Stop the dividends: Councils broke Tasmania's water system
TasWater has paid $120 million in dividends to Tasmanian councils while charging homebuyers fees on undeveloped blocks. Critics argue this financial structure is breaking the state's water system.
$120 million paid in dividends to Tasmanian councils by TasWater, while fees are charged on empty residential blocks.
Is TasWater's dividend model making it harder and more expensive to build in Tasmania?
Plumbers and builders in Tasmania face project delays and cost blowouts tied to TasWater's strained infrastructure. New housing developments may be harder to connect and more expensive to service.
Key takeaways
- TasWater has paid $120 million in dividends to councils, drawing funds away from infrastructure investment.
- Homebuyers are being charged fees on undeveloped blocks, adding cost before a project even starts.
- The water utility's financial structure is being blamed for degrading service and infrastructure quality.
- Builders and plumbers in Tasmania may face greater connection hurdles as the system comes under strain.
Related
Inquiry into the financial and operational performance of TasWater
HIA's Tasmanian Executive Director Benjamin Price addressed the Public Accounts Committee regarding TasWater's financial and operational performance. The statement covers issues relevant to the water utility's impact on the building and construction industry in Tasmania.
Why it matters: Builders and plumbers in Tasmania may be affected by TasWater's performance, including connection delays, infrastructure capacity, and cost impacts on new developments.
Local government candidate shortfall highlights need for council amalgamations
Two Tasmanian councils received too few nominations to fill all councillor positions ahead of local government elections. The Housing Industry Association argues this shortfall strengthens the case for council amalgamations in Tasmania.
Why it matters: Builders and developers in Tasmania could be affected if council amalgamations reshape planning approval processes and local development oversight.
Brick supply and allocation update
HIA is working with government and manufacturers on brick supply and allocation issues affecting home building in WA. No specific outcomes or changes have been announced yet.
Why it matters: Builders in WA may face ongoing project delays due to brick shortages. Supply constraints can affect scheduling, contract timelines, and cash flow.