State best to stay with water model

TASWATER has slammed the State Government for repeating warnings of higher water prices after an Infrastructure Australia report strongly supported Tasmania’s water and sewerage ownership and regulatory model.

Infrastructure Australia has warned water bills could more than double by 2040 unless Federal and State governments fund big infrastructure improvements and reforms.

But it said the proposed legislative changes in Tasmania — where water prices would be set by the Government rather than an independent regulator — “would see the state shift further from best practice, with increased powers for political interference”.

Taswater chairman Miles Hampton said rather than accept the “overwhelming evidence” that he was misguided in trying to force a takeover of TasWater, Treasurer Peter Gutwein had claimed the report showed a doubling of water and sewerage charges in Tasmania.

“This is disingenuous and grossly misleading,” he said.

“What the report does say is that the best model for water and sewerage in Australia is for governments to regulate, rather than own utilities, a situation that currently exists in Tasmania.

“Indeed, the report said proposed legislative changes in Tasmania where prices would be set by the Government rather than an independent regulator ‘ would see the state shift further from best practice with increased powers for political interference’.

“It clearly rejects the Government’s takeover proposal.”

The Government’s legislation to take over TasWater was rejected by the Legislative Council last month.

Mr Hampton said its pricing was considered and approved by the independent Economic Regulator and, on average, Tasmanian charges were $300 a year lower than those interstate. The Economic Regulator has issued a draft price determination suggesting a 4.16 per cent increase in each of the next three years.