[Greens-Media] Iemma and Costello need lesson in basic water supply economics

[John Kaye]

Iemma and Costello need lesson in basic water supply economics

Media Release: 22 September 2007

Treasurer Peter Costello’s instance that every capital city must have desalination adds to the risk that Sydney’s plant would be doubled in size if the Howard government is re-elected, according to Greens NSW MP John Kaye.

Dr Kaye said: "The Federal Treasurer has joined the Premier of NSW in a gross, expensive and dangerous misunderstanding of water supply economics.

"They need to know that desalination is an emergency measure. It is expensive but can be rapidly constructed. Desalination should only be built when we are in real trouble.

"With storage levels at 59% of capacity, there is no need for commencement of the desalination plant before 2012. Even if the drought of the last 5 years persisted, without a repeat of this July’s downpours, storages would remain above 30% until at least March 2012.

"Even if climate change reduces the frequency of large scale rainfall into Warragamba’s catchment, we have 5 years to develop other lower cost long term supply options, including rainwater tanks and recycling.

"Building desalination before the 30% trigger point is reached is a spectacular waste of money.

"Sydney households are being forced to pay for a plant that is not needed.

"The panic of the Iemma government in pushing ahead with a desalination plant long before it was required is now being reinforced by the Federal Treasurer’s intemperate commitment to desalination in every capital city.

"Sydney Water’s submission to the pricing regulator shows the government still harbours a plan to double the Kurnell plant from 250 ML a day to 500 ML a day.

"With Peter Costello pushing the desalination barrow, and the NSW Coalition’s anti-desalination stance undermined, Premier Iemma and Water Utilities Minister Nathan Rees will be emboldened to force Sydney households to pay for the doubling of the plant.

"The economic credibility of both state and federal governments is being drowned in the waters of the desalination plant," Dr Kaye said. 


For more information:	John Kaye 0407 195 455