THE State Government must review Tasmania’s water and sewerage authorities to ensure that taxpayers are not paying excessive charges to build a bureaucracy as well as a service arm that is competing unfairly with the private sector.

The Tasmanian Chamber of Commerce and Industry (TCCI) says while it generally supports the water and sewerage reforms introduced by the Government, it believes the pandering to parochial interests that saw the establishment of three regional authorities and an overarching ‘head office’ is costly and not an efficient model.

TCCI chief executive Robert Wallace said a single state board and authority, operating out of three regional offices would be a much more efficient model that would provide significant savings on the current structure.

Mr Wallace said business was also concerned at the number of jobs being created by the Tasmanian Water and Sewerage Corporation and its various authorities, as well as its common service business On Stream, competing with the private sector when it was sustained by public funds.

On one Saturday in early May, a total of 10 positions was advertised in the employment sections of Tasmanian newspapers and applications for a further three jobs were called on a subsequent Saturday.

“If these are new positions, it is a concern. If they represent replacements, such a high rate of staff turnover would be equally worrying,” Mr Wallace said.

“A major concern for business is the operation of On Stream, which was established to provide administrative and other support services for the water authorities. But now it appears it is promoting its consultancy services widely, particularly to local councils, in competition with the private sector.

“I am advised it is offering services such as finance, information logistics, human resources, marketing and communication, all areas where cost-competitive outsourcing options are available and where there has been no failure of the private sector to meet the market demand.

“While the TCCI supports the overall reform of the provision of Tasmania’s water and sewerage services, it seems the implementation has brought consequences that were unintended when the Government enacted the legislation.”

Mr Wallace said it had all the appearances of a fourth tier of government, sitting between local and state, but subsidised by taxpayers and particularly designed to compete with Tasmanian small business.

“While it may be claimed that the Tasmanian Water and Sewerage Corporation is now the responsibility of local government, it was established by the State Government and it is the State Government that must now reassure the Tasmanian community that it is not paying too high a price for this reform.

“A review and a public report is required now!

“Importantly, the Government must ensure that Tasmanian businesses are not being forced to compete unfairly with a business set up by government and subsidised by taxpayer and ratepayer funds,” Mr Wallace said.