Dud TasWater deal delivers $0 for infrastructure
- Memo provided to Councils shows lower revenue and higher cost
- $200 million deal doesn’t provide a single dollar to Tasmania’s water and sewerage system
- Deal delivers nothing for Mac Point, Launceston
The information memorandum provided to owner Councillors by TasWater shows the business crippled by more debt, lower revenue and higher interest costs.
Over the deal’s 20 year lifespan, a total of $0 will be added to TasWater’s capital works program – meaning no progress on vital projects like Macquarie Point.
Shadow Minister for Infrastructure and Local Government David O’Byrne said Peter Gutwein’s attempt at a water and sewerage fix was the biggest public asset failure since the Liberals tried to sell the Hydro.
“Mr Gutwein has spent two years trying to achieve something in water and sewerage. The end result is a $200 million deal that doesn’t provide a single dollar to Tasmania’s water and sewerage system,” Mr O’Byrne said.
“Astonishingly the deal delivers $200 million of taxpayers money into TasWater, but costs the company $236 million on lost revenue over the life of the deal.
“The water and sewerage industry is telling me that it desperately needs funding for new infrastructure like fixing the Launceston combined system and Macquarie Point.
“Countless reports have reaffirmed this. Yet the government will burn $200 million of taxpayers’ money not investing in Tasmania’s future.”