Economy
Glamorgan Spring Bay Council’s very secret business …
FEBRUARY 10, 2017 …
• ABC: Former executives voice concerns about sustainability of Tasmania’s $700m salmon industry
At the Glamorgan Spring Bay Council’s recent Annual General Meeting (last year), a motion was unanimously passed from the floor querying the state of the Council’s finances, and criticising the processes for the General Manager’s decision to apply for a $6 million loan from Treasury. The same loan that will be substantially directed towards the construction of a 3000ML dam and associated water infrastructure to supply water for a controversial fish farm.
Despite the sizeable loan for such a small rate base, a full assessment of the costs and benefits to the ratepayers of the Council has never been provided to the community, nor as we understand, been presented to councillors.
The motion agreed by the community was that the Council engage an external, independent risk assessment and expert advice on the commercial-scale quantities of fresh water to the Solis and Tassal companies. Specifically, in relation to whether the Council had the legal capacity to undertake the proposed activity and whether the General Manager had the Delegated Authority to have approved a loan of that size.
The community motion also raises questions about whether: all councillors were comprehensively informed about the long-term financial implications for the council or whether it went to the Finance Committee and Audit Panel; what the financial viability is of the scheme; Council’s ability to service its loan obligation to Treasury; the relationship with the existing TasWater scheme; and whether the proposal requires the compulsory acquisition of pipeline easements.
The motion also questioned if, and when, all Council reports would be put on the public record.
The motion followed a leaked TasWater document that heavily objected to the financial viability of building the proposed dam in the upper catchment of the Prosser River. TasWater highlighted the impact on long-term water needs for Orford and Triabunna, townships who were on water restrictions last summer, and raised the risk of future litigation because of flawed user-pays measurement methodology.
This appears to be the next in the long line of convenient government arrangements for Tassal’s stake in Okehampton Bay. The Marine Farming Review Panel has yet to present its findings on the review of the 20 year old Okehampton Bay lease for intensive salmon farming by Tassal. It’s not due until February 2017.
Given the background of questions about the social impact of a large dam, the community’s concerns about financial risk to the Council are well founded. Residents’ outrage at the premature approval of a $6 million government loan to assist a controversial and as-yet unapproved private commercial operation (at ratepayers’ expense) is understandable.
Ratepayers are understandably worried they will ultimately bear the costs and risks for a loan to subsidise a corporate development the majority don’t want. Even those that might want it would likely be very concerned about the lack of financial risk assessment and transparency surrounding the application and approval process.
I have written to Local Government and Planning Minister, Peter Gutwein, seeking his agreement to suspend the $6 million loan until the independent investigation has been completed and the concerns of the residents acted on. To do otherwise would indicate a disregard for the minimum levels of transparency and good governance in local government.
*Dr Rosalie Woodruff is an epidemiologist and Tasmanian State MP. Prior to this she was a Greens councillor on the Huon Valley Council. Her previous career focussed on the health impacts of climate change. She has worked for many years in the health sector and in developing community housing options.
• Rosalie Woodruff: Tassal Dam at Taxpayers’ Expense and Ratepayers’ Risk …
EARLIER on Tasmanian Times …
• Environment Tasmania: Glamorgan Spring Bay Council votes to pass Tassal’s plans …
• TasWater: TasWater –protecting water supplies for Orford and Triabunna
• Environment Tasmania: Tassal’s dam strong-arming …
• Jeremy Rockliff: Strong support for salmon farming welcomed
• Richard Kopf in Comments: Development at any cost. Cost to the ratepayers that is. The township of Orford and its long suffering ratepayers will be the hardest hit by these crazy schemes. Most ratepayers in Orford own holiday dwellings. They receive few services. Compare the quality of the infrastructure at Bicheno, Swansea and Triabunna with Orford. Few footpaths, few businesses, open drains that overflow during rainfall events and a river that once saw pleasure boats in abundance, become a backwater following the disastrous decision to change its course at the mouth. A decision that was promised to be reversed “should unforeseen detrimental effects occur”. Except following floods, the river can only be navigated by nothing larger than canoes and kayaks. This is the river that was once an important small harbour and now this, river, sorry drain, is to be further damned. The outcome will be that the Prosser will seldom, if ever, flow out to sea and ultimately will become a stinking backwater. The good citizens who built their holiday homes in this once delightful town, will have to tolerate the mess being created by this Council, watch their real estate values fall and ironically, be slugged for the privilege. Worse, non-resident ratepayers are not entitled to vote at Council elections unless having sought to be on the General Manager’s roll. So there will be no retribution available at election time.