Barry Easther:
Property Council Naivety Once Again on Display
“It is a bit rich that the major lobby group for water reform is now suggesting that the system be turned upside down and councils not get the returns that they were promised,” President of the Local Government Association of Tasmania, Mayor Easther said today.
“The naivety and hypocrisy of the Property Council is once again on display. On one hand it wants rates reduced and on the other hand, seeks to deprive councils of one of its basic revenue sources,” Mayor Easter said.
“It is also unfortunate that the Premier has again resorted to the blame game by suggesting that councils were neglectful in their management of water and sewerage assets and this has led to increased pricing.”
“The reform we had to have was pushed by the Property Council and driven by the State Government. It set up the regulatory environment and it determined that environmental standards had to be met swiftly,” he said.
“It is frustrating that councils were subjected to a reform by others, the pricing of which was known in advance and totally out of the control of councils. This reform should not be about blame.”
Mayor Easther said councils were assured that they would receive the same levels of returns that they earned when they ran these services at the local level. “They have received nowhere near those returns and now the Property Council wants to deprive them of more.”
“Councils have worked diligently to implement a reform that has caused them and customers much grief and anguish. Resorting to blame is counterproductive and misplaced,” Mayor Easther said.
“Councils were happy providing these services to their local communities and continue to look at improvements that will provide greater benefit and value to their communities.”
“No one likes increasing prices but there is an independent regulator that makes that determination.
This is the same regulator that, for many years, oversaw the spiraling costs of electricity. Do we assume that this is the result of the underinvestment by the State Government in its electricity infrastructure?” Mayor Easther said.
Steve Old:
$400 water bill rip off by local government
Tasmanian water and sewerage consumers are set to be ripped off to the tune of $400 per year by local government as part of its grab for cash from water and sewerage reform.
According to spokesman for Tasmanians for Reform Steve Old, under the proposed water and sewerage pricing regime released by the Tasmanian Economic Regulator, once full cost recovery is
implemented, local government will reap nearly $100 million each year in dividends and income tax equivalents.
“When the water and sewerage corporations were created, we were told by local government that rates would need to increase because of the loss of revenue from water and sewerage, with increases in rates of up to 10 per cent for some municipal areas,” Mr Old said.
“However, what local government did not tell rate payers was that they are collecting tens of millions of dollars in dividends and income tax equivalents from the water corporations on an annual basis and this is set to increase to $100 million annually in ten years.
“That means for the 250,000 households, businesses and community organisations in Tasmania who receive a water bill, some $400 of this will go to local government.”
Mr Old said this news comes on top of comments by Premier Lara Giddings that local government had underspent to the tune of $1 billion in water and sewerage infrastructure. “The bottom line is that consumers are being ripped off by local government and this issue exposes that this has been happening for some time,” he said.
“Every year rate increases have exceeded the consumer price index, yet now not only do Tasmanians have to find $1 billion dollars to remedy the mismanagement, but in addition some $400 from each bill will go back to councils.”
Mr Old said it was time for local government reform.
“Local government in Tasmania is responsible for the mess, yet they continually wash their hands of responsibility for water and sewerage services.
“With EMRS figures showing nearly three quarters of the community support council reform, it is time for local government to face the fact that in hard economic times everybody needs to do their bit, not continue to rip off their consumers.”
