QLD:Qld desal plant to be mothballed

AAP General News (Australia)
12-05-2010
QLD:Qld desal plant to be mothballed

BRISBANE, Dec 5 AAP - A Queensland desalination plant is set to be mothballed as part
of sweep of state government water grid reforms to cut rising household water bills.

Natural Resources Minister, Stephen Robertson announced the rejig on Sunday, aimed
at saving $18 million per year.

Mr Robertson confirmed speculation the $1.126 billion desalination plant at Tugun near
the Gold Coast will be placed on standby mode.

The move will save $10 million per year and the plant will be turned off later this month.

The minister said the plant can be fired up again within 72 hours if needed.

"It will return to full-time operation if the region's dam capacity drops to 60 per
cent," he said in a statement.

Mr Robertson said the water reforms would provide relief to householders dealing with
the rising cost of living.

"For a typical household, next year's bulk water charge will be around $5 less than
previously announced - $54 down from $59," he said.

"Additional savings will continue for every year and will grow to more than $30 per
household by 2017."

One of Bundamba's two treatment plants will be placed on standby, Mr Robertson said.

The treatment facility at Luggage Point will remain at 100 per cent while the Gibson
Island plant will be closed.

All plants would be brought back on line if dam capacity trended under the 40 per cent
trigger point to add purified recycled water into Wivenhoe Dam, Mr Robertson said.

The government will also revise down its 10-year price-path for bulk water sales to
the council-owned retail water entities following savings from the scrapped Traveston
Dam project, he said.

Under the plan southeast Queensland's two bulk water authorities - Seqwater and WaterSecure
- will be merged.

Mr Robertson said the state government had consulted unions about the merger.

"We will continue to protect workers' entitlements throughout the process," he said.

"There will be no forced redundancies of staff employed under awards or enterprise
bargaining agreements."

Mr Robertson called on local councils profiting from water retail businesses to pass
on savings to struggling householders.

AAP lpm/jel

KEYWORD: WATER

� 2010 AAP Information Services Pty Limited (AAP) or its Licensors.