Answers to Questions

HOUSING SA WATER POLICY

124 The Hon. R.L. BROKENSHIRE (15 September 2010). Can the Minister for Families and Communities advise—

1. What is the method by which water usage is calculated for all Housing SA tenants?

2. Is the first 120 kilolitres at the lowest billing rate per kilolitre passed directly on to Housing SA tenants in shared water meter situations?

3. Why do private tenants get over 130 kilolitres of free water usage per year pursuant to standard form private leases, but Housing SA tenants do not?

4. Can the Minister assure that Housing SA billing across all Housing SA tenants for water usage (plus the percentage amount attributed to Housing SA's own watering needs) does not exceed the amount SA Water bills to Housing SA for the same?

5. Does the Government have a legal basis for talking a tenant's water bill out of their rent account, in some cases before the tenant has ever received the water bill?

6. Does the Government have a moral basis for doing the same?

The Hon. G.E. GAGO (Minister for State/Local Government Relations, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises, Minister for the City of Adelaide): The Minister for Housing has provided the following information:

1. Those tenants who have a separate meter have been charged for water usage since 1991. The charges are based on actual meter readings and are in line with those set by SA Water. Where a tenant vacates or is allocated a property during a reading period the meter is read and their charges are based on the number of days of occupation. In a shared meter situation, tenants' water bills are determined by averaging the consumption for the units connected to each shared meter, after first reducing total usage by 30 per cent as Housing SA's landlord contribution. Where a tenant vacates or occupies, charges are based on the number of days of occupation and a daily rate is based on the average used. SA Water rates are based on three tiers, however, tenants in shared metered sites are charged at the first two tier rates only.

2. In a shared meter situation Housing SA receives only one allocation of the first 120 kilolitres at the lower rate; which is then shared equally across all tenants in the properties attached to the meter. While SA Water charges quarterly for water usage, Housing SA charges its tenants on a six monthly basis. This means that the first 120 kilolitres consumed at the first tier rate is split across two billing periods (60 kilolitres per reading), as is water consumed at the second tier rate. Housing SA's 30 per cent contribution does not reduce the allocation to tenants at the lowest tier.

3. Private tenants do not automatically receive an allocation of free water usage per year. This depends on the lease agreement between the tenant and the landlord. In the absence of an agreement, a prescribed limit applies under the Residential Tenancies Act 1995 which is fixed at the supply charge for the premises, and the water rate for the supply to the premises of 136 kilolitres per financial year. Housing SA does not pass on sewer or supply charges to tenants.

4. Housing SA was no longer able to sustain the financial impact of providing a free allocation of water to tenants and maintain all other services, such as rent subsidies to those tenants who are unable to meet the cost of a market rent.

Housing SA's policy and procedures ensure all tenants are charged no more for water usage than that which is charged to Housing SA by SA Water. Housing SA charges all tenants in properties that share a meter only at the first two tier rates irrespective of the actual charge by SA Water. The cost of water per kilolitre is based on land use codes. Where a land use code attracts a three tier pricing structure in shared metered sites, Housing SA will only charge two tiers. Tenants are provided with water bills in whole kilolitres and not a part thereof and the 30 per cent that is deducted as the landlord contribution is done so at the second tier rate.

5. The legislative basis for charging tenants for water usage is derived from provisions in the South Australian Housing Trust Act 1995 and the South Australian Housing Trust (Water Rates) Regulations 1995. The latter specifies the limit to which Housing SA is responsible for water rates. In accordance with these powers Housing SA tenancy agreements contain provisions relating to the payment of water charges. Housing SA maintains a single account for each tenant that is used for rent, maintenance, water and other charges. Accounts are issued to tenants at least 14 days prior to the amount being deducted from their Housing SA account.

6. Housing SA has a moral obligation to provide social housing to those South Australians most in need and if debts are not paid this will impact on its ability to provide that service.