A proposed state government takeover of TasWater has caused confusion that will provide plenty of fodder for the water cooler.
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The state government announced its proposal to take over the local-government operated TasWater in March and since then there has been some confusion as to the financial modelling of such a plan.
The government’s plan includes the fast-track of TasWater’s $500 million capital works program that would see the abolition of all of Tasmania’s boil water and do not consume alerts.
The financial modelling for the takeover has yet to be released officially to the public but Parliamentary Secretary Sarah Courtney told media on Sunday that it would be available “on request.”
The state government claims the plan to takeover TasWater will save households up to $550 over the next six years by capping any price increases.
Opposition leader Rebecca White said the state government had not provided any public financial modelling on their TasWater takeover plans.
TasWater chairman Miles Hampton described the comments by Sarah Courtney as “extremely disappointing” saying the bulk of the work has already been started by the organisation.
Much of the confusion around the state government’s plan has come from this financial modelling and the central question of where will the funds come from to finance the capital works program.
The plan to take over the council-managed institution is bold, in an election cycle, and the promise of 100 per cent clean water for the state is an ambitious target.
However the state government would appear to have more funds at their disposal than local government, who rely on rates to fund their development.
The fear for taxpayers is that the state government will pass on the cost of funding the capital works program to finance their plan, which may not sit well with homeowners. Nor would it sit well for the state government to “rob Peter to pay Paul” and find the money in other areas such as health or education.
The state government continues to say they have committed the funds to this project but the more prudent question about those funds is where is it coming from? It will be important for the state government to be transparent in this process if they hope to ensure the support of Tasmania’s voters.