Anna Bligh shafts local councils on water compo ...

Excerpt from Brisbane Times:

State reveals water compensation

10 January 2008

South-East Queensland councils will receive less than $2 billion in compensation when the State Government seizes control of the region's dams and water treatment plants.

Treasurer Andrew Fraser announced today that the 17 affected councils would receive $1.9 billion, well short of the $6 billion South-East Queensland Council of Mayors said would be a "fair" figure.

But in a major concession to councils, the state will leave them in control of all wastewater treatment plants.

"In the end, we accepted the advice about the Waste Water Treatment Plants, which will remain in council ownership," Mr Fraser said.

"In addition, councils will continue to be entitled to the dividends from their water businesses, which account for 82 per cent of the water assets."

There are now 23 bulk water supply and treatment entities, and 17 retail bodies owned by 25 separate entities in the state.

Under the government's reforms a single entity will be created to look after the region's bulk water supply needs.

Most councils gave their in-principle support to the proposal when it was announced last year.

However, they were worried ratepayers would be short-changed if the government did not offer fair compensation for the value of the assets, as well as the revenue they would generate over a 30-year period.

Both parties were locked in a bitter dispute over the issue for much of 2007 and Premier Anna Bligh accused Brisbane Lord Mayor Campbell Newman of making up the $6 billion compensation figure.

However, the region's mayors insisted rate rises and service cuts would follow if councils were not properly paid out.

Mr Fraser today said the government's "generous" final offer was based on a valuation produced by international accounting and advisory firm KPMG.

He said the money paid to each council would wipe out about $2.4 billion in debt owed to the government through Queensland Treasury Corporation.

"Nearly $2 billion of debt is being wiped out, it's akin to someone paying off your mortgage for you.

"Councils won't just save the money on interest payments - the compensation figure is enough to nearly repay their entire debt to the state," Mr Fraser said.

It is believed Brisbane City Council, which will receive the largest amount of money ($880 million), will still owe about $30 million in debt.

Councils and organisations to be compensated (including their shares in the regional body, SEQWater) under the package include:

Aquagen (Sunshine Coast entity) - $118.406 million
Esk-Gatton-Laidley Water Board - $8.788 million
Brisbane City Council - $880.773 million
Beaudesert Shire Council - $17.224 million
Boonah Shire Council - $0.513 million
Caboolture Shire Council - $39.921 million
Caloundra Shire Council - $34.819 million
Esk Shire Council - $9.332 million
Gatton Shire Council - $3.365 million
Gold Coast City Council - $512.001 million
Ipswich City Council - $46.210 million
Kilcoy Shire Council - $7.180 million
Laidley Shire Council - $3.365 million
Logan City Council - $61.240 million
Maroochy City Council - $21.600 million
Noosa Shire Council - $23.345 million
Pine Rivers Shire Council - $65.798 million
Redcliffe City Council - $8.973 million
Redland Shire Council - $72.930 million

See - SEQ water storage compo.