Media Statement
by Lim Guan Eng

(Melaka, Sunday): The proposed Water Services Industry Bill, to be approved next month in Parliament, is against consumer interest if the parasitic arrangement tying sewerage fees to water fees is allowed to disconnect water supply for non-payment of sewerage fees. Clause 89(2) of the new law provides for one bill for water and sewerage and the disconnection of water supply for non-payment of sewerage services.

Minister for Energy, Water and Communications, Datuk Seri Dr. Lim Keng Yaik’s assurances that the new Water Services Industry Bill will not be used to force collection of the over RM500 million outstanding Indah Water Konsortium (IWK) sewerage debts since 1997 will be meaningless as long as this is not clearly spelt out.  

Nothing is mentioned about not being able to collect past outstanding debts of RM 500 million. Clearly IWK can force the collection of past and present sewage charges even without providing proper service as it can rely on the relevant water authority to compel payment or have water supply disconnected. This is against the interest of consumers as it is unfair to cut off water supply when he owes sewerage fees but not water fees.

More importantly it is wrong in principle and oppressive in practice to cut off water supply when the consumer does not owe water charges. Justice requires that the water and sewerage services and fees be separated to uphold the principle of accountability so that problems arising can be addressed individually.

Linking them together would also be contrary to the user pay principle and the national policy objectives of having an affordable, efficient, effective and productive sewerage and water services. What incentive is there for sewerage services to be improved when they can still collect fees regardless of their service record and performance with the threat of being able to disconnect water supply?

Presently, the people are unhappy at paying fees to IWK when they do not see them providing good service or deriving any benefit. Lim Keng Yaik should act in the national interest to make each service independent of each other. Good corporate governance and accountability requires the detachment of such a parasitic arrangement between sewerage and water services.

(12/03/2006)