Media Release

Will Hodgman MP
Leader of the Opposition
Peter Gutwein MP
Shadow Treasurer

Thursday 17th December 2009

Fixing Labor’s water and sewerage bungle

The Tasmanian Liberals today announced their four-point plan to fix Labor’s water and sewerage bungle, if elected to Government on March 20, 2010.

Leader of the Opposition, Will Hodgman, said that the Liberal policy included freezing prices for consumers while the water and sewerage bungle was fixed, as well as providing financial incentives to empower Tasmanians to invest in practical water savings initiatives.

Mr Hodgman said that the policy would also ensure that investment in Tasmania’s water and sewerage infrastructure was not compromised, and that local council dividends were not compromised.

The four-point plan is:

1. Freeze prices for one year from 2010-11. While we are fixing Labor’s mess we will not expect Tasmanians to pay the 5% increase next year that Labor has demanded. This means that water and sewerage bills will be kept at current year prices for 2010-11 while we fix Labor’s mess;
2. Immediately conduct a comprehensive review of the current structure and operation of Labor’s failing water and sewerage reforms to seek efficiencies and cost savings, and to ensure the structure is best placed to access Federal government funding. To be completed by December 2010;
3. Provide a four year guarantee that during the next term of Government price rises on water and sewerage bills will remain at or below 5%;
4. Empower Tasmanians to reduce their own water and sewerage bills by introducing a State-wide framework for grey water and rainwater tank use, and water savings measures such as dual flush toilet and water saving shower heads, by providing financial incentives to encourage their take up.

“Labor recently announced a political quick-fix to this problem by giving nearly $60 million to the water corporations over the next three years to lower bills to a 5% increase.

“However, the Government will not commit to what will happen with water and sewerage bills in three years time and have only agreed to a review whilst the Regulator once again sets the price.

“This is a band aid solution designed to limit the community backlash over the election period.

“We will fix it and we will do it immediately.”

Shadow Treasurer, Peter Gutwein, said:

“Under Labor water and sewerage bills were scheduled to rise 10% per annum over the next 3 years, beginning on 1 July this year, and then move to full cost recovery over the next 3-5 years.

“This would cause some bills to rise by more than 100%, and more than a 63% average increase occur in bills across the State.

“In addition, developers – including those developing social infrastructure such as retirement villages – are being hit with headworks charges up to double what they would have previously paid, forcing up the cost of land and putting such developments at risk.

“Tasmanians cannot afford this.”

Mr Gutwein said that the Liberal policy will cost $31.25 million over four years.