Member for Cessnock Clayton Barr has called on the Government to explain why it has abandoned plans to safeguard water security and expand Sydney's water desalination.
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It has been revealed in a letter to IPART from the Water Minister Melinda Pavey that the current expansion process for the Sydney desal plant has been put on hold and the terms of reference for the pricing investigation have been withdrawn.
Mr Barr, the Shadow Minister for Water, has described the move as short-sighted and demanded the Government push ahead with the project.
"What a backflip. Only months ago, the Water Minister said the expansion of the Kurnell plant would be undertaken as quickly as possible," Mr Barr said.
"She clearly isn't serious about water security in NSW.
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"The Government has sent the message that this project will only proceed under extreme drought, which makes no sense. Just because dam levels are high doesn't mean we should forget the drought.
"In fact, the best time to expand the Sydney Desalination Plant is when we are not faced with the extreme time pressures of a worsening drought.
"It beggars belief that the government can publicly spruik an infrastructure-led recovery, while cancelling vital infrastructure."
But Melinda Pavey, Minister for Water, Property and Housing, points out that Sydney's high water levels have given the government more time to ensure they the planning right for the desalination expansion.
"The Sydney Metro region is out of drought conditions with Warragamba Dam at 83 per cent," she said.
"This has changed the timeline for the expansion so we can consider a broader range of options for the future of water security for Sydney.
"During the worst of the Sydney drought, accelerating plans to expand the desalination plant was the fastest way to ensure water security."
She said options for future water security will be outlined in the Greater Sydney Water Strategy, a 20-year plan to manage water in Sydney for homes, industry and the environment.
"Let me make it clear. We are not abandoning the expansion of the Sydney Desalination Plant," Ms Pavey said.
"It was designed so it can be expanded if, and when needed. We will be focussing our resources to achieve the best possible outcomes for securing Sydney's water supply."
But Mr Barr remains unconvinced.
"Despite a growing population, the Government has failed to add any additional water storage capacity to the Sydney water network. The decision to cancel the expansion of the Sydney desal plant is absurd given we have a changing climate with longer periods of hotter and drier conditions."