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{{propApi.successMessage}} {{region}} Change locationStop the dividends: Councils broke Tasmania's water system
Stop the dividends: Councils broke Tasmania's water system
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The Housing Industry Association (HIA) is calling out TasWater and Tasmanian councils over the $120 million in dividends already paid to local government in the past five years, and now homebuyers are being asked to pay more.
The HIA is calling on TasWater to stop paying dividends to councils immediately.
TasWater pays its 29 council owners $24 million a year. Councils have taken $120 million out of the business in the past five years, and on current plans will have taken more than $200 million by 2030.
Rather than touch those payments, TasWater is going after land. From 1 October it will scrap a 14-year-old remission and charge around $900 a year on every newly created block, before a house is built and before a tap is turned on. By TasWater's own account, that remission has cost it about $8.5 million since 2012, a fraction of what has gone to councils in dividends in the past five years alone.
HIA Executive Director Benjamin Price said the past six months had exposed TasWater completely.
"TasWater went to the Economic Regulator asking for a 40 per cent price hike and the Regulator rightly knocked that back. Now they're throwing the toys out of the cot," Mr Price said.
"They are recovering $8.5 million from people trying to build homes, while shovelling $200 million out the door to councils.
"Tasmanians should be angry, with water bills going up 5.7 per cent a year for four years. Tasmanians are paying more for a first home, all the while councils are collecting a dividend for a mess they are responsible for."
Mr Price said the local government elections were an opportunity for candidates to draw a line.
“Everyone who puts their name forward should answer the question; will you refuse to take TasWater dividends until our water and sewerage infrastructure is fixed?
"HIA is calling on TasWater to stop dividend payments immediately and put every dollar into the necessary infrastructure that Tasmania needs to build more homes.
"Tasmanians deserve better than an out-of-touch utility that puts council budgets and communication strategies ahead of clean water and affordable housing."
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