THE Legislative Council Select Committee inquiring into the proposed takeover of TasWater has been told the State Government had failed to show that its plan would provide water and sewerage services fairer, faster and cheaper.

That, and claims that Tasmania’s water and sewerage services were in crisis and of third-world standard, were the basis of the Government’s takeover bid.

Those claims were debunked by TasWater when it returned to give evidence to the Select Committee on Friday. It said the reality under the Government’s plan, would be the reverse of its fairer, faster and cheaper promise.

“It will not be fairer, as evidence presented to the Select Committee suggests that the Government will play favourites to the benefit of vested interests, particularly the big end of town,” TasWater Chairman Miles Hampton said.

“Ordinary householders around the State would pay the price over many years to serve the Treasurer’s political agenda.

“It will not be faster, as the disruption and the sheer volume of planning, designing and tendering for major infrastructure projects, will slow progress, lead to inevitable delays and render the Government’s claim a mirage.

“And it will certainly not be cheaper for consumers. The Government’s extra and unnecessary $600 million of debt plus $140 million to pay off councils means that Tasmanian consumers and taxpayers will pay significantly more for water and sewerage services or interest rates on the borrowings, as well as increased local government rates to make up for the loss of councils’ anticipated distributions from TasWater.

“As it stands, the Government’s unnecessarily expensive program provides only lip service to the relocation of the Macquarie Point sewage treatment plant and the resolution of the Launceston combined sewerage and stormwater system issues. Nor does it fix the Cameron Bay plant to facilitate Mona’s stage two development.”

TasWater provided the Select Committee with a copy of the Productivity Commission’s draft report on water reform issued on September 15.

“The Report, commissioned by the Federal Treasurer in February this year, is highly critical of the Tasmanian Government’s takeover legislation and in fact, lists its criticism and concern at least 14 times throughout the report,” Mr Hampton said.

“The Productivity Commission is very clear saying that governments should not backtrack on water reform, and cites the Tasmanian Government’s proposed takeover as an example of what not to do.
“In a damning criticism of political intervention in the regulatory process, it says the Tasmanian legislation will greatly constrain the role of the independent economic regulator and impact adversely on efficient service delivery.

“It goes on to describe the Tasmanian Government’s move as a retrograde step contrary to the National Water Initiative agreed to by all States and Territories and the Federal Government.”
TasWater also provided detailed evidence to the Committee to refute claims made by vested interest groups including the Tasmanian Chamber of Commerce and Industry, the Property Council and the Tasmanian Hospitality Association.

“Submissions from all three bodies contained serious factual errors, from incorrectly stating the commencement date of the water reform process to false claims regarding TasWater consultation with customers and an ignorance of trade waste legislative requirements,” Mr Hampton said.

“In their submissions, the TCCI, Property Council and THA, demonstrated a lack of understanding of the competing objectives TasWater faces and showed a single-minded focus on their particular sectoral interests to the detriment of the broader Tasmanian community.

“It was important for TasWater to ensure that the Select Committee had the facts regarding the issues raised by these vested interest groups and was also made aware of the serious deficiencies in the Government’s plan.

“The overwhelming concern is that the State Government’s legislation to takeover TasWater fails in its fundamental duty to protect the long-term interests of Tasmanian consumers and it runs counter to agreed reform, independent oversite and all reasonable principles of fairness,” Mr Hampton said.
TasWater Chairman Miles Hampton