Dam rejection 'will raise water prices'

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Traveston Crossing dam rejected

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SOUTHEAST Queenslanders will pay at least $50 more for water each year because of the Federal Government's rejection of the Traveston Crossing Dam, the state government says.

Queensland Resources Minister Stephen Robertson said the preliminary figure was based on the difference in cost between the $1.8 billion dam, and the more expensive Plan B of two desalination plants.

Mr Robertson on Thursday met with federal Water Minister Penny Wong to discuss the implications of the dam's failure.

He has asked the federal government to now contribute funds to the desalination plants, which will be required by 2017 to fill the water supply gap left by the dam's rejection.

A further two plants will be needed by 2030.

The cost of the facilities is not yet known, but as the Gold Coast's Tugun plant cost $1.2 billion in 2007, the bill could easily be more than $5 billion.

Mr Robertson said the commonwealth had a "moral obligation" to assist the state.

"That price is only going to go up over the years to 2017," he told reporters on Friday.

"The important thing is, that kind of money has to be recouped, and that is what will drive up the price that everyone in southeast Queensland will pay in the years ahead as a result of (federal Environment Minister) Peter Garrett's decision."

The $50 per year estimate was in today's dollars, and was "very preliminary", Mr Robertson said.

Senator Wong told reporters her government was open to continuing discussions with the state.

"We're certainly happy to continue that dialogue," she said.

"We have a very strong record already, in our term of government, in terms of investment in urban water supplies."

The solutions that each state adopted to respond to the drought was a matter for them, Senator Wong said.

Mr Robertson said the state was now reviewing its options, in light of the dam being turned down.

He said there had been a lot of "simplistic analysis" in suggestions that recycled water, stormwater, rainwater or maintaining water restrictions could replace the need for desalination plants.

"When you're talking about a dam that would have delivered around about 150,000 megalitres a year, 200 megalitres per day, it is a bit too simple to say there is any one solution out there that will make up for that deficit," Mr Robertson said.

"That is why you have to put desal on the agenda ... because that is the only way that you can make up for that deficit commencing from 2017."

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Read the story, read the transcript, and watch a video of Garrett's announcement: Garrett rejects Traveston Dam

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