Water Rewards will have a significant impact on the ACT government budget. Rewards increase funds available to the community because it reduces the cost of distributing Capital by at least one order of magnitude. The savings generated by removing the cost of debt are accessible to the community.
The same principles of Rewards apply to all Income generating infrastructures such as Energy Rewards for renewable energy, Rent and Buy for affordable housing, Transport Rewards for Roads and Public Transport, MediSave for health, Education Credits for all education investments, Innovation Credits for industry development.
While there is a temptation to consolidate all forms of Rewards under one body, systems and evolutionary theory suggests they should remain separate and be under the joint control of representatives of customers, the government and the agencies responsible for the products or services. Diversity and distribution of power reduce risk and increase innovation.
The Cash Flow of ICON Water increases by $70M and increases the profit available to the ACT government. The $1.4B in Capital goes directly to the population so increasing their assets and provides a greater income than available from commercial investments. It spreads investment income evenly across the whole population, and so reduces poverty. ICON Water has a cash flow of $300M, and this will support at least $3B in Water Rewards.
The removal of debt and making income producing Capital Assets available to investors provides an opportunity for a rethink of the investments in superannuation for government employees. The amounts of Investment Funds now available for infrastructure changes what is possible. Funding is no longer a significant barrier to development. Instead, the limits are on the capacity of the City to absorb the investment.