TasWater chair Miles Hampton says the State Government faces millions in additional interest costs if it accelerates its works plan.

The Tasmanian Government has plans to take over TasWater in 2018 and complete its $1.5 billion, 10-year works program in 2023.

Before the takeover bid, Mr Hampton says TasWater’s plan had debt peaking at $900 million in 10 years’ time, but the government’s plan would leave a debt of more than $1.5 billion in four years’ time.

“We have modelled the government’s proposals and there is only one possible conclusion, TasWater will incur significant operating losses,” the TasWater boss said.

“If the state government has to prop up TasWater to the extent of $50 million per year in additional interest cost, how many hospital beds will be closed, how many schools will be closed, how many fewer police will be on the streets?”

Mr Hampton said Treasurer Peter Gutwein had not provided economic modelling to show that the government’s plan can work.

“Only then can he start working with us rather than operating in a vacuum,” he said.

“From an engineering point of view, we consider the government proposal is both logistically impossible and runs the risk of a very substantial waste of taxpayer money with rushed-through solutions that do not take a holistic and properly measured view of all of the issues.”