Gutwein rejects TasWater findings

LOCAL Government Minister Peter Gutwein has rejected a key finding from the Legislative Council select committee into a potential change in TasWater ownership — that a takeover may jeopardise the sustainability of some local councils.

With the state’s Upper House to debate the key preelection promise by the State Government next week, the committee has released its final report into the benefits and challenges associated with the Government’s controversial proposal to take over the water and sewerage utility.

The State Government says there is a crisis in the state’s water and sewerage sector, with 15 towns on boiled water alert and only one of Tasmania’s 78 level two wastewater treatment plants compliant.

But one of the 48 findings in the report is that there is “no consensus” that there is a crisis.

Other findings include: THERE was insufficient information to prove the veracity of the Government’s financial modelling with respect to the long-term funding of Tasmania’s water and sewerage infrastructure needs. THE State Government believes its Government Business Enterprise model is more appropriate because it provides better accountability by reporting directly to Parliament. THERE was no guarantee the Government’s proposed new model would attract federal funding to complete projects. DIVIDENDS to councils post-2025 were not guaranteed to continue, which could affect sustainability and force rate increases.

Mr Gutwein disagreed with that finding.

“The fact is councils will get every cent currently promised to them until 2025 and, after that, 50 per cent of all returns,” he said.