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Answers to your questions
My council’s water and sewerage services are fine, why is the change necessary?
Maintaining the status quo is not an option as reform is needed to address public health, social, environmental and sustainability concerns for all Tasmanians. The quality of our water and sewerage services impacts on all our lifestyle and well being.
Local and State governments are jointly working together to secure the long term sustainability of Tasmania’s water resource, avoid the crises experienced in mainland Australia and ensure Tasmania’s ongoing economic development and prosperity.
Who will be managing water and sewerage services?
Three regional businesses and a fourth common service provider are being established whose primary focus will be water and sewerage delivery. These businesses will be owned by Local Government and not the State Government.
Will councils be funded for the loss of their water and sewerage assets?
There is no need to compensate councils as the assets will continue to be publicly owned by councils and profits will go to them. The State Government will receive no financial benefit from the new businesses.
Which areas will be fixed first?
At this stage no decision has been made on which areas in the state should receive attention first. However, there are obvious issues that impact on the community and economic development, such as the need to fix towns on boil water alerts, and areas where sewage is causing major environmental harm and needs urgent upgrading.
Why is water quality and delivery important to economic development?
Tasmania’s prosperity is linked with the availability of water and sewerage infrastructure that can meet our needs. Good water quality and delivery is important to Tasmanian communities for economic development. Tasmania has a reputation for producing fine food and beverages and unique tourism experiences. High quality water is essential to maintain the competitiveness of all those sectors.
Why was regulatory reform needed?
The light handed regulatory environment in Tasmania has not aided the creation of a self-sustaining sector. Significant investment particularly in infrastructure is needed and regulation operating rules will help to deal with this and at a minimum sustainable cost to you the consumer.
What are the key elements of the regulatory reform?
The regulatory framework includes:
- the creation of State-wide policy responsibility to guide infrastructure development
- the implementation of minimum service standards to protect all consumers
- independent price setting which will reflect a market-based outcome and supports a self-sustaining sector and viable service providers.
How will water pricing be affected by these changes?
Tasmania has the lowest domestic water charges in Australia. From this low price, modest average price rises will need to be phased in over time to move the sector to a sustainable footing.
The approach to pricing (that is, the method used to calculate customer charges) will be consistent across the State. However, actual water and sewerage charges in each area will be different and the price charged will be clearly linked to the level of service provided. Charges will be set through a transparent and independent process by the Economic Regulator.
Will water meters be installed?
The wider use of meters will be considered. No decisions on this issue have been made.
How will those in hardship be assisted?
Local Government, as the owners of the new water and sewerage businesses, will be funding concessions for low-income customers who face hardship.
The concessions will work in much the same way as electricity concessions are currently provided.
The State Government is currently working on legislation that will provide a statutory framework for the provision of the concessions. It expects that this legislation will be tabled in Parliament later in 2008. |
