A Rudd Labor Government will implement a $1 Billion National Urban
Water and Desalination Plan to help secure the water supplies of
Australia’s major cities.
This $1 billion plan will drive major desalination projects across Australia.
It will also support water recycling and major stormwater capturing projects nationwide.
Federal
Labor’s $1 Billion National Urban Water and Desalination Plan will fund
a 10% Water Tax Credit and grants for approved desalination, water
recycling, and major storm water capture projects developed by the
private sector, local governments, and State and Territory Governments.
Federal
Labor’s 10% Water Tax Credit will ensure our National Urban Water and
Desalination Plan drives up to $10 billion worth of investment in
Australia’s urban water infrastructure.
This will be the biggest single Federal Government investment in urban water infrastructure in Australia’s history.
Federal
Labor totally rejects statements by Treasurer Peter Costello, who said
on 9 May 2007 that “meeting the urban water crisis was a job for State
Governments, not the Federal Budget”.
In addition, to boost
ongoing work in developing and commercialising new water technology, a
Rudd Labor Government will establish a Centre of Excellence in
Desalination in Perth and a Centre of Excellence in Water Recycling in
Brisbane. (Perth and Brisbane are Australian leaders in these
respective fields.)
Federal Labor’s $1 Billion National Urban
Water and Desalination Plan will help fund the construction of major
desalination, water recycling, and major storm water capture projects
across Australia.
A significant increase in the capacity and
scale of Australia’s urban water infrastructure is the only way to
secure the water supply for our major cities and growth corridors.
Australia
needs a national approach to building more desalination plants and
invest more in water recycling, and storm water capture infrastructure
in our major cities if we are to lock in our future water supply.
Increasing
water supply, through demand and supply management by governments,
businesses, and households, and accelerating water projects could help
ease water restrictions and reduce price pressures over a number of
years.
A National Urban Water and Desalination Plan
This
investment will be used to fund a 10% Water Tax Credit for approved
desalination, water recycling, and major storm water capture projects
developed by the private sector, local governments, and State and
Territory Governments.
Federal Labor’s 10% Water Tax Credit -
capped at $100 million a project - will support up to $10 billion worth
of eligible up-front capital costs for approved desalination, water
recycling, and storm water capture projects.
Proposals will be
considered where they clearly demonstrate the provision of additional
water capacity or where they significantly bring forward construction
of approved projects.
The 10% Water Tax Credit would provide
support at the level of 10 per cent of eligible up-front capital costs,
and would be on top of existing depreciation allowances.
Where
the project proponent of a water infrastructure project is a
government-owned business that does not pay Commonwealth income tax,
support from Federal Labor’s $1 Billion National Urban Water and
Desalination Plan will be in the form of a cash payment.
Federal
Labor will require that projects supported by the $1 Billion National
Urban Water and Desalination Plan maximise value for money for
taxpayers:
- It will direct Infrastructure Australia to
undertake an independent cost-benefit assessment of all proposals,
considering criteria such as financial viability, water supply needs,
contribution to water supply and other relevant economic, social and
environmental impacts, and make recommendations on any grants or tax
credit consistent with its value for money objective.
- The
private sector, local government, and state governments will be able to
submit proposals for funding assistance to Infrastructure Australia
over an 18 month period till the end of June 2009.
- Proponents
will be required to have regard to the development of a National
Emissions Trading System and the policy outcomes following the Garnaut
Review in mid 2008.
- Assessment of Local, State or Territory
Government proposals will also have regard to the overall progress of
the supporting State or Territory Government in implementing national
water reforms.
- Projects supported must be delivered by the most cost-effective means, including through public-private partnerships.
A
Rudd Labor Government will also require that projects supported under
the $1 Billion National Urban Water and Desalination Plan be consistent
with environmental best practice and include a commitment to being
carbon neutral.
Projects supported must source 100 per cent of
their energy needs from renewable sources or fully offset the carbon
impact of their operations and any shortfall using nationally
accredited offsets. The offsets used will be in addition to those
required to meet Federal Labor’s expanded mandatory renewable energy
target.
With its carbon neutral guarantee, Federal Labor
recognises that securing our future water supplies is a key part of
tackling climate change.
A Rudd Labor Government will call for submissions and they will be assessed independently by Infrastructure Australia.
In
the transition to the full operation of the plan, existing projects may
be eligible in the period to the end of 2008 if they meet the criteria
of demonstrating additional water capacity or significantly bringing
projects forward. All such proposals will be assessed independently by
Infrastructure Australia.
Unlike the Howard Government’s lack of
involvement of the Commonwealth Treasury in developing water policy,
Federal Labor will consult with the Commonwealth Treasury, the
Australian Taxation Office, the private sector and Infrastructure
Australia in finalising the implementation and final design features of
this plan.
This will ensure that Federal Labor’s Plan maximises
taxpayer value and delivers the greatest benefit to the market and the
community.
Boosting investment in developing and commercialising new water technology
To
boost ongoing work in developing and commercialising new water
technology, a Federal Labor Government will also establish a Centre of
Excellence in Desalination in Perth and a Centre of Excellence in Water
Recycling in Brisbane.
The Perth and Brisbane centres will be
funded at $4 million each a year for five years from the Water Security
Plan for Towns and Cities plan.
These two Centres of Excellence
will ensure the ground breaking work on new forms of energy efficient
bulk water supplies being developed in Australia are built on and the
skills are kept in Australia.
The Centres of Excellence will ensure Australia is a water technology maker, not a technology taker.
The National Urban Water and Desalination Plan builds on Federal Labor’s:
- National
Water Security Plan for Towns and Cities, which invests $250 million
over four years to repair leaky pipes and maximise the efficiencies of
our urban rainwater, stormwater and wastewater systems.
- National
Rainwater/Greywater Plan, which invests $250 million over six years to
offer a rebate of up to $500 for 500,000 homes to help install
rainwater tanks or new piping for grey water use.
Australia’s Worsening Water Crisis
Australia is in the grip of a water crisis as a result of the worst drought in more than 100 years.
Australia’s
major cities are already experiencing water shortages with storage
levels falling to less than 50 per cent of their capacities. In some
cases, they are as low as 20 per cent.
Families and local water
authorities are doing their part through personal conservation measures
and water restrictions – but it is time for fresh thinking and a new
direction on Australia’s water crisis.
The Howard Government has neglected Australia’s water crisis for 11 years and resorted to blaming State and Local Authorities.
This is about tackling environmental challenges, securing and strengthening the economy and creating jobs.
That is why Federal Labor has created a national plan to help drought proof our cities in the best tradition of nation building.