Padarath: Government plans to raise water rates in 2024

Opposition MP Barry Padarath is sounding the alarm that the government intends to increase water rates by June 2024.

Speaking at a press conference at the office of the Leader of the Opposition in Port of Spain on Friday, Padarath cited a July 2023 report from Moody's which said: "A new electricity tariff regime with more cost-effective rates is scheduled to be published this fiscal year, followed by revised water tariffs in fiscal 2024."

Padarath added, "When Moody's together with Standard's and Poor's and others are making their determination, they speak with the Minister of Finance. They speak with the Minister of Planning so, therefore, they get from them what is the government's agenda, what is their direction, how they intend on raising revenue, and it is only when those things are said to Moody's, Standard's and Poor's then they come up with their rating.

"So the Minister of Finance very well knew that electricity rates was going up this year and I am reliably advised that the Minister of Finance has told Moody's, Standard's and Poor's and the other credit rating agencies that water rates will go up in June of 2024."

He also said the Regulated Industries Commission (RIC) is "far advanced" in completing the recommendations for the water rates.

Furthermore, he also said the Water and Sewerage Authority (WASA) will be sending staff home before the year's end.

He cited cuts in the expenditure for personnel expenditure in the draft estimates of the revenue and expenditure of statutory boards and similar bodies of the Tobago House of Assembly for the financial year 2024.

"And therefore, when we have seen these cuts in the budget to the staff complement, what it means is that there is no money on the books of WASA to pay over 2,500 employees. And, therefore, I'm further advised that right now, the board of wasa has instructed the management to start preparing termination letters."

Padarath called on the Minister of Public Utilities Marvin Gonzales to come clean and lay the business plan that was submitted to the RIC in Parliament.

In a response sent to Newsday, Gonzales slammed Padarath for his insinuations that he has not been honest with the population. He also did not respond directly to the allegations of the rate increase and retrenchment of staff.

"As Minister of Public Utilities, I laid in Parliament a Cabinet Sub-Committee Report in the operation of WASA in 2021. Full disclosure to the national community on the operation of WASA and what must be done to make it an efficiently managed utility company. I said to the Parliament and the national community that the Govt has accepted the report and will come up with a transformation plan for WASA. That plan was completed one year ago. It was again disclosed to the national community when I called a press conference in my office.

"Have I not been transparent to the national community on this issue? The report is there for all to read. Published for all who have the time to read.

"So what on earth Mr Padarath is now trying to insinuate by calling me "deceptive"? I'm not a Minister of Public Utilities that came to office because I walked around carrying someone's handbag."