SA Water Annual Report 2004-05

OBJECTIVE 1Towards 2010Towards 2010 - one of the most comprehensivebusiness improvement projects undertaken bySA Water - was launched in early 2005 to ensurewe are prepared for future business challenges.After a rigorous tender process, leading management,systems and technology consulting firm PA Consultingwas employed to guide the project. A number of keySA Water employees, led by Chief Operating OfficerJohn Ringham, were seconded to a special six-monthproject team to work with PA.In the first half of the year, the team undertookcomprehensive interviews, data collection andbenchmarking to come up with a diagnosis ofSA Water’s current state and identify key issues forthe Corporation and challenges for the next five years.By the end of June, the project had set about designingSA Water’s “future state” and developing solutions andproject plans we believe will help us deliver better valueto our customers and ensure greater efficiency in ourmanagement and operation of the State’s water andwastewater assets.The project is expected to be completed by the endof August 2005, with actions to be agreed by theBoard before a scheduled implementation plan is putin place. The 2005-06 annual report will provide detailsof the outcomes.Towards 2010 aligns with South Australia’s StrategicPlan target for the SA public sectors to lead the nationin cost-effectiveness of government services within5 years (Objective 1: Growing Prosperity).Water and Sewerage PricingThe South Australian Government sets prices for waterand sewerage (wastewater) services in the context ofnational guidelines formed by the Council of AustralianGovernments (COAG). The guidelines ensure pricesare reasonable relative to the costs of providing waterand wastewater services. When setting prices, theGovernment seeks to achieve a balance betweeneconomic efficiency, community benefits, social justice,environmental and regional issues.Under arrangements introduced in 2003 theGovernment has continued to expose to public scrutinythe processes by which it sets prices through thepreparation and publication of transparency statements.The first of these statements addressing 2004-05 waterpricing was released in June 2004.Two further statements have since been released -one addressing 2004-05 wastewater prices, releasedin November 2004 and one addressing 2005-06 waterand wastewater prices, released in May 2005. Thesedocuments are available from the Department ofTreasury and Finance’s website www.treasury.sa.gov.au.These price setting processes are independentlyreviewed by the Essential Services Commission ofSouth Australia whose reports are incorporated in thepublished transparency statements. The processes24 SA WATER annual report