BREAKING: Gold Coast Mayor Ron Clarke has spoken out following the resignation of Allconnex Water chairman John Dempsey today.

Mr Dempsey resigned under what Cr Clarke has labelled a “difficult time” as the Queensland Government moves to reform water in south east Queensland.

“I have been critical of Mr Dempsey from time to time,” Cr Clarke said.

“But my criticism has also been levelled at the State for seizing control of the bulk water assets of all SEQ councils, then establishing water distribution entities such as AllConnex and Urban Utilities and taking away the power for any Council to direct these boards on the final retail water price.”

Cr Clarke said the council had been vocal in its criticism of the state for what he called a “failed water reform program” which saw the creation of AllConnex Water on 1 July last year.

Despite their differences, Cr Clarke wished Mr Dempsey the best.

“I wish Mr Dempsey success in his future endeavours. He leaves at a time when the very future of AllConnex Water is being considered.”

Council will meet on July 25 to determine whether or not to disconnect from AllConnex Water.

“Or if we continue to battle the State over the estimated $55-73 million minimum exit costs we will incur if we do make that decision,” Cr Clarke said.