Drinking Water Resources

Mr FRANK TERENZINI: My question without notice is addressed to the Minister for Water Utilities. What is the latest information on the Government's commitment to drought proof communities across the State, particularly regional and rural centres?

Mr NATHAN REES: Our Metropolitan Water Plan is well documented and it drought proofs drinking water supplies for Sydney. It relies on four key elements. First, we have the three largest recycling schemes in Australia—one is at Bluescope Steel in the industrial district of Wollongong, another is at Rouse Hill, which is the largest residential scheme in Australia, and there is the $250 million Western Sydney recycling initiative—

The SPEAKER: Order! Opposition members will cease interjecting.

Mr NATHAN REES: The second element is that we have more than 70 stormwater harvesting schemes across Greater Sydney. Third, we have permanent water saving plans in place to reduce water consumption by approximately 3 per cent per annum. Fourth, the desalination plant, which has been brought in under budget and ahead of time, doubles the capacity of the initial proposal. All these elements combined increase our water supply by almost 50 per cent, setting up Sydney and its surrounding suburbs well for more than half a century.

In the Hunter we are building the $340 million Tillegra Dam, and that will secure drinking water for the Hunter and the Central Coast for the next century. Long-term drinking water security for Sydney and the Hunter shows that the Government is delivering on its election commitments. But, as members will be aware, we also have a couple of million people in rural and regional areas of New South Wales, where drinking water is delivered by more than 107 different utilities. I want rural and regional people to have the same security and quality of drinking water supplies as do people in our cities. That is why in August last year at a Local Government and Shires Associations conference in Inverell I announced my intention to review drinking water delivery arrangements in rural New South Wales. Before making that announcement I consulted closely with Genia McCaffrey and Bruce Miller of the Local Government and Shires Associations as well as Ben Kruse of the relevant union.

I emphasised in the announcement that the review was dependent upon close cooperation and consultation with all local utilities and that there would be no Macquarie Street solutions. Instead, councils will develop their models for the future. Since then, terms of reference have been finalised in consultation with all 107 councils. I have appointed a reference panel of six people, five of whom are from local government. I also have appointed Dr Col Gellatly, the former head of the Premier's Department, and Mr Ian Armstrong, the former head of The Nationals and former Deputy Premier, to lead community consultations throughout New South Wales.

Mr Andrew Stoner: Ian is a good one.

Mr NATHAN REES: He will be very good.

The SPEAKER: Order! There is too much audible conversation in the Chamber.

Mr NATHAN REES: They will be consulting in 15 locations throughout the State—Albury, Bourke, Broken Hill, Cowra, Coffs Harbour, Cooma, Dubbo, Forbes, Griffith, Nowra, Orange, Tamworth, Temora, Tweed Heads and Wagga Wagga, and I have asked them to report back to me in June. Over recent weeks I have been visiting rural areas of New South Wales such as my own electorate of Toongabbie, Dubbo, Tamworth, Armidale, Taree, Braidwood, Cooma, Wagga Wagga, Queanbeyan, West Wyalong, Jerilderie and, finally, Bathurst.

The SPEAKER: Order! There is too much audible conversation in the Chamber.

Mr NATHAN REES: During the course of those town meetings I met with more than 250 mayors, councillors and officials, and I talked to them about their ideas for the future and their models for future water service delivery. I have told them all that the State Government will back their new models with new money for infrastructure, over and above the $160 million already earmarked under the Country Towns Water Supply and Sewerage Program. I have made it clear to them that if they get the model right we will back it up with additional dollars for infrastructure; we will bring existing projects forward and fund more projects. In each of the towns I have visited I have said that the models they develop must meet six criteria: they must protect revenue streams for councils, protect or enhance capital works programs for councils, protect local jobs, provide access to the skills and capacity required for intellectual knowledge into the future, have the right pricing model, and provide best practice governance.

Mr Andrew Stoner: What about delivering extra water?

Mr NATHAN REES: That is the sort of addiction to short-termism that got the Leader of The Nationals in the position he is in. I am delighted to advise the House that in the town of Bathurst I was presented with a joint submission from the 16 councils that comprise the Central New South Wales Regional Organisation of Councils. Blayney, Boorowa, Cabonne, Cowra, Forbes, Harden, Lachlan, Lithgow, Oberon, Orange, Parkes, Weddin, Wellington and Young councils were all involved, amongst others. They know that there is no more pressing issue than securing water supplies into the future. These mayors, councillors and general managers have had the foresight to work together to develop a cross-regional plan. That is a tremendous demonstration of community leadership and it is especially brave and laudable, given that we have just been through the worst drought in 100 years.

The easiest thing in the world for those councils as community leaders would have been to let things drift, as they have always done. However, they have stepped up and developed, with their communities, a submission with real merit. We will be considering the submission over the coming months as we work through the details, but I must say that it was the most exciting prospect that emerged from all the meetings I attended. This massive water reform program is a direct beneficiary of our energy reform package. Our long-term energy plan will secure the energy needs of New South Wales for the future, with guaranteed jobs and apprenticeships, and it will provide millions of dollars for investment in rural and regional infrastructure. Our energy reforms will help deliver healthy and sustainable country water and sewerage services for many generations to come. We can bring key infrastructure projects forward for rural New South Wales and fund additional projects. That is why reform of our energy sector is the right thing for the people of New South Wales—a tough decision but the right decision for the long term.