Cost of water big sell: $700,000 on spin and marketing 4

TASMANIA’S three water corporations plan to spend almost three-quarters of a million dollars of public funds on advertising, spin doctors and market research to sell the controversial changes to water charging.

Right to Information documents obtained by the Tasmania Liberals show Southern Water alone has spent $461,079 on marketing costs ahead of the rollout of water meters in Hobart and surrounding municipalities, including on newspaper advertising, mailouts, graphic design services and market research.

The expenditure also includes the secondment of key marketing staff from umbrella company Onstream.

That includes Tiziana Botti moving to Southern Water as the new “Stakeholder Engagement and Communications Water Metering Tasmania Executive Manager” at a cost of $92,000 per annum.

The biggest cost so far has been $100,000 spent on a mail-out to households of a fact sheet informing them of the plans to introduce water meters to southern Tasmania.

The authority also contracted Onstream to offer communications planning advice at a cost of $84,000.

Cradle Mountain Water plans to spend $120,000 on newspaper advertising and mailouts over five years, or around $24,000 a year.

Ben Lomond Water will spend $109,750 on spin over fiveyears, although its plan has yet to be approved by its board.

SOUTHERN WATER BILL
$105,000………………newspaper advertising $154,800………………mailouts
$58,000………………..internet communications $62,079………………..market research $20,000………………..graphic design $85,000………………..public relations contracted services $147,000………………additional Southern Water staff

The Cradle Coast and Ben Lomond areas already have water meters so the marketing campaign is expected to focus on selling the new charging that will be introduced from 2012.

“Accordingly Ben Lomond does not envisage the need to engage in a hearts-and-minds campaign with its community,” corporate service executive manager David Gregory said.

In the South, where most residents were paying a bulk price for water in their annual rates, the introduction of meters over the next 12 months also will come with a two-part water pricing system. The amounts to be charged will not be known for several months but a survey of pricing policies in other states suggests Hobart-area residents could see their bills skyrocket.

The average price per kilolitre of water for capital cities is $1.88.
The current average of Hobart’s four major municipalities is 84c.

In public briefings last week Southern Water revealed it preferred to charge a premium fee for water usage and would like to charge for every drop.

(Mercury scan)