Hansard Transcript, NSW Legislative Council, Wednesday 1 September 2010
TILLEGRA DAM
The Hon. ROBYN PARKER: My question is directed to the Minister for Planning and Lands.
The PRESIDENT: Order! There is an order to be followed for the asking of questions. The Opposition missed an opportunity to ask a question earlier; for that reason it is now being given the opportunity to ask a question.
The Hon. ROBYN PARKER: I ask the Minister whether he recalls that on 30 March 2010 the Minister for Planning responded to a question about omissions in the Tillegra Dam environment assessment report with the following statement:If any additional information is received on the project prior to its determination by the Minister for Planning, the Department of Planning will carefully consider the need for further public exhibition in accordance with the requirements of the Environment Planning and Assessment Act 1979. 
Has the Department of Planning reviewed the additional geotechnical report that was not included in the environmental assessment report? Has this additional information been included in the socioeconomic review conducted by the Department of Planning? Will the review be made available to the public?
The Hon. TONY KELLY: I thank the Hon. Robyn Parker for her question. The lower Hunter currently is the sixth-largest urban area in Australia and one of the State’s major centres for economic activity. Strategic planning is targeting significant population growth for the lower Hunter and Central Coast regions. It is fundamental that a secure water supply be provided to existing and future communities in those regions—not just during average rainfall conditions but also in periods of extended or severe drought.
The Hunter Water Corporation has proposed construction of the Tillegra Dam to provide security of groundwater supply to the lower Hunter and Central Coast. As the Minister for Planning I am the approval authority for the project under part 3A of the Environmental Planning and Assessment Act 979. The Tillegra Dam has been declared to be a critical infrastructure project in recognition of its role in the future growth of the lower Hunter and Central Coast.
Notwithstanding that, the project will be subject to a rigorous environmental assessment process, including full and transparent community engagement, before my decision is made. Currently the Department of Planning is undertaking its independent merit assessment of the project. At this stage it would be inappropriate for me to speculate on the outcomes of the assessment process. As part of the assessment of the project the department has engaged a number of independent consultants to provide expert advice. The expert reviews include consideration of the potential impact of the project on the hydrology of the Williams River, modelling of potential impacts on the Hunter estuary, and evaluation of justification for the project.

Hansard Transcript, Legislative Council, Thursday 2 September 2010
TILLEGRA DAM
Dr JOHN KAYE: My question is directed to the Minister for Planning. Is the Minister aware of widespread community concern in the Hunter that the environmental assessment process for the Tillegra Dam proposal has been ill informed by Hunter Water Corporation’s environmental assessment report, and that the process lacks independence, given that the State Government or its agencies are both the proponents and the consent authority? Will the Minister address these concerns by putting the assessment process on hold while an independent inquiry is conducted into the water needs in the lower Hunter?
The Hon. TONY KELLY: Recently I told the House that the lower Hunter is one of the State’s major centres for economic activity, and forecasts indicate significant population growth in the lower Hunter and the Central Coast regions. A secure water supply needs to be provided to existing and future communities in those regions. The Hunter Water Corporation is proposing the construction of Tillegra Dam to provide greater water supply and security to the lower Hunter and the Central Coast.
Dr John Kaye: Point of order: My point of order relates to boring repetition. As we heard exactly the same answer yesterday, do the Minister’s remarks not fall into that category?
The PRESIDENT: Order! There is no point of order. The Minister’s answer will continue to be generally relevant.
The Hon. TONY KELLY: The Department of Planning is currently undertaking an independent merit assessment of the project and it would be inappropriate, as I said recently, for me to speculate on the outcomes of the assessment process at this stage. As part of the assessment of the project the department has engaged a number of independent consultants to provide expert advice. Those expert reviews include consideration of the potential impact of the project on the Williams River hydrology.

“The Think Tank participants suggested that Australia should gradually abandon the more expensive, vulnerable and non-sustainable approaches to waste treatment in favour of technological and social innovations that are based on relatively simple and highly sustainable concepts. With some careful choices, there is much to be gained from greater integration of the water supply, stormwater, and wastewater components of the urban water cycle.

Australians place a high value on the natural landscape, and scientific investigations into the principles of natural resource management indicate that preventative action for challenges like salinity can be far less costly than repairing a system left to degrade. For example, dredging rivers clogged with silt that have not been allowed to flush during high flow events can be a very expensive and substantial task.”

Some key points from the report:

• Leakages/evaporation – There are huge losses in metropolitan water supply systems.
  Huge potential for utilising stormwater in urban settings.
  Use of tanks for grey water – benefits for individual re-use, information.
  Use water more locally – capture water rainwater tanks onsite. Local versus system approach to the system – changes the whole paradigm. equity.
  All new developments should include dual pipes to use recycled water for garden watering and toilet flushing, and open space irrigation in the development  (This is mandated in California for all new developments – since 2000.  They have to demonstrate they will be water self-sufficient and will look after their own waste water.)
  Communities should be involved in the early identification of problem and solution stage of a change in water management. Superficial consultation processes are not trusted.
  Role of markets in the water industry is set to increase. This needs to be coupled with regulation, information. Water is both a public and private good, water markets are artificial markets that are regulated with a cap or prescription to create artificial scarcity.
  Pumping costs high.
  Desalination using wind energy can be cheaper than River Murray water – see example of Roxby Downs.
  Technologies are constantly changing, becoming cheaper and improving – frequently re-evaluate – do not close the door on options – for instance, desalination costs dropping.
  Australia has many coastal cities and therefore the increased  use of seawater is an option.
  Ecosystems that are poorly understood are more likely to be neglected than those that are better studied. Expertise is particularly lacking in estuarine biology and there is very poor data available on the effects of shifting salinity and flow changes on fisheries and aquatic biota in many of these systems. More information is required to determine minimum requirements (in terms of freshwater volumes, frequency, duration, timing, rates of change relative to saltwater ratios etc) so that the regime that is required to maintain healthy ecosystems and fisheries at a low level of risk can be pinpointed and managed.

CLAIMS that the case for building the controversial $477 million Tillegra dam is based on outdated climate change and population data and flawed environmental modelling are being taken seriously by the state government.

The Department of Planning commissioned at least four independent experts to review the justifications for the 450 billion-litre dam submitted by the Hunter Water Corporation, including its heavily criticised environmental assessment. The review will also consider a study by a leading wetlands expert, Richard Kingsford, who warned the dam would devastate the internationally recognised wetlands within the Hunter Estuary. Professor Kingsford found Hunter Water used inaccurate calculations to measure changes in river flow wrought by the dam.

Anti-dam activists say the review is ”a vote of no confidence in Hunter Water” and its claim that Newcastle will run out of water if Tillegra is not built.

”The doubts surrounding the need and the environmental impact of Tillegra dam are simply too large to be ignored,” Belinda Fairbrother, the campaign co-ordinator for the Wilderness Society Sydney, said.

The social and economic benefits of the dam will be scrutinised by the Centre for International Economics, a private consultancy which last year advised the federal Minister for Environment Protection, Peter Garrett, to dump the $1.8 billion Traveston dam in Queensland. The Snowy Mountains Engineering Corporation has been asked to assess its justification.

Mr Garrett has the power to axe the Tillegra dam under Commonwealth environmental protection and biodiversity conservation laws. The Labor candidate for the marginal federal seat of Paterson, Jim Arneman, said he did not support the state government’s handling of the issue.

The Liberal incumbent, Bob Baldwin, and the Greens candidate, Jan Davis, told a community forum they oppose the dam.

A spokesman for the Minister for Planning, Tony Kelly, said the decision to commission independent experts did not indicate that the department has concerns about the quality of Hunter Water’s development application. ”This is done on a regular basis,” he said.

The Department of Industry and Investment accused Hunter Water of using misleading or outdated climate change data. The Department of Environment and Climate Change said measures to offset the damage caused by the dam’s construction were inadequate.

The proposed Tillegra Dam is one of a number of critical environmental policy areas requiring a response by all the main parties in this Election.  The Wilderness Society will conduct a full assessment of the environmental policies and performance of the all the parties ahead of election day.

“A clear policy commitment in the lead up to the August 21 election is crucial for the protection of the Williams River” says Justin McKee, Campaigner for The Wilderness Society Newcastle.

The Williams River and its banks are essential habitats for native species like fish, trees and platypus. It feeds the RAMSAR listed Hunter Estuary Wetlands where birds come from all over the world to breed and feed.

The Wilderness Society calls for the major parties to:

·         Publicly acknowledge the serious environmental concerns associated with the proposed Tillegra Dam, including the most recent evidence provided by Professor Richard Kingsford regarding the serious impacts on nearby RAMSAR listed wetlands.  Commit to a full and rigorous assessment process, which includes all the information available.

·         Rule out any Federal facilitation of the dam, including funding.

“Our message to Hunter residents is ‘this is your environment, your future, and your vote’.  It’s important we all know where the main parties stand on the big conservation priorities, so we know what we’re voting for on the 21st  August,” concluded Mr McKee.

The Wilderness Society is hosting a community forum ‘Will the next Federal Government protect the Williams River?’ at 6pm, Tuesday 17th August at Maitland Town Hall.  Attendees will hear from candidates for the seat of Paterson on the dam issue.

Media Contact:            Justin McKee   0404 824 020

Community forum on Tillegra Dam at Newcastle City Hall Wednesday July 28th 2010

Community members from Newcastle, Dungog and throughout the Hunter region will gather at Newcastle City Hall tonight to hear political representatives outline their positions on the controversial Tillegra Dam. The meeting has been called ahead of an expected announcement on the dam by the NSW Government.

“Since it was announced, this dam has drawn fire from renowned water planning experts and ecologists, the fishing industry and community groups,” said Pepe Clarke, Nature Conservation Council of NSW. “At tonight’s forum, we’ll hear whether politicians contesting the seat of Newcastle in the March 2011 election support or oppose the dam, and whether they support community involvement in sustainable regional water planning.”

Speakers at tonight’s forum include:
·    Antoine Mangion, Policy Coordinator, Combined Pensioners and Superannuants Association of NSW
·    Brad Warren, Executive Chairman, Oceanwatch Australia
·    Carol Pasenow, Dungog community member living in the inundation area
·    Linda Bowden, No Tillegra Dam Group
·    Justin McKee, Campaigner, Wilderness Society Newcastle

“More than 8,000 people have made submissions, written to Jodi McKay and Premier Keneally and signed petitions expressing their opposition to this dam,” said. “Tonight’s forum creates an opportunity for these concerned community members to hear directly from the politicians who may represent Newcastle after the 2011 election.”

“The political process to fast-track this dam has been disgraceful,” said Bev Smyles, Hunter Environment Lobby Inc. “Our members are shocked to see science and due process set aside throughout the decision-making process.”

State member for Newcastle and Minister for the Hunter Jodi McKay has declined her invitation and failed to respond to requests for advice on an alternative speaker.

“This is disappointing considering the NSW Government is the proponent for the proposal,” said Bev Smyles.

Ms McKay has been avoiding interacting with constituents since June as anti-dam protests have increased in frequency and intensity. She has cancelling meetings and other public commitments.

Save the Williams River Coalition groups include the Wilderness Society, No Tillegra Dam Group, National Parks Association, Total Environment Centre and NSW Nature Conservation Council.

Interviews:            Pepe Clarke (02) 9516 1488      Bev Smyles 0428 817 282

When: 6 – 7:45pm Wednesday 28 July, 2010

Why: The Tillegra dam has drawn fire from renowned water planning experts and ecologists, the fishing industry and numerous community groups. More than 8,000 people have made submissions, written to Jodi McKay and Premier Keneally and signed petitions expressing their opposition to this dam. Read more here.

Political speakers include:
·    Jodi McKay, Member for Newcastle, Minister for the Hunter – declined and pending response to request for alternative representative
·    John Kaye, Greens MLC – confirmed
·    John Tate: Newcastle Lord Mayor, Independent candidate – confirmed
·    Robyn Parker, NSW Liberal Party candidate – confirmed
We have also received confirmation that Bob Baldwin (Member for Paterson) and Jan Davis (Greens candidate for Paterson) will be attending.
Community speakers include:
·    Simon Fane, Institute for Sustainable Futures
·    Brad Warren, OceanWatch Australia
·    Antoine Mangion, Combined Pensioners and Superannuates Association NSW
·    Carol Pasenow, Chair No Tillegra Dam Group and family member of landowners in dam inundation area
·    Justin McKee, The Wilderness Society Newcastle
·    Linda Bowden, Tillegra Dam Community Reference Group

A strict format: Firstly, community representatives will very briefly outline their perspective on the proposed dam. Secondly, each political speaker will have three minutes to answer three set questions:

1. Will you stop Tillegra Dam and protect the Williams River?

2. Will you commit to an integrated water resource planning process to develop sustainable urban water strategy for the Lower Hunter that includes genuine public engagement and consideration of all options?

3. Will you direct preferences to a candidate who opposes the Tillegra Dam proposal?

Media logistics / Interviews :        Justin McKee     0404 824 020

Peter Shinnick (NH, 23/7) is wrong to assert that there is a requirement to boost water supplies in the Lower Hunter and that the Tillegra dam is the most affordable and environmentally sensitive way to do this.

Water demand in the Lower Hunter has dropped by nearly a third since the early 80′s and continues to trend downwards. Drought security is at a 30 year high.

Our analysis in August 2009 demonstrated that simply with a comprehensive water conservation program, similar to Sydney Water’s, the Lower Hunter would not need a new supply before 2050. This included accommodating a population increase of 160,000.

The Lower Hunter does not need the costly and damaging Tillerga dam. What it does need is a Government and business community willing to get behind a sustainable urban water plan that the community can then support.

Dr Simon Fane
Research Director  
The Institute for Sustainable Futures
University of Technology Sydney
——–
Peter Shinnick, Hunter Business Chamber’s CEO (NH 23/07/10) talks up job opportunities in the Dungog area associated with the Tillegra Dam proposal. But what about jobs lost as irreplaceable farm land goes under water?  The actual job numbers in relation to the dam are 200 short term jobs, with 5 long term jobs. These are Treasury figures.  Compare this to the loss of 90 farms who supported numerous family members, and employed many businesses; vets, agricultural suppliers, machinery suppliers, milk couriers, mechanics, fencing contractors, earthmovers, fodder suppliers, fuel contractors, labourers etc.  Where is Mr Shinnick’s support for these businesses?

Profitable tourism will never come to Dungog with the current appalling road conditions. The best Hunter Water can offer the community on tourism on Tillegra was that they will support it, not fund it, not ensure tourism occurs, not ensure the roads are safe for tourists, nor do they pledge a straight out commitment to ensure the future of Dungog Shire.

What this community needs is a sustainable water plan where Hunter householders are not paying for a dam that they do not need. This dam  seems to be earmarked for the business community, come clean Hunter Water  and tells us what or who this dam is really for ?

Carol Pasenow
Dungog
——–

Peter Shinnick’s, (CEO of the Hunter Business Chamber), invocation of 200 years of successful business development in the Hunter, only describes part of the Hunter’s European history. He conveniently forgets an estimated 40,000 years of indigenous history, rapidly wiped out once Europeans settled. Is he ignoring the health problems faced by those in the Upper Hunter as coal mining continues to expand?  There’s the natural ecology supported by many rivers, now disappearing in the service of industry, dams, irrigation, flood control and some bad land use practices.  And agriculture is now diminished through de regulation.  
Right now, innovative business has the opportunity to learn from this history. The Tillegra Dam is not needed. We don’t need to destroy more farming livelihoods, more natural rivers, threaten further our biodiversity, and charge a selective tax on Hunter Water customers for a bad development process.
Peter Shinnick’s Business Chamber would be better off supporting a sustainable water plan which invests in smaller, alternative water supply options. Surveys have shown the community supports conservation alternatives and small business would benefit.

Sally Corbett
Fosterton (Williams River Valley)

I run a small business.  Hunter Water’s business is very much larger but we both play by similar rules.  We make sure we can supply what our customers want.  We are accountable to our customers.  We keep up with the trends.  We borrow to expand and we are careful to invest in the business only what we are confident will offer a good return.  Thus we stay afloat and make our profits.

Hunter Water is blessed with a region of generous and relatively reliable rainfall: a drought only once every twenty years or so in the Chichester Dam catchment, the worst less than eighteen months long in the 1960s.  Newcastle has had been virtually free of water restrictions since the 1980s.  It has all been just as the customers want.  A good supply/demand balance, and healthy profits passed on to the State Government every year.  Excellent business.

There were few complaints from Hunter Water’s customers, and a sound Integrated Water Resource Plan kept the business humming.  By mid-2006 Hunter Water had plans for moderate expansion of supply through the Stage 3 enlargement of Grahamstown Reservoir.  Of particular note was its “every drop counts” policy, a slogan familiar to all.  Hunter Water’s entreaties promoting domestic water conservation and industrial water waste management were well respected.  It was managing its business wisely.

Then the State Government announced that Tillegra Dam would be built and everything changed.  Without consultation, Hunter Water’s customers would be paying for a dam for which they felt no need.  Customer trust began a nosedive.

Setting aside environmental and social considerations, at Hunter Water the major questions as a business operator are how to pay for infrastructure expansion, and how to turn a profit from it?  As a public utility it must provide a service. But its ledger must stay in the black, or instead of returning a profit to the State Government it will be begging for a bail-out. Can Tillegra be a profitable investment?  Consider the balance sheet.

First, the Tillegra project involves up-front expenditure of around $500 million, but almost a quarter of that spending goes on a by-pass road construction with no possible economic return on that part of the investment.  It is a less-than-ideal start.

The second problem is that as water prices go up demand tends downward, even as population increases.  We customers are getting smarter in our water usage.  As energy costs escalate also, we’ll grow even more shy of those long hot showers.  “Every drop counts” we’ll say to our children.  Industry will follow the same mantra.  The Independent Pricing and Regulatory Tribunal puts limits on ever-higher pricing. Revenue will go to debt repayment, not the State’s coffers.  Bad business.

Third, and most critically, Tillegra as a business investment is poorly advised.  Hunter Water’s Managing Director Kevin Young argues we may face longer and more severe droughts.  Yet from the CSIRO, the Bureau of Meteorology and the NSW Department of Environment, Climate Change and Water there has been no such assertion.  Newcastle University’s meteorologist Martin Babakhan states it unequivocally:  Climate change for this particular region – including the catchments for Chichester and Grahamstown – shows no indication of bringing longer or more severe periods of drought. Who would risk a $500 million investment in production when there’s no clear need for the product?

Consultants Sinclair Knight Merz have assessed that in 2025, allowing for population growth and climate change, with Hunter Water’s existing two reservoirs the lower Hunter would have a one in sixty-three chance of Level 2 water restrictions (meaning reservoirs would be down to 50% capacity).  In a year-long drought every twenty years or so Hunter Water might sell some Tillegra water rather than let other reservoirs drop below 50%.  But then for a decade or two Tillegra reverts to a large storage of an expensively collected product with no-one needing to buy it.  The chance of a crippling debt for a dam we can do quite comfortably without is disturbingly high.  And interest rates are rising….

There is, for the State and Hunter Water, far less business risk in small diversified investments in improved water management than in the big spend on Tillegra Dam.  It is this line of argument the Hunter Business Chamber should be supporting.

Ken Rubeli
Wangat

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