TasWater has unveiled a revised plan to address the State’s long standing water and sewerage issues in the wake of failing to secure additional State or Federal funding during this year’s election campaign which will see a total expenditure of $1.5 billion over the next 10 years.

The plan will accelerate the resolution of water quality issues affecting 24 Tasmanian townships on boil water or public health alerts, as well as addressing key vulnerabilities in a number of other drinking water systems.

Chairman Miles Hampton said TasWater intends to increase its capital spend to ensure that it can remove all permanent boil water and do not consume alerts within two years.

“We expect to halve the number of towns on permanent alerts by 30 June 2017 and remove all remaining permanent alerts within two years,” Mr Hampton said.

“Further, we will increase expenditure on other significant water quality risk areas.

However this comes at a cost. TasWater will target additional savings, which will mean that total savings subsequent to the establishment of the corporation will be approximately $25 million per annum.

In addition, the Board of TasWater has determined that for a period of seven years commencing 1 July 2018 it will reduce and freeze annual distributions to Owner Councils at $20 million.

Dividends will be more than halved to less than $10 million, with the balance of payments made to Councils being made up of the legal obligation to pay Councils’ loan guarantee fees and income tax equivalent payments.

“The effective cost to Councils over the period will exceed $150 million,” Mr Hampton said.

“But we must accelerate fixes to the remaining water quality issues as a matter of urgency and be in a position to move forward with addressing our sewerage infrastructure issues.

“The revised plan does not include addressing the relocation of the Macquarie Point wastewater treatment plant.

“Macquarie Point is an adequately functional sewage treatment plant and in that circumstance it is the responsibility of others to fund the relocation.

“However we do acknowledge the economic importance of this development to the State, and will continue to work closely with both the State Government and the Macquarie Point Development Corporation to help keep the cost of relocation to a minimum.

“Further, the plan does not include tackling the issues created by the flow of stormwater into
TasWater’s Launceston sewerage system.

“The problems arising from the flow of stormwater into the sewerage system are not the
responsibility of TasWater.

“However TasWater will work with the Launceston City Council to identify how the issues can be
resolved at least cost and support them in applications for funding assistance.”

The revised plan will see very substantial expenditure in all regions of the State, with the greatest
expenditure around the Tamar River where TasWater will spend $300 million upgrading and/or
replacing the seven wastewater treatment plants that discharge into the river.

Previously TasWater had been seeking $400 million in government assistance.

With Macquarie Point and the Launceston combined stormwater/sewerage system not being part of
the revised plan it reduces the funding shortfall to $150 million and taking into account the reduced
payments to Councils, TasWater will have a funding shortfall of around $80 million.

TasWater expects to bridge the gap by targeting increased operational savings beyond those
previously anticipated.

Mr Hampton said that it is disappointing that TasWater did not secure any commitments of financial
assistance during the lead up to the Federal Election.

“In the absence of that funding commitment TasWater has determined that it can no longer delay
tackling the critical water quality issues,” Mr Hampton said.

“Further, that it must have a comprehensive, fully funded plan to address the ageing infrastructure
issues.”

TasWater has previously targeted a 10 year capital program of $1.1 billion By reducing payments to
councils and identifying further savings in its operations, TasWater will be in a position to increase
the spend to in excess of $1.5 billion.

Mr Hampton said that the revised fully funded plan will bring Tasmania’s water and sewerage
infrastructure into the 21st century over the next ten years, and it removes the need for State or
Federal Government assistance at this point in time.
TasWater