Tasmanian councils say the state’s treasurer is encouraging business to break the law.

Treasurer Peter Gutwein says businesses have told the State Government that they feel “threatened and intimidated” by TasWater into installing new trade-waste treatment systems to dispose of fats, oils and grease.

“We are hearing from businesses all around the state that TasWater’s stance on this is ruining the industry. TasWater should be working with businesses and be an enabler rather than be against them,” Mr Gutwein said.

“The one-size-fits-all program is not fitting them, it’s madness.”

But TasWater, the water authority jointly owned by Tasmanian councils, says it is making companies comply with environmental requirements, not punishing them.

TasWater chair Miles Hampton said the Treasurer was either completely confused or being deliberately misleading in accusing the group of harming Tasmanian business.

He said recent correspondence on the issue from the state government department that provides the government with policy advice on trade waste stated: “TasWater’s actions are entirely consistent with what is expected of it as a sewerage service provider under Tasmania’s current urban water legal and regulatory framework”.

“In pointing the finger at TasWater, the Treasurer fails to acknowledge that the Corporation is actually complying with State Government legislation,” Mr Hampton said.

“He would know this and would have been briefed on the facts by Environment Protection Authority officers.

“TasWater has a legal requirement to ensure people dispose of their trade waste appropriately and the State Government, through the EPA, is responsible for regulating TasWater’s activities in this regard.”

Local Government Association of Tasmania Acting President, Mayor Daryl Quilliam, backed TasWater has been working with businesses to ensure that there is compliance with the State Government’s ‘s claims.

“The Treasurer, Peter Gutwein, cannot possibly expect us to believe that he does not know that TasWater’s trade waste activities are required under legislation, especially when the Department responsible for advising the Treasurer has clearly indicated that TasWater is taking appropriate action,” Cr Quilliam said.

“The Treasurer’s suggestion that the trade waste issue is a consequence of previous council ownership is also ridiculous as he knows that more stringent standards have been introduced over time.

“That a further beat-up of TasWater, based on yet more mistruths and weasel words should happen just as the Government’s legislation, supporting a hostile and illegal takeover of TasWater, is being debated in the House of Assembly is of no surprise.”