TasWater’s damage bill from last year’s floods is expected to be $17.6 million less than was feared.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The water and sewerage authority in August said the cost might go as high as $25 million.
However, its December quarterly report put the latest estimate at just $7.4 million.
The hit on its 2016-17 pre-tax profit is expected to be as low as $1.3 million after accounting for insurance payments.
The report said the estimated cost was down because less repairs would be needed at a clear water storage at Forth than had previously been expected.
Those repairs would now cost an estimated $2 million.
The figures emerged as a row flared between Treasurer Peter Gutwein and TasWater’s owner councils about the responsibilities of funding upgrades to water and sewerage assets.
Mr Gutwein accuses councils of not accepting their responsibility to fund improvements to the state’s ailing water and sewerage infrastructure.
Councils argue they have foregone an amount of dividends from TasWater, while state Labor wants the government to contribute cash to the infrastructure.
“ … the Minister now expects ratepayers in urban areas, who have already contributed significantly to fund their own water and sewerage services, to pay even more to pick up what, at least in part, should be his responsibility,” Brighton Mayor Tony Foster said.
Mr Gutwein said fixing the damage caused by last year’s floods was a priority for the state government and should be a priority for TasWater too.
“If the costs of repairing flood damage aren’t as high as first anticipated, then I would expect TasWater to look at what else it can do to upgrade its failing water and sewerage infrastructure,” Mr Gutwein said.
The report said TasWater’s eligibility for flood compensation under National Disaster Relief Recovery Arrangements was “still with the state Attorney-General’s office”.
It said TasWater had had no indication of the timing of a decision on eligibility.
It received $137.3 million from customers for the six months to December 31.
It aims to spend $125 million on capital works this financial year.
Big infrastructure projects coming up include the King Island water scheme, the Kingborough sewerage scheme and an upgrade of the Conglomerate Dam, servicing Queenstown.
