Published Friday, 09 March, 2007 at 02:33 PM

JOINT STATEMENT
Premier and Minister for Trade
The Honourable Peter Beattie
Deputy Premier, Treasurer and Minister for Infrastructure
The Honourable Anna Bligh
BEATTIE GOVERNMENT RESPONDS TO PRICING RECOMMENDATIONS
Premier Peter Beattie and Deputy Premier Anna Bligh have received and are analysing the Queensland Water Commission’s pricing recommendations.
The QWC’s Cost Recovery and Pricing Issues relating to Urban Water Supply in South East Queensland suggests residents could pay as much as an extra $70 a year - each year - for the next five years.
Ms Bligh said: “Water is an essential resource and we will not see it priced beyond the reach of ordinary Queenslanders.
“We have been saying for some time that there must be price rises to cover our $7-8 billion drought response, but that increase must be manageable.
“Treasury is now examining this model to reduce the impact on consumers.
“It will determine how much the State Government can contribute to soften the blow, and what is a fair contribution to expect from water users.
“Today’s proposal also shows the importance of the Federal Government coming to the party with a $408 million grant to the Western Corridor Recycled project.”
The Premier and Deputy Premier said the State would work with councils to bring about a fair and fundamental change in the way we price, value, deliver and manage water.
Mr Beattie said that while prices will rise, it’s important to remember they are funding water infrastructure that will drought-proof the South East.
“Price rises of some sort are needed to pay for this infrastructure, but we must make sure those rises are reasonable,” he said.
Ms Bligh said that the QWC report gave a clear understanding of how the Federal Government’s ‘full cost recovery’ model under the National Water Initiatives would impact on south east Queenslanders.
“The Commonwealth’s Initiative was not developed to deal as an urban response to drought.”
“Our response will not be based on a Canberra-imposed formula.
? The QWC today also released the Urban Water Supply Arrangements in South East Queensland. It includes the establishment of a Grid Manager (a non-profit seeking statutory authority) as of 1 July 2008.
At present SEQ has 19 major water supply sources owned by 12 different operators supplying bulk water to 18 local governments.
Ms Bligh said appointment of a Grid Manager is modern, go-forward thinking applied to a fragmented system developed in isolation for the past 100 years.
“The new management arrangements proposed by QWC provide a way to bring rationality to a system which for too long has had too many managers with too many competing interests.
“We tasked the Queensland Water Commission with designing a 21st century solution to one of the most complex systems of water delivery in the world and they have delivered,” she said.
“We’re in the middle of the most exciting period of development in the State’s history and we have clearly outgrown a water delivery system that belongs in the horse and buggy days.”
Ms Bligh said the Government will consider the Commission’s position and respond, but we can no longer have a parochial response on water.
“The drought affects the region as a whole and the solutions must too. Out-of-Brisbane residents are not tolled when they visit the city and use its rate-payer funded civic infrastructure!
“If you live in Redlands there’s a good chance one of your household works in Brisbane. Likewise tens of thousands of Brisbane residents regularly use the Gold and Sunshine coasts for rest and recreation.
“These examples highlight that we can no longer adopt parochial views when we will ultimately be sharing the same water.
The Grid provides a two-way interconnection between the Gold Coast desalination plant, the Western Corridor Recycled project, the Southern, Northern and Eastern interconnectors, and the SEQ dams - including Traveston Crossing and Wyaralong.
“The Grid Manager will allow water to be delivered where it will ensure ongoing record growth in the nation’s economic powerhouse.
“The South-East’s continued economic prosperity - and the benefits that flow on to all Queenslanders - is dependent on water being available when it is needed, where it is needed,” she said.
Media contact: Premier’s Office 3224 4500
Deputy Premier’s Office 3224 6900
Friday, 9 March 2007
The QWC’s Cost Recovery and Pricing Issues relating to Urban Water Supply in South East Queensland suggests residents could pay as much as an extra $70 a year - each year - for the next five years.
Ms Bligh said: “Water is an essential resource and we will not see it priced beyond the reach of ordinary Queenslanders.
“We have been saying for some time that there must be price rises to cover our $7-8 billion drought response, but that increase must be manageable.
“Treasury is now examining this model to reduce the impact on consumers.
“It will determine how much the State Government can contribute to soften the blow, and what is a fair contribution to expect from water users.
“Today’s proposal also shows the importance of the Federal Government coming to the party with a $408 million grant to the Western Corridor Recycled project.”
The Premier and Deputy Premier said the State would work with councils to bring about a fair and fundamental change in the way we price, value, deliver and manage water.
Mr Beattie said that while prices will rise, it’s important to remember they are funding water infrastructure that will drought-proof the South East.
“Price rises of some sort are needed to pay for this infrastructure, but we must make sure those rises are reasonable,” he said.
Ms Bligh said that the QWC report gave a clear understanding of how the Federal Government’s ‘full cost recovery’ model under the National Water Initiatives would impact on south east Queenslanders.
“The Commonwealth’s Initiative was not developed to deal as an urban response to drought.”
“Our response will not be based on a Canberra-imposed formula.
? The QWC today also released the Urban Water Supply Arrangements in South East Queensland. It includes the establishment of a Grid Manager (a non-profit seeking statutory authority) as of 1 July 2008.
At present SEQ has 19 major water supply sources owned by 12 different operators supplying bulk water to 18 local governments.
Ms Bligh said appointment of a Grid Manager is modern, go-forward thinking applied to a fragmented system developed in isolation for the past 100 years.
“The new management arrangements proposed by QWC provide a way to bring rationality to a system which for too long has had too many managers with too many competing interests.
“We tasked the Queensland Water Commission with designing a 21st century solution to one of the most complex systems of water delivery in the world and they have delivered,” she said.
“We’re in the middle of the most exciting period of development in the State’s history and we have clearly outgrown a water delivery system that belongs in the horse and buggy days.”
Ms Bligh said the Government will consider the Commission’s position and respond, but we can no longer have a parochial response on water.
“The drought affects the region as a whole and the solutions must too. Out-of-Brisbane residents are not tolled when they visit the city and use its rate-payer funded civic infrastructure!
“If you live in Redlands there’s a good chance one of your household works in Brisbane. Likewise tens of thousands of Brisbane residents regularly use the Gold and Sunshine coasts for rest and recreation.
“These examples highlight that we can no longer adopt parochial views when we will ultimately be sharing the same water.
The Grid provides a two-way interconnection between the Gold Coast desalination plant, the Western Corridor Recycled project, the Southern, Northern and Eastern interconnectors, and the SEQ dams - including Traveston Crossing and Wyaralong.
“The Grid Manager will allow water to be delivered where it will ensure ongoing record growth in the nation’s economic powerhouse.
“The South-East’s continued economic prosperity - and the benefits that flow on to all Queenslanders - is dependent on water being available when it is needed, where it is needed,” she said.
Media contact: Premier’s Office 3224 4500
Deputy Premier’s Office 3224 6900
Friday, 9 March 2007