Councils to sell our water

Sunshine Coast councils will retain responsibility for the sale of water despite the State Government's takeover of major dams. But we can expect prices to go up!

Sunshine Coast councils will retain responsibility for the distribution and sale of water despite the State Government's takeover of major dams.

Deputy Premier Anna Bligh said the State Government had further refined the proposed Queensland Water Commission model released in May to produce a streamlined system that equipped SEQ for water security.

But she admitted water costs would inevitably increase, to an average $525 per year per house 10 years from now.

"The councils have worked with us on this and the result has been a commonsense outcome.

"The new system will see councils retain responsibility for the distribution and sale of water to consumers, so they can bill residents and businesses and operate the local distribution networks."

Councils will be responsible for distributing and selling water to individual consumers through one regional distribution body and up to 10 retailers that mirror new council boundaries.

"It may be that some of the regions choose to combine their retailing to further streamline the process and the government would support that," she said.

The reforms mean the State Government will take control of the major dams and water sources and 1000km of pipes on completion of the Water Grid, while a council-owned body will retain supply and drainage networks of about 35,000km.

Ms Bligh said Brisbane City Council had led the way in June by agreeing to the methodology for compensation for its bulk assets.

Other SEQ councils and the State Government were working through the issues and valuations were expected to be finalised by early next year, with final payments made by July 1.

"The councils will be fairly compensated for the bulk water assets, which will cushion effects of the changeover. It will take debts off their books, putting them with a stronger financial position."

The key areas where the QWC proposal has been altered after stakeholder feedback include:

- A single water storage authority for the region instead of the two proposed.

- Councils will have till July 2010 instead of July 2009 to complete the transition of their water assets into the new regional distribution and retail organisations. "Councils may choose to make the transition earlier but the new timetable takes account of all of the other changes that are happening," Ms Bligh said.

- Retailing of water will be split from distribution, effective from July 2010 or earlier by agreement, with all reticulation pipes and sewerage pipes to be moved into a single regional entity, wholly owned by the SEQ councils.

- Retail activities will move from local governments to new entities no later than July 2010. This is one year later than originally proposed, taking account of other significant changes occurring at the same time.

"Our underlying! philosophy has been that we need to get water where and when it is needed, and to minimise the millions of litres lost in leaks all over the region," Ms Bligh said.

"The new council distribution organisation will give them a single focus on water rather than other council needs. But if we're going to cut the leaks we'll need more than just structure. The councils and the state authorities will have new system and maintenance standards they will have to meet."

Previously, Ms Bligh particularly singled out Brisbane and Maroochy for its leaks.

Originally published as Councils to sell our water