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Media Release - Department of Water and Energy

Date: 16 April 2008


NSW LEADING AUSTRALIA IN WATER COMPETITION

Minister for Water, Nathan Rees said today NSW is leading Australia in increasing competition and encouraging private sector involvement in water recycling.

Mr Rees, in addressing a Committee for Economic Development of Australia (CEDA) forum in Sydney, said the Iemma Government had a series of measures in place to meet the water needs of the Greater Sydney area for the next 50-years, including massive recycling.

The Greater Sydney area supports Australia’s largest industrial, residential and environmental water recycling schemes.

Increasing competition in the metropolitan water market and water recycling are key actions in the Iemma Government’s Metropolitan Water Plan and State Plan.

NSW developed Australia’s first legislation expressly designed to facilitate the competitive entry of the private sector into the metropolitan water industry and to encourage recycling.

The Government has now released for public comment the draft regulations that will support this legislation.

The Regulation supports the implementation of the Water Industry Competition Act by licensing private companies wanting to be involved in the supply of water and sewerage services.

The release of draft Regulation is a key milestone that brings us closer to achieving a robust, competitive and sustainable water market in the Sydney and Hunter regions.

In addition to setting licensing rules and exemptions, the Regulation contains provisions to protect consumers, water quality and the environment.

Key aspects of the Regulation include:

• Ensuring new private sector entrants and the public water utilities face the same rules, where like services are provided.

• Protecting the community, through strict licensing rules to ensure that drinking water meets Australian standards, that recycled water is ‘fit for purpose’ and that all services are delivered in a safe, reliable manner with minimal environmental impacts.

• Provisions to prevent retailers from inappropriately disconnecting small customers for non-payment of debt and to require the implementation of NSW Government social policies, such as pensioner rebates, to ensure every eligible customer continues to receive a rebate no matter their supplier.

The CEDA forum was told that Greater Sydney households and businesses are already recycling more than 22 billion litres of water a year, up from 7 billion litres in 1995.

That’s more than the total amount of water supplied to the population of Gosford annually.

By 2015 the Sydney area will be recycling 70 billion litres per year, representing 11 percent of Sydney’s total annual water needs. By 2032, the Government is aiming for the volume of recycled water to increase to over 100 billion litres, a five-fold increase on today’s levels.

However Government cannot reach these goals alone. All our recycling projects require a partnership between Government, business and the community to deliver.

The cooperation with, and involvement of the business sector in developing projects can help Government bring new water infrastructure on stream in a timely and efficient manner.

Sydney Water is in final negotiations with industry to support the $100 million scheme supplying over 4 billion litres of recycled water to industrial users in the Camelia-Rosehill and Smithfield areas.

Similarly the Government is working with Deerubbin WaterFutures consortium in constructing the $250 million Western Sydney Replacement Flows project, saving 18 billion litres of drinking water that is currently being released each year from Warragamba Dam into the Hawkesbury Nepean River system.

And the Iemma Government is developing the recycled water grid that will deliver recycled water to existing industry, commerce, irrigation and residences within the highly developed areas of Sydney.

The first component of the Grid, the $130 million Liverpool to Ashfield pipeline, is now complete, three months ahead of schedule, and on budget.

Other recycling projects include:

• Australia’s second largest residential scheme, the $65 million Hoxton Park Recycled Water System.

• $166 million Wollongong Recycling Plant and STP upgrade …

• $6.7 million Ropes Crossing Residential Recycling Scheme at St Mary’s ...

The Iemma government is committed to working with industry and commercial interests in creating a viable and sustainable water recycling industry.


 

MEDIA CONTACTS:
Department of Water and Energy
Frances Wood (02) 8281 7461 or 0437 596 103
Level 17, 227 Elizabeth St, SYDNEY NSW 2000
GPO Box 3889, Sydney NSW 2001
Facsimile (02) 8281 7450

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