Business wants water sorted
2 November 2007
Commerce Queensland is concerned the argy bargy between the State Government and Councils in South East Queensland is making business nervous.
President Beatrice Booth said the key issue is the way the water assets are being valued.
"The State Government needs to be reasonable - this is not an open market transaction - there is only one buyer - the state," Mrs Booth said.
"It looks to be an interesting commercial negotiation where the parties owning the assets are being forced to sell and have been told there's only one buyer - the state government."
Mrs Booth said the sale of South East Queensland's water assets would have a significant financial impact on the Councils affected, as the revenue stream for their water businesses was used to supplement other Council services such as roads and parks.
"If the Councils don't receive a fair price for their assets, we run the risk of a cut back in services or an increase in costs, particularly rates," Mrs Booth said.
"Businesses have already been hit hard by increased infrastructure costs and are looking at the possibility of water charges. To suggest a rate rise would certainly be an unwelcomed development."
"It's important to get this right, as it is possible that the reforms underway in South East Queensland could roll right across the state.
"We want to see both parties negotiating to strike a fair and reasonable price."
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