Release Date: 9/10/2013
PEAK business organisation, the Tasmanian Chamber of Commerce and Industry (TCCI) has called for an urgent review of head-works’ charges for water, sewerage and electricity.
The TCCI says the review is needed now to respond to serious concerns from the broad construction industry and to boost development and employment throughout the State.
TCCI Chief Executive Michael Bailey said head-works’ costs inhibiting development was one of the key concerns raised in the TCCI-facilitated Jobs Forum held in early August.
“Since that time, a number of developers and business groups had advised of head-works’ charges doubling in some instances and developments being delayed or abandoned because of these high costs,” Mr Bailey said.
“Coming out of the Forum, the Local Government Association of Tasmania said it would seek a review of charges for water and sewerage connections through TasWater, and Premier Lara Giddings undertook to review electricity connection charges by the State-owned Aurora Energy.
“Following the latest concerns expressed by developers, the Premier last week dismissed the complaints saying it was nothing to do with her Government. Further, it’s been reported the review of water and sewerages charges by the Economic Regulator will not occur for another two years.
“To keep faith with the commitments made at the Jobs Forum, the Premier should act to immediately bring forward the Economic Regulator’s review of the water and sewerage head-works’ charges and also review the electricity connection costs.
“Tasmania cannot wait another two years for a review and lose out on much needed economic development.
“Business needs to be assured that the charges do relate to actual costs of connection and are not simply extra revenue earners for TasWater and Aurora.
“The review would also establish the true cost of the Liberal Opposition’s promise to fund head-works’ costs for two years and the impact of such a policy on the State Budget.”
Mr Bailey said irrespective of the claims and counter-claims, the fact was that development was sluggish at best and immediate action was needed to redress the situation.
“Seeking an urgent review of head-works’ charges by the Economic Regulator would be a positive first step,” he said.
Ends….