Why reform the water and sewerage industry?
Water and sewerage infrastructure for urban areas is currently owned and managed by local councils across Tasmania.
In 1997, the local councils of urban Hobart, Launceston and North West Coast created Joint Authorities (Hobart Water, Esk Water and Cradle Coast Water) which became responsible for sourcing, treating and delivering bulk water to each owner council. These councils retained management and delivery of reticulated water and sewerage services.
In rural Tasmania, each local council continued managing its own water and sewerage services.
In 2006, the State Government announced it would review and reform Tasmania's water and sewerage industry. In a discussion paper for stakeholders in December 2006, it noted that "...infrastructure has not kept pace with the State's strong economic progress..." and that "access to sustainable water and sewerage services is critical to ensure Tasmania is able to build sustainable communities and maximise its economic development opportunities."
To begin this process, a Ministerial Water and Sewerage Taskforce was established. Its role has been to:
- conduct a high level review of the Tasmanian industry,
- examine the structural and regulatory arrangements,
- advise on impacts for stakeholders,
- consult widely with stakeholders, particularly local government,
- prepare a report for a statewide water and sewerage plan, and
- report to Cabinet.
In February 2008, State Cabinet approved the Taskforce's recommendations to reform the industry, which were underpinned by the formation of new regional corporations to deliver the services.
The Treasurer, Mr Michael Aird, said that the changes would ensure an improvement in services and the development of vital infrastructure.
Ministerial Water and Sewerage Taskforce
For more information on the Water and Sewerage Infrastructure Review, please visit the dedicated area of the Department of Treasury and Finance's website by clicking here.