EXPLANATORY STATEMENT
Utilities and Services Ordinance 1996
Determination of Fees for Water Services (Christmas Island Resort) No 1 of 2007
Section 4 of the Utilities and Services Ordinance 1996 (the Ordinance) provides that the Administrator of Christmas Island is to impose a fee for the provision to a person, or the use by a person, of, amongst other things, water and drainage and sewerage in the Territory.
The Determination of Fees for Water Services (Christmas Island Resort) No 1 of 2007 (the Determination) prescribes a free allocation of water at an equivalent rate of 1.7 litres a second per billing period to Sofstar Pty Ltd, as part of water connections to the Christmas Island Resort.
No consultation on the fees was undertaken. The Australian Government entered into an agreement with the Christmas Island Resort in 2006 to provide water free of charge as part of a Deed of Surrender. The terms of the agreement do not require the Australian Government to supply water to the Christmas Island Resort until the upgrade of the water source infrastructure is completed in 2008. However, providing the Christmas Island Resort with an interim water supply will allow it to proceed with works to reopen part of the resort.
The Determination commences on 8 April 2007.