ­dividends. “Ripping almost $1 billion out of Sydney Water has put its credit rating at risk,” Mr Foley said.

“Mike Baird needs to start treating Sydney Water like an essential utility not a cash cow.”