$408m offer fails to water down dispute
stevem
in Costs, Recycling, Water Grid, Water Wars
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Greg Roberts
April 25, 2007
THE dispute between the Howard and Beattie governments over commonwealth funding for Queensland’s water grid remains deadlocked, despite an announcement by John Howard that Canberra would provide $408million for the project.
Announcing the subsidy in Brisbane yesterday, the Prime Minister said the money would be put towards the $1.7billion cost of the western corridor recycled-water pipeline, subject to Queensland providing financial information to support its subsidy application within 30 days.
“I want it to be a success,” Mr Howard said. “I have supported recycling for some time, and on that matter Peter Beattie and I are on the same page.”
Deputy Premier Anna Bligh said Queensland would have no difficulty providing the financial information because it was already available on her department’s website.
Her comment prompted a sharp response last night from federal Environment and Water Minister Malcolm Turnbull, who said the information to which Ms Bligh referred had stated there was no cost-benefit analysis available for the project. Mr Turnbull said the information was inadequate and Queensland had to supply current and forecast costs and an up-to-date business case supporting the project.
Ms Bligh said Mr Turnbull had failed to supply information similar to what he was demanding to support his proposal to pump water from northeast NSW to Queensland. “Queensland has provided a comprehensive application that fully details the construction and operating costs,” she said. “This is significantly more meat on the bones than what Malcolm Turnbull has provided for anything he has put on the table.”
Ms Bligh said Mr Turnbull was “throwing a few weak punches” because it was clear the Prime Minister had overruled him by deciding to fund the recycled-water pipeline.
The pipeline will begin pumping water to the Tarong and Swanbank power stations and to Brisbane’s Wivenhoe Dam from the end of next year. Mr Howard said that in addition to supplying financial information, Queensland would have to ensure the interests of irrigators - whose water allocations from the Wivenhoe Dam have been slashed - were addressed before the subsidy would be paid.
Mr Howard said it was reasonable to expect Queensland to produce a business plan to support the project.
Water expert Peter Cullen said Mr Turnbull was subjecting the states’ funding applications to heightened scrutiny. “He is putting a banker’s eye over these things in a way that has not been done before,” he said.
Professor Cullen said that, in Queensland’s case, the Prime Minister had reason to be cautious. “Their application for the western-corridor project has gone from $200million to $400million to something else, and you wonder what the hell is going on.”
An interesting analysis from Water Futures
stevem
Dam approval urgent: Beattie
25 APR 2007
The State Government says it is now focussed on the Traveston Crossing dam, near Gympie, after having a win over federal funding for the recycled water pipeline.
The Prime Minister yesterday announced $408 million towards the pipeline, as long as Queensland provides further financial details within 30 days.
The Premier has welcomed the money and says extra information will be provided.
Peter Beattie says he now wants the Commonwealth to approve the Traveston Crossing dam.
“We’re not asking for money, what we’re asking for is approval,” he said.
“We don’t want any delay.
“What we want to do is have a water grid that will provide security so that we never have this problem again.
“We can’t make it rain, what we can do is better use water and the Traveston dam is a key part of that.”
stevem
Qld Govt urged to release desal plant reports
25 APR 2007
Queensland’s Opposition has called on the State Government to release reports it commissioned on desalination options for the south-east.
Opposition Leader Jeff Seeney says the Government has spent about $500,000 on at least two consultants’ reports.
Mr Seeney says the desalination plant being built at Tugun is crucial to ensuring the south-east does not run out of water.
But he says residents are entitled to all the available data.
“The people of south-east Queensland deserve, if nothing else, the access to the information.”
stevem
Clinton Porteous and Steven Wardill
April 25, 2007
A PRE-ELECTION bidding war has erupted over Queensland water projects as John Howard committed more than $400 million to the Western Corridor Recycled Water Pipeline.
The Prime Minister yesterday matched an offer made by Opposition Leader Kevin Rudd in February to help fund the biggest recycling project in the southern hemisphere.
He also hinted there could be further funding announcements in the run-up to the election.
“As to other projects in Queensland I am not ruling anything in or anything out,” Mr Howard said.
The western corridor announcement came as Government sources confirmed that money would be earmarked in next month’s Federal Budget for the second Toowoomba Range crossing as reported in The Courier-Mail yesterday.
Mr Howard said yesterday the $408 million deal was a “huge financial commitment” to help Queensland cope with its “chronic water problem”.
“I want the project to go ahead, I want the project to be a success,” he said.
Deputy Premier Anna Bligh welcomed the announcement but said the Howard Government had been dragged “kicking and screaming” to make the contribution.
Ms Bligh said the federal funding commitment would help curb price rises for Queensland consumers.
The federal money comes with strings attached, and Mr Howard demanded the State Government hand over a complete set of financial details within 30 days.
Mr Howard also said the money was conditional on the Beattie Government making water available to farmers in the Lockyer Valley.
The $1.7 billion western corridor scheme requires the construction of 210km of pipeline and has the potential to deliver more than 250ML a day.
Federal Labor’s water spokesman Anthony Albanese said the Howard Government had finally caved into pressure from the ballot box.
“Australia’s water crisis hasn’t occurred overnight, and it shouldn’t have taken an election year to get a response from the Howard Government,” he said.
Mr Rudd recently said he had an “automatic sense” for the infrastructure needs of the southeast corner of Queensland because he was born and grew up in the area.
But Mr Howard has dismissed this, saying Queenslanders will vote at the election for the policies that best suit them and their families.
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