10 March 2012

$5 billion water bill bleeds us dry

VICTORIA would need to be in drought for eight years before a drop of water was required from the Wonthaggi desalination plant, scientists say.

But taxpayers will pay more than $5 billion in that time to have access to the water.

As floods swamp the northeast, critics have questioned why the plant was built.

Prof Hector Malano, a water resource management expert at the University of Melbourne, said Melbourne's current water storages would last until 2020 even if there were a drought.

"It would be up to eight years depending on the climate and population growth," he said.

"Desalination is the last option that you want to use. But once the decision is made to begin building the plant, we will be paying for it for some time."

The desalination plant will cost taxpayers $24 billion over 30 years. Victorians will pay desalination plant project company AquaSure $1.8 million a day for access to water at the plant, even if none is used; $5.2 billion by 2020.

Water storages are 64.7 per cent full after hitting a record low of 25.6 per cent in June 2009.

In further potential pain to taxpayers, AquaSure has demanded a $1.3 billion loan to refinance its debt and a 12-month deadline extension from the State Government.

It also claimed a $560 million payment this year even though it doubted the plant would be finished.

Mark Robertson, president of anti-desalination campaigners Watershed, said the plant should never have been built.

"We survived during the drought with water restrictions and that didn't cost anything or have the environmental effects," he said.

Water Minister Peter Walsh said the Labor government had panicked during the drought when it ordered the plant.

"The previous government should have acted before the drought occurred by looking at stormwater and recycled water for non-drinking purposes," he said.

Mr Walsh said he would vigorously defend AquaSure's financial claims, adding he would not sign anything that was not value for money for taxpayers.

An AquaSure spokeswoman said: "Like any other major project contract, there are provisions in our contract with the state for AquaSure to lodge claims in certain circumstances."

heraldsun.com.au 10 Mar 2012

Another corporate fraud that is supported by the government, to the detriment of the general populous.

Kickbacks, illegal union heavy handed tactics, money for mates tender fraud, significantly above the industry standards contractor rates account for just some of the illegal activities regarding the building and operating of the de sal plant in Victoria.

There is no and will be no inquiry into the billion dollar fraud that the government has supported.

Another rort where the business leaders fraudulently obtain funds right in front of the eyes of the masses with no legal repercussions.

Australia - "The lucky country" (if you're part of the 'boys club').

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