Sydney Water Supply

Mr PHILLIP COSTA: My question is addressed to the Minister for Water. What is the latest information on measures to secure Sydney's water supply in this and future droughts?

Mr NATHAN REES: I thank the member for his longstanding interest in this matter. The Metropolitan Water Plan is the Iemma Government's blueprint for the supply of water for the next 50 years for Australia's largest city; a $350 billion economy underpinning one-third of Australia's economy. We are securing Sydney's water supply with the biggest water infrastructure spend in Australian history. As one drought response strategy under the plan, the Sydney Catchment Authority began detailed groundwater studies in 2006 when Sydney's total dam storage dropped below 40 per cent. The bore fields were a measure developed in the face of extreme drought, when our dam levels were getting critically low.

It is sobering to remember that early last year our dam storages were about 33 per cent. However, few people realise that without water restrictions over the previous three years of drought, without the transfer of water from the Shoalhaven River, and other water management measures, early last year Sydney's water supply would have been down to single figures. That is alarming and clearly would have put Sydney and Australia's economy at risk if we did not do something to augment supply. That is exactly what the Government has done. We have set up Sydney's water supply for the next 50 years. As part of our plan we have determined that groundwater could provide up to 30 billion litres of water each year for two years. That is an important security measure against a repeat of extreme drought, but it is not an inexhaustible supply of water.

I am pleased to inform the House that through the big savings yielded under the Metropolitan Water Plan and through the responsible use of water by Sydneysiders and the recent rains, dam levels are now up around 65 per cent. I advise the House that the Government is able to defer the building of groundwater bore fields at Kangaloon, Leonay and Wallacia. In making the decision to shelve construction, the Government is taking account of the views of environmentalists, farmers and local communities around the areas of the proposed bore fields. Managing the potential environmental impacts was addressed in the Sydney Catchment Authority's comprehensive environmental assessment for the project. However, given that the urgency has receded, we have chosen to avoid any impact at all. That deferral is strongly supported by the Nature Conservation Council of New South Wales. Today the council's executive director told my office:

I congratulate the Government on its very sensible decision not to proceed with drilling Kangaloon's aquifers.

This is the right decision, for the local community, the environment and the people of New South Wales. The Nature Conservation Council of New South Wales looks forward to continuing to work with the State Government on securing a safe and sustainable water supply for Sydney.

[Interruption]

There are a number of other bores opposite that we might suspend.

The SPEAKER: Order! The Minister will be heard in silence.

Mr NATHAN REES: Local residents have been fully consulted through the Upper Nepean Community Reference Group for the Kangaloon bore fields. It is not just the green end of the spectrum that supports the deferral, but also the New South Wales Farmers Federation. Mr Jonathan Bell, a local cattle farmer, said:

This is a sensible approach.

It is legitimate to explore this resource and examine the benefits and environmental impact; however other options in the Metropolitan Water Plan should be implemented first.

If dam levels did again head towards critical we can quickly construct the bore-fields as an emergency measure.

That is widely welcomed. Those concerns are genuinely held and I am pleased that the Government was able to respond. We will halt further development at Kangaloon at the point when the land acquisitions, planning approval and tender design are complete. Further development of groundwater sites at Leonay and Wallacia in Western Sydney will also be deferred once pilot testing and analysis is complete. Members should note that access to a groundwater supply remains an important readiness strategy in the event that we again strike severe drought. We are taking the precaution of preparing right through to development approval so that bore fields can be taken off the shelf and reactivated. Those waters will flow inside 18 months, if and when required. We are keeping the capacity to build the bore field at hand, but are not accessing it at this stage. The decision is a win for the environment, a win for local residents and is sound policy.