Breaking News: Beattie confirms water asset grab ...
... compensation still to be determined.
Excerpt from the Courier Mail:
State government to take over water assets
24 May 2007
The Queensland Government will take over council water assets in the state's southeast but Premier Peter Beattie today promised compensation of up to $2 billion.
Mr Beattie today released a Queensland Water Commission (QWC) report, which sets out how the Government will take over the council water assets.
The report recommends an overhaul of the southeast's water delivery services.
"There is currently a lack of clarity and proper accountability around ownership of water assets, and confusion about the responsibilities of state versus local government," Mr Beattie told state parliament.
"Under the new streamlined structure, just three bulk water providers - state-owned statutory authorities - will operate."
Two of the bulk water providers would own dams, weirs and other sources of water.
The third company wouuld control the manufactured water supply to the Gold Coast desalination plant and the western corridor recycled water project.
A separate state-owned company would own all the region's bulk water transportation assets, including all major pipelines and reservoirs.
A grid manager would be appointed to control the sharing of water across the region.
Mr Beattie said councils would be compensated for giving up their bulk water assets.
"It is impossible to say an exact amount until the due diligence process is complete. However, we expect compensations to be in the vicinity of $1 to $2 billion," he said.
See - Beattie asset grab.
posted by Concerned Ratepayer at 10:58 AM
2 Comments:
Excerpt from ABC News:
Qld mayors 'cranky' at water overhaul
24 May 2007
There has been an angry reaction to the Queensland Government's compensation offer for council water assets.
The Government today announced a restructure of water services, after receiving a report on the issue from the Queensland Water Commission.
South-east Queensland councils will be offered up to $2 billion in compensation for the loss of their water assets.
Under the new system the councils will jointly control water distribution and retail businesses, but the Government will take over dams, weirs, pipes and treatment plants.
The new system will be up and running by July 2009.
Deputy Premier Anna Bligh has told Parliament that the new arrangements are simple and fair.
"The proposed reforms are a leap forward from the inefficient water supply systems of the past," she said.
"Our existing systems are characterised by a piecemeal, unplanned, parochial approach - it can no longer continue."
But Logan Mayor Graham Able says the $2 billion offer is not fair or reasonable.
"We've still got to digest the document, but I can tell you that there are a lot of cranky mayors around south-east Queensland," he said.
"$1 to $2 billion is ineffective - it's not fair, not fair at all."
12:20 PM, May 24, 2007
Councils warned not to raise rates
24 May 2007
Premier Peter Beattie has warned councils not to raise their rates in response to a government takeover of water assets.
Mr Beattie today confirmed his government would take control of local government water assets in the state's south-east, but promised to compensate councils up to $2 billion.
Mr Beattie said councils would be fairly compensated for giving up their bulk water assets once the proper value of those assets was determined.
He said some mayors, who he met this morning to discuss the deal, were concerned about the level of compensation and whether that would trigger a rise in rates.
"This is one of the reasons we're paying for the compensation, so rates don't need to increase,'' Mr Beattie said.
"We don't see the need for any increase in rates under any circumstance because of this $1 to $2 billion (in compensation).
"We will be tough on any council who tries to use this as an excuse to put up rates.''
Queensland Water Commissioner Elizabeth Nosworthy said councils seeking compensations for billions of dollars of water assets seized by the State were unlikely to be paid in cash.
"Most of the compensation would be in debt relief rather than cash payout,'' Ms Nosworthy said.
2:55 PM, May 24, 2007
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