Tasmanian Upper House Blocks Bill To Take Over TasWater
Friday 24 November 2017 @ 1.24 p.m. | Legal Research
The Tasmanian Upper House has rejected a bid by the Government to take over TasWater, with the Water and Sewerage Tasmania Bill 2017 being negatived ten votes to four yesterday (23 November 2017). This follows the release last week (16 November 2017) of a report into TasWater ownership by a Legislative Council Select Committee, which found there was “dissatisfaction with the consultation process undertaken by the Government regarding its proposal to take over TasWater.”
TasWater provides water and sewerage services in Tasmania under the Water and Sewerage Corporation Act 2012. It was formed following an amalgamation of regional water and sewerage corporations and is owned by all 29 Tasmanian council and overseen by an independent board.
The Bill
The Water and Sewerage Tasmania Bill 2017 was originally introduced on 8 August 2017 by Treasurer Peter Gutwein, along with the Water and Sewerage Tasmania (Consequential and Transitional Provisions) Bill 2017. Introducing the Bill in his second reading speech , the Treasurer said:
“The legislation that the Hodgman Liberal Government is introducing today puts into effect the Government’s plan to take control of Tasmania’s water and sewerage industry.
It is undeniable that local government ownership and control of TasWater has resulted in unacceptable outcomes for the Tasmanian community and the environment.
The Tasmanian community expects and deserves better. The Government’s plan to fix Tasmania’s water and sewerage infrastructure will build a better future for Tasmania. It will protect our brand, improve public health outcomes and will also be good for our economy and will keep prices lower.”
The Report
On 4 April 2017, before the Bill’s introduction, the Legislative Council resolved to appoint a Select Committee that was tasked to inquire into “[t]he benefits, disadvantages and challenges associated with the Tasmanian Government’s proposal to take control of TasWater”.
The Committee received fifty-four submissions and held a number of public hearings in Launceston and in Hobart.
The Committee made a number of findings on the issue, highlighting in their media release their finding that:
“payment of dividends to council is not guaranteed to occur after 2025. If councils’ TasWater dividends were reduced the sustainability of some councils to provide services may be jeopardized and some councils may need to increase their rates as a result.”
An ABC News report described the Committee’s findings as “scathing”, saying “[i]t disagreed with the Government's claim of a crisis in the water and sewerage sector, finding TasWater was financially sound.”
Government To Take Move To Election
The Treasurer told ABC News that the Government intended to take the proposal to take control of TasWater to the people at the next state election, which is scheduled to take place in March:
“The Labor party voted as a block, their four votes would have carried this legislation, but what they've done is they voted for higher water and sewerage prices for Tasmanians…
This policy is in the best interest of Tasmanians, it'll provide better infrastructure quicker and at a lower price.
Many people in regional Tasmania don't have access to fresh drinking water, we'll take it to the election.”
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Sources:
Water and Sewerage Tasmania Bill 2017, Water and Sewerage Tasmania (Consequential and Transitional Provisions) Bill 2017, Second Reading Speeches and Explanatory Material available from TimeBase's LawOne service