The NSW government has confirmed it will take an extra $100 million out of Hunter Water's coffers this year after the corporation's board approved the move.
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Shadow Minister for the Hunter Kate Washington continued Labor's attack on the big Hunter Water dividend, labelling it an "unfair tax" on the region.
The Newcastle Herald reported in January that Hunter Water had outlined the enlarged dividend in its 2018-19 Statement of Corporate Intent, tabled in Parliament on November 23.
Treasurer Dominic Perrotet, Finance Minister Victor Dominello, Hunter Water chair Terry Lawler and managing director Jim Bentley signed off on the proposal after the government mounted an initial attempt to pocket the extra $100 million last year but abandoned it in July.
Hunter Water told the Herald on Wednesday that its board had reviewed the organisation's performance and decided there was no reason to vary the forecast $144.9 million dividend included in the Statement of Corporate Intent.
The dividend, which will flow into government consolidated revenue, comprises the state-owned corporation's standard dividend of 70 per cent of after-tax profits ($44.9 million) plus the $100 million. Half the money is due by August 1 and the other half by December 1.
The Herald reported in January that Hunter Water would borrow the $100 million from NSW Treasury Corporation, adding to its outstanding borrowings of nearly $1.1 billion.
The corporation's most recent annual report said it had $388 million in reserves, $763 million in retained earnings, total equity of $1.268 billion and an investment-grade credit rating.
Ms Washington reiterated earlier Labor claims that the Hunter was being "treated as a cash cow" to fund "vanity projects" in Sydney.
"The truth is the funds will go into consolidated revenue and we won't see a cent," she said.
"Every time we get our Hunter Water bill, we'll know we're paying for the Premier's pet projects 200 kilometres away."
Mr Perrottet told the Herald that Hunter Water had the second lowest prices of any major Australian water utility and these had remained stable for five years.
"There will be no impact on prices, on services or capital investment in Hunter Water from changes to its capital structure," he said.
"This is a dividend for the people of NSW. The dividend will go towards expanding and improving front-line services and building infrastructure for the people of the Hunter and the state."
Hunter Water charges $2.34 per kilolitre for water usage plus a $75 fixed fee. Sydney Water prices are $2.08 per kilolitre plus a fixed $80 service charge.
Darwin residents pay only $1.95 a kilolitre, and Tasmanians pay just $1.06, but their service fees start at $342.
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