Council responds to State Government brochure
The Mayor of Burnie, Ald. Alvwyn Boyd, has responded to clarify certain comments currently being distributed by the State Government around water and sewerage reform. I respond to each of the paragraphs that need some additional interpretation as follows:
The way water and sewerage services are delivered is changing to ensure that Tasmanians have access to clean water and can safely dispose of waste.
Burnie City Council has a long and proud tradition of providing clean water and fully compliant disposal of waste water at state-of-the-art standards. We have already ensured clean water and safe disposal of waste.
This is a new way of doing things and it will make water and sewerage services better for everyone.
Burnie City Council believes that it has delivered the best possible outcome. There is little more that can be done to make water and sewerage services better for everyone in Burnie. It is acknowledged that the water and sewerage reform may provide better services for most people other than Burnie.
As you will no longer pay your local council for water and sewerage services, your local council rates should drop.
Burnie City Council has always identified water and sewerage rates and charges as a separate line on the annual rates demand from Council. Those charges will no longer be part of Council’s rates demand. As a result the overall demand from Council will reduce.
Across Tasmania, on average 30% of rates are allocated to water and sewerage services.
Burnie City Council’s rate demand for 2008/09 raised $23.877 million. Of this amount sewerage rates were $4.1 million and water rates were $3.1 million. These two amounts amounted to 30.6% of the total rate demand for 2008/09.
To fund the improvements to services and build new infrastructure, prices are proposed to rise on average by about $1.20 per week per household each year, over the next three years.
Burnie City Council had no proposed improvements of substance to new water and sewerage services that would have triggered a need to increase prices as proposed. Council’s assets were fully compliant and fully self funded for the medium to long term, without the need for proposed increases.
While we would prefer that prices did not increase, Tasmania has the lowest domestic water charges in Australia and the reforms will ensure Tasmanians can access clean water and safely dispose of waste.
Burnie City Council has developed state-of-the-art systems that are fully compliant. The plentiful supply of water in our catchment has meant we have generous amounts of water available for use at affordable prices. Council sees no reason for price increases other than to fund other Council area’s infrastructure improvements.
Water and sewerage services need to be properly funded and managed to ensure that Tasmanians can access clean water and safely dispose of waste. Unfortunately, the current system is not delivering that.
Burnie City Council contends that all reasonable districts in the Burnie municipal area have been provided with clean water and safe disposal of waste water to fully comply with contemporary standards. Our infrastructure is properly funded and managed with pride and distinction. It did not need new corporations to deliver this result.
The new corporations have resulted from a review into current water and sewerage services offered by local government, which found many of those services to be underfunded and unsustainable.
Burnie City Council strongly believes that it is being unfairly punished for delivering excellent outcomes in water and sewerage services over recent years. Burnie has taken all of the requirements seriously and conformed to best practice outcomes. Council has fully funded its infrastructure with an appropriate mix of debt and equity, to ensure intergenerational equity.
The changes will bring great improvements to Tasmania’s environment, public health and the economy.
Burnie City Council can see no improvements to Burnie’s environment, public health and the economy; however, agrees that other areas may benefit.
In 2008 the Tasmanian Parliament unanimously passed legislation, with the support of local government, to establish the new corporations and a best-practice regulatory system.
Burnie City Council has never supported the legislation and has vehemently opposed it all the way. Burnie already has an excellent record in delivering a properly regulated system.
The legislation ensures the new businesses cannot be privatised. The new water and sewerage corporations will continue to be owned by local government, not the State Government and all financial returns will go back to local government.
Burnie City Council is concerned that any parliament could move to privatise the water and sewerage corporations at a later date. Burnie City Council previously owned 100% of its water and Sewerage infrastructure. Its ownership share of Cradle Mountain Water Corporation is yet to be confirmed, but will range between 15% and 24%. That owner level will be a small shareholder in the wider region’s infrastructure.
Ald. Alvwyn Boyd
BURNIE MAYOR
Water & Sewerage Reform
The State Government has formed the Ministerial Water and Sewerage Taskforce to investigate Reform of the Tasmanian Water and Sewerage Sector. The major issue coming out of their discussion paper was the Government's need for structural reform; that is, the possible formation of a new Statewide or Regional Water and Sewerage Authority. This website seeks to:
- Provide the background to this issue
- Inform residents & ratepayers of Council's water & sewerage role
- Explain the impact of the proposed reform on the Burnie Community
- Seek community support to stop the loss of ownership & control of Burnie's water & sewerage