[Greens-Media] MARK PARNELL MLC: Will we pay for the desal plant to sit idle?

[Parnell]

Media Release
Thursday 3rd April, 2008

Will we pay for the desal plant to sit idle?
 

Greens MLC Mark Parnell has called on the Water Security Minister
Karlene Maywald to immediately rule out a 'take or pay' clause for the
Port Stanvac desalination plant contract, to ensure taxpayers are not
forced to pay the private operator even if the water is not needed.

"A private company is not a charity - they won't operate and maintain a
desal plant for free," Mr Parnell said.  

"A contractor will want a guaranteed fee whether it is producing water
or not.  Taxpayers will still be paying even if the plant is shut down,"
he said.

The Treasurer, Kevin Foley, announced today that the Government will
enter into a Design, Build, Operate and Maintain (DBOM) partnership with
private contractors for the Adelaide Desalination Plant.  

This same model was chosen by the Iemma Government in NSW.  The contract
between the NSW Government and the private operator includes a 'take or
pay' clause that requires the Government to pay millions of dollars in
holding costs, even if the water is not needed. 

"Commercial deals like this always privatise the profits and leave the
public with the risk. The public always at the end of the day bears the
cost," Mr Parnell said.

"The Government must immediately rule out the type of 'take or pay'
clause that operates in Sydney.  These contract clauses mean taxpayers
pay through the nose all year round, even if the water isn't needed.

"It will be a tragedy if precious taxpayers' dollars are given to water
corporations to sit on their hands, instead of being used to create
sustainable water security through better use of stormwater, rainwater,
groundwater and active water re-use," he said.   

	
For further comment contact Craig Wilkins on 0434 007 893



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