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20 March 2012 4) Statutory Requirements The Water and Sewerage Industry Act 2008 is the legislation that governs the operation of water and sewerage service delivery in the State. The changes being debated would require significant amendments to the Act. 5) Government Departments Not applicable. 6) Community Consultation Not applicable however there is growing support for water and sewerage reform which is being led by the political parties, the press and local communities. 7) Alternative Options Council may authorise, not authorise or amend the recommendation. 8) Financial Impact Financial savings that are perceived as a result of the setting up of a single statewide corporation could see increased dividends paid to the owner councils, reduced increases in water and sewerage charges to users of the system or a combination of both. 9) Officer’s Comments Both State political parties still support the creation of one Water and Sewerage Corporation with the only difference being the Labor Party has left the issue to Local Government to resolve, while the Liberal Party will make the changes. There are problems with the current legislation and operation of the Corporations and these have been acknowledged by the Board and owner councils. Such matters include: • The relationship and communications between the corporation and the councils through the Owners Representatives has not worked; • The role of the State Government in the selection of the Board members is seen as interference with no input by councils; • Lack of council input into the corporations regarding future planning and works; • The requirement for the corporations to appear before Budget Estimates Committee; • The operation of Onstream which has now been absorbed into the three corporations. Local government needs to avoid the matter becoming a political issue at the next election and need to manage the outcome rather than having it imposed. 10
20 March 2012 The matter is to be discussed and voted on at the next general meeting of LGAT to be held on 28 March 2012. Ian Pearce GENERAL MANAGER RECOMMENDATION That council supports moving to a single statewide water and sewerage corporation subject to the agreed resolution of matters regarding the Board selection, one vote per owner council, maintenance of employee numbers in each region, priority dividend distribution being maintained until at least 13 November 2013 on a regional basis and future dividend (post priority dividend distribution) distribution based on Miles Hampton equity distribution. DECISION Moved Cr Allen seconded Cr Woinarski that council supports moving to a single statewide water and sewerage corporation subject to the agreed resolution of matters regarding the Board selection, one vote per owner council, maintenance of ratio of employee numbers in each region, priority dividend distribution being maintained until at least 13 November 2013 on a regional basis and future dividend (post priority dividend distribution) distribution based on Miles Hampton equity distribution. For: Crs Allen, Bracken, Easther, Holmdahl, Kaye, Kearney, Shegog, Watson & Woinarski. Against: Nil. CARRIED 9/0 11
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