2011 deloitte wa water sector 2010 2015

8/3/2019 2011 Deloitte WA Water Sector 2010 2015

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September 2011

AWA / DeloitteState of the Water Sector 2010-15:Western Australia


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Cover Photo: Katherine Gorge


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Two years ago, water or the lack o it was very much ront o mind or residents in almost every major

city and region across Australia. Much has changed since then, with devastating loods across large sectors

o the eastern seaboard creating an almost complete reversal in popular understanding o water issues in

those states, while in Western Australia record dry summers have served, by contrast, to reinorce a drought

mindset. Whether in drought or looding rain, water issues remain top o mind or communities generally, and

management o water a top priority.

Good policy and good planning is only possible, however, with good knowledge. It was with this in mind thatAWA, in conjunction with Deloittes water industry team, undertook the irst nationalAWA / Deloitte State of

the Water Sector Surveyin August/September 2010. TheSurveywas designed to assist the policy and planning

process by collecting the views o those who understand the sector best: those who work within it or are

associated with it in their day-to-day lie. These are the people who know i a system is well managed or not,

is being maintained properly or is being allowed to run down, is perorming to speciications or is at risk, is

inancially sound or under threat.

The Preliminary Reporton theSurvey, which was released at the irst AWA National Water Leadership Summit

in November 2010, ocussed on collating views at the national level.

This report, which is one o seven state and territory-based companion reports to the national indings

presented in the Preliminary Report, is ocussed on the views oSurveyrespondents in Western Australia.

In total, 117 residents rom Western Australia across all levels o seniority, all disciplines and all levels o

experience in the sector, responded to theSurvey. This is 10% o the total o 1162 responses nationally and is

a statistically signiicant sub-group.

We hope that the data collected rom Western Australia, presented here side by side with the results o all

other jurisdictions or ease o comparison, will be a useul source o inormation which can be leveraged by

all those working in the water sector. The commentary ocuses on highlighting those areas where Western

Australian responses either align or are at most odds with the responses o all other states/territories. Readers

are encouraged to reer to the Preliminary Reportor a more complete analysis o theSurveyindings overall.

A urther and inal report, to be released in November 2011, will compare individual state or territory results,

where signiicant, to both the national and other state/territory results, as well as providing urther insights

drawn rom a series o interviews with water sector leaders nationally on theSurveys key indings.

It is with great pleasure that we make the Western Australian results available.

Foreword

Tom Mollenkopf

Chief Executive

Australian Water Association

Michael Rath

National Leader, Water

Deloitte


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Contents

Foreword1. Executive Summary 1

2. The big issues in the water sector 2010-15 3

Sustainability

Water security

Water scarcity and planning

Ageing inrastructure

Adapting to climate change

Skills shortage

Water allocation

Institutional and governance reorm

Water pricing

Energy usageWater market development

Water availability or irrigation

Progress against the National Water Initiative

Nutrient Recovery

3. Sustainability, climate change and resource management 6

4. Infrastructure management and maintenance 10

5. Regulation 11

6. Institutional reform 13

7. Funding models and investment 18

8. Water markets and pricing 21

9. Talent: attraction and retention 23

For more information 26


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About this report

This report presents the views o Western Australianrespondents to the AWA/Deloitte State of the Water

Sector Surveyconducted in August/September 2010,

together with comparison data or respondents in all

other Australian states and territories. Similar reports

are available or New South Wales, the Australian

Capital Territory, Victoria, Tasmania, South Australia and

Queensland.

117 Western Australians across all levels o seniority,

all disciplines and all levels o experience in the sector,

responded to theSurvey. This is 10% o the total o 1162

responses nationally and is a subgroup o a size suicient

to produce statistically signiicant results. For ull details o

theSurveymethodology please reer to the Introduction in

the Preliminary Reportreleased in November 2010.

Following are some o the indings o key agreement, or

o signiicant variance, between respondents in Western

Australia and those in all other jurisdictions. However

readers are encouraged to explore the data urther as

insights beyond those reerred to here will doubtless

emerge.

The reasons underlying the dierences in view between

Western Australia and all other jurisdictions are not known

with certainty. It will be to other researchers to explore

these dierences through urther analysis and questioning.

I the data presented here prompt urther thinking about

what is working well in Western Australia and what might

require closer scrutiny, the report will have added value.

It should be noted that while this report sorts theSurvey

data on a state basis, the data can be sorted according

to a range o demographic criteria, such as respondents

roles within the industry, their length o service or age, the

type o organisation they work or and so on. Researchers

wishing to undertake urther analysis or to test hypotheses

that might have been developed to account or the

dierences that exist between the views o dierent

groups o respondents are invited to contact the National

Oice o the Australian Water Association to seek access

to the raw data rom theState of the Water SectorSurvey

on a select basis.

Findings of significance

The statements below contrasting the indings romWestern Australia with all other jurisdictions relect

dierences in opinions that are statistically signiicant.

Intermsofthebigissuesfacingthewatersector:

a larger percentage o Western Australians than

respondents across all other jurisdictions rank

sustainability as one o three most important issues

currently acing the water sector (51% vs. 41%).

Western Australians also more commonly rank the

issue o water scarcity and planning as one o the three

most important issues (49% vs. 31%). Although they

rank it just outside the top three, Western Australians

are also more likely to nominate the issue o adapting

to climate change as one o the most important acing

the sector than respondents in all other jurisdictions

(38% vs. 29%). Conversely, they also dier signiicantly

in view on the importance o the issue o ageing

inrastructure. Only 21% o Western Australians

consider the need to address this as one o the top

three issues acing the sector compared to 33% o

respondents elsewhere

Whenaskedtoevaluatehowwellthemostimportant

issues acing the sector are being addressed Western

Australians are more likely than respondents across all

other jurisdictions to think that:

Water scarcity is not being handled well (63%

vs. 54%)

Adapting to climate change is not being handled

well (81% vs. 71%)

Intermsofassessingthemostimportantissuesto

ace the water sector in ive years time Western

Australians do not change signiicantly rom their

current assessment. Five years out Western Australians

see water security, adapting to climate change, water

scarcity and sustainability continuing to be the most

important issues acing the sector, although they give

slightly less weight to sustainability and water scarcity

than they do currently. 51% o Western Australians

consider sustainability as one o the top three issues

currently but only 39% rate it as such ive years out.

Similarly 48% o Western Australians rate water

scarcity as one o the top three issues currently but only

37% rate it so looking orward ive years. By contrast

with respondents in all other jurisdictions, however, a

signiicantly smaller percentage o Western Australians

think ageing inrastructure to be one o the top issues

looking orward ive years (21% vs. 33%)

AlargerpercentageofWesternAustraliansfeelthat

climate change is a signiicant threat to the sustainable

management o water than do respondents in other

jurisdictions (67% compared with 48%). Even i the

responses o those who see it as a moderate threat

are added, Western Australians are more strongly o

the view that climate change is a threat to sustainablewater management (93% compared with 87% in all

other jurisdictions)

1. Executive summary

AWA / Deloitte State o the Water Sector 2010-15: Western Australia | 1


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Nonetheless,WesternAustraliansclearlydistinguish

between the threat o climate change and the

eectiveness o the response to the threat. While a

greater percentage o Western Australian think that

climate change is a signiicant threat than those in

other jurisdictions, Western Australians do not dier

signiicantly rom those living elsewhere in their view

o how well the issue o climate change is being

addressed. Western Australians also agree with their

compatriots with regard to how well Australia is

planning or its uture urban, rural or environmental

water needs

Onthetopicofwaterrestrictions66%ofWestern

Australians think these should be let in place or the

oreseeable uture, while only 28% think they should

be eased in line with increases in available supply. Boththese results are signiicantly dierent to the views o

respondents in other jurisdictions, where only 47%

think restrictions should be let in place and 43%

believe they should be eased in line with supply

AlargerpercentageofWesternAustraliansthan

respondents in other jurisdictions think water

restrictions also ensure wasteul practices are prohibited

(89% compared with 81%). Western Australians are

also more likely to think pricing contributes signiicantly

or moderately to eicient water use (77% compared

with 68%)

Onthebarrierstotherecoveryofnutrientsfrom

sewage and their beneicial use, a greater percentageo Western Australians than respondents elsewhere

think community resistance is one o the three main

barriers preventing recovery and usage o nutrients

rom sewage (46% compared to 33% elsewhere)

AsmallerpercentageofWesternAustraliansthan

respondents in other jurisdictions think diiculty in

coordinating across separate organisations is one

o the three main barriers to the implementation o

more water sensitive cities (52% compared with 66%

elsewhere in Australia)

WesternAustraliansareinagreementwiththerestof

Australia that to meet uture water needs the three

most important things needed are to recycle morewater, utilise stormwater as a source o supply, and to

raise the price o water to relect its scarcity. However

in evaluating the relative importance o these, a greater

percentage o Western Australians than elsewhere

think we should ocus on recycling more water (77%

vs. 64%)

WesternAustralianshaveamorepositiveviewofhow

well urban water inrastructure in their state is being

maintained. 71% o Western Australians compared

to 60% o those elsewhere think urban water

inrastructure in their jurisdiction is being maintained

very or quite well

WesternAustraliansalsohaveamorepositiveview

o how rural water inrastructure in their state is

being maintained. 36% o Western Australians think

rural inrastructure in the state is being maintained

very or quite well whereas only 26% o respondents

elsewhere think rural inrastructure in their jurisdiction

is being maintained well. (Conversely, 42 % o Western

Australians think rural water inrastructure is not being

maintained well, with the equivalent igure or all other

jurisdictions being 46%, although it should be noted

this latter dierence is not statistically signiicant)

Onthetopicofregulationtherearefewdifferencesof

signiicance between the views o Western Australians

and respondents elsewhere across the nation.

The majority view everywhere is that regulation is

eective, whether environmental, economic or pricerelated, quality or health related, or related to the

oversight o the corporate perormance, although a

smaller percentage o Western Australians eel the

level o regulation in their state is excessive than do

respondents elsewhere (9% vs. 15%)

Onthetopicofinstitutionalreformtherearefew

areas where the views o Western Australians dier

signiicantly rom respondents elsewhere in Australia.

However, respondents elsewhere are more likely to

think one o the three main risks with disaggregation

o utilities is that no one will be able to see the big

picture (58% compared with only 46% o Western

Australians) Withrespecttofundingmodelsandinvestment

Western Australians more commonly think that urban

water utilities should be ully or somewhat commercial

than do respondents elsewhere (78% compared with

69%). By contrast Western Australians views on how

commercial rural utilities should be are in alignment

with respondents elsewhere (66% compared

with 61%).

AgreaterpercentageofWesternAustraliansthink

government should contribute capital or the

construction o water inrastructure through grants

with no repayment required than do respondents

elsewhere (33% compared with 23%) AtthesametimeasmallerpercentageofWestern

Australians than respondents elsewhere think that

the water sector should receive government subsidy

payments or development o inrastructure (26%

compared with 36%)

AgreaterpercentageofWesternAustraliansthanthose

in all other jurisdictions agree or strongly agree that

the level o dividend payment made by corporatised

water entities to their government owner is about

right (30% vs. 20%).

2 |


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2. The big issues in the watersector 2010-15


Western Australia Most important 2nd most important 3rd most important

All other

Note: no value is displayed when less than 2%

Most important 2nd most important 3rd most important

3%

4%2%

2%

3%

22% 7%20%

9%15% 14%

7% 6% 8%

17% 18% 16%

5% 7% 9%

9% 13% 11%

3%

2%

5% 7% 8%

18% 12% 11%

18% 14% 11%

21% 7%12%

12% 9%10%3% 9% 9%

9% 10% 10%

3% 11%4%

8% 8% 11%

5% 8% 7%

5% 3%5%

4% 7% 8%

3%3% 3%

6%7%

3%

Sustainability

Water security

(ensuring reliability and quality of supply)


Ageing infrastructure

Adapting to climate change

Skills shortage

Water allocation (to users or the environment)

Institutional and governance reform

Water pricing

Energy usage

Water market development

Water availability for irrigation

Progress against the National water initiative

Other

Nutrient recovery

0% 10% 20% 30% 40% 50% 60%

2.2 Please rank the three issues you think are the most important currently facing the water sector

0% 10% 20% 30% 40% 50% 60%

2.1 How would you describe the current overall state of the water sector across Australia (urban and rural)?

3%

3%Very sound

56%Quite sound

59%

Not very sound30%

36%

Not at all sound

2%3%

4%

4%

Not sure/dont know

WA All other


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4 |

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Sustainability

Water security

(ensuring reliability and quality of supply)



Adapting a climate change

Skills shortage



Water pricing

Energy usage




Other

Nutrient recovery


Western Australia Very well Quite well Not very well Not at all well Dont know

All other Very well Quite well Not very well Not at all well Dont know

2.3 How well do you think these three issues are being addressed?

20% 61%

36%53% 9%

50%25% 25%

28% 53% 15%

55%3% 37% 4%

42% 11%43%

26% 51% 20%

14% 53% 31%

19% 55% 25%

10% 52% 35%

23% 51% 25%

24% 53% 20%

26% 55% 17%

3% 8% 50% 38% 4%

51%18%5% 25%

16%

36% 51%5% 12%

14% 55% 31%

16% 57% 24%

9% 68% 21%

33% 54% 13%

19% 54% 28%

17% 56% 25%

28% 41% 28%

23% 54% 15%

18% 36% 45%5% 20% 55% 18% 4%

63% 25%

17% 59% 23%

11% 44% 22% 22%

11% 42% 42% 3%


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0% 10% 20% 30% 40% 50% 60%

Sustainability

Adapting a climate change

Water security (ensuring reliability and quality of supply)


Skills shortage


Energy usage

Water pricing





Nutrient recovery


Other (5 years time)

All other


Most important 2nd most important 3rd most important

Western Australia Most important 2nd most important 3rd most important

2.4 Please rank the three issues you think will be the most important in five years time

3%4%3%

4% 6% 8%

7% 8% 5%

3%

15% 15% 9%

14% 16% 13%

19% 11% 13%

10% 10% 10%

5% 9% 7%

10% 8% 8%

5% 5% 6%

3%

3% 4%

16% 11% 10%

14% 10% 10%

14% 11% 7%

9% 11% 13%

14% 13% 10%

6% 10% 8%

7% 9% 9%

5% 7% 7%

3% 5% 6%

3% 13%5%

8% 4% 9%

3%

3%2%2%

2%


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3. Sustainability, climate changeand resource management

6 |

0% 10% 20% 30% 40% 50% 60%

6%

10%

67%

49%A significant threat

26%

38%A moderate threat

A minor threat

1%

2%No threat

0%

2%Dont know

WA All other

3.1 How much of a threat is climate change to the sustainable management of water?

0% 10% 20% 30% 40% 50% 60%

0%Very well

42%Quite well

41%Not very well

10%Not at all well

7%Dont know

1%

35%

50%

8%

6%

3.2 How well is the water sector addressing issues related to climate change?

WA All other

0% 10% 20% 30% 40% 50% 60%

2%Very well

59%Quite well

31%Not very well

6%Not at all well

3%

4%

50%

35%

8%

3%Dont know

WA All other

3.3 How well is Australia planning for its future urban water supplies?

0% 10% 20% 30% 40% 50% 60%

0%Very well

16%Quite well

62%Not very well

20%Not at all well

8%

0%

15%

57%

18%

10%Dont know

WA All other

3.4 How well is Australia planning for its future rural/agricultural water supplies?


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0% 20% 40% 60% 80% 100%

3.7 Which of the following statements most closely represents your view?

89%Water restrictions ensure wastefulpractices are prohibited

11%

81%

19%

Water restrictions inhibit

consumer choice

WA All other

0% 10% 20% 30% 40% 50% 60%

42%Significantly

35%Moderately

21%Marginally

2%Not at all

0%

35%

33%

28%

4%

0%Dont know/no opinion

3.8 To what extent do you think pricing contributes to efficient water use?

WA All other

0% 10% 20% 30% 40% 50% 60%

0%Very well

21%Quite well

47%Not very well

26%Not at all well

6%

1%

21%

51%

21%

6%Dont know

WA All other

3.5 How well is Australia planning for its environmental water needs?

3.6 Water restrictions were introduced in most urban and regional centres during therecent drought. Should water restrictions be...?

Left in place forthe foreseeable future

Eased in line with increasesin available supplies

Used only in

emergency situations

Lifted completely

WA All other

0% 10% 20% 30% 40% 50% 60%

66%

28%

5%

47%

43%

10%

1%

1%


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8 |

0% 10% 20% 30% 40% 50% 60% 70% 80%

Note: Total % >100 as respondents were asked to choose three options

3%Dont know

6%Impact on the environment

13%Technical limitations

16%Impact on human health

16%

Other (please specify)

31%Risk of water quality not beingfit for purpose

60%Cost

69%Politics

82%

2%

7%

10%

15%

17%

35%

62%

72%

78%Community resistance

WA All other

3.9 What do you think are the three main barriers to the increased recycling of wastewater?

0% 10% 20% 30% 40% 50% 60% 70% 80%


66%Cost

42%Lack of demand

38%Competition from othersources of fertiliser

46%Community resistance

15%Dont know

18%Impact on human health

8%Impact on the environment

8%Technical difficulties

10%

64%

45%

42%

33%

16%

13%

11%

11%

10%Other (please specify)

WA All other

3.10 What do you think are the three main barriers to the recovery of nutrients

from sewage and their beneficial use?


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0% 10% 20% 30% 40% 50% 60% 70% 80%


52%Difficulty in coordination acrossseparate utilities/organisations

69%Lack of leadership

51%Overall cost

48%Lack of means for measuring/valuing benefits or returns gained

32%Lack of real world examplesof successful implementation

18%Lack of demand


8%

66%

62%

53%

47%

27%

17%

11%

6%Dont know

3.11 What do you think are the three main barriers to the implementation of

more water sensitive cities?

WA All other

0% 10% 20% 30% 40% 50% 60% 70% 80%


77%Recycle more water

44%Utilise storm wateras a source of supply

41%Raise the price ofwater to reflect its scarcity

36%Curb demand forwater through education

27%Repair infrastructureto reduce water loss

10%Promote water trading so that watergoes to the highest and best use

7%Encourage or require theinstallation of rainwater tanks

15%Subsidise water

efficient appliances7%


9%Introduce or tightenwater restrictions

7%Use innovative techniques toreduce evaporation

6%Access additional water from traditionalsources (e.g. dams, groundwater)

5%Reduce the wateravailable for irrigation

3%Dont know

3%

64%

45%

36%

34%

35%

18%

16%

12%

12%

9%

7%

6%

4%

1%

0%

Reduce water allocationsto the environment

WA All other

3.12 Population policy is under review in Australia. What do you think are the three most important

things that should be done to meet our future water needs?


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4. Infrastructure managementand maintenance

10 |

0% 10% 20% 30% 40% 50% 60%

9%Very well

62%Quite well

16%Not very well

3%Not at all well

10%

4%

56%

29%

4%

8%Dont know

WA All other

4.1 How well is urban water infrastructure in your state/region being maintained?

26%Remain approx.

the same

17%Decrease

3%Dont know

0% 10% 20% 30% 40% 50% 60%

54%

24%

15%

3%

57%Increase

WA All other

4.3 Over the next 3-5 years, do you believe capital expenditure (in real terms) in the water will...?

0% 10% 20% 30% 40% 50% 60%

3%Very well

33%Quite well

34%Not very well

8%Not at all well

22%

1%

25%

36%

10%

27%Dont know

WA All other

4.2 How well is rural water infrastructure in your state/region being maintained?

1%Very well

Not very well

2%Not at all well

3%Dont know

0% 10% 20% 30% 40% 50% 60%

62%

6%

27%

3%

4%

61%Quite well

32%

WA All other

4.4 How well is the water sector adopting new technologies?


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5. Regulation


0% 10% 20% 30% 40% 50% 60%

5%Very effective

53%Quite effective

32%Not very effective

3%Not effective at all

6%

4%

52%

30%

4%

9%Dont know

WA All other

5.1 How effective is environmental regulation in your state/territory?

0% 10% 20% 30% 40% 50% 60%

3%Very effective

44%Quite effective



15%

3%

37%

39%

7%

14%Dont know

WA All other

5.2 How effective is economic/price regulation in your state/territory?

0% 10% 20% 30% 40% 50% 60%

33%Very effective



3%Dont know

50%

24%

13%

2%

6%

56%Quite effective

WA All other

5.3 How effective is water quality/health regulation in your state/territory?


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12 |

0% 10% 20% 30% 40% 50% 60%

Very effective

Quite effective

Not very effective

Not effective at all

Dont know

WA All other

10%

41%

22%

5%

21%

6%

37%

28%

6%

23%

5.4 How effective is regulatory oversight of corporate performance of the water sector in yourstate/territory?

0% 10% 20% 30% 40% 50% 60%

9%Excessive

57%

About right

26%Inadequate

7%

15%

55%

23%

8%Dont know

5.5 Overall, do you feel the level of regulation in the water industry in your state/region is...?

WA All other


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6. Institutional reform


0% 10% 20% 30% 40% 50% 60%

6%Very beneficial

22%Quite beneficial

26%Not very beneficial

24%Not at all beneficial

21%

4%

27%

39%

15%

15%Dont know

6.1 There has been a trend toward disaggregation of water utilities along functional lines

(e.g. bulkwater supply, distribution, retailing and wastewater treatment).

Do you think this trend is...?

WA All other

0% 10% 20% 30% 40% 50% 60%


Reduced debt

Reduced costs

Improved water security

Dont know

Improved customer services

Simpler management

More efficient operations

Improved accountability

3%

Very few benefits, it would bebetter if utilities remained integrated

WA All other

3%

14%

9%

30%

18%

17%

21%

19%

43%

9%

12%

17%

20%

22%

29%

31%

47%

6.2 What do you think are the three most significant benefits of disaggregation of water utilitiesalong functional lines?


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14 |

0% 10% 20% 30% 40% 50% 60%


10%Reduced water security

9%Very few risks, disaggregationis the best approach

7%Increased debt

26%Dont know

12%Reductions in customer service

22%Reduced accountability

30%Inefficiency

29%Increased costs

49%Reduced planning efficiency

46%

7%

7%

10%

14%

16%

28%

38%

36%

52%

58%

No one will be able to

see the big picture

WA All other

6.3 What do you think are the three most significant risks associated with disaggregation?

0% 10% 20% 30% 40% 50% 60%

14%Very beneficial

60%Quite beneficial

10%Not very beneficial

1%Not at all beneficial

15%

24%

52%

11%

2%

10%Dont know

WA All other

6.4 There has also been a trend toward amalgamation of smaller water utilities to create larger entities.

Do you think this trend is?


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0% 10% 20% 30% 40% 50% 60%

5%

68%

9%

17%

6%

68%

16%

11%

To a great extent

To a minor extent

Not at all

Dont know

WA All other

6.6 To what extent do large utilities face the same difficulties?

0% 10% 20% 30% 40% 50% 60% 70% 80%


Dont know


Very few, smaller

organisations are sound

Servicing debt

Having its voice heard inplanning and other decisions

Attracting capital

Lack of economies of scale

Attracting skilled staff

19%

4%

11%

12%

39%

44%

60%

69%

10%

6%

28%

40%

47%

67%

77%

6%

6.5 What do you think are the three most significant difficulties facing smaller (rural/regional) utilities?

WA All other


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16 |

0% 10% 20% 30% 40% 50% 60%


Restoring degraded environments

Improving industry efficiency

Making the best of available

water resources/resource sharing

Improving water security (i.e. ensuringreliability and quality of supply)

Ensuring the water industry is sustainable

Reducing costs

Improving customer services

Developing water grids

Increasing competition

Reducing debt

Dont know

29%

36%

32%

28%

45%

54%

52%

52%

56%

50%

21%

14%

10%

11%

4%

12%

3%

5%

2%

7%

15%

9%

3%

3%Other (please specify below)

6.7 What do you think are the three most important objectives for future institutional

reform in the rural water sector?

WA All other


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Restoring degraded environments

Improving industry efficiency

Making the best of available

water resources/resource sharing

Improving water security (i.e. ensuringreliability and quality of supply)

Ensuring the water industry is sustainable

Reducing costs

Improving customer services

Developing water grids

Increasing competition

Reducing debt

Dont know

Other (future institutional reforms)

0% 10% 20% 30% 40% 50% 60%

18%

20%

35%

38%

49%

47%

55%

49%

64%

59%

16%

18%

9%

17%

3%

16%

9%

11%

4%

6%

12%

5%

3%

3%

6.7 What do you think are the three most important objectives for future institutional

reform in the urban water sector?

WA All other



22/32

7. Funding modelsand investment

18 |

0% 10% 20% 30% 40% 50% 60%

15%Fully commercial

63%Somewhat commercial

19%Non-commercial

1%


3%

16%

53%

26%

2%

2%Dont know

WA All other

7.1 How commercial should urban water utilities be?(i.e. to what extent should they earn a rate of return on their investment)?

0% 10% 20% 30% 40% 50% 60%

10%Fully commercial

56%

Somewhat commercial

30%Non-commercial


3%

12%

49%

34%

2%

3%Dont know

WA All other

7.2 How commercial should rural water service providers (including irrigation infrastructure operators) be?

0% 10% 20% 30% 40% 50% 60%

10%Strongly agree

43%Agree

32%Disagree

8%Strongly disagree

8%

11%

39%

35%

9%

6%Dont know

WA All other

7.3 To what extent do you agree that competition in the provision of water services

provides benefits for consumers?


23/32


0% 10% 20% 30% 40% 50% 60%

12%To a significant extent

41%To a moderate extent

31%To a minor extent

7%

Not at all

9%

14%

36%

31%

12%

8%Dont know

7.4 To what extent does private sector investment in water infrastructure producebenefits for consumers?

WA All other

0% 10% 20% 30% 40% 50% 60%

30%To a significant extent

45%To a moderate extent

15%To a minor extent

2%Not at all

8%

38%

37%

13%

6%

6%Dont know

WA All other

7.5 To what extent is public investment to be preferred to private sector investment in

water infrastructure?

0%10% 20% 30% 40% 50% 60%

33%Governments through grants,

with no repayment required

28%Governments through loans,

with repayment required

32%Water service providers and theircustomers through water charges

7%

23%

36%

36%

5%Dont know

WA All other

7.6 Who should contribute capital for the construction of water infrastructure?


24/32

20 |

0% 10% 20% 30% 40% 50% 60%

26%Yes, for infrastructure development

4%Yes, for ongoing service provision

32%Yes, for both infrastructureand service provision

32%Only to assist low income groups or todeliver community service obligations

1%No, subsidies should not be provided

5%

36%

3%

24%

27%

6%

4%Dont know

WA All other

7.7 Should the water sector receive government subsidy payments?

0% 10% 20% 30% 40% 50% 60%

8%Strongly agree

40%Agree

23%Disagree

10%Strongly disagree

19%

8%

39%

30%

12%

11%Dont know

WA All other

7.8 Dividend payments by corporatised water entities are appropriate

0% 10% 20% 30% 40% 50% 60%

1%Strongly agree

29%Agree

24%Disagree

8%Strongly disagree

38%

1%

19%

29%

11%

39%Dont know

WA All other

7.9 The level of dividend payment made by corporatised water entities

to their government owners is about right


25/32

8. Water markets and pricing

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Agricultural users3% 16% 27% 20%

Industrial users4% 16% 30% 33% 16%

Commercial users19%4% 34% 28% 14%

Domestic users6% 33% 38% 15% 8%

17% 29% 27% 26%

6% 23% 32% 23% 20%

25%3% 38% 17% 18%

33%

8% 28% 36% 22% 6%

Western Australia Very well Quite well Not very well Not at all well Dont know

All other


Very well Quite well Not very well Not at all well Dont know

8.1 How well does the price of water reflect the value derived by...?


0% 10% 20% 30% 40% 50% 60%

2%Very well

26%Quite well

29%Not very well

14%Not at all well

29%

2%

25%

33%

9%

31%Dont know

WA All other

8.2 The rules and mechanisms for water trading vary among the states/territories. How well do you feel water markets are functioning inyour state/territory?

0% 10% 20% 30% 40% 50% 60%

Very well

Quite well

Not very well

Not at all well

Dont know

WA All other

2%

55%

25%

10%

7%

8%

50%

23%

10%

9%

8.3 How well do you believe a fully functioning water market will reduceover-allocation?


26/32

22 |

Full metering

Better data on water availability

Better understanding of groundwaterand surface water interactions

Greater commitment by governments to

the adoption of water accounting

Improved transparency in the

register of entitlements

Better market regulation

Better, more immediate data on trades andthe price at which the trade occurred

Dont know

Removal of limits to trade

Shorter processing and approval times



0% 10% 20% 30% 40% 50% 60%

WA All other

8.5 What do you think are the three most significant reforms that could beintroduced to improve water trading in your state/territory?

34%

33%

27%

30%

16%

16%

11%

9%

6%

10%

5%

33%

27%

27%

27%

18%

17%

13%

9%

9%

8%

3%

0% 10% 20% 30% 40% 50% 60%

10%Very well

66%Quite well

14%Not very well

4%

Not at all well

6%

15%

57%

17%

5%

6%Dont know

WA All other

8.4 How well do you believe a fully functioning water market will improvethe efficiency of water use?


27/32

9. Talent: attraction and retention


Becoming much more difficult

Becoming slightly more difficult

Not changing

Becoming slightly less difficult

Not difficult at all

Dont know

0% 10% 20% 30% 40% 50% 60%

31%

36%

11%

9%

0%

13%

24%

40%

14%

6%

1%

14%

WA All other

9.1 Recruitment and retention of employees in the water sector is...?

0% 10% 20% 30% 40% 50% 60%

59%Competition from other industries

for scarce skills

58%Lack of financial or other incentives towork in water sector

29%Career opportunities within thesector are unclear

27%Pathways into the water

sector are unclear

21%Some skills can only beacquired on the job

13%Promotion of water jobsto students is limited

16%Skills needs within the sector are changing

and future requirements are uncertain

20%Funding for skills development is limitedwithin the water sector

9%

Lack of quality in courses offered

10%Capacity constraints in existing

courses and institutions


12%

61%

49%

33%

29%

27%

22%

16%

18%

12%

7%

7%

Dont know


WA All other

7%

9.3 What do you think are the three factors contributing most to current skills shortages?


28/32

24 |

0% 10% 20% 30% 40% 50% 60%

58%Competitive financial/other incentives

50%Promotion of the sector, its scopeand national importance

32%Promotion of water jobs tograduates/school leavers

27%Career advancement through industry growth

32%More on the job training anddevelopment opportunities

24%Clear entry points or pathways into the sector

30%Strong industry leaders

15%Focussed/high quality course offerings

17%Focus on the recruitment and retention of women

and other groups under-represented in the sector


4%

51%

45%

35%

32%

32%

27%

26%

18%

15%

4%

5%Dont know


9.4 Which three factors would most improve staff recruitment and retention within the water sector?

WA All other

0% 10% 20% 30% 40% 50% 60%

53%Adequate and appropriately targeted?

33%Inadequate and/or inappropriately targeted?

6%No training opportunities are offered

8%

57%

30%

7%

6%Dont know

WA All other

9.5 Are the training opportunities provided by your employer...?


29/32


0% 10% 20% 30% 40% 50% 60%

49%Engineering

41%Science/technical

25%Operators

23%Planning, strategy or policy

18%Research and development

18%Sustainability

15%Project management

17%Trades

7%Information technology/innovation

15%Middle management

6%Senior management

5%Education

4%Economics

3%Finance/accounting/internal audit

2%Human resources

2%Business development/sales

3%Legal

1%Communications/marketing


16%

56%

39%

31%

25%

19%

18%

16%

18%

9%

8%

9%

8%

5%

1%

2%

3%

1%

1%

11%Dont know

WA All other

9.2 What are the three areas in which you feel skills will be in shortest supply in the future?


30/32

Tom Mollenkopf

Tel: +61 (0) 2 9436 0055

Tom Mollenkop is the Chie Executive o the AustralianWater Association, a role he commenced in May 2007.

The Australian Water Association (AWA) is the leading

water sector body in Australia, representing over 10,000

water sector proessionals across all disciplines. Formed

in 1962, AWA is an independent and not or proit

association, providing a voice or water proessionals

around Australia.

Between 2005 and 2007 Tom was Deputy Executive

Director o the International Water Association

based in London and rom 1995 to 2005 he was an

executive at South East Water in Melbourne. Toms

background is in law, irst in private practice and then as

corporate counsel.

Michael Rath

Tel: +61 (0) 3 9671 7830

Michael is national leader o Deloittes Energy andWater practices, and lead Partner o the Energy,

Inrastructure and Utilities Consulting practice. Michael

has over 12 years consulting experience across

Australia; New Zealand and Asia where he has served

energy, water and inrastructure clients in the areas o

business strategy, business re-engineering, technology

strategy, integration planning; vendor selection

and technology implementation. Michael also has

extensive industry and business knowledge having

worked or over 18 years in the energy and utility

sectors in a variety o line management and executive

roles in the areas o asset management, engineeringdesign, and commercial and regulatory management.

Paul Liggins

Tel: +61 (0) 3 9671 6648

Paul Liggins is a partner in Deloitte Economics and

Victorian leader o Deloittes water industry team.

He has over 20 years inancial and economic experience

in the water sector and has been involved in economic

and pricing regulation o the Australian water sector

since its inception. Prior to joining Deloitte in 2007, Paul

spent nine years with another consulting business and

11 years in a variety o water regulatory and policy roles

with the Victorian public service, including roles with the

Essential Services Commission (ormerly the Oice o theRegulator General) and the Department o Sustainability

and Environment.

Andrew Speers

Tel: +61 (0) 2 9436 0055

Andrew Speers is National Manager, Policy with

the Australian Water Association. In this role he is

responsible or policy development and advocacy on

behal o the Association and its members. Andrew

has 25 years experience in the water and environment

ields, having worked or the International Water

Association, CSIRO and Sydney Water in senior

positions. Andrews particular areas o expertise are in

sustainability, governance and the interace between

science and policy development.

For more information

26 |


31/32


32/32

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About the Australian Water Association (AWA)

The Australian Water Association (AWA) is the leading water sector body in Australia, representing over 10,000 water sector

professionals across all disciplines. Formed in 1962, AWA is an independent and not for profit association, providing a voice

for water professionals around Australia on a wide range of sector issues including skills shortages, climate change, water

management and reform and regulation.

About Deloitte

Deloitte provides audit, tax, consulting, and fnancial advisory services to public and private clients spanning multiple

industries. With a globally connected network o member frms in more than 150 countries, Deloitte brings world-class

capabilities and deep local expertise to help clients succeed wherever they operate. Deloittes approximately 170,000

proessionals are committed to becoming the standard o excellence.

About Deloitte Australia

In Australia, the member frm is the Australian partnership o Deloitte Touche Tohmatsu. As one o Australias leading

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2011 deloitte wa water sector 2010 2015

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