Water schemes costing Queenslanders dearly

A $2.6 billion recycled water pipeline that is currently not producing any water could be sold to the private sector or shut down completely under options to be considered by State Cabinet.

Premier Campbell Newman said the Queensland Government had to make some tough decisions about what to do with the Western Corridor Recycled Water Scheme and the $1.2 billion Gold Coast Desalination Plant.

The two mothballed water infrastructure projects, which were largely funded by debt, are costing Queenslanders $150 million a year in interest repayments and $33 million a year in ‘care and maintenance’ costs.

“My Government is committed to better infrastructure and planning, and we are determined to fix up the mess Labor left behind,” the Premier said.

“Over coming weeks, Cabinet will be looking at options for the future management of these failed Labor water projects.

“That could mean keeping one or both of these water projects for times of extreme drought, or investigating alternative uses and even sale opportunities.

“Unlike Labor, we are committed to proper planning and we will assess all the costs and benefits before developing a solution that is in the best interest of Queensland taxpayers.”

Energy and Water Supply Minister Mark McArdle said the two botched water projects were symbolic of Labor waste.

“Labor borrowed billions to build these two water infrastructure projects in a mad panic and they have barely been used,” he said.

“South-east Queenslanders’ water bills are so high today because we are all continuing to pay for failed Labor projects that are currently not even producing a drop of water.

“The $150 million a year in interest repayments alone for these failed projects is $150 million that could be better spent on schools, hospitals, police or roads.

“All Queenslanders are paying the price of the former Labor Government’s poor planning and will pay the price for years to come.”

[ENDS] 3 April 2014

Media Contact:          Premiers Office           Mitch Grayson 07 3719 7000

Minister’s Office         Phil Hind 0437 334 183