His comments came in the wake of chairman Miles Hampton's appearance at a parliamentary hearing in Hobart on Tuesday, at which he admitted that water prices could rise between 100 and 400 per cent over the next three years owing to required infrastructure upgrades.

Mr Hampton is chairman of each of the state's three water authorities - Cradle Coast Water, Ben Lomond Water and Southern Water - which are being replaced by a statewide authority, the Tasmanian Water Corporation, from July 1 next year.

On Friday Alderman Kons said public sector board members often lacked business sense and did not always spend money wisely, as it was not their own.

"In my view, unfortunately large organisations like that don't know how to run a business," he said.

"If you haven't got any skin in the game, you have a different perspective of the way that assets should be run."

Brighton mayor Tony Foster is chairman of the nine- member group that represents the state's 29 councils, which own the state's water infrastructure. He said Alderman Kons was a member of that group and he was surprised that he would make public criticisms, when he could work within the system to fix problems.

Cr Foster said he had worked closely with Mr Hampton and his predecessor Geoff Willis, and had confidence in both. He said a committee appointed by the state government had chosen the members of the existing boards.

The chairman or chairwoman of the new statewide board will be appointed next month.

Board members will be appointed by the end of February, and that group will elect a chief executive.