Master Builders Tasmania is Disappointed with TasWater Decision
27 November 2017
Master Builders Tasmania is disappointed with the Upper House's decision not to approve the change to TasWater's Ownership structure
Mr Michael Kerschbaum, Executive Director of MBT stated, “Unfortunately the decision means that the acceleration of the forward capital works program (which would have occurred under the Government’s proposal) will no longer proceed. MBT is concerned that without State Government intervention, TasWater’s infrastructure spending program will barely be able to meet current demand. MBT believes that Tasmania is entering into a period of sustained economic and population growth that hasn’t been seen for decades. If this transpires, TasWater’s current business model will not be able to handle the extra costs associated with such an expansion to its network.”
Mr Kerschbaum added, “There is every chance that opportunities such as MBT’s vision of a northern suburbs growth corridor for Hobart will not be able to be realised due to a shortage of capital available to TasWater under the current arrangements. There are already several high profile projects that will require some form of state government intervention to allow them to proceed.”
Mr Kerschbaum concluded, “The building and construction sector has grown enormously over the last 4 years or so, generating approximately 5,000 jobs. This growth is at risk of unwinding if future projects are not planned for immediately. Every single one of these projects will require some level of upfront investment from infrastructure providers, something which TasWater will struggle to be able to provide under its current ownership structure.”
For further comment contact Michael Kerschbaum (m) 0438 343 810
