Statements
Head Works subsidy is costly and unfair
The Tasmanian Greens Treasury spokesperson Tim Morris MP today said the Treasurer’s costly proposal to subsidise TasWater’s head works charges was unfair and economically irresponsible.
“It is unfair to increase the profits of a few private developers at the expense of taxpayers, and at the expense of the many other developers who will miss out on the subsidy,” Mr Morris said.
“The idea has been championed by the economically irresponsible Liberal Party, because they have been lobbied extensively by special interest industry groups.”
“It is a costly measure, and the economic stimulus benefits are far from guaranteed.”
“It provides an unfair advantage over other developers who have already paid their head works charges, because it allows the newly-subsidised operators to undercut competitors on price.”
“If councils also contribute to this subsidy by forgoing profits from TasWater, then it almost certainly means they will need to recover the lost revenue by increasing rates.”
Tim Morris MP Greens Treasury Spokesperson