Latest Update
8 January 2008
Letter to the Editor
The letter to the editor by Treasurer Michael Aird (3 Jan 08) demands some response as it raises a number of issues including Burnie City Councils’ warning to its community about pending significant rate increases for Water & Sewerage should the proposed Water & Sewerage Reform gain assent from parliament.
The Treasurer simply doesn’t understand the situation relating to Burnie.
Burnie’s share of the $1 billion infrastructure shortfall is only $6.72m over 10 years, or 0.67%. This demonstrates that the Burnie system is fully compliant and has been completely paid for by Burnie ratepayers.
Burnie City Council has provided safe and affordable drinking water to many generations and has the technology, facility and expertise to do so into the future. The Burnie Community has managed this precious resource responsibly. Recent capital investment in sewerage treatment ensures that Burnie meets all statutory obligations required.
Burnie ratepayers have paid for these assets and should not be penalised by the inability of smaller councils to do the same.
We have been working with all other North Western Councils to investigate the option of a regional scheme, but the outcomes of these investigations appear to still leave Burnie residents at a distinct disadvantage than the present situation.
The Treasurers arguments for water and sewerage reform apply equally to all local government services.
If more than 20 other Councils water and sewerage systems are not working, what else is not working? Surely the non-performance of those Councils leading to a $1 billion shortfall in infrastructure provision demands more of an answer than ripping those assets out for the benefit of all. Does the non-performance of Councils in water and sewerage indicate deeper problems of unsustainability in all their services delivery? In fact, removing a substantial part of Councils functions (over 30% in some cases) will leave them even more unsustainable.
Mr Treasurer, I suggest the evidence points to a different model for Local Government - one that works and delivers acceptable services to its community, rather than just a different model for water and sewerage alone.
If the backlog for water and sewerage works is $1 billion, what is the backlog for roads, footpaths, storm water, bridges, waste management, sporting facilities, reserves and the many parks that need to be brought up to standard? Not to mention community and cultural services.
These other problems too require proper planning and funding and are too big for individual councils alone. So why just pick on water and sewerage? Water and sewerage issues demonstrate that local government is not working. We suggest that the state look at fixing local government and by that you will address the water and sewerage problems.
The states role should be to fix the regulatory side of things. Burnie City Council is not afraid of regulatory reform and that is the appropriate role for the state. The State should make the regulation Australia’s Best Practice. We can live within the mooted water and sewerage regulatory environment.
If the Treasurer cannot accept sewerage overflowing on beaches and cannot accept a situation where waste water treatment plants are struggling to meet proper standards, then the State Government should not accept this situation and enforce its own legislation. After all, all Councils have had more than six years notice to conform. It seems that Burnie was one of few Councils to take that notice seriously.
Burnie City Council has built ‘frontier efficient’ water and sewerage systems over the past 20 years without $1 assistance from any quarter. It also has the cheapest marginal cost of water of any Bulk Water system in Tasmania.
If the Treasurer wants to have a real debate about Tasmania’s future then lets talk about :
- overall infrastructure shortfalls;
- overall service delivery shortfalls;
- local Government reform;
- the long term sustainability of small Councils,
- why Councils have not provided for necessary infrastructure,
- why many Councils are struggling to meet current standards,
- about Council amalgamations.
Our economy demands that we look at all the infrastructure needs of new businesses and new homes for ALL local government services not just water and sewerage.
I also take issue with the Treasurer about Burnie City Council’s costings on Water Reform for ratepayers. The Treasurer claims that Council costings showing the cost of water reform for rate payers were ridiculous and scare mongering. The Treasurer has been working on Water Reform for over twelve months now, so he should be able to produce his own modeling on what his reforms will cost ratepayers.
The Treasurer can put everyone’s minds at ease very quickly and show us where our figures are wrong. Who will pay for the $1 billion shortfall, when Burnie’s share is only $6.72m over 10 years (0.67%).
Can the Treasurer guarantee :
- that Burnie will retain its discretion on how it charges for water and sewerage,
- that Burnie will not need to contribute additional returns on its water and sewerage assets other than to fund its estimated $6.7 million over the next ten years,
- that any regional or statewide model will be forced to use nodal pricing for water based on each catchment costs, thereby protecting Burnie’s unique cost advantage,
- that Burnie ratepayers will not have to contribute to the regional $180m infrastructure shortfall (or the state $1 billion), as well as having paid for their own infrastructure,
- that Burnie will be reimbursed or compensated for its relative new and efficient water and sewerage treatment systems, compared with other less efficient and non-compliant systems,
- that Burnie will be provided $1 million in perpetuity for the structural inefficiencies caused by the loss of its water and sewerage function from Burnie City Council,
- that the mooted new regional or statewide bodies will not face the hideous increases that we have just witnessed in electricity price increases, on some obscure rationale when we have and will always enjoy water in abundance.
Only when these guarantees are provided, then the Treasurer can ease our concerns about the massive cost increase that we have responsibly modeled. To say anything to the contrary without these reassurances is simply rhetoric and uninformed comment.
I encourage our residents to read our full report on www.keepburniewater.com.au - here
