TasWater takeover inquiry to begin

LOCAL government bodies have rejected the notion Tasmania’s water and sewerage services are in crisis ahead of an Upper House inquiry into the State Government’s plan to take over TasWater.

The inquiry into TasWater ownership starts this week, with hearings in Launceston today and tomorrow.

The State Government is seeking to take over TasWater from local councils and to establish a government business enterprise to provide water and sewerage services.

Draft legislation for the takeover was passed by the House of Assembly yesterday and will move to the Legislative Council once the inquiry is completed. If it passes the Upper House, the Government will take control of TasWater from July 1.

A total of 53 submissions were made to the inquiry select committee, including from 14 of the 29 owner councils.

TasWater’s submission said the takeover should be rejected because there was no water and sewerage crisis.

“While price increases will be reduced for a limited period, up to $548 million in additional debt will be incurred,” it said. “[Also] $140 million will need to be transferred from other essential services, and council services will potentially have to be cut back or rates increased, none of which is necessary under the current ownership model.”

The Local Government Association of Tasmania’s submission stated that 99 per cent of TasWater customers had access to clean drinking water, with increases in compliant sewerage plants.

“[The takeover plan] is technically flawed due to the lack of necessary planning, analysis and due diligence required to truly understand the feasibility and risk of the State Government’s approach,” it said.