MASSIVE financial losses continue to plague water authorities across rural Victoria, as their city counterparts begin to enjoy the fruits of soaring household water prices.
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Despite the breaking of the drought, hard times have continued for Coliban Water, which posted its third successive loss in excess of $28 million. Its $28.5 million loss for the year ending in June 2010 means it has lost $87.4 million over the past three years.
The losses have occurred because the authority failed to budget for the drought and saw its revenue streams dry up under water restrictions.
Despite raising prices in July, the pain looks set to continue, with Coliban chairman John Brooke telling The Age he expected a loss of $18 million next year and no return to a break-even point until 2012.
Coliban now has debts close to $220 million, and Mr Brooke conceded yesterday it would be 20 years or more before the authority could hope to rid itself of those debts.
Coliban's troubles are awkward for the Brumby government, which faces a battle to hold its two Bendigo electorates in the November election. Both electorates - held by ministers Bob Cameron and Jacinta Allan - are serviced by Coliban, as are the towns of Echuca, Trentham and Rochester.
Opposition country water spokesman Peter Walsh said Labor was paying the price for an unrealistic positive picture in Coliban's original, flawed budget plans.
Grampians Wimmera Mallee Water lost close to $17 million. Goulburn Murray Water lost $62 million, but much of that loss was due to depreciation calculations.
Melbourne's three retailers fared much better, reporting significant profit increases, thanks to household water price rises to pay for the desalination plant and north-south pipeline.
Yarra Valley Water more than doubled its profit to $41.7 million, South East Water increased its profit by 50 per cent to $95.4 million, while City West Water increased its profits to $89.5 million.
