TA1402216

TA1532840

COVERING BELLINGEN, URUNGA, DORRIGO, MYLESTOM, RALEIGH, REPTON

www.bellingencourier.com.au 6655-1007
Established 1889

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State looks to take water

EDITORIAL

BY ALICE BURNET

SEEMINGLY its a small detail the

Independent Pricing and Regulatory
Tribunals (IPART) recommendation number 10.
Yet the impact, if enacted by the State
Government, will mean councils, including
the shires, will have their revenue slashed
and planning autonomy scrapped.
In addition, residents may face burgeoning costs.
At the start of this year, IPART released a
draft report under the guise of reducing burdens on local government. It seemed this
was part of the Fit For the Future (FFF)
process 49 recommendations put on the
table for feedback, under the banner of making councils more efficient and slashing redtape.
The proposals cover a range of council
functions, however, dot point number 10
relates to the operation of local water utilities, specifically that the Department of
Primary Industries Water (DPI Water) undertake central water planning for Local Water
Utilities (LWUs). In short, this means the
State will control local water, including regulating price, with a knock-on effect of seizing
power over local planning decisions.
If this change is made, the magnitude this
will have on Bellingen Shire Council cannot
been understated.
Caught unawares, like much of the FFF
process, many local governments throughout the State scraped in a submission before
closing time. This included Bellingen Shire
Council, which did not have time to convene
a meeting with councillors, but discussed
the ramifications post-IPART response at
the monthly council meeting held last
Wednesday.
Leading the discussion, deputy manager
of operations Matt Fanning, stated the dire
impacts this would have on council and said
local government needs to vigorously contest IPARTs finding.
Council should be under no illusion as to
the significance of IPARTs recommendation, he said.

Approximately 37 per cent of the councils

overheads rely on the continuation of its
water and sewerage businesses and their
loss will have significant impact on councils
financial sustainability their loss would
substantially affect councils critical mass.
In regional NSW, councils provide water
supply and sewerage services to urban communities. IPART asserts, without providing
evidence, that smaller councils typically
have less capacity to undertake water
resource planning.
I contest IPARTs findings based on a lack
of rigour to demonstrate that a problem
exists; that the proposed solution can be
implemented; and furthermore the full
effects this proposal would have on local
government, Mr Fanning said.
Council is best placed to understand the
requirements and service level expectations
of the local community it serves DPI Water
or a Regional Water Planning Authority
insists that for reasons of future growth and
regional planning that the Dorrigo Sewerage
Treatment Plant has to be 8000EP and not
the 3000EP deemed adequate by council
so they direct council to construct an infrastructure of this size and then direct council
to increase its developer charges and pricing
structures to cover the additional expenditure.
The reality of separating planning from
delivery is it removes councils authority to
undertake the planning for the provision of
water and sewerage services and this will
limit, if not negate, councils ability to determine if, what, how and where developments
proceed.
While, moving forward, disputes exist as
to the form and shape the shire should take
should we keep the shire as a niche, natural
area, or charge ahead with commercial
development - its hard to see the value of
Macquarie St calling the shots.
Even those calling for amalgamation with
neighbouring shires would surely pause to
think about the State Governments longarm reach into regional communities.
Another potential problem with IPARTs
proposal is whether or not councils will
retain the authority to take a dividend from

COUNCILS WATERSHED MOMENT:

Premier Mike Baird and Local Government Minister Paul Toole at the centre of
reforms that may see local water and sewerage under State Government control.
any surplus in their water and sewerage
operations. Mr Fanning certainly thinks it
will manifest in the State Government seeking a dividend, further increasing the price
for the consumer.
The FFF process has given rise to questions as to the efficacy of local government. It
hasnt, however, explicitly said they are looking for reasons, and devising the tools, to
sabotage them completely.
These changes, if enacted, will spell dire
times for smaller councils and thats if they

can sustain the blood-letting.

Its of note, while criticising local governments for their reliance on consultancy
expenditure, IPARTs draft report comes hoton-the-heels of advice from consultancy
firm KPMG, paid $400,000 by the NSW
Government, which allegedly extols that
council mergers and restructures would pay
dividends to ratepayers.
Also of interest is that the full KMPG report
has not been released for public scrutiny.
Continued page 2 ...

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TA1814716

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