GOVERNMENT HIDES FACTS ON WATER

The Auditor-General has exposed the State Government’s decision to transfer $490,000 from projects on the Gippsland Lakes to help fund the Wimmera-Mallee pipeline.

And it has been revealed that the State Government may have deliberately under-stated the cost of the controversial Wonthaggi desalination plant by not telling Victorians the most likely cost of the proposal.

The Nationals Member for Eastern Region Peter Hall said he was alarmed by the revelations in the report titled: Planning for Water Infrastructure in Victoria.

“The Auditor General’s report is highly critical of many of the Brumby Government’s decisions in relation to water projects,” Mr Hall said.

“The most alarming aspect of the report is the financial probity issues surrounding the desalination plant. The Auditor-General has revealed that the published capital cost of $3.1 billion was not the most likely cost of the project.

“The State Government has deliberately under-stated the cost of the project and is refusing to provide details on the ‘highest probability estimate’.

“The Auditor-General found that if the government wanted to use the less accurate estimate, it should have justified this decision publicly.

“As it stands now, we have the very real prospect of a cost blow-out. And given the report reveals customers will be footing nearly 90 per cent of the cost, Gippsland water users can anticipate hefty price hikes in future.

Mr Hall said the transfer of $490,000 intended for works in the Gippsland Lakes catchment to the Wimmera-Mallee pipeline project had not been explained by the government.

“Given the Brumby Government has already cut funding by 50% to the Gippsland Lakes Taskforce, I doubt that we will ever see that $490,000 again,” Mr Hall said.

“The money was intended for small town sewerage upgrades to improve water quality in the lakes.

“Water quality is a critical factor in preventing algal blooms and the Brumby Government should be increasing its funding for nutrient reduction projects, not sneakily transferring money to the other side of the state.”