MPS question pipeline project
NORTH Queensland Coalition MPS have questioned proceeding with Townsville’s Stage 2 Haughton water supply pipeline after a business case suggested it had no compelling case and would increase residential bills up to an average of 8 per cent.
But former water taskforce chairman Brad Webb says Stage 2 should go ahead, while Mayor Jenny Hill says it sounds like “dark forces at work” trying to roll the community.
An executive summary of the business case, sought by the Federal Government when Prime Minister Scott Morrison promised $200 million for the pipeline, says Stage 1, Stage 1 and 2 built together and Stage 2 constructed in 15 years provide identical water security outcomes.
On “residential bill impacts”, it says bills will rise by an average of 8 per cent under a scenario where the Government provides $195 million and remaining capital and operating costs are recovered from customers through pricing.
“Economic and financial analysis alone does not suggest a compelling case to build this pipeline,” the business case says.
“However, there are benefits of a pipeline that are not included in the economic assessment under an Infrastructure Australia approach.”
Federal Member for Herbert Phil Thompson says the report is “damning” and attacked the Mayor for advocating for it, despite also campaigning in support of the project during his election campaign.
“First and foremost, I want to assure the people of Townsville that the $200 million in federal funding is not going anywhere. I, along with many others within our community, fought bloody hard to get that money allocated to Townsville and I have an assurance from the Deputy Prime Minister that funding will remain on the table for our city,” Mr Thompson said.
“However, I am deeply concerned about any project which will increase the cost of living pressures on Townsville families.”
Mr Thompson said Cr Hill needed to explain why she had advocated so strongly for a project which would hit every ratepayer in the hip pocket without offering any real solutions.
Member for Dawson George Christensen said the Federal Government had made “no decision about anything” and rejected suggestions the project was in limbo.
“We have a report that says it’s not only not value for money but won’t deliver extra water security and at increased cost to Townsville ratepayers. If that’s the case, that’s a big problem,” he said.
Mr Christensen said the business case “needs sunlight” while Mr Thompson said he had called an urgent meeting with civic and community leaders to “discuss a way forward”.
Cr Hill said she was yet to see a copy of the report and called on Mr Thompson to support the community. “It sounds like there are dark forces at work trying to roll the community on this,” Cr Hill said.
“We don’t want political games. I want to work with people to try and get this and other projects over the line for the community.”
She said projects like this never stacked up on pure economic grounds but that there were farreaching benefits in job creation, water supply and social improvements to the city.
Mr Webb, who chaired the former Townsville Water Security Taskforce, which called for stage 2 and found $55 million in capital savings by building stage 1 and 2 together, said stage 2 should go ahead.
“The brief was to get a long-term independent water supply for Townsville and it should be built,” Mr Webb said. “There are massive ongoing community benefits.”