Search for ways to solve problem of headwork charges

8/7/93

The State Government is looking for solutions to the problem of high up-front SECWA and Water Authority headworks charges that may be preventing regional areas of the State from attracting job-creating businesses.

Deputy Premier and Minister for Commerce and Trade, Hendy Cowan, has announced the establishment of a taskforce to assess the extent of the problem and recommend a solution to the Government within three months.

The taskforce includes Mr Cowan's senior policy officer and representatives from SECWA, the Water Authority of WA (WAWA) and the Department of Commerce and Trade.

"The first step is to gather evidence of the extent of the problem," Mr Cowan said.

"The Department of Commerce and Trade is already liaising with local governments throughout the region on SECWA services and the issue of very high headworks costs is being raised by many councils.

"There is much anecdotal evidence of potential businesses being frightened away from the bush because of the high cost of connecting to water and power - costs that are sometimes far in excess of those paid by similar businesses in the metropolitan area.

"The taskforce is keen to be informed of real-life examples where people wanting to establish or expand job-creating businesses in regional areas decided against doing so because of the high cost of SECWA or WAWA headworks charges - including the cost of connecting to three-phase power."

Mr Cowan said people who had information were encouraged to send it to the taskforce through Jeff Lewis at the Department of Commerce and Trade, 170 St Georges Terrace, Perth (327 5666) before July 30.

"We have heard much of the need for industry to get lower energy and water costs," he said.

"The State Government already has started to deliver these lower costs to the business sector.

"We recognise that many country businesses are doubly disadvantaged because of crippling up-front connection costs for power and water."

Mr Cowan said the taskforce inquiry related specifically to job-creating businesses in regional areas.

"In general, that means value-adding and manufacturing businesses, the emerging horticulture industry and the commercial sector in country towns," he added.

Media contact: Peter Jackson 222 9595