Rann sweetens electorate with power, water handouts
Greg Kelton
The Advertiser February 17, 2010 12:00AM
The State Government is promising up to $98 a year extra to help elderly and low-income earners cope with rising utility bills - its $60 million first salvo in the election campaign.
More than 235,000 South Australians would get the increased energy bill concessions under the move announced by Premier Mike Rann yesterday, setting the scene for a spree of spending promises leading up to the March 20 poll.
All concessions would increase by 5 per cent each year on July 1, until 2012. Water bill relief would increase from $160 to $185 for renters and from $200 to $232 for owner-occupiers.
It is the biggest election bid so far even though the campaign will not officially begin until Saturday, when the Governor, Rear Admiral Kevin Scarce, issues the writs. Both major parties have engaged in an electoral bidding war in recent weeks, with promises on land tax relief and also rescue packages for the drought-stricken Riverland.
Low Income Health Care cardholders and those assessed by the Families and Communities Department as being low-income earners would be deemed eligible.
The proposal would lift energy bill concessions from $120 to $165 by 2012-13. Water concessions for tenants would go from $160 to $185, water concessions for owner-occupiers from $200 to $232, sewerage from $95 to $110, and Emergency Service Levy concession on property from $40 to $46.
The increased concessions would cost $12.9 million in the 2009-10 financial year, $16.6 million in 2011-12 and $20.5 million in 2012-13.
Government data shows 215,000 people receive the energy concession, 130,000 owner-occupiers and 35,000 tenants get the water concessions, and 130,000 people get the sewerage concessions.
Mr Rann said the Government's plan had been fully costed and the aim had always been to provide relief when the Government could afford it.
"We have been rigorous in our costings, which contrasts us with our opponents who are making spending after spending promises," he said. "They are promising everything to everyone but never explaining how they are going to fund them."
It is understood the Government has a huge "war chest" of contingency funds in Treasury and would be able to tap into this to help fund its election promises.
There will be a steady stream of targeted announcements from Saturday but Government sources said some major spending proposals would be kept under wraps until the major policy speech, likely to be made by the Premier in the last week of the campaign.
Mr Rann said the increased concessions came on top of the free public transport concessions for seniors announced last year.
Ridgehaven Pensioners Brian and Beryl Donovan, 73 and 76, said any contribution towards their electricity bills would give them the opportunity to spend money on activities and items they usually go without.
"The pension isn't going up very fast and every time it does, other bills go up, so it all evens out," Mr Donovan said.
The couple gave up their home nine years ago and moved into a retirement village because of mounting bills and home maintenance costs. They said seniors should not feel like they could not afford to put on their airconditioning.
"If we need to put the airconditioner on, we put it on but I know people who sit there and suffer with it off to save money," Mr Donovan said.
WTF - I pay the water bill for my tenants - is that correct?
And he says its fully costed but doesn't say how - out of the excess funds they suddenly found, I assume.