[Greens-Media] Desal ‘future-proofing’ is economic stupidity

[John Kaye]

Desal ‘future-proofing’ is economic stupidity 
 
Media Release: 21 June 2007
 
NSW Water Utilities Minister Nathan Rees is committing the Iemma
government to a $2 billion act of economic irresponsibility, according
to Greens NSW MP John Kaye.
 
Dr Kaye said: “The ‘desalination whether we need it or not’ approach of
the government shoots a massive hole through their credibility as
financial managers.
 
“It is time Treasurer Michael Costa, a desalination sceptic, stepped in
and sort out this mess. If he fails, he is all bark and no bite.
 
“The Premier and his Water Utilities Minister have failed to produce
any expert advice that building desalination capacity makes sense when
storage levels are heading towards 50%.
 
“I doubt any credible economist would risk their reputation on
supporting the building of an expensive emergency measure so many years
before it could possibly be needed.
 
“Even if we replicate the hostile weather patterns of the last two
years before the recent rains in the catchment, Sydney is at least two
years away from the 30% trigger point that was originally envisaged for
building desalination. It may be much longer, particularly if the
government is prepared to implement level IV water restrictions if
storages fall below 40% again.
 
“Even without tougher restrictions, delaying construction until
storages fell to the 30% level would still leave plenty of time to build
the plant and have it operating before we ran out of water.
 
“Proceeding with construction is a 100% guarantied waste of water
consumers’ money. On the Minister’s current course, the plant should sit
idle for at least two years.
 
“Worse still, to justify its decision the government might force Sydney
Water to run the Kurnell plant even though much cheaper sources of water
are available.
 
“Either way, water consumers will pay through the nose for the Iemma
government’s fixation on desalination,” Dr Kaye said.
 
For more information:John Kaye 0407 195 455
 
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John Kaye
Greens member of the NSW Parliament
phone: (02) 9230 2668
fax: (02) 9230 2586
mobile: 0407 195 455
email: John.Kaye at parliament.nsw.gov.au
 
mail: Parliament House, Macquarie St, Sydney NSW 2000