Water corporation not of mutual benefit

I have grave fears for the amalgamation of our water industry into a corporation between Wyong and Gosford Councils.

We know the current system operates fine with service levels way above that of Sydney and Hunter water Corps.

Corporations are developed and driven by profit, not service.

At face value, the amalgamation seems like a mutual.

A mutual exists with the purpose of raising funds from its membership or customer which can then be used to provide common services to all members of the organization or societies.

A mutual is therefore owned by, and run for the benefit of, its members.

It has no external shareholders to pay in the form of dividends.

Profits made will usually be re-invested in the mutual for the benefit of the members, although some profit may also be necessary in the case of mutuals for internal financing to sustain or grow the organization and to make sure it remains safe and secure.

However, mutual may convert itself to a non-mutual through the process of demutualisation. Demutualisation is the process by which a customer-owned mutual organisation changes legal form this is called privatisation.

This is what should worry every ratepayer in the Gosford-Wyong area.

We need to know more of the proposed structure and how much input is the broke NSW State Government going to reap from our rates.

Let's get past the kissy cuddly feelings and be fair dinkum.

What is in store for us?

Online Submission, 11 May 2011 John Richards, Umina