OPPOSITION Leader Will Hodgman has pledged to use taxpayer funds to kick- start developments, setting aside $10 million to pay for two years of headworks charges.
Blaming the costs for holding back millions of dollars worth of developments, Mr Hodgman said the economic circumstances dictated action.
"It's not good enough to sit back and do nothing," Mr Hodgman said.
"We will give Tasmanian developers a two-year headworks holiday, that means these terrible costs that are currently impeding too many developments in Tasmania can go ahead without that limitation."
TasWater will be subsidised for works by the government under Mr Hodgman's plan by up to $5 million each year.
"While we believe TasWater could absorb the costs of this headworks holiday with no impact on their customers or owner councils, we have taken the decision to compensate them for lost revenue in order to ensure the timely and smooth implementation of this important initiative," Mr Hodgman said.
The decision is a shift in Liberal policy, moving the burden of paying for the headworks from councils, which own TasWater, to the taxpayer.
Deputy Premier Bryan Green didn't hold back when attacking the policy, saying "Will Hodgman obviously thinks Tasmanians are stupid".
"The Liberals were caught out trying to force councils to pay for headworks charges so they've changed tack and are going to slug every taxpayer instead."
Economic Development Minister David O'Byrne said the $10 million cost would have ramifications.
"It's astounding that the Tasmanian Liberals make promise after promise, if you need to give money to one area, you need to take it from another area," he said.
"This is going to come at a cost, but it's worth it," Mr Hodgman said.
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