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10 November 2005

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Standard rates not fair, says Koh

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PENANG: It will not be fair to consumers in Penang if water tariffs were standardised throughout the country as the state would have to increase its rates, Chief Minister Tan Sri Dr Koh Tsu Koon said yesterday.

"I do not agree that water rates for all the states be standardised because in Penang, the rates are lower than those in the other states," he said.

Koh was commenting on a statement by Energ y, Water and Communications Minister Datuk Seri Dr Lim Keng Yaik on Monday that all the states will charge the same rates for water under a plan to correct imbalances in the water services industry.

Currently, the rates in Penang are 31 sen for the first 1,000 litres for domestic users, and 94 sen for the first 1,000 litres for industrial users.

The rates in the other states are between 50 sen and 90 sen for domestic users, and between RM1.15 and RM3 for industrial users.

Koh said that standardising the rates would have a big impact on Penang.

"I do not believe that we need to increase the water rates to such an extent as the rates must reflect the cost structure of water supply in each state," he said.

Koh, who is also the chairman of PBA Holdings Bhd, said the water tariffs must be fixed in tandem with cost structures and management efficiency of water supply in every state.

"This does not mean we are denying the fact that the cost of supplying water has been increasing and will continue to rise," he said.

He said the state government, however, supports the proposal of the Water Services Industry Bill and National Water Services Commission Bill to be tabled in the Dewan Rakyat.

Koh was speaking at a press conference after officiating at the 2005 Young Enter prise Prog ramme Achievers' Showcase at Universiti Sains Malaysia.

On the teaching of Mathematics and Science in English in primary schools, he said there is a need to continue to study the effects of the implementation of the programme during the past three years.

"I will take into consideration the views and feedback from all parties when looking into ways to improve or improvise the programme," he said.

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