Although TasWater regrettably failed to secure additional state or federal funding during this year’s election campaign, it has become clear these issues need to be addressed as a matter of urgency.

After working closely with the state government for the past three years without any tangible outcome, the time came for TasWater to take some leadership, address the issue and accept the necessary expense of extensive infrastructure upgrades.

We unveiled a revised plan to address the state’s longstanding water and sewerage issues, which will see a total expenditure of $1.5 billion over the next 10 years.

The plan will accelerate the resolution of water quality issues affecting 24 townships on boil-water or public-health alerts, as well as addressing key vulnerabilities in a number of other drinking water systems.

We expect to halve the number of towns on permanent alerts by June 30, 2017 and remove all remaining permanent alerts within two years. Further, we will increase expenditure on other significant water quality risk areas.

However this comes at a cost. TasWater will target additional savings, which will mean that total savings subsequent to the establishment of the corporation will be about $25 million a year.

In addition, for a period of seven years starting July 1, 2018, distributions to owner councils will be reduced to $20 million.

The effective cost to councils over the period will exceed $150 million, with costs varying depending on the level of shares held within the organisation.

Although a consumer increase in water and sewerage charges is predicted to exceed current inflation rates, significant spending has become unavoidable in order to accelerate fixes to longstanding service failures.

The revised plan does not include tackling the issues created by the flow of stormwater into TasWater’s Launceston sewerage system.

The problems arising from the flow of stormwater into the sewerage system are not the responsibility of TasWater. 

TasWater will however work with the Launceston City Council to identify how the issues can be resolved at least cost and support them in applications for funding assistance.

The revised plan will see substantial expenditure in all regions, with the greatest expenditure around the Tamar River, where we will spend $300 million upgrading and/or replacing the seven wastewater treatment plants that discharge into the river.

Previously TasWater had been seeking $400 million in government assistance.

With Macquarie Point and the Launceston combined stormwater/sewerage system not being part of the revised plan it reduces the funding shortfall to $150 million and taking into account the reduced payments to councils, TasWater will have a funding shortfall of about $80 million.

We expect to the bridge this $80 million shortfall by targeting increased operational savings beyond those previously anticipated.

In the absence of government funding commitments, we can no longer delay tackling the critical water quality issues and must develop a comprehensive, fully funded plan to address ageing infrastructure issues.

Without need of state or federal government funding assistance, the revised fully funded plan will bring Tasmania’s water and sewerage infrastructure firmly into the 21st century over the next 10 years.

Miles Hampton is TasWater chairman