Gold Coast City Council: True story behind 2011 Allconnex war ten years on

It cost ratepayers north of $100 million and sparked some of the nastiest protests the city has ever seen. So who was right in the council decision which was branded their “worst ever” VOTE IN OUR POLL

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THE creation and demise of corporate water entity Allconnex was one of the most divisive issues in the Gold Coast’s history.

The state government beast spurred a massive spike in water bills, but burst when Gold Coast ratepayers rebelled and the council voted to ditch it.

It was viewed as a win for people power but would come at a devastating financial cost.

Still, the players on both sides of the debate today remain steadfast that they made the right decisions at the time.

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Locals protest about Allconnex at the Council Chambers in 2011.

The origins of the water battle actually predate Allconnex’s creation by a decade.

In 2000 a new national competition policy forced the council to decide how to run its water business in the future. Among those who worked on it was future council CEO Dale Dickson.

These were largely background conversations compared to the major council decisions of the day under then-mayor Gary Baildon.

But it came to a head in the mid-2000s when southeast Queensland was ravaged by drought and the Hinze Dam fell to 17 per cent capacity.

In a bid to droughtproof the region, plans for a desalination plant in Tugun were brought forward by more than 30 years and an upgrade of the dam was fast-tracked.

Eventually, the state government stepped in and a deal was reached to hand over the under-construction plant and dam. In return, council would pocket a cool $20m profit.

The money would be used to pay for the city’s contribution to the building of Metricon Stadium at Carrara.

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Ratepayers were furious when their water bills went up.

This deal also led to the arrival of Allconnex, a company that would control the water businesses of Gold Coast, Logan and Redlands, replacing each council’s individual water departments.

The creation of Allconnex in 2010 went virtually unnoticed until water bills arrived in January 2011 carrying a 20 per cent rise.

Then-mayor Ron Clarke and then-premier Anna Bligh both came under attack from furious ratepayers who vowed they would not pay the bill.

They were fired up by a number of political candidates who were eyeing off the 2012 council elections.

Cr Eddie Sarroff led many of the protests against Allconnex and has no regrets a decade on.

Then-councillor Eddy Sarroff joined community groups such as Disconnex and the Gold Coast Ratepayers Association to organise a series of fiery rallies demanding council abandon Allconnex.

Their argument was that a walk out would lead to lower water bills.

“When the state government decided to take on the bulk water supply they gave council no option,” Mr Sarroff said.

“Myself and the administration were at loggerheads because the whole intent appeared to be using (Allconnex) as a new source of income.

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Dale Dickson attempting to explain council’s decisions to protesters.

But Mr Dickson this week told the Bulletin that “truth was a casualty” of the debate.

“There was a lot of hardball politics involved and the general community was misled into believing the set-up of Allconnex was the major reason why their water bills went up,” he said.

“There certainly was a cost but the real reason was the fast-tracked infrastructure had to be paid for.

“The public never got an accurate or complete narratives provided to them. They were told Allconnex was the villain and truth was a casualty.”

Angry protester Yohana Nissen at one of the more brutal public protests.

Both Mr Dickson and Cr Clarke, who was in the final year of his mayoralty, were targeted by angry protesters and heckled at council meetings.

Cr Clarke particularly was deeply wounded by the criticisms.

Council would ultimately vote 8-7 in favour of exiting Allconnex despite Mr Dickson warning the cost of the exit would cost at least $80m.

The final cost was more than $100m and is still an element of the bulk water component of water bills today.

Councillors voting to leave Allconnex.

“Once the decision was made, we just had to make the best of it,” Mr Dickson said.

The fallout of the decision was significant — Cr Clarke left office in early 2012 while Mr Sarroff’s attempt to use the debate as a springboard into the mayoralty did not succeed.

He and fellow anti-Allconnex supporters Peter Young and Susie Douglas all failed in their bids to win the 2012 election, beaten by Tom Tate.

Mr Sarroff, today a real estate agent and restauranter, said he had no regrets about his role in opposing Allconnex.

“With the benefit of hindsight the decision we made was in the best interests of the city,” he said.

“On reflection it was the right decision. It was a disgrace, though the politics around it were very tough and it split the council.

“I believe the current council is reaping the benefits of the decision we made in 2011.”

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Originally published as Gold Coast City Council: True story behind 2011 Allconnex war ten years on