Govt disputes desalination costs

By Terry Rickard ABC News


The Victorian Government says figures published today on the cost of the Wonthaggi desalination plant are misleading.

Figures published in reports to Parliament this week show the plant will cost taxpayers almost $16 billion over the next three decades, even if no water is needed.

That has prompted a 'please explain' from Nationals Leader Peter Ryan.

"Every business and family have been loaded up with a debt of about $9,500," he said.

But the Water Minister Tim Holding says the figure is misleading.

"The important figure for taxpayers is the total cost of the water security payment and the total cost of the water audit over the 27 years," he said.

"The nett present cost of the desalination project is $5.72 billion."

Mr Holding says the larger figure is mentioned to meet the requirements of accounting standards and the auditor general.

"Many of the different figures are not credibly relevant in terms of providing information to taxpayers about the intricacies of the arrangement the Government has struck with Aquasure," he said.

The debate comes after 12 months of improved rainfall, with Melbourne's dams filled to 45 per cent of capacity.