Losses of more than $20 million are expected from several Victorian water authorities this week, as pressure on the finances of the state's water sector continues to mount.
But worse could still be ahead, with some authorities' future budgets calculated around a return to lower water restrictions — something that appears increasingly unlikely in many parts of the state.
State Parliament is expected to be flooded with annual reports this week, including those from the 19 authorities and corporations that supply water to the state.
Coliban Water, which serves the Bendigo region, and Grampians Wimmera Mallee Water, which serves a large chunk of the north-west, are expected to provide the financial lowlights.
Losses for GWM Water are believed to be close to $30 million for the financial year to June 2008 as irrigation networks in the parched region continue to be rationalised.
It is believed that annual income at the GWM roughly matches expenditure, but significant assets are being written off every year as irrigation channels and infrastructure are closed down.
Coliban's losses are also expected to be close to $20 million, but the woes could be amplified by optimistic financial planning for coming years.
Bendigo is currently on stage four water restrictions, but Coliban's forecasts rely on these falling to stage two by this time next year. This would allow more water to be sold, increasing the authority's income. But with the dry conditions continuing, the prospect of relaxed restrictions appears unlikely.
Both authorities were unable to discuss their accounts until the reports were tabled in Parliament.
Their plight illustrates the predicament facing the water sector, which has been forced to spend millions on water projects during the drought while it is receiving reduced revenues because of increasingly harsh water restrictions.
Water Minister Tim Holding said, however, that all Victorian water authorities were in a stable position.
"Some water authorities have had a reduction in revenue over the past year for a range of reasons, including reduced water sales, and had significant costs from constructing major water projects.
"The Victorian Government is providing large subsidies for regional water projects to offset the financial impact on water authorities and customers' bills," he said.
Meanwhile, a parliamentary inquiry was told yesterday that little extra water can be saved by Melbourne's house-holds. CSIRO principal research scientist Dr Shiroma Maheepala told the inquiry into Melbourne's water future that industry and rural areas were the places where more significant savings could be achieved.
Monash University expert Tony Wong told the inquiry that the desalination plant would satisfy Melbourne's needs for about 27 years before other sources could be required. He said Melbourne should use that time to retrofit the city with a focus on water conservation and capture.
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