Website: www.billsykes.com.au                                                                                                    MEDIA RELEASE

Wednesday, 3 October 2007

FOOD BOWL PROJECT REPORT FLAWED

Major flaws in the methodology of estimating potential water savings contained in the Food Bowl Modernisation Draft Report will impact significantly on the cost/benefit analysis for the North South Pipeline according to Bill Sykes, Nationals MP for Benalla.

Dr Sykes said, “The draft report estimates water losses of 850GL/yr, down from original claims of 900GL/yr.

“The report acknowledges that this is an over estimate as some of the “losses” are re used from ground water or downstream waterways.

“However the report fails to acknowledge that losses in dry years are much less (around 500-600GL/yr) and it fails to quantify the amount of “losses” which are re used.

“The net result is that the losses, and hence potential savings, are grossly over estimated.

“This will have a major impact on the cost/benefit analysis for the North South Pipeline given that the report states that after 2011 Melbourne will only get one third of actual savings ie 75GL is “guaranteed” only for year 2010/11 (coincidentally, the time of the next State Election!).

“If the savings are halved then the economics of spending $750m to build the pipeline to carry 37GL instead of 75GL per year must surely be questioned.”

Dr Sykes concluded, “It is crucial that the claimed potential savings be subject to an independent audit prior to commencement of any pipeline works and if it is, as many suspect, that there will be very little savings, then there is a very strong additional argument that piping water from the Goulburn Valley is an inappropriate option to meet Melbourne’s water needs.”

Media contact: Bill Sykes (03) 5762 2100 or 0427 624 989