PREMIER WELCOMES BCC AGREEMENT ON WATER ASSETS

The State Government and Brisbane City Council (BCC) have reached in-principle agreement on the transfer of BCC water assets to the State, Premier Peter Beattie announced today.

Mr Beattie welcomed the in-principle agreement on the compensation process and methodology for transferring council’s bulk water assets to the State.

“Today’s agreement demonstrates Lord Mayor Campbell Newman’s willingness to work with the Government to deliver water security to the South-East,” Mr Beattie said.

“Our agreement also commits the parties to accelerate the transfer of these assets from October 2008 and to July 1 2008,” he said.

The assets include the Council’s 45 percent share in SEQ Water (of which the State has a 20 percent share) and a range of other council assets including water treatment plants and wastewater plants and small water storage facilities like Lake Manchester.

This will give the State majority ownership of Wivenhoe, Somerset and North Pine dams systems.

“The agreement speeds up the reform process and means the State’s first new bulk water entity will be in place from July 1 next year,” he said.

Under the new streamlined water management structure announced by the Premier and Deputy Premier Anna Bligh last month, the State will operate the larger water assets that hold, manufacture (desalination and recycled) and distribute bulk water across the South East.

Today’s in-principle agreement includes compensation for the transfer of Brisbane City Council assets being based on forgone earnings from those assets, in accordance with current Council pricing and regulatory principles (this will exclude any returns from contributed assets).

“The Deputy Premier and I have always said SEQ councils will be fully and fairly compensated for giving up their bulk water assets, and we will honour this commitment,” Mr Beattie said.

“This agreement with the region’s largest council proves we are delivering on that commitment.

“We made commitments to determine the proper value of the water assets in consultation with councils, and we will continue to do so,” he said.

Deputy Premier and Treasurer Anna Bligh said that Treasury and Council officers will now expedite the due diligence process.

Compensation will be paid firstly to reduce Council debt and any cash payments will be conditional upon approval from the State for infrastructure projects, asset maintenance, upgrades or acquisitions.

“I am delighted to have the Lord Mayor’s support and hope that more SEQ Mayors will come on board and work with the Government to deliver a secure, future water supply for South-East Queenslanders,” said Ms Bligh.

The State will be in discussion with the SEQ council technical officers later today.

ENDS

Media contact:

3224 4500 (Premier’s office)

3224 4379 (Deputy Premier’s office)