Households to pay for Iemma’s dodgy desal planning

Commenting on a story on page 1 of today’s Sydney Morning Herald, Dr Kaye said: “The NSW government signed the contracts to build and operate the desalination plant before knowing how and where to lay the pipeline to connect it to Sydney’s water supply.

“By committing to the $1 billion plant before working out how to get the water into the distribution network, Premier Morris Iemma and Water Utilities Minister Nathan Rees behaved recklessly.

“The latest revelations show that the pipeline will cost much more than originally planned for.

“Sydney, Illawarra and Blue Mountains households will pay for the government’s panicked commitment to build the desalination plant before working out the details.

“Bad planning has backed the government into a corner.

“Unless Minister Rees is prepared to admit his mistake and suspend construction of the desalination plant, Sydney households are facing even greater increases in their water bills.

“Households are being landed with another hike of more than 10% on what the pricing regulator has agreed they will have to pay for the desalination project.

“The Minister was warned that signing the contract to build the plant before finalising the critical decision on where to lay the pipeline would leave Sydney households exposed to cost risks.

“The government blustered its way through, claiming that they would find a cost-effective and environmentally acceptable route for the pipeline.

“Now the Minister and the Premier have egg all over their face and households will pay for their mistake,” Dr Kaye said.