They are saying that the water tariff will have to increase as it is so low in Mauritius as compared to other countries and there is the need to provide for investment in the sector.
What they did not say ?
(1) Though water is so cheap in Mauritius , Mauritius is still a very costly place. Most of our European tourists and our relatives from either UK or France find that the cost of living in Mauritius is as high as in some European countries despite the fact of a significantly lower wage level here than in these countries . This is not surprising given our imports of goods and services are mostly dollar-denominated (an appreciating currency overtime) and that the local good and services are relatively costly given the limited market and the fact that our wages have been increasing faster than labour productivity.
(2) Any increase of the water rate will add to the present inflationary pressures which are already impacting on the household budget. The headline inflation rate for the twelve months ending March was 5.0% compared to 1.3 % for the previous period.The year-on-year inflation rate for March 2018 was 6.7%. Last month it was 7%.
What they did not say ?
(1) Though water is so cheap in Mauritius , Mauritius is still a very costly place. Most of our European tourists and our relatives from either UK or France find that the cost of living in Mauritius is as high as in some European countries despite the fact of a significantly lower wage level here than in these countries . This is not surprising given our imports of goods and services are mostly dollar-denominated (an appreciating currency overtime) and that the local good and services are relatively costly given the limited market and the fact that our wages have been increasing faster than labour productivity.
(2) Any increase of the water rate will add to the present inflationary pressures which are already impacting on the household budget. The headline inflation rate for the twelve months ending March was 5.0% compared to 1.3 % for the previous period.The year-on-year inflation rate for March 2018 was 6.7%. Last month it was 7%.
(3) Govt explained in January 2015 that instead of lowering the domestic prices of gas and diesel, it was necessary to use the windfall gain to invest in water infrastructure. Consumers thus did not benefit from the global decline in oil prices; instead it was the STC which reaped a windfall income of some Rs 1.4 billion that was credited to the budget in FY 15-16. Moreover a levy on petroleum products introduced in Budget 2015-16 have since been boosting government revenue.
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