Tony Foster

TasWater needs all levels of politics to help says it is time to forget hostile takeover bid and co-operate

HIGH quality water and sewerage services are a fundamental right of every modern community.

That is why debate, and proposed legislation before Tasmanian Parliament, to determine future ownership of TasWater is so crucial.

If we agree water and sewerage are fundamental to the community, it is appropriate all tiers of government have an interest in their provision.

That is not to say TasWater should be taken over by the State Government, or the Commonwealth, but both these tiers should share some financial responsibility without assuming ownership.

Previously, when individual councils owned and managed water and sewerage services, the state, as well as the Commonwealth, on occasions, provided funding for specific services and works.

There is a history of Australian governments directing funds to councils for water and sewerage upgrades, through state governments. The Northern Midlands Council got more than $1 million in 2000-01 to upgrade Campbell Town, Evandale, Perth and Cressy sewage treatment plants and, in 200809, Clarence City Council got $10.5 million for the Clarence Recycled Water Scheme.

Similar arrangements are made interstate. From 2006 to 2010, Queensland’s Wide Bay Water on the Fraser Coast, received nearly $10 million in Commonwealth funding.

TasWater is now part-way through a major 10-year infrastructure upgrade program to elevate our water and sewerage services to relevant national health and environmental standards and, in doing so, make a major contribution to Tasmanian jobs and economic activity.

It is achieving this at a sustainable cost that fits in TasWater’s financial capacity, includes only modest price rises for consumers and provides a reasonable return on the investment councils have made in the corporation.

This, as well as the legal impediment to the proposed State Government takeover, already widely canvassed, is reason enough for TasWater to remain under local government ownership.

Added to this is the strength of the experienced independent board and expert management team and workforce, many of whom would be placed at risk by a State Government takeover.

It is true the State Government claims to offer savings on water and sewerage charges, but in reality this is simply a politician’s promise for a slightly smaller increase in annual charges — no detail, no modelling, just a promise.

At the same time, the Government intends to borrow an unnecessary $600 million that will have to be repaid, if not by TasWater’s current customers, by their children and grandchildren.

So the promised lower price rises than those proposed by TasWater, may be higher in the medium to long term.

Treasurer Peter Gutwein said the Commonwealth will not provide funding for TasWater under its current ownership model.

The concern is he may have done a deal with his federal counterpart to this end.

If that is the case, he has done a gross disservice to Tasmanians.

At the federal election, Labor offered $75 million to assist in upgrading water and sewerage infrastructure. Councils were promised $400 million in federal funding at the outset of the reform, however nothing was forthcoming.

There are precedents for Commonwealth funding and Mr Gutwein cannot claim that it won’t be provided now, unless he has told his federal colleagues to adopt this position for his own purposes.

The State Government is able to provide funding, particularly where it wants to facilitate major developments such as the relocation of the Macquarie Point sewerage plant for its pet Mac Point development project, or the Cameron Bay plant to assist the proposed Mona expansion.

There’s also Launceston’s historic combined water and sewerage system that requires major investment to avoid ongoing discharges into the Tamar River.

All this can be achieved without the angst, cost and legal doubt of the proposed takeover of TasWater.

All tiers of government should work to continue the upgrade of water and sewerage services at a reasonable cost and timeframe.