A spokesperson for the organisation said TasWater had already announced a reduction to owner dividends and as a consequence was increasing expenditure on repairs.

The comments came after a government business enterprise hearing revealed TasWater customers could be hit by cost increases of up to 30 per cent over the next six years.

Mr Gutwein hit out at the water body and its Owner’s Representatives’ Group of councils on Wednesday, and said “what [TasWater] needs to do is to stop focusing on dividends and start focusing on fixing the problem.”

He said TasWater was the repsonsiblity of local government, but he would not take other options off the table which could include state government funding or a push for federal support.

Tasmanian Liberal senator David Bushby also said primary responsibility for water and sewerage had traditionally rested with local government. 

“Although state governments have inserted themselves into this issue at times, by creating regional water authorities and later TasWater, it seems clear, consistent with statements by the state government, that this has not changed,” he said. 

“Despite this, it is clear that these challenges are real and that they need to be addressed in coming years. I would hope that local government, through TasWater, will seriously work to address these challenges by considering all feasible options.”

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