The Department of Trade and Economic Development has notified the Eyre Regional Development Board (ERDB) that funding applications for $85,000 for the water plan and $100,000 for the proposed Eastern Eyre Peninsula mineral export hub have been rejected.

Member for Flinders Liz Penfold said she was puzzled by the decision to knock back funding despite the “dire state” of local water supplies and the need for a dedicated minerals export on eastern Eyre Peninsula.

“I commend ERDB for working to ensure our region has a sustainable water supply, and a dedicated port,” Mrs Penfold said. “[But] comments from State Government ministers following BHP Billiton’s announcement that it won’t be producing potable water for Eyre Peninsula are disturbing.”

She said previous promises that the Whyalla desalination plant was going to supply potable water to Whyalla and Eyre Peninsula makes the $48.6 million spent on extending the River Murray pipeline to Kimba “another government farce”.

“The reason given for the pipeline extension, which further stresses the River Murray, was that it would be used for the delivery of desalinated water to Eyre Peninsula in the future,” she said. “BHP’s plan to build a desalination plant at Whyalla for use at its Olympic Dam mine would mean more water would be available from the Adelaide desalination plant, if it is expanded above current plans.”

State Liberal candidate for Flinders Peter Treloar says the situation is an opportunity to look again at private and public desalination plants to provide water for Eyre Peninsula’s needs.

“Much of the necessary infrastructure for desalination plants and the green power to supply them can be built by private enterprise at virtually no cost to taxpayers,” he said.