Beattie keeps his hands off Toowoomba's water assets ...

... for now.

Excerpt from the Chronicle:

Toowoomba is on its own until about 2012.

Premier Peter Beattie yesterday summoned 19 mayors from Queensland's south-east to Brisbane, who were told the State Government would take over their councils' water assets. Up to $2 billion would be offered in compensation.

Toowoomba, though, was highlighted as an exception.

The State Government would not take control of the city's water assets, and there would be no subsequent compensation.
...

See - We're left high and dry - and happy.


It seems Toowoomba is once again excluded from SEQ - something most Toowoomba ratepayers will be happy about.

A victory of sorts as Toowoomba ratepayers live to fight another day.

Beattie's plans to strip water assets from Councils was always a difficult play. He claims to be going to offer compensation - but not cash according to the Qld Labor government's water arm, the QWC. It will be in debt forgiveness instead.

Toowoomba was always going to be difficult to deal with in those circumstances.

Toowoomba has water assets totalling just over $394 million (based on gross valuation - TCC 2005-6 Annual Report). The written down value of these assets is just over $228 million.

Toowoomba also has wastewater assets of just over $259 million (based again on gross valuation) with a written down value of just over $125 million.

Toowoomba has current borrowings of around $65 million (TCC 2005-6 Annual Report).

To acquire Toowoomba's water assets (using the written down value), Premier Beattie would have needed to write off Toowoomba's $65 million debt and pay an additional $194 million. Add in the wastewater assets and Premer Beattie would have needed to pay Toowoomba $288 million.

Toowoomba simply does not have sufficient borrowings to allow Premier Beattie to acquire its assets by a mere accounting entry in QIC's books.

So he would have needed to stump up cash. And spare cash is something that Beattie just doesn't have. Plus it would screw up his privatise-on-the-cheap plans.

Better to leave Toowoomba out for the moment. Until the so-called Wivenhoe connection is built.

If it ever is.

Between now and 2011-2012, Toowoomba will have two Council elections and there will be at least one State election - sufficient time for new people to be elected and existing water source ideas to be acted upon.

One of the main stumbling blocks with Toowoomba accessing water is Mayor Thorley. She and her fellow Yes councillors refuse to budge on any of the other water source options put before them. They now concede that Toowoomba will not run out of water (getting that admission was like getting blood out of one of the Deputy Mayor's rocks!).

But getting them to act in the interests of the Toowoomba community and adopt one of the other water source options is not so simple. They prefer to bury their heads in their seafood buffets and gourmet sandwiches than work for the community they were elected to serve.

More than ever, the 2008 Toowoomba City Council election will be fought on the issue of water and, with the possible amalgamation of Toowoomba with neighbouring shires - particularly Jondaryan, the election will be most interesting.

Even if the Wivenhoe connection is built, with Acland Coal likely to take water from the Oakey bore fields (leaving nowhere for Toowoomba's RO waste stream to go) and with Brisbane now discussing a direct potable use plan with recycled water not going into Wivenhoe, Toowoomba's chances of drinking recycled water are getting slimmer all the time ...