Gutwein defends stance on water
THE State Government is standing by its TasWater takeover policy despite an Infrastructure Australia report finding Tasmania’s proposed legislative changes would see the state shift away from best practice.
Treasurer Peter Gutwein responded to the report yesterday, saying the Government made “no apologies” for seeking to intervene to keep water prices down.
The report found water bills are set to more than double by 2040 unless state and federal governments fund significant infrastructure improvements and reforms in the sector.
It suggested moving to a national regulator or privatising urban water assets.
Mr Gutwein said it was “simply unacceptable” that prices could rise by so much.
He said under the Government’s plan — which failed to pass through the Legislative Council last month — price increases would have been capped at 2.75 per cent.
“Jacking up water bills to unsustainable levels is not good management, it’s a recipe for disaster for thousands of households around Tasmania that simply will not be able to afford these increases,” Mr Gutwein said.
“I also want to reiterate that we absolutely reject and will not implement Infrastructure Australia’s suggestion that TasWater be privatised.”
Shadow treasurer Scott ALEXANDRA HUMPHRIES Bacon said the Government’s spin on the report was “outrageous”. He said the report exposed the government’s failures and “completely rejects their takeover proposal”.
“This report is a shocker for the Hodgman Government,” Mr Bacon said.
“It highlights the consequences of their failure to work with TasWater over the past four years and completely undermines their political takeover proposal.
“Labor has been arguing that to tackle the challenges facing TasWater, all three levels of government need to work together in Tasmania’s best interests.”
TasWater chairman Miles Hampton yesterday said it was clear the best model for water and sewerage in Australia was for governments to regulate, rather than own, the utility.
“Definitely not both,” Mr Hampton said. “(The report) also makes it perfectly clear that the pressures from growth and climate change are real, and that decisions about investment must be based on prudency and efficiency and tested by an independent regulator for sustainability and the best long-term interests of our customers.”