By Tuck Thompson

May 30, 2007

THE state’s shake-up of water assets will allow private companies to sell water to southeast Queensland residents.
Origin, AGL, Telstra and even Foxtel could become water retailers alongside or instead of councils.

Councils would continue to own pipes but a model proposed by the Queensland Water Commission would introduce retail competition.

“You don’t have to own the pipes to sell the water,” said Wayne Gregory, Origin’s public affairs national manager.

The commission recommended 17 council-run operations be consolidated into three council-owned retail businesses.

The commission’s report, released last week, said “it is likely that some other utility providers – such as electricity or communication retailers – may seek to enter the market if retail competition is introduced”.

A commission spokesman said it would be up to councils to implement.

The state has suggested competition would improve water pricing and services, but councils see it differently.

Deputy Premier Anna Bligh yesterday confirmed the commission was keen to open up the water market to retail competition.

She said a company such as Origin could enter the retail water market if the Government approved the proposal.

But she said the Government would have to study what such a move would do to the income base of councils.

Regional mayors, focused on compensation for bulk water assets being seized by the state, are confused about how the new system would work.

Loss of council jobs, impersonal service and higher costs have been raised as objections by local government.

The commission said the structural reform would happen over the next two years.

Bligh welcomes private sector help
Roberta Mancuso and Paul Osborne

May 29, 2007

The Queensland government will increasingly work with the private sector to deliver major infrastructure to the booming south-east corner, Deputy Premier Anna Bligh says.

Her comments came as a new report suggested the private sector could chip in more than $10 billion towards a wave of major projects if the right settings were in place.

Ms Bligh today said the south-east Queensland infrastructure plan would now cost an extra $16 billion because of new projects and increased investment for existing projects.

The plan, which was originally released in June 2005, provides a framework to manage growth and change in the region over the next 20 years and comprises over 350 projects.

Ms Bligh told a Committee for Economic Development of Australia (CEDA) luncheon in Brisbane today infrastructure in Queensland was “in overdrive”.

“We intend as a government to continue to finance and deliver projects across the broad spectrum of possibilities, from traditional design and construction, right through to Public-Private Partnerships (PPPs),” Ms Bligh said.

“Watch this space as some of these projects come to market. We’ll certainly be looking to get the best value for taxpayers, and you wouldn’t expect us to do anything less than that.”

A CEDA report, Sustainable Queensland, launched today found $70 billion worth of projects were in the pipeline over the next decade.

The report found that more than $10 billion of the finance needed for the new wave of infrastructure could come from the private sector.

“Queensland faces a substantial infrastructure-building task extending for at least one decade and possibly more than two,” the report said.

“It is clear that Australia has large pools of private funds and private expertise to finance infrastructure.

“What needs to be resolved now is when private funds are better suited to the infrastructure finance task, and when public funding is more appropriate.”

Accessing overseas capital and resources should not be ruled out, the report said.

But it noted the extent of private sector involvement in major projects - known as Public Private Partnerships (PPPs) - remained a much-debated question in Queensland.

The report called on the Queensland government to put in place transparent contracting and bidding processes, and clear policies on the ownership and operation of infrastructure.

“Queensland is in a competition with other governments in Australia and overseas for infrastructure expertise,” CEDA Queensland executive director Greg Meek said.

“There are huge gains to be made from best-practice management of our new wave of infrastructure projects.”

Ms Bligh said the south-east Queensland infrastructure plan was now worth $82 billion, up from last year’s $66 billion estimate.

She said the extra money included all major water projects promised in last year’s state election, a new children’s hospital and new corrective services and court facilities.

A state government report, which details the updated plan, outlined five projects which could be delivered with the help of the private sector.

They are the Airport Link underground toll road, Toowoomba bypass and Gold Coast rapid transit projects, and regional hospitals and state schools.