What benefits will Tasmanians see from a controversial hike in TasWater bills?

Australia Broadcast Center

4 days ago

Water is the "lifeblood" of Mowbray Golf Club's popular greens and fairways.
So a new proposal to hike the cost of water bills across Tasmania has only added to general manager Hayden Roberts's list of concerns.
"It is a large budget line every year and we're constantly looking at ways of saving water," he said.
The economic regulator is set to assess a controversial proposal by TasWater to increase water bills by about 35 per cent between 2026 and 2030.
Pitched as an overdue revenue raiser to improve the state's deteriorating sewerage network, the bid has been criticised by residents, politicians and the peak body for social services.
However, the move has been supported by leaders of local government.
Southern Midlands Councillor Tony Bisdee said the "end game" would be worthwhile.
A member of the TasWater Owners' Representative Group, Cr Bisdee said he sympathised with residents and business owners who were concerned about the proposal, which comes during a cost-of-living crisis.
But he said inflation had effectively forced the company's hand, with material costs soaring in recent years.
"This is something that's higher than I expected," Cr Bisdee said.
"But it just reflects the period which we've gone through, and which TasWater has to go through to make their treatment, plants, water and sewage compliant with EPA and community standards."
The company said it needed to make $1.7 billion worth of upgrades for its infrastructure to be up to scratch.
TasWater said dozens of treatment plans were of "high-risk" to the environment, with only 9 per cent compliant with "all environmental licence conditions".
It also pointed to failing and underperforming water and sewerage infrastructure across the state.
More than $600 million has been flagged for environmental protection, including the Selfs Point Sewer Transformation Project in Hobart and the Launceston Sewerage Transformation Project.
TasWater said these projects will "greatly improve environmental outcomes in the Derwent and Tamar estuaries".
More than $360 million will be invested in upgrading Hobart's Ridgeway Dam and Pet Dam in Burnie, with $100 million earmarked for a dedicated program to reduce water leakage.
The company's general manager of customer and community, Matt Balfe, said it was aiming to "short-circuit a cycle of underinvestment" into key infrastructure which, prior to July 2009, was managed by Tasmania's local governments.
Cr Bisdee said, at the time, many of these councils were "not in a financial position" to fund the upgrades, the consequences of which were now being felt.
The state government has a 10 per cent stake in TasWater, which is majority owned by the 29 local councils.
Liberal MP Felix Ellis said the proposed price rise was "very disappointing" and "not acceptable" given the rising cost of living.
However, questions about the possibility of a Liberal government legislating a cap on price increases went unanswered.
Local Government Association of Tasmania president Mick Tucker supported the TasWater proposal, saying it was necessary to boost the state's housing supply.
"If we want large developments of housing, we have to have the infrastructure."
However, the thought of higher water bills looms large in the mind for many across the state.
Mowbray Golf Club's Mr Roberts already pays TasWater about $18,000 every year.
He said the club's fixed line connection was an "insurance policy" in the event of drought, with most of the club's water sourced from dams.
As he wades through the TasWater proposal, Mr Roberts said he was "pretty concerned" by the prospect of any price increase.
Mr Roberts said, after relocation, cost-of-living was the second largest reason for members leaving the club.
"The golf club is currently in a good spot, but these things are very tenuous."
Launceston restaurant owner Karen Burbury said she was "definitely shocked" by the proposal.
Ms Burbury said she now faced the prospect of having her $9,000 annual water bill rise by almost $3,600 by 2030.
"I absolutely understand the infrastructure needs to be upgraded," she said.
"But they should have been able to look at their business more thoroughly and plan it so the rate hike wouldn't hit consumers as hard."