SEQ water reform
A bit of history
Until 2008 Redland city Council managed all aspects of water supply
If you’ve lived in the Redlands for a while, you’ll know that until 2008, Redland City Council managed its own water infrastructure and services very successfully through Redland Water. This included bores, dams and reservoirs, called 'bulk water' – and water distribution (pipes), and billing for these services.
Redland City was one of the few local governments entirely self sufficient when it came to water and wastewater.
State water reform
In 2007 the State Government began major water reforms to 'drought proof' South-East Queensland - with no consultation with local councils.
The first stage of the water reform was completed in July 2008, when the state centralised South East Queensland bulk water assets through the establishment of four new state government-owned organisations. These organisations wholesale water to local government water retailers.
- Seqwater (Bulk Water Dams and Treatment Plants) – owns, operates and maintains all SEQ dams (including the Hinze Dam), bulk supply reservoirs and water treatment plants
- WaterSecure (Manufactured Water) – owns, operates and maintains the Gold Coast Desalination Plant and Western Corridor Water Recycling Scheme)
- LinkWater (Bulk Transport) – owns operates and maintains the bulk water transport infrastructure (SEQ water grid pipelines and mains)
- Water Grid Manager – responsible for managing contracts and flow of water around the SEQ water grid. SEQ councils purchase bulk water from the water grid manager to supply to customers through council owned distribution networks
Redland City Council received $82.3 million for its bores, dams and reservoirs (bulk water) from the state.
Three new water distribution and retail organisations were also set up to manage future distribution (pipes) and sales from 1 July 2010. One of these was Allconnex Water, jointly owned by Redland, Gold Coast and Logan City Councils.
In April 2011, following considerable public and political debate within the Gold Coast, the Queensland Premier announced changes, providing SEQ councils the option to opt out of these new organisations and return the distribution and retail of water and wastewater to local councils.
State Government caps retail water income
At the same time the state government capped all retail water increases to the annual CPI for two years until July 2013. It did not, however, place the same limits on its own future bulk water increases, which presently amount to 60% of water bills. (In the next decade bulk water costs are expected to increase dramatically).
Gold Coast decides to leave Allconnex
After lengthy public debate earlier this year, Gold Coast City Council voted to leave Allconnex Water and manage its own distribution and retail services. This meant Allconnex was no longer viable for Redland and Logan City Councils. We had no option but to withdraw as well.
The State Government agreed, but said Gold Coast City Council would have to pay Redland and Logan City Council’s costs to withdraw.
What happens now?
It is business as usual for Allconnex Water until 30 June 2012 when it will cease operations, so you’ll still see Allconnex staff and signage around.
On 1 July 2012, Redland Water will take over local water and wastewater distribution and retail services. Council staff are working with everyone involved to make this transition as smooth as possible.
You should be aware that the State will continue to own and operate the bores, dams and reservoirs (bulk water) they bought from Redland City Council.
How will this affect costs?
Under Redland Water, we believe water pricing under our control will be contained as part of our agreed future pricing.
While our pricing is capped by the State to annual cost of living, they have set no such limit for the costs of bulk water (which makes up 60 per cent of all water costs).
Restoring Redland Water offers more advantages and lower risks for our community in terms of pricing, capital investment and local employment opportunities.
Gold Coast City Council must pay reasonable costs to Council to set up Redland Water again.
Keeping you up-to-date
We’ll be keeping you informed in the coming months as we bring Redland Water home. Look out for newsletters, advertisements and the Council website to see how we’re doing.
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