Councils Dismayed By Water-deal Exclusion

The Age

Friday January 16, 2009

Peter Ker, Water and Environment Reporter

COUNCILS have demanded to know why they've been frozen out of "water offset" plans in the wake of the Victoria Racing Club's 23million-litre deal.

The VRC won permission to use an extra 23 megalitres of drinking water each year at Flemington as part of an offset deal where the VRC pays for water saving elsewhere.

City West Water was still unable to name the "third party" business that would achieve the water savings yesterday, but The Age believes that a tissue manufacturer in Laverton is a likely partner in the deal.

Councils wanted to know yesterday why the approval was granted after Water Minister Tim Holding had rejected a similar plan 12 months ago that would have helped them water more community grounds.

Maribyrnong Mayor Michael Clarke said he was "overwhelmingly disappointed" by what he considered to be double standards and "cherry picking".

"If it's good enough for the VRC, why isn't it good enough for the City of Maribyrnong?" he said. "What was the logic behind approving the VRC application and the flagrant rejection of the application made by local government?"

City of Whitehorse chief executive Noelene Duff said she hoped councils could negotiate similar offset deals in future. "It is certainly one thing that we would like to be able to consider," she said.

Wyndham City Council chief executive Peter Marshall said water offsets were a good idea in principle and he hoped the council - which has a shortage of suitable sports grounds - could enter into similar deals.

But spokesman Luke Enright said the Government would not reconsider its stance on water offset deals for councils despite supporting the VRC plan. "Most people would understand the need to protect an event that attracts hundreds of thousands of spectators, provides employment for more than 3000 people and contributes millions of dollars to our economy," he said.

"Instead of an offsets scheme for suburban sportsgrounds, the Government and water authorities are focused on other initiatives like providing access to recycled water."

Opposition Leader Ted Baillieu attacked the VRC's use of drinking water.

"It sends a shocking message to those north of the divide who know the water that will go down the (north-south) pipeline will be there to water the roses at the VRC," he said.

"The VRC is perfectly capable of taking up its leadership role and purchasing recycled water."

VRC chief executive Dale Monteith said salinity from Maribyrnong River water posed a danger to the racetrack and the club needed to be careful.

"We can't have anything that is tainted that might otherwise affect the grass of Flemington racecourse," he said.

Mr Monteith said there were difficulties in arranging supply of recycled water and while harvesting rainwater off grandstand roofs at Flemington had been investigated, it would not fully satisfy the club's needs.

Mr Monteith said the VRC did not initiate the plan, but was approached by City West Water.

KEY POINTS

Councils excluded from VRC water deal.

Tissue maker believed set to provide offset water.

Recycled water endangers Flemington grass.

© 2009 The Age

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