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23 Aug 2005 Plumbing and Drainage and Other Legislation Amendment Bill 2623 a program of demand management options that will allow the most cost-effective delivery of water services to Cairns city, to develop a framework and a model for least-cost planning and demand/supply side options and to provide recommendations that will integrate planning to allow cost-effective decision making, which of course is in the best interests of not just the environment but also the ratepayers, who are going to be the ones who will fund any initiatives that come from this study. I would like, then, to turn to the conclusions and recommendations of this report. I said that it was long-awaited. One of the reasons it took such time to come to fruition was that negotiations had to be undertaken between the state government and the Cairns City Council. I must say that these at times were torturous. I am pleased to say that we have come to a resolution in terms of the way forward. I would like to commend Minister Desley Boyle for her involvement in achieving that outcome. It is vitally important that there is agreement between the state government and the city council as to how we proceed in this regard. I would like to make particular reference to the conclusions and recommendations from the study. Sitting suspended from 6.30 pm to 7.30 pm. Dr LESLEY CLARK: Before I describe the conclusions and recommendations of the least-cost planning study, however, I must explain that demand analysis has been made very difficult by the poor quality water consumption data supplied to the consultants by Cairns Water. The study revealed that Cairns Water does not actually know exactly where all of its water is going. The water consumption records show that the total consumption at times exceeded production—a miracle not even the best local government could achieve—and then there is a lack of any sort of regular seasonal pattern in the records of each sector. The consultants put the missing water that could not be accounted for at 20 per cent. It was an estimate, but it was the best they could do. But of that 20 per cent, they also estimated that half of that amount was due to system losses—that is, leakages. Based on the amount of water that is consumed every year in the Cairns city area, that means that approximately 2.5 billion litres of water is likely to be leaking out of the system every year. No wonder Cairns residents who are on permanent water restrictions are angry at that situation and it clearly points, as the consultants did, to a need to address that situation as a matter of urgency and develop better data records. Turning to the conclusions and recommendations—I want to read this into the Hansard record because it is so important—the conclusion states— Based on the assessment of least cost options for the Cairns Water supply it is concluded that: 1. Analysis of the demand trends over the past five years indicates that the per capita demand reduced by 10% following the introduction of a two part tariff, but has rebounded by approximately half this amount over the past two years (after climate correction of demand). 2. Per capita demand over the past three years averages 510 L/day including non-revenue water. This equates to an average of 26,000 ML/a of total demand. 3. It is estimated that the total population served ... will grow to 252,000 to the year 2044. Bulk water supply of approximately 48,000 ML/a will be required to cater for this population at current levels of consumption. 4. Demand analysis was hampered by lack of quality customer database data. Resulted in difficulty in estimating the level of NRW— that is, non-revenue water— and the level of seasonal use in each consumer category. 5. Constant per capita baseline has been assumed, but this should need to be monitored carefully in the coming years to ensure that any increase is identified and the appropriate adjustments made to the demand and supply programs. 6. A range of demand management scenarios, consisting of groups of initiatives was assessed using an economic model to determine cost effectiveness. It was found that a program consisting of the following elements would best meet the objectives of the program: • Community education • Fixture efficiency code for new development • Showerhead retrofit program • Non-residential water audits • Non-residential external audit program • Mandatory fixture labelling • Minimum performance standards for water using fixtures and appliances • Establishment of Pressure Management Areas and District Metering Areas 7. The Least Cost Plan for Cairns Water was found to be a combination of: • The development of the Mulgrave Aquifer as the next source of supply • Demand Management Program as outlined in Section 7.4.3. 8. Cairns Water should also consider different options with respect to customer billing which would include inclining block tariffs and more frequent billing, with both access and usage charges on the one bill. The use of a ‘free’ allowance should be reconsidered in the context of a price signal to the customers. 9. It is estimated that the implementation of the demand management program ... would cost approximately $3m over the next five years, at which stage the effectiveness should be fully reviewed. This approach will save approximately 7% over the baseline forecast, which will rise to 12% when taking account of recently implemented national water efficiency standards.
2624 Plumbing and Drainage and Other Legislation Amendment Bill 23 Aug 2005 10. A performance tracking and monitoring program should be developed to more effectively understand the program’s performance. I turn now to the recommendations, and here I need to explain that, with regard to the finding of the least-cost plan for water in terms of supply, whilst it was the development of the Mulgrave aquifer as the next source of supply, there has been further work done on that issue. The recommendations then relate to that, too. The recommendations state— The assessment of water resources options (refer to Appendix A) recommended that CCC— that is, the Cairns City Council— adopt the following strategy for the development of the Cairns water supply (to be completed in the next 18 months): 1. Undertake investigations of the Mulgrave aquifer to confirm the assumptions in the work to date and address the following issues: - Safe yield - Water quality and required water treatment processes - Impact of extraction on Mulgrave River flows - Possibility of agricultural contamination - Potential for salt water intrusion - Impact on the development of the Gordonvale area - Assets required to integrate the aquifer supply into the distribution system - Operational optimisation of the water resources. 2. Progress the approvals for the Barron River scheme. This should include: - Review of the required treatment process ... - Possibility of agricultural contamination - Assessment of the appropriate sizing of the intake and WTP. 3. Conduct market investigations as to the availability and cost of water allocations to be purchased from existing water entitlement holders in the Barron scheme. 4. Investigation of the feasibility of upgrading the dead storage at Copperlode Dam: - Options for the replacement of the lower intake valve - Assessment of the treatment plant upgrading required to treat lower quality water from the dam. Based on the outcomes of the Least Cost Planning Study it is further recommended that: 1. Cairns Water commence a demand management program aimed at reducing demand through a combination of water conservation initiatives, improved water efficiency in new development. Scenario 3a is the preferred strategy for demand management in Cairns Water. A key step in this process will be the development of a Supply System Loss Management Plan. That is, to reduce leaks. The recommendations continue— 2. Cairns Water produce a tri-annual water balance reconciling: - Total water production; - Total water consumption; and - Total wastewater collected. 3. Cairns Water further review options related to recycled water and rainwater tanks in future greenfield areas. 4. Cairns Water investigate the cause of the inconsistencies in the data from the customer database. This will enable calculation of the water balance to WSAA standards. I am very pleased to say that the council has adopted the thrust of these recommendations, but it is absolutely vital that there is a method whereby the community can monitor the progress made in their implementation. I have read the recommendations into the record to give people some appreciation of the complexity of the issues that we are dealing with here, and we really need to have either the council or the state government provide a user-friendly residents guide, if you like, to this report so that they can understand its findings and understand its recommendations so that the community can be informed and make decisions about how well the council is actually implementing this report, because it is absolutely vital for our future that we do hold the council accountable for implementing this report. The mayor is still on record as saying that we do need another dam. I want to clarify that, when he says that we need another dam, it is not another dam to provide Cairns with water; it is actually another dam that can provide the irrigators with water—that is, the proposed use for the Nulinga dam—which would then free up the Tinaroo Dam and Barron River to be utilised for Cairns city. It is important that I provide that understanding for people. For the long term, though—again, this is something on which I have worked with the previous minister for water resources—we are in the process of preparing a regional water supply strategy for the whole far-north Queensland area, just like the one that has been prepared for south-east Queensland and central Queensland. That is going to look at the long-term water supply issues. That, of course, is post 2044, which is when the least-cost plan will take us to, so we are looking at another 39 years before we actually need to look at anything beyond the Barron River and the Mulgrave aquifer. I am on record as saying that another dam may indeed be needed, but I do not believe that it is inevitable.
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PROOF ISSN 1322-0330 WEEKLY HANSARD
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Table of Contents — Tuesday, 23 A
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2536 Papers 23 Aug 2005 PAPERS PAPE
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2538 Ministerial Statement 23 Aug 2
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2550 Scrutiny of Legislation Commit
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2552 Private Members’ Statements
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2564 Members’ Ethics and Parliame
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2566 Matters of Public Interest 23
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Page 41 and 42: 2572 Matters of Public Interest 23
Page 43 and 44: 2574 Matters of Public Interest 23
Page 45 and 46: 2576 Constitutional and Other Legis
Page 47 and 48: 2578 Transport Legislation Amendmen
Page 49 and 50: 2580 Transport Legislation Amendmen
Page 51 and 52: 2582 Housing Legislation Amendment
Page 53 and 54: 2584 Education (Queensland College
Page 55 and 56: 2586 Succession Amendment Bill 23 A
Page 57 and 58: 2588 Succession Amendment Bill 23 A
Page 59 and 60: 2590 Queensland Competition Authori
Page 69 and 70: 2600 Racing Venues Development Amen
Page 81 and 82: 2612 Plumbing and Drainage and Othe
Page 91: 2622 Plumbing and Drainage and Othe
Page 99 and 100: 2630 Child Safety Legislation Amend
Page 111 and 112: 2642 Adjournment 23 Aug 2005 One pa
Page 113 and 114: 2644 Adjournment 23 Aug 2005 years.
Page 115: 2646 Adjournment 23 Aug 2005 Finall
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