Firms frozen out of water pricing
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in Privatisation, Recycling, Water Wars
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This story is from AAP
January 31, 2007
PRIVATE companies will profit from running Queensland’s major water infrastructure but will have no say in water pricing, the state Government has said.
Deputy Premier and Infrastructure Minister Anna Bligh today said private companies with expertise in operating water infrastructure would be contracted to provide the “most cost effective” solution for taxpayers.
But all infrastructure would remain the property of the Government, which would have full control of it and water pricing, she said.
Ms Bligh’s comments came as the opposition called for an explanation over what role French company Veolia would take in running the new western corridor recycled water pipeline and Gold Coast desalination plant.
“Reports that millions of dollars are being channelled to multinational companies to run new water infrastructure in south-east Queensland into the future suggest Labor has a secret privatisation agenda and they need to start coming clean on their exact plans,” opposition infrastructure spokesman Dr Bruce Flegg said.
But Ms Bligh said it was “very normal” for governments to award contracts to run major infrastructure.
“I would think that most people would understand that there are some things the private sector does better than the public,” Ms Bligh said.
“If they can have a profit margin with a more efficient operation, I don’t think that’s going to surprise anybody.”
She said water prices would rise but this was because of outlays for new infrastructure, not because of private contracts.
Ms Bligh said the Queensland Water Commission was investigating water pricing and would report to the government in February. Details would be released in the June budget.
She also said work on all major water infrastructure was running to schedule, apart from a pipeline taking recycled water to the Swanbank Power Station, which continued to lag two months behind schedule.
Newly released data showed businesses were on track to exceed their set water savings targets, she said.
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Pipeline company ‘shamed’
By Greg Stolz
February 02, 2007
A GIANT French company involved in two of southeast Queensland’s biggest water projects has a history of corruption, environmental degradation and price-gouging.
Paris-based Veolia Water has been awarded lucrative Queensland Government contracts to build and operate the Gold Coast desalination plant and western corridor recycled water pipeline.
But it can be revealed the company has been named on a “shame file” by Washington-based consumer watchdog Public Citizen, founded by activist and former American presidential candidate Ralph Nader.
Veolia has been embroiled in controversy since entering Australia in 1994.
Questions were raised in Federal Parliament about how it was awarded a $1.5 billion contract to manage Adelaide’s water supply, which has since been hit with problems including a major sewage stench problem and a giardia outbreak.
Two years ago, the NSW Government ordered an audit investigation into Veolia’s background after it bid for a contentious desalination plant earmarked for Sydney. The probe cleared Veolia to proceed with its bid.
Veolia has come under scrutiny in Queensland since The Courier-Mail revealed this week that the company stood to make hundreds of millions of dollars from its involvement in the desalination plant and recycled water pipeline.
A Brisbane ALP branch this week voted to ask Deputy Premier and Infrastructure Minister Anna Bligh for a “please explain” over the Veolia decision.
But Ms Bligh said independent assessments were undertaken before Veolia was awarded the contracts.
“It won those because of its international and Australian expertise and reputation,” Ms Bligh said.
Repeated calls to Veolia Water Australia executive director Rod Naylor were not returned. The company’s chief executive, Peter McVean, was overseas and unavailable, a spokeswoman said.
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