By Prof P Ramasamy
AS far as the MCA is concerned, the Penang state government can do nothing right. Even if there are no worthwhile matters to discuss, despite in political doldrums, MCA seeks to oppose the Penang state government on a variety of matters.
The latest being the proposal of water tariffs submitted by the water operator the Penang Water Corporation (PBAPP) to the Federal Government via the respective water related agencies.
The MCA wants the Penang state to rescind the imposition of higher water tariffs as they will be burdensome to the people in Penang during a public health crisis.
While the MCA has the right to criticise the Penang state government, it should in the first place gets its facts right about the different levels of authority, who is really in charge of pricing and whether Penang has the option to rescind the water tariffs.
A quick comparison with other states will indicate that the water charges in Penang are the lowest, especially for the consumers.
Penang’s existing average domestic tariff for the first 35,000 litres per month is 71 cents per 1,000 litres, the lowest in the country.
The average tariff for the first 500,000 litres per month is RM1.36, the third lowest in the country.
Of course, industries and commercial establishments pay higher rates.
The imposition of water tariffs not just in Penang but in other states is predicated on the proposal by the state governments and water operators, with acceptance by the Federal Government particularly the Environment and Water Ministry (KASA).
States cannot impose water tariffs unilaterally. This important fact has been lost to the MCA. Concurrence of the Federal Government in general and the particular ministry is essential.
For new water tariffs to take place, Putrajaya must accept proposals from different states before they can be gazetted.
States can propose to recommend water tariffs, but this recommendation must undergo a process of public consultation before being pursued further.
MCA’s petty politics
Right now, there is an ongoing process of public consultation in Penang and other states.
MCA fails to understand the licensing of water management, by public or private companies, are tied with the tariff plans.
The Penang Water Corporation’s (PBAPP) application for water tariffs in 2019 was in accordance with the directive by National Water Services Commission (SPAN).
Last year, we postponed the proposal due to COVID-19. Between 2008 and 2020, there were two tariff reviews.
In the first review, PBAPP introduced the Water Conservation Surcharge (WCS). This is applicable to excessive domestic consumption of above 35,000 litres per month.
I understand that more than 70% of Penang domestic water consumers do not pay WCS.
Both domestic and trader tariffs were reviewed in 2015.
Tariffs are imposed not to burden the people, but to ensure that water is well managed, not wasted and most importantly to ensure that state has funds for investments in water technology.
It is not that Penang is not mindful of the needs of the ordinary people; every effort will made to cushion them against any excessive or burdensome hike in tariffs.
Given the fact that Penang draws about 80% of water supply from Sungai Muda, with its sources in the Muda water catchment area, there is dire need in the long run to diversify water supply to the state.
This diversification means that Penang has to seek alternative sources of water supply from states like Perak.
In future, drawing of water from Sungai Perak means cost in investment, technology and payment for raw or treated water from Perak.
Other than asking the Penang state to cancel the water tariffs, can MCA give us other alternatives?
While MCA can criticise all it wants, but it should not pretend as to which Government actually has the final authority in deciding matters on water tariffs.
And it is certainly the Federal Government and not the state government.
Presently, water tariff hike is being proposed for a number of states, but why MCA is merely focusing on Penang?
Well, therein lies the political nature of MCA’s criticism on the water tariffs in Penang. It obviously has nothing to do with the merits or demerits of the matter at hand. – June 1, 2021.
Prof P Ramasamy is the deputy chief minister of Penang and Perai state assemblyman.
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
