‘Labor caves in over attempt to cost-shift concession charges’

TIM MORRIS, www.tas.greens.org.au
… But Landlord-to-Tenant Cost-Shift Remains

The Tasmanian Greens today welcomed the Labor Government’s decision to continue to fund 100 percent of pensioner concessions for water and sewerage services, and called on Treasurer Aird to apologise for the fiscal burden he threatened to place onto Local Government and to reveal why he attempted such a blatant cost-shift in the first place.

Greens Local Government spokesperson Tim Morris MP said that thanks to the strong stand taken by Local Government leaders and the Legislative Council, in refusing to accept the multi-million dollar concession payment cost-shift for water and sewerage services, there is now hope for a fair resolution to the other major cost-shift that is contained in this legislation – the transfer of responsibility for water and sewerage charges from property owners to tenants.

Mr Morris also noted that while Treasurer Michael Aird has been the proponent of the decision to shift costs onto Local Government, it was Premier David Bartlett who announced the sudden change in policy, leading to suspicions that Mr Bartlett has decided to exert some control over the stalled reform process.

“The Bartlett Government went too far in its reform process when it proposed to shift the cost of concessions onto local Councils, and it is pleasing to see Council leaders and the Legislative Council standing against Treasurer Aird and the Bartlett Government and winning the day on this issue,” said Mr Morris.

“When the Concessions legislation was debated in the House of Assembly in May the Greens voted against it while both Labor and Liberal voted to support the Bill. It was only as a consequence of the Legislative Council stalling the debate until an agreement was reached between Government and Councils that has allowed this sensible outcome to be achieved.”

“Mr Aird should apologise for the worry and concern that his ham-fisted cash-grab has created, and explain why he attempted it in the first place.”

“There remains at least one significant issue to be resolved and that is the Bartlett Government’s proposal to shift the cost of water and sewerage services from landlords to tenants without any compensation, which will be a windfall for landlords, when the only thing that tenants should pay for is the consumption charge for water.”

“Is Treasurer Aird still in control of this messy Water and Sewerage reform process, or has the Premier now taken over?

“The Tasmanian Greens would like to congratulate the Legislative Council and Local Government leaders for forcing the Bartlett Government to continue funding concession payments, however, we will continue to campaign against the extremely unfair cost-shift of the service charge away from landlords and onto tenants,” said Mr Morris.

…

Peter Gutwein MP
Shadow Treasurer
Monday 17 August, 2009

Aird shoots himself in the foot…again

The series of gaffes that have marked the Treasurer’s attempts to implement water and sewerage reform are continuing.

Today’s latest installment sees the Treasurer now admitting he could not fix the mess he’s made of the concessions scheme and agreeing that the State Government would pick up the tab.

Whilst we welcome pensioners having certainty in regards to receiving a concession this year, the Government have bungled this matter to such an extent that they are now going to pay pensioners twice.

Furthermore, as the Treasurer had originally factored in local government meeting the cost of this concession the fact that the Government will now pay the full concession amount twice to pensioners means that the hit on the budget is actually $13 million.

The Premier should explain, in these tight economic times, where this extra money is coming from. What services will be cut? Or will the budget go further into the red as a result of his Treasurer’s failure to manage these reforms.

It was interesting to see that the Premier came out to announce the humiliating back down so that the Treasurer could save face.

What we have seen from the Treasurer and Premier today is not vision and leadership. It’s back flip after back flip to fix up short-term political problems when they should be focusing on Tasmania’s long-term needs.

The Treasurer is now forced to find an additional $13 million. That’s added to the $32 million that has been committed to buying back rail assets and the $50 million blow out in public sector wages. The Treasurer now needs to outline where he is going to get this money from.

W: www.willhodgman.com.au