TasWater has slammed Infrastructure Tasmania’s assessment of a expedited water and sewerage capital works program, saying it relies on massive financial risks and duds the state’s workforce.
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Government agency Infrastructure Tasmania last week released a 34-page report on an accelerated infrastructure program, reviewed by independent consultants pitt&sherry.
The report stated that TasWater will spend $1.5 billon over 10 years at an average of $156 million a year.
It showed that the government will spend $300 million more at $1.8 million over seven years at an average of $256 million a year.
TasWater chairman Miles Hampton said the report ignored risks of increased costs and debt interest accumulation, and did not provide a cost-benefit analysis of a sped-up program.
“The brief was spend as much as you like, spend it as fast as you like, let the debt go up as fast you need it to be, and don’t worry about the future profitability of the business,” Mr Hampton said.
Mr Hampton expressed concern about how 600-plus projects could be completed in the tighter time frame when the 10-year plan had taken several years of research to cement.
“If the program is to be rushed, it’s going to involve a lot of work being farmed out to contractors not based in Tasmania,” he said.
“Having a balanced program over a 10-year period will give Tasmanian contractors and employers the maximum opportunity to get the benefit of the program.
“It seems [the government’s plan] is to borrow huge amounts of money to pay inflated prices for interstate contractors to rush through project with a complete lack of sound financial management.”
Mr Hampton took umbrage at criticisms expressed in the report that TasWater and the Environmental Protection Authority were too risk-adverse, and attacks on the company’s employees.
Treasurer Peter Gutwein fired back at TasWater’s review of the Infrastructure Tasmania report.
“This is a predictable but disappointing response that confirms they don’t understand that Tasmanians want better water and sewerage infrastructure at a lower price and that’s exactly what our plan will deliver,” Mr Gutwein said.
TasWater on Friday announced that boil-water alerts had been removed from Ringarooma and Legerwood.
