Council of Mayors - South East Queensland

Water Reform

Review of Institutional Arrangements for Water Supply in South East Queensland

A key priority for the Council of Mayors (SEQ) since 2005 has been a review of institutional arrangements for water arrangements in the region. This review was undertaken initially by the Department of Premier and Cabinet and then since its establishment, by the Queensland Water Commission (the Commission) and in consultation with the Council of Mayors (SEQ).

In May 2007, the Commission released its recommendations for urban water supply arrangements in South East Queensland. The report put forward a model for the ownership and operation of the bulk supply, bulk transport, distribution and retail assets in the region with the view to improving economic efficiency with consideration of asset aggregation and scale.

The Queensland Government adopted the Commission’s report, Urban Water Supply Arrangements, on release.

The Council of Mayors (SEQ) put forward an alternative model to the Queensland Government for consideration. While accepting the need for reform, the Council of Mayors (SEQ) did not support all of the Commission’s recommendations. The Council of Mayors (SEQ) model, for example, proposed that distribution and retail functions be integrated in a number of entities coincident with local government boundaries, rather than a single distribution entity and three retail entities.

The Council of Mayors (SEQ) made two submissions, which are available below:

Submission - 6 June 2007
Supplementary Submission - 26 June 2007

The Queensland Government gave a commitment to consider the Council of Mayors (SEQ) model prior to a final decision on urban water supply arrangements in South East Queensland.

On 4 September 2007, the then Deputy Premier announced the model, which comprises one bulk water entity and one manufactured water entity, a bulk transport entity, a Water Grid Manager, a regional distribution entity, and up to 10 retail entities. The distribution entity and the retail entities, which align with council boundaries, will be owned by local government.

For more information please read the Deputy Premier’s media statement of 4 September 2007.

The Government has indicated that it will provide a Guideline to SEQ councils on how the new local government owned water distribution and retail entities are to be established and operated. The Government, through the Commission, has also asked councils for feedback by 30 November 2007 on the number of retailers and the timeframe for which separation of the retail function will occur. The Council of Mayors (SEQ) has asked that maximum freedom be allowed for the design of the new entities, such as the provision of principles and broad operating functions.

A consistent regional response to the reform was agreed at the Council of Mayors (SEQ) meeting on 10 August 2007, and is being led by the Executive Director of the Council of Mayors (SEQ).

A diagram showing key activities in the implementation of the reform model is available here.