Legislation passed in the Queensland Parliament will mean that from 1 July 2012, Allconnex customers will receive water and wastewater services from their local council.

Minister for Water Utilities Stephen Robertson said the South-East Queensland Water (Distribution and Retail restructuring) and Other Legislation Amendment Act would allow the Gold Coast, Redland and Logan City councils to withdraw their business from Allconnex and establish their own Council water businesses.

“The Act also requires Gold Coast City Council to bear the consequential costs incurred by the Redland and Logan City councils in withdrawing from Allconnex,” Mr Robertson said.

“Last year South East Queensland councils were given a once-only opportunity to opt out of their distributor-retailer and re-establish council-owned and operated water and waste water businesses.

"The Gold Coast City Council decided to withdraw from Allconnex and in doing so agreed to pay the consequential costs of disestablishment to Redland and Logan Councils.

“Gold Coast City Council knew this was a condition when they voted not once but twice to opt out.

“That decision left Redland and Logan City councils no option but to also leave Allconnex as it was not commercially viable to remain with the company.”

Mr Robertson said the three councils are responsible for setting and agreeing to these costs and Allconnex and the Redland and Logan City councils are required to keep these costs to a minimum.

“Should there be disputes the matter can be referred to an independent arbitrator for a binding determination,” he said.

“The Gold Coast, Redland and Logan City councils must deliver affordable, high standard water and waste water services to their community.

“Like the distributor-retailers, the councils will be subject to a Consumer Price Index (CPI) cap until 30 June 2013 on the annual distribution and retail water and waste water prices for households and small businesses.

“All South East Queensland councils must also have a price mitigation plan showing how they intend to moderate the impact of price increases, assist vulnerable customers and inform the community about price increases after the conclusion of the CPI cap. The Councils are to have and implement at least a five year price path which moderates any price increases.

“Councils need to be clear to their community about water and wastewater prices.

“The three councils – Gold Coast, Logan and Redland, will also be required - like the two remaining distributor-retailers, Unitywater and Queensland Urban Utilities - to participate in the Energy and Water Ombudsman Scheme to ensure all residents and small business in the south-east have access to the free dispute resolution and mediation service provided by the Ombudsman.”

Mr Robertson said the Government is also doing everything in its power to minimise the impact on Allconnex staff and uncertainty for employees.

“The State Government recognised the need to help Allconnex Water workers with the most orderly transition possible and do everything in our power to minimise the impact on jobs and uncertainty for employees,” he said.

“This legislation enables the establishment of a Retransfer Workforce Framework to allow Allconnex staff to transition back to the council water businesses, protecting work entitlements and ensuring job security.”