The primary objective of the workshop was to explore options for future WSS models in Queensland, acknowledging the diversity of the state’s local governments and their varying capacities to manage water and sewerage services. Participants discussed potential efficiencies that could be gained through different governance arrangements, balancing economies of scale with the need to maintain strong local accountability.

Key Discussion Areas

1. The current local government model and its strengths

• Local governments have a strong connection with their communities and a deep understanding of regional water needs.
• Water and sewerage services within councils benefit from integrated land-use planning and infrastructure coordination.
• Cost pressures are naturally mitigated by councils’ financial oversight, ensuring services remain affordable.

2. Challenges of the current system

• Many councils face difficulties in maintaining financial sustainability, particularly in smaller or more remote areas.
• Skills shortages and workforce retention continue to be a challenge for some regional councils.
• A lack of economies of scale in some areas leads to inefficiencies in service delivery and infrastructure investment.

3. Alternative institutional models considered

The workshop examined models from other jurisdictions, including:

• Council-Controlled Entities (CCEs): Offering greater financial autonomy and operational efficiencies while remaining under local government ownership.
• Regional Alliances: Encouraging councils to collaborate while maintaining local control over decision-making.
• Corporatisation: Creating independent, council-owned entities with commercial oversight to drive efficiency.
• State-Owned Utilities: A model used in some Australian states, which centralises water management but reduces local governance.

4. Lessons from other jurisdictions

• Regionalisation and corporatisation have delivered efficiencies in places like Tasmania and Victoria.
• Public-private partnerships (PPPs) have seen mixed success, often requiring strong regulatory oversight to ensure community interests are protected.
• In some cases, full privatisation has led to challenges, such as increased costs and reduced transparency, prompting ‘remunicipalisation’ efforts.

Key principles for future reform

The workshop concluded that no single model is ideal for all Queensland councils, but several key principles should guide any future reform:

• Cost recovery and transparency: Water pricing must be independent of political influence, ensuring full cost recovery and long-term financial sustainability.
• Equitable access and service standards: Cross-subsidisation mechanisms should be transparent, ensuring all communities receive reliable and safe water services.
• Governance and accountability: Any new model must maintain clear lines of responsibility while improving efficiency and oversight.
• Adaptability: The system must be flexible enough to accommodate the diverse needs of Queensland’s councils, from large urban areas to remote communities.

Next Steps

The findings from this workshop will inform future discussions on water governance reform in Queensland. Ongoing collaboration between councils, industry bodies, and state government will be crucial in shaping a model that balances efficiency, local accountability, and service sustainability.

As Queensland continues to navigate these challenges, the insights from this workshop provide a valuable foundation for evidence-based policy discussions and future decision-making on urban water and sewerage services.

Download the workshop report here.