TasWater Chairman Miles Hampton said the cost of the legal advice obtained that casts serious doubt on the Government’s takeover bid was appropriate to protect the statewide water and sewerage business.
Mr Hampton rejected the Treasurer’s assertion that the cost was ‘appalling’ and said the TasWater Board had determined the company would take such action as was appropriate and necessary to determine the legality of the proposed takeover.
“Paying just $5000 for the senior counsel’s advice is hardly ‘appalling’ when it is to protect a councilowned asset valued by the Treasurer at around $3 billion,” Mr Hampton said.
“Our owners who represent our customers have told us in an unambiguous manner, they want to retain ownership.
“Further, it was entirely appropriate that the Board seek external advice on the proposed takeover. To do otherwise the Board members would have been failing in their duties as directors.
“Unfortunately, the Treasurer shows a complete lack of understanding of the role and obligations of company directors.
“TasWater is a company established under the Corporations Act 2001, and the 29 Tasmanian Councils are shareholders in the company. Our legal advice casts serious doubt on the Government’s ability to legislate to override the application of the Federal Corporations Act.
“In our view, $5000 is a small price to pay to protect TasWater and the asset owned by Tasmanian councils and their ratepayers.
“Indeed, it pales into insignificance when compared to the $160 million of taxpayers’ funds the Treasurer wants to pay to councils plus the unnecessary $600 million he wants to borrow to fund his TasWater takeover bid.
“Tasmanians can judge just which cost is ‘appalling’.
TasWater
