Lower water consumption boosts long-term outlook

No Queenslander is paying any costs of Traveston Dam in their water bill and the price of bulk water is not linked to current household water usage.

The Minister for Natural Resources Stephen Robertson assured householders that the cost of water was not affected by the decision to scrap the dam when he told Parliament last week: "No planning or pre-construction costs associated with the Traveston Crossing Dam proposal will be passed on to consumers through water prices."

Mr Robertson said today that responsible water use by householders has the Government on track to defer the need to seek new sources of water for at least the next 15 years.

He said the Government was committed to sticking to a previously announced pricing structure for the first five years of the new South East Queensland Water Grid.

"Sticking to that price path effectively caps any bulk water price increases in any year and provides stability in water prices,'' Mr Robertson said.

To maintain water price stability, the Government has sold water to the council-owned retail water authorities at below cost.

Current average household water use is around 170 megalites per household per year.

The Queensland Water Commission has done analysis that shows population growth and seasonal factors could produce fluctuations in water demand.

"This analysis is responsible managing of the resource and planning for the future," the Minister said.

The Government has previously outlined a 10-year price structure of bulk water as parts of a plan to recover the cost of the $7 billion SEQ Water Grid over the next 20 years.

The Government said it would review that price structure in 2013 when all factors affecting water demand will be considered. A pricing structure for the following five years will be formulated at that point.

"To react to any factors before then, including current water consumption figures, would only create instability and uncertainty in the price of water,'' Minister Robertson said.

"The Government is committed to its announced water price structure which provides stability in the future price of bulk water.''

Minister for Natural Resources, Mines and Energy and Minister for Trade
The Honourable Stephen Robertson
21/08/2010

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Publish Date: 21 Aug 10