As irrigators await the final irrigation pricing review report from the Queensland Competition Authority, Sunwater has come under fire for its inability to control costs.
The state-owned water service provider posted a revenue of $335 million from continuing operations in the 2018-19 financial year, an increase of 36 per cent from 2013-14.
Despite an additional $89m flowing into the coffers, total comprehensive income in the most recent financial year remained on par with that of five years ago, at around $52m.
This begs the question, where has that additional revenue gone?
Operating expenses have grown rapidly, with the biggest increases including contracted services which went up by 158pc, from $29m in 2013-14 to $75m last financial year.
A Sunwater spokesperson said these contracted services primarily relate to the use of consultants and contractors for project-related, specialised or short-term work requirements, and in 2018-19 they were for major projects.
"These include Rookwood Weir, Fairbairn Dam improvement capital works, Burdekin and Paradise Dam improvement projects, Inspector-General Emergency Management reviews and flood rectification work, required following the January 2019 monsoon," the spokesperson said.
"Contracted services expenses vary year-on-year depending on scheme requirements, asset management cycles, major projects and unforeseen weather events."
Electricity price hikes also put a dent in the company's budget, increasing by more than $5m compared to five years ago, and employee benefits increased (4pc), including the salary of the chief executive officer who now earns $642,000 (plus cash bonus) - an extra $172,000 compared to five years ago.
"Sunwater understands that we need to grow and evolve to secure ourselves as a sustainable business, undertake the DIP (dam improvement program) and ensure we are a trusted and capable service provider to our customers," Sunwater's 2018-19 annual report says.
"We continued to seek opportunities to fully utilise our existing water supply schemes throughout the state and develop new infrastructure to support our customers and regional Queensland's growth.
"We are committed to delivering efficient services to our customers. We understand our role in managing our assets effectively and efficiently to keep downward pressure on water prices, where possible, for our customers."
The report includes identified focus areas that are key to achieving the company's strategic goals and their purpose of 'delivering water for prosperity'.
These focus areas include value improvement for "realising savings, improving water losses, increasing our water distribution efficiency and reducing energy use and costs in water delivery".
"Some of the initiatives currently being implemented relate to energy savings (audits and reviews to target power savings) and efficiencies through solar and hydro," the Sunwater spokesperson said.
"Cost savings resulting from the program have been, and will continue to be, passed on to our customers."
But talk of cost savings being passed on to customers looks to be at odds with the price path identified in the draft irrigation pricing report from QCA, which was released late last year and labeled as "not sustainable" by Queensland Farmers' Federation.
Revenues from the industrial sector provide the majority of Sunwater's revenue and profit, but the LNP has accused the government of once again using farmers for a cash grab.
Opposition water spokesman Dale Last said the Palaszczuk government needs to stop using farmers as cash cows, particularly during severe drought.
"Water prices are skyrocketing because Sunwater is haemorrhaging cash and Labor can't control its costs," Mr Last said.
"Every cent Sunwater wastes is taken at the expense of water users who are counting every drop.
"Annastacia Palaszczuk is responsible for Sunwater executive team pay rises of 56 per cent, something most farmers would only dream of. Labor should ensure Sunwater invests in water assets and dams while supporting lower water prices for farmers."
Mr Last said it was time the Palaszczuk government pulled Sunwater into line and "showed they are fair dinkum about providing affordable water to our farmers and regional communities across Queensland".
But acting Natural Resources Minister Mark Ryan fired back, saying the Palaszczuk government has proven time and again that it is serious about improving water security.
"The government will deliver numerous water infrastructure measures, including $13.6m to kick start the new Emu Swamp Dam; $176m for the creation of Rookwood Weir; $215m for the Haughton Pipeline Duplication Project (Stage 1) in Townsville and sealing a $24m deal for the next stage of assessment for the proposed Hells Gates Dam; and a $28m project to modernise an existing open channel irrigation scheme on the Tablelands," he said.
"This is just part of our government's $848m commitment to water infrastructure across this state, delivering more than 1600 jobs to regional Queensland.
"On the other side, we have the LNP, a party that's great at promising dams but not actually delivering any. The only thing they did while in government was cancel a dam and prepare it for sale."
Mr Ryan said the Palaszczuk government remains committed to supporting irrigators through their ongoing community service obligation, "which was $3.8m in 2019-20 to cover the gap between prices and the cost of delivering water".
In June 2019, Sunwater directors recommended a dividend of 100pc of the group's adjusted audited net profit after tax, which has been accepted by shareholding ministers - Deputy Premier Jackie Trad, and Natural Resources Minister Dr Anthony Lynham.
