Background
The Tasmanian Premier, Paul Lennon MHA, announced on the 26 September 2006 the creation of a Ministerial Water and Sewerage Taskforce. The Taskforce is comprised of the Treasurer (Chair) the Hon Michael Aird MLC, the Minister for Primary Industries and Water the Hon David Llewellyn MHA and the Minister for Tourism, Arts and the Environment the Hon Paula Wriedt MHA.
On the 22 December 2006 the Taskforce released a discussion paper titled "Reform of Tasmania's Water and Sewerage Sector" that identified 12 issues upon which submissions were sought from Councils by 23 February 2007. Burnie City Council has provided a detailed submission and this together with the Reform discussion paper is available on Council's website at www.burnie.net.
The major issue coming out of the 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. If the Government chose to undertake these reforms, the consequences for Burnie would be:
- An increase in water and sewerage charges to pay for the upgrade of other councils' systems, which do not comply with current standards or do not even exist. Burnie residents now enjoy fully compliant systems unlike most other councils.
- An increase in Council's General Rates to finance the resulting inefficiencies from losing over 33% of Council's current business activities
- Loss of Burnie Council's recent investment of over $18 million in a new sewerage treatment plant and associated works
- Loss of local ownership of Council's Water and Sewerage assets which would cost $173 million to replace in today's values. It appears that any reform will transfer this investment without full compensation
- Burnie has diverted its investment base from other exciting projects to meet tough environmental standards, and this deprival will continue on after the assets have been transferred
- Water and sewerage services being managed by a body other than Burnie City Council would mean loss of control of where and when investments are made in building new water and sewerage reticulation for our expanding base
- Potential for loss of employment of local people with centralisation of the services to the south of the state.
