Cost of living central to water and sewerage reform

NELSON MLC Jim Wilkinson has moved to ensure that consumers are central to a
proposed move to create a single water and sewerage corporation.

In welcoming the move for a single corporation, Mr Wilkinson said it was important to
hold in mind that the new corporation would effectively be a local government owned
monopoly and it should not become an organisation simply designed to provide
dividends to its council owners.

“Water and sewerage services are a vital part of Tasmania’s infrastructure and when
the water and sewerage corporations were created it was estimated that $1 billion in
additional infrastructure was required,” Mr Wilkinson said.

“It is unfair for Tasmanians to bear the cost of the infrastructure through their bills
while council owners take money out of the organisation in the form of dividends.

“Under this legislation, consumer rights would appear to be a secondary
consideration and we need to protect them.

“Over the last five years electricity prices have risen some 90 per cent throughout
Australia and I have no doubt water and sewerage will head the same way if there
are not appropriate checks and balances in the system.

“An economic regulator can only do what he or she is asked to do under legislation,
so it is important that appropriate mechanisms are put in place to protect
consumers.”

Mr Wilkinson foreshadowed that he would introduce amendments that would see the
Parliament hold the new water and sewerage corporation accountable.

He said he would also move to ensure that future distributions were appropriately
used to improve services without consumers bearing the brunt of these costs.
Nelson MLC Jim Wilkinson