Time for Liberals to hold TasWater to account
The Tasmanian Labor Opposition is calling on Treasurer Eric Abetz to stop delegating responsibility for approving TasWater’s plans to bureaucrats.
For the past 12 months, TasWater has pushed to raise household water bills by more than 40% in the middle of a cost-of-living crisis. More recently, it scrapped the developer headworks holiday – a key policy designed to lower construction costs during an unprecedented housing crisis.
TasWater is out of control, with state and local governments seemingly letting the entity do what it wants. Given that, it is entirely appropriate that the Public Accounts Committee has summoned them to account for their actions again tomorrow.
But Tasmanians cannot wait any longer for change. It is time for the State Government to take its responsibilities as an owner seriously.
The fact is that both these damaging policies were formally approved by the Tasmanian Liberal Government during the corporate planning process.
In July last year, the Liberal Government’s representative approved TasWater’s corporate plan, which proposed a 40% price hike alongside a 50% increase in council dividends. Just one month later, the Government was issuing media releases attacking the very plan it had authorised.
In July this year, the Liberal Government’s representative approved a second corporate plan – one that assumes newly created lots immediately contribute to growth infrastructure costs. This assumption directly facilitated the scrapping of the developer holiday. Once again, a month later, the Liberal Government was issuing media releases attacking the decision it helped deliver.
Under the Water and Sewerage Corporations Act 2012, the Tasmanian Government is a primary owner of TasWater. While local councils hold equity stakes, the Crown holds significantly greater influence over the corporation’s strategic direction and planning framework than any individual council.
TasWater cannot lawfully operate without an approved corporate plan, and it cannot approve a plan without the State Government’s explicit consent.
The Liberals continue to shed crocodile tears in public, yet their designated representative actively voted to approve these plans behind closed doors. The Government holds crucial voting rights in this process, but refuses to exercise executive leadership.
Under the Act and the TasWater Constitution, the Treasurer holds the executive authority to formally nominate the Crown Owners’ Representative. While Treasurers have historically delegated this role to Treasury officials, there is no statutory requirement to do so.
Rather than complaining about TasWater in media releases, the Treasurer needs to take responsibility, attend these planning meetings himself, and vote in the interests of Tasmanians. This is the best, most immediate solution to bringing TasWater under control.
The last thing Tasmanian families and businesses need right now is higher water bills and inflated housing costs.
