AS many South Australians struggle to pay spiralling water bills along with the Save the River Murray levy, SA Water has spent the equivalent of $500,000 a week on consultants, while the number of staff on six-figure executive salaries has ballooned to 250.
SA Water's just-released annual report shows it spent close to $26 million on 169 consultancies, in just 12 months during 2009-10.
Consumers, meanwhile, were hit with a 32 per cent rise in water bills in July to pay for the $2.2 billion desalination plant, with further rises expected.
Since 2007-08, Tier 1 water costs - for the basic amount supplied before higher charges start for excess use - have risen by at least 155 per cent.
According to SA Water's report, departing chief executive Anne Howe had her pay band raised in 2009-10, from about $470,000 to above $570,000.
This included a lump-sum, long-service-leave payment.
The report shows the number of SA Water employees earning more than $100,000 has reached 250 - compared to 209 the previous year - with 24 earning more than $200,000 a year.
SA Water's wages budget for these top-end employees rose to $34.5 million, compared to $28.4 million the previous year (including lump-sum payments for leave and superannuation payments).
The Opposition has condemned the reliance on consultants, warning that water bills are set to rise much further as the full cost of the desalination plant becomes clear.
Opposition water spokesman Mitch Williams predicted water bills would continue to rise sharply and called on SA Water to end "exorbitant" consultancy work and executive pay rises.
"Passing on unnecessary cost blow-outs, executive pay rises and exorbitant consultancy fees to SA Water users is an outrage," Mr Williams said.
"Despite water bills doubling over the past two years SA Water account holders can expect even more increases as SA Water covers the cost of $25,898,143 in consultancy fees and Ms Howe's salary of more than $570,000 a year.
"Many of the consultancy fees relate to the desalination plant, representing a further cost blow to the project.
"Originally costed at $1.1 billion the desal plant cost has soared to $2.2 billion with an annual maintenance and operating charge of $130 million per year.
"Treasurer Foley told South Australians in December 2008 that water prices would double over the next five years but in just two years water prices have already doubled with prices set to increase even more.
"The legacy certain to be left by SA Labor will be that for decades South Australians will be paying exorbitant prices for water and many other essential services."
A request for a response to Water Minister Paul Caica's office about whether South Australians were getting value for money from such consultancies, was referred to SA Water, which released the following statement.
"Throughout 2009-10 SA Water worked on a number of important contracts and water security projects.
"Many of these projects and contracts, such as the Metropolitan Adelaide Service Delivery Project, required us to bring in specialist external help to assist our in-house staff to meet all project objectives.
"Wherever possible, SA Water will use the expertise of our in-house staff, however there are times when external assistance is brought in to address complex issues."
The annual report shows there were 49 consultancies with work of less than $10,000 in 2009-10 for a total cost of $183,137; 68 consultancies with work between $10,000 and $50,000 for a total cost of $1,571,183; and 52 consultancies with work greater than $50,000 for a total cost of $24,143,823.
The total overall cost of consultancies was $25,898,143.
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