Desalination Plant Proposal

Mr GEOFF CORRIGAN: My question without notice is addressed to the Premier. What is the latest information about the Government's plan to secure our freshwater supply for families in Sydney and the Illawarra?

Mr MORRIS IEMMA: The worst drought in a century is now in its fourth year. Our water supplies are at unsustainably low levels. That is why on 19 August the Government gave the green light to desalination. And two weeks ago the Government declared the desalination plant as critical infrastructure under our new planning laws so that it does not get caught in regulatory red tape. This is no longer a backup plan.

Mr Andrew Stoner: And no-one has the opportunity to object to it.

Mr MORRIS IEMMA: Do you support it or not?

Mr Andrew Stoner: What about the people of the Sutherland shire?

Mr MORRIS IEMMA: Do you support it or not?

Mr SPEAKER: Order! The Leader of The Nationals will stop interjecting. The Premier will address the Chair.

Mr MORRIS IEMMA: Do you support drinking water supply for Sydney or not? Tell us where you stand on this issue. Do you stand with us and the people of New South Wales?

Mr Andrew Stoner: Point of order: I am happy to answer the question.

Mr SPEAKER: What is your point of order?

Mr Andrew Stoner: He asked me a question; I am happy to answer it.

Mr SPEAKER: Order! The Leader of The Nationals will resume his seat. The Premier has the call.

Mr MORRIS IEMMA: It is a good question because we would like an answer. There are two answers.

Mr Andrew Stoner: We don't support it.

Mr MORRIS IEMMA: That is the third answer, because on 22 June, this is what the Leader of The Nationals had to say:

If the Government were fair dinkum, it would announce where the plant would be located and get on with the job of building it.

Now he is telling us he will not support it. But three weeks later, in a media release he said this:

Desalination was not the answer to securing Sydney's water supply.

He has three different positions. First he supports it, then he does not, and today he has told us that he does not support it. This is no longer a backup plan. Desalination is a reality and it will happen.

Mr SPEAKER: Order! I call the Minister for Roads to order.

Mr MORRIS IEMMA: I am not prepared to gamble with Sydney's water supply. In fact, expert teams are working out at Kurnell right now on retailed geotechnical and engineering studies. The House would be interested to hear that our desalination plans have moved to the next stage, with three consortiums short-listed to bid for detailed project plans to build the plant. A site within Kurnell has also been selected. The short-listed proponents are Freshwater Alliance, Sydney AquaSolutions and PureSolutions—all firms with proven international experience in constructing and operating seawater desalination plants.

Each consortium will be asked to submit project plans based on three desalination plant sizes: 125 megalitres per day, 200 megalitres per day and 500 megalitres per day. These teams now have until November of this year to provide detailed proposals, including milestones, methodology and proposed costs. We will assess each proposal, with the final two proponents to be selected in December. Planning approval is also expected by the end of the year. These two proponents will each proceed with plans to build pilot plants on the site to test the treatment process on a small scale using the seawater off the Kurnell coast. That means we will be ready to start construction within 12 months.

In terms of location, we have looked carefully for a site away from homes and schools, as well as big enough to include a large buffer zone. The Government has today announced just a site—a 45-hectare site consisting of two separately owned parcels of land next to the Caltex Oil Refinery, including a 15 to 20 hectare buffer zone, or one-third of the entire site. This substantial buffer zone will also serve to protect the natural environment on the site. The Government will immediately commence negotiations to acquire the two sites from their respective owners. I want to remind the House that the desalination plant is part of a wider water plan. The plan involves accessing the deepwater stored at the bottom of Warragamba and Avon dams, harvesting supplies from the Shoalhaven and massive new recycling schemes. I remind all honourable members of the fact that the largest residential water recycling scheme in Australia is up and running at Rouse Hill.

Currently, we are recycling some 15 billion litres of water each year. By the end of this year Australia's largest industrial water recycling scheme will be on line at BlueScope Steel at Port Kembla. With these projects, we are meeting our requirement to increase our commitment to recycling. The people of Sydney can be sure that the Government will make the hard decisions to ensure that our water supplies are secure. That includes a commitment to the desalination plant we have just announced at Kurnell.