City of Hobart addresses Legislative Council Committee on TasWater Own

Published on 14 September 2017

The Hobart City Council today addressed the Legislative Council Select Committee Inquiry into TasWater Ownership.

Alderman Dr Eva Ruzicka said the Council rejected the State Government taking over TasWater because it wasn’t in the best interests of its ratepayers.

“The thrust of our submission to the Committee was that the Government’s takeover is flawed in process and lacks good governance.  There has been a lack of consultation and the absence of fine grain data and financial modelling fail to substantiate the claims made by the Government as to why they wish to transfer ownership.

“The Government assumes there will be a smooth transition to a Government-owned entity, but the experience of 2009, surely highlights these moves cannot be rushed.

Alderman Dr Ruzicka said that local councils are best-placed to own and oversee TasWater with its own experienced board of skills-based directors and an expert team of professional, experienced water and sewerage managers.

“The level of expertise, skills and knowledge to resolve conflicts around community expectation, service provision, capacity and willingness to pay, are better managed by the level of government closest to the community,”

Alderman Ruzicka said that The TasWater distribution has assisted the Council to renew and install new infrastructure for ratepayers, residents and visitors to the city.

“The Council’s current investment in TasWater is around $164 million and our annual distribution is currently $3.2 million.  From 1 July next year this will fall to $2.1 million.

“While we have a low reliance on external funding, a reduction in TasWater distributions to will be compounded over time and result in either a reduction in the provision of services or increases in rates.

“As elected members, under the Local Government Act, we are elected to represent and promote the interests of the community and our ratepayers so we were appreciative of the opportunity to address the Select Committee.

“We look forward to the outcome of the Committee’s inquiry,” said Ald Dr Ruzicka.