HIA: Tassie cash splash adds to home build cost

TASMANIA’S Housing Industry Authority has reiterated calls for a brake on dividends paid by the state’s water and sewerage authority to its local council co-owners.

The HIA says the payouts will increase the cost of new housing, while water rates have increased by 5.7 per cent a year.

“Tasmanians are paying more for a first home, all the while councils are collecting a dividend for a mess, they are responsible for,” said HIA Tasmania Executive Director Benjamin Price.

29 Tasmanian local councils collectively own 90 per cent of TasWater. The remaining 10 per cent is held by the State government.

TasWater pays $24 million a year to the councils, with plans to increase that to $30 million. Councils say the dividends help fund local services and infrastructure.

But the HIA wants TasWater to stop paying dividends immediately.

It says from October 1, the authority will scrap a 14-year-old remission and charge around $900 a year on every newly created housing block.

“TasWater went to the Economic Regulator asking for a 40 per cent price hike,” Mr Price said.

“The Regulator rightly knocked that back. Now they’re throwing the toys out of the cot.

“They are recovering $8.5 million from people trying to build homes, while shovelling $200 million out the door to councils.

“Tasmanians should be angry, with water bills going up 5.7 per cent a year for four years.”

Mr Price said the local government elections in October were an opportunity for candidates to draw a line.

“Everyone who puts their name forward should answer the question; will you refuse to take TasWater dividends until our water and sewerage infrastructure is fixed?”

Tasmania’s Labor Opposition is also opposed to any increase in council dividends.

“It is nothing short of greedy and would be a massive kick in the teeth to Tasmanians already struggling to keep up with the bills,” Shadow Treasurer Dean Winter has said.