Aird must explain which municipalities will be the winners and losers from regional pricing

Aird announced that regional pricing for water and sewerage will occur in three years time
How will regional pricing work?
Which municipalities will win as a result and who will lose?
If, as the Treasurer now claims, there won’t be council by council charges of water and sewerage in the future, but rather, “regional” cost recovery, the Treasurer must explain if that means ratepayers who have already invested heavily will have to pay for those in neighouring and nearby councils who haven’t.

That is, will the ratepayers who are currently and have been for some time doing the right thing now be penalized, and in turn will they effectively now be charged much more than they reasonably should?

For example:

From the Regulators final report into pricing we know that in the Northern region around a 90% increase in revenue is required to achieve the Governments stated aim of full cost recovery (FCR).

Does this mean that West Tamar ratepayers who require a 46% increase in their bills to achieve FCR will have to pay more than they should to bring them up closer to the regional average of nearly 90%, and that conversely Launceston ratepayers – who haven’t invested as much in water and sewerage – will as a result pay less than the 102% increase estimated for them to achieve (FCR)?

The disparity regarding what increase in revenue is required between municipal areas is replicated across the entire state with similar situations existing in the Southern and North western regions as well.

In the South, where a 56% increase across the region is required, Brighton ratepayers for example only require a 19% increase to get to FCR whilst Sorell ratepayers need a 105% increase in revenue.

In the North West region a 52% increase across the region is forecast and whilst Circular Head ratepayers are already almost meeting FCR, Central Coast ratepayers however will require nearly a 90% increase in what they pay currently.

How the Regulator will deal with these situations needs to be explained. Who will win and who will lose?

The Water Minister David Llewellyn couldn’t explain it last week when asked and I am doubtful based on current performance that the Treasurer can.

The Treasurer must stop treating Tasmanians with contempt and begin providing answers.
Peter Gutwein MP Shadow Treasurer