PUBLIC UTILITIES BOARD (Water production cost and selling price)

Mr Ho See Beng asked the Minister for Trade and Industry whether he can ascertain from the Public Utilities Board what is the net cost of production and the selling price of water per cubic metre, and how many cubic metres of water were sold from 1976 to 1980, both years inclusive, giving each year's net profit/loss.

Dr Tony Tan Keng Yam: Mr Deputy Speaker, Sir, in 1980 the Public Utilities Board's average cost of producing one cubic metre of water was 33 cents. This year, the average cost is expected to rise to 37.4 cents because of the increased cost of energy, chemicals and equipment and the higher wages of workers.

The average selling price of water in 1980 was 44.7 cents per cubic metre. However, the water tariff for domestic consumers is structured in blocks at increasing rates for higher levels of consumption. At present, the price per cubic metre for the first 25 cubic metres consumed is only 30 cents. Seventy-four per cent of domestic consumers consume less than 25 cubic metres a month and are, therefore, enjoying water at below cost.

The hon. Member has also asked for the relevant statistics on the amount of water sold and the Water Department's profit or loss for the years 1976 to 1980. I shall also give the development expenditure for these years in order to put these statistics in their proper perspective. Surplus of Development Water Sold Water Dept Expenditure Million Dollars Dollars Cu Metres Million Million 1976 198 18.2 18.9 1977 210 22.8 35.1 1978 224 25.0 39.9 1979 238 36.7 41.3 1980 256 19.3 36.3

As can be seen, the surplus of the Water Department each year falls far short of the amount required to finance the development expenditure for the construction of new reservoirs and treatment plants. The PUB has had to borrow from the Government, the World Bank and the Asian Development Bank to meet part of its development expenditure.