Southern Region Water and Sewerage Reform

If after 12 months the new authority reviews its staffing needs and determines that a number of positions be declared redundant, will the affected staff who had transferred over from councils be paid redundancy based on 1 year’s service with the new authority or will their previous council service be counted for redundancy purposes?

The Water and Sewerage Corporations Act (2008) provides for the general preservation of the conditions of employment of transferred employees.

The STCA has sought clarification from the State Government in regard to whether staff transfers and issues such as redundancy will be dealt with under State or Federal law, given that most Councils operate under federal industrial agreements.

When that clarification is received we will update this answer to provide more detailed information on the redundancy provisions that will apply.

Will  Corporate Support be seconded from Councils; and Hobart Water, for e.g. Stores Personnel, Radio Operators, Payroll, HR. and Cleaners?

Corporate support for the new Regional Water and Sewerage Corporations will be provided, at least in part, by the new Common Services Corporation.

The Common Services Corporation is required to be set up under the new Water and Sewerage Corporations Act 2008. The Act states that the objectives of the Common Services Corporation are:

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Will Hobart Water be the lead Authority in the reform process?

Hobart Water is not and will not be the lead Authority in the reform process.

The reform process is currently being led by the Implementation Joint Implementation Steering Committee that is made up of:

• Mike Gaffney (Chair): President of the Local Government Association
• Rob Nicholl Deputy Chair): Deputy Secretary of Treasury
• Don Challen: Secretary Department of Treasury
• Allan Garcia: CEO of the Local Government Authority
• Frank Dixon: GM Launceston City Council
• Brent Armstrong: GM Hobart City Council
• Paul Arnold: GM Burnie City Council
• Frank Pearce: GM Glenorchy City Council
• Ron Sanderson: GM Brighton Council
• Greg Winton: GM Circular Head Council
• John Martin: GM Dorset Council
• Gary Swain: Deputy Director - Water and Sewerage Project Team
• Jason O’Neill: Assistant Director - Water and Sewerage Project team

In the South, the transition to the new authority is being worked through by the 12 Council General Managers and the CEO of Hobart Water with assistance from three transition groups that are looking at issues relating to:

• Assets
• Finance
• Human Resources

The three transition groups have representatives from each Council and Hobart Water with expertise in the areas being looked at. Other staff from Councils and Hobart Water may well be involved as the transition progresses and requires different expertise.

The 12 Southern Councils have appointed three Owners Representatives:

• Graeme Bury: Mayor of Kingborough
• Tony Foster Mayor of Brighton Council
• Henry Edgell: Councillor from Central Highlands Council

The Owner Representatives will be involved in the appointment of the new Chair and Board of the new Water and Sewerage Corporation.

The Board will then appoint a CEO.

The new CEO, in conjunction with the Board, will then be responsible for the development of the new Corporation.

The following list is the latest update of the timeline to which the State Government is working.

As with all timelines unforeseen events may change the timing of the events listed:

• Owners representatives appointed by Councils (June 08)
• Common Chairperson appointed (August 08)
• Successful tenderer to undertake Due Diligence appointed (September 08)
• Constitutions of the new Corporations approved by Parliament (September 08)
• Regional Boards Appointed (September 08)
• CEOs of the new Water and Sewerage Corporations appointed (November 08)
• Establishment of the Common Services Corporation (November 08)
• Due Diligence completed (30 December 08)
• Corporations commence minimum operations (1 January 09)
• Issue of draft transfer notices detailing what and who will be transferred to the new corporations (15 January 09)
• Consultation period between Councils and new Corporations over the draft Transfer Notices (Until May 09)
• Agreed Transfer notices published in Government Gazette (June 09)
• Interim Water Licenses issued to new Corporations (1 July 09)
• Target date for full transfer of assets and employees (1 July 09)

Where will the new business be located?

The location of the business will be considered once the new Chairman is in place and it is known what number the total workforce will be. The rough estimates that have been done to date estimate that around 300 staff will transfer to the new business. Approximately 200 of these will be from Councils and 105 from Hobart Water.

No decision has been made regarding the location of the new businesses but it would seem sensible to keep field staff currently working outside the Greater Hobart area in their local communities.

Will I retain my current benefits?

Yes. The current Bills state that all employees from Councils or from Hobart Water will transfer on a no-detriment basis. This means they will retain benefits they currently have. The Bill states that this will hold for 12 months.

Will there be opportunities for redundancy?

No. The legislation allows for the transfer of all employees and it is expected that everyone with skills in water and waste water will be needed.

What process will be used to develop a new structure for the new water business and the common service provider? Is there potential for staff to input into the process, utilising their knowledge of best practice?

Once a new Chairman is appointed, he or she will have the role of putting together a Board and appointing a CEO. Until that time no decision has been made regarding a new structure.

In the new business, will everyone’s contract be evaluated and will there be salary parity to other states?

All conditions will remain in place for a fixed period of time, as legislated.

How will we be kept informed of developments throughout the reform process?

The General Managers of the twelve southern Councils and the CEO of Hobart Water will keep their own staff informed of developments.

In addition to direct communication from Generals Managers/CEOs the Southern Tasmanian Councils Authority (the 12 Councils working together) will maintain this website as a way of providing answers to questions from staff of either Councils or Hobart Water.

Answers to questions that come through this website will be approved by the 12 General Managers and the Hobart Water CEO.

Which functions will be covered by the common service provider business? Where will it be located?

The proposed new structure as outlined by the State Government includes a fourth entity known as a common service provider. The purpose of this is to share costs between the three new water businesses in service areas.

The Bill that is currently before parliament lists:

• payroll services;
• human resources services;
• information technology services;
• billing services;
• financial and accounting services;
• any other service which may be of assistance to the Regional Corporations;

The current Bills before Parliament indicate that the make up of the service provider business will be left up to the water businesses.

The Chair of the 3 Regional Water businesses and the three CEOs of the water businesses will be the Board of the Common Services provider. No decisions will be made until at least the time when the Chair and the three 3 CEOs are appointed.

As to a geographic location, there have been no discussions or decisions. The Treasury’s Q&A’s show a map of Tasmania with the service provider apparently in the middle. This is not meant to be viewed literally. It’s a conceptual map only.