A tale of two cities
The Toowoomba to Warwick pipeline survey works were recently in the news, with the Minister for Water Glenn Butcher mentioning, amongst other things, the “opportunities for … extending this pipeline to places like Stanthorpe”.
It made me think for a moment about the contrast between drought planning for Warwick and for Stanthorpe.
Warwick has the T2W pipeline underway, which will provide water to Leslie Dam during severe droughts. Ratepayers are paying none of the capital costs, which are being funded by the Queensland Government. The annual cost to ratepayers will be capped at $305,000 for the first 10 years, under a generous funding arrangement with the Queensland Government.
Mayor Pennisi’s preferred option for Stanthorpe, on the other hand, remains Emu Swamp Dam. The capital cost to ratepayers of buying into the dam is at least $3.48 million (less the sale price for 450ML of town water, which Council still won’t disclose).
The annual cost to ratepayers, even if we take no water from the dam, is approximately $1 million based on the latest cost estimates. As of November 2021 the estimate was $858.65 per megalitre, up from the original $398.53 per megalitre from 2019. For Council’s 580ML allocation this would be $498,017 instead of $233,140. As even this revised estimate is based on a construction cost of $125 million, rather than the total estimated cost of more than $240 million, it looks like close to $1 million per year.
So an annual cost to ratepayers of more than 3 times that of the T2W pipeline. And the kicker?
The T2W pipeline will provide water during drought, whereas GBIP and State Government modelling show that Emu Swamp Dam would be dry.
And that $1 million per year is still be payable, whether there’s water or not. Personally I reckon that money would be better used for drought relief rather than the operating costs of an empty dam.
Extending the T2W pipeline to Stanthorpe would however provide water during a severe drought. Whether it is economically feasible is being assessed under the Regional Water Assessment. As far as ratepayers are concerned, a deal similar to Warwick’s would cost far less than the annual costs of Emu Swamp Dam.
So in the end what’s the difference between Warwick and Stanthorpe? In Warwick there is no “pet project” of the Mayor, so what is best for the town can drive decision making. On the other hand, in Stanthorpe everyone is hostage to the pet project of the Mayor and Councillor Tancred. In the end we will all pay the price, whether through your rates in Warwick or in the lack of water during a drought in Stanthorpe.
5 August 2023