Legislation has been tabled in Tasmanian parliament that will enable councils to vote on resolutions that, if supported, would see the state government become an equity partner in TasWater.
Under the Water and Sewerage Corporation Act of 2012, councils aren’t permitted to consider the State Government becoming an equity partner in TasWater.
The legislation introduced on 21 August clears the way for councils to consider and vote upon resolutions that would give effect to the intent of the Memorandum of Understanding (MoU) struck earlier in 2018 between the state government, TasWater’s council-owners representative and TasWater itself.
The MoU included proposals for the government to inject $200 million into the utility and become a shareholder.
If the new legislation passes, councils will then be able to vote on whether or not the partnership with the state government is formally adopted.
Should councils then vote in favour of the resolutions that give effect to the MoU, further legislation will be introduced that would pave the way for the state government to become an equity partner in TasWater.