Media Release | 2 April 2026
Peter Rundle MLA
Shadow Minister for Water
Shadow Minister for Water Peter Rundle MLA has labelled it outrageous that the Cook Labor Government has been found to be chronically underinvesting in the maintenance of Water Corporation assets, despite recording a $1 billion profit last financial year.
Mr Rundle said a damning report from the Economic Regulation Authority had exposed serious failings in the management of critical water infrastructure across Western Australia.
“The findings make it clear that so-called ‘funding constraints’ are preventing essential maintenance, repairs and asset replacement from being carried out,” Mr Rundle said.
“How can a government-owned utility post a $1 billion profit while claiming it cannot afford to properly maintain the very infrastructure Western Australians rely on every day?”
Mr Rundle said the profit figure did not reflect a strong or secure system, warning that essential services were being neglected while funds were redirected elsewhere.
“Water Corporation’s billion-dollar profit does not mean our water supplies and infrastructure are assured,” he said.
“Instead, dividends are being siphoned off and redirected into major capital projects like the Alkimos and Great Southern desalination plants, while basic maintenance is left behind.”
Mr Rundle said communities across the State were already feeling the consequences of this neglect.
“We are seeing regular sewage spills, ageing pipes failing, and infrastructure deteriorating due to a lack of proper upkeep,” he said.
Mr Rundle pointed to a series of incidents highlighting the real-world impacts of poor maintenance and mismanagement.
“In Caversham and Spearwood, sewerage bursts have caused significant disruption and distress for residents,” he said.
“In South Fremantle, a heritage property was severely damaged, forcing the resident to move out, only to be offered minimal support before being left to deal with insurers who would not cover the damage.”
“At Hollywood Specialist Centre, staff are still dealing with the fallout from a major wastewater overflow last year, with the burden again shifted to insurers after initial clean-up.”
Mr Rundle said the regulator’s findings confirmed what many communities and businesses had been warning for years.
“This audit reflects a clear lack of resources being allocated to routine maintenance and inspection programs,” he said.
“That failure has real economic consequences.”
“In the South West, reduced bridge load limits linked to Water Corporation infrastructure have placed small businesses at serious risk, with no planning for alternative routes and operators left to carry the cost of government failure.”
Mr Rundle said the report must serve as a wake-up call for the Cook Labor Government.
“The priority must be maintaining existing services to the high standard Western Australians expect, not diverting funds into the Treasurer’s wish list at the expense of essential infrastructure,” he said.
“This is about the absolute core business of government, delivering essential services and right now, the Cook Labor Government is failing.”
ENDS
