Don't use super to fund water: Seeney

May 28, 2007 - 3:04PM, AAP

Queensland Opposition Leader Jeff Seeney says the state's water infrastructure should not be funded from public servants' superannuation savings.

Last week, Premier Peter Beattie accepted a Queensland Water Commission recommendation for the state to control all bulk water assets such as dams and pipelines, creating a more efficient regime and ending control by numerous council bodies.

However, Mr Seeney said the funding situation was confused and the government needed to make its position clear.

He said a Queensland Water Commission report said public sector superannuation funds could be used to finance water infrastructure.

It would be of concern to every public servant in Queensland to know the government was considering investing superannuation in QSuper funds in the south-east Queensland water projects, Mr Seeney said.

"The fact that Peter Beattie is prepared to talk about investing QSuper funds in his long overdue water projects should be of concern to Queensland public servants," he said.

"It is an issue we need some clarification on.

"It would be, I believe, a decision that would send a shiver of fear through every public servant in Queensland to think their QSuper funds are being earmarked for investment in the government's water projects that are being built in such a panic and at such inflated costs."

The Queensland Investment Corporation (QIC) should be allowed to continue to invest the superannuation funds on an independent basis, Mr Seeney said.

"As soon as the government raises the possibility of interfering in those investment decisions, it raises the possibility that those decisions will be taken to invest money in less-than-the-best option," Mr Seeney said.

He said there was also some confusion over whether private money would be used for water projects.

"On the one hand we have the deputy premier (Anna Bligh) in the parliament last week ruling out the privatisation of existing assets and yet over the weekend, the premier was talking about allowing private investment in water infrastructure," Mr Seeney said.

"There is confusion at the moment about what the government's intention is in regards to the private ownership of south-east Queensland's water assets.

"The people of south-east Queensland who will have to pay for the cost of water for generations to come need to know what the government's intentions are."

AAP