The Local Government Association of Tasmania (LGAT) has requested the
Economic Regulator that in reviewing the methodology and associated pricing
arrangements for headworks charges, that it ensures that they are fair, equitable and
transparent. In undertaking this task, however, it must do so within the timelines
associated with the pricing determination which does not come into effect until 2015.

LGAT President, Mayor Barry Easther said despite suggestions by the Premier that
LGAT should write to the regulator to see if this could be brought forward, the facts of
the matter are that the regulator is bound by the present timeframes and regardless
of any desire on the part of the LGAT, it has no capacity to influence the
arrangements presently in place.

“Headworks are a one-off fee for the provision of water and sewerage for land
development or subdivision. While developers maintain that the cost of headworks is
unfair, the charges are integral to addressing capacity and upgrade pressures from
those developments, and maintaining infrastructure standards within the community,”
Mayor Easther said.

“It is equitable that developing areas and new developments contribute towards
expanding infrastructure capacity to maintain current service levels. Existing
properties have all paid some form of headworks charge at some time.”

“The burden should not be left to those that have already paid to fund the aspirations
of those wishing to build and develop new projects. There are a range of cost inputs
to the development process but developers have latched onto this one as the big
evil,” he said. “All states have similar arrangements in place. Headworks charges are
but one of the costs of doing business.”

Mayor Easther said Local Government owns TasWater but the requirement to levy
headworks charges is legislated as part of the machinery of operation of the
organisation. “This was a specific requirement of the State Government as part of
the water and sewerage reform process.”

“Local Government does not shy away from its responsibilities to ensure that
TasWater has in place the appropriate mechanisms to price these charges correctly
but it also does not shy away from the fact that the broader community should not
have to put its hand in its pocket to fund these charges on behalf of the select few,”
he said.
LGAT President, Mayor Barry Easther