ALLCONNEX IS FINISHED

GOLD Coast City Council has voted to disconnect from Allconnex Water.

In a fiercely debated vote, a majority of councillors agreed to disband the water retailer by June 30, 2012. The move will come at a speculated cost of around $100 million.

Allconnex CEO Kim Wood says he accepts council’s decision to return water services to the ratepayers.

“Today’s decision to continue to opt-out of Allconnex provides clarity to Allconnex employees,” he says.

“We can now get on with the job of ensuring a smooth transition of water services back to council.”

Allconnex has established a transition project team to manage the transfer of water and wastewater services to local government.

Protecting the company’s 800-strong workforce will be a focus.

“The welfare of all our employees continues to be a priority. Allconnex employees employed on awards, enterprise agreements and common law contracts are covered by the protections contained in the Workforce Framework. This includes employees who joined the organisation after 1 July 2010,” says Wood.

“No matter what organisation’s name they have on their shirts, their trucks or payslips, they will continue to bring first-class water and wastewater services to the people of the Gold Coast.”

Gold Coast, Redland and Logan councils initially voted to regain public control of water, following major ratepayer outrage over rising water bills.

However, Logan reversed its decision to split from Allconnex due to Redland's move to exit.

Because the Gold Coast is the largest local government area serviced by Allconnex, the decision had implications for Redland and Logan councils.