Brumby disowns desal plant spy

THE Brumby government has sought to distance itself from a spying scandal at its controversial desalination plant.

THE Brumby government has sought to distance itself from a spying scandal at its controversial desalination plant.

The scandal has prompted nationwide industrial action.

Just eight days before the state election, Premier John Brumby and Water Minister Tim Holding repeatedly stated they knew nothing about the construction company at the desalination plant hiring an infamous union-buster to spy on the workers.

The plant has caused the Brumby government headaches -- especially over price -- following revelations it would cost $18 billion in nominal dollar terms over the life of its 28-year contract.

Secrecy surrounding the contract of the $5.4bn private-public partnership damaged Labor earlier this year when it emerged that police had agreed to hand over information about protesters to the builders of the plant.

Adding to these concerns, recent heavy rain has led some to question the need for the massive desalination plant, which is on the state's east coast at Wonthaggi. Under the terms of the contract, the state must buy water from the plant even in years when Victoria's dams are full.

The opposition has repeatedly called for all the contract documents to be released to the public to give Victorians a clearer idea of what they will be paying for over the next 28 years.

A recent Newspoll, published in The Australian last week, showed voters believed the opposition could do a better job on water management compared with Labor -- a reversal on the issue from the 2006 election.

Mr Brumby said yesterday evidence that construction giant Thiess had paid a notorious "union scab" to spy on union delegates, union members and contractors at the desalination plant was "deeply concerning". He said if the conduct was proved to have occurred, it was completely unacceptable. "We would expect the company to address these issues."

Mr Brumby said he was not concerned about any delays on building the plant as the contracts set out timelines.

The plant is due to be finished in December next year.

"The company needs to comply with that. If they don't comply they don't get paid," the Premier said.

Opposition Leader Ted Baillieu said it was not right for the government to try to absolve itself of responsibility for the scandal.

Mr Holding "has sought to wash his hands of anything that's happened on the project", he said. "My recollection is that in fact the state government was deeply involved in setting those arrangements, the work arrangements and the contractual arrangements with unions of the time."

Mr Baillieu said he was worried about the taxpayers bearing the costs of industrial action.

"My principle concern here is if this leads to increased costs at the desal plant, then families will be paying more," he said.

Additional reporting: Ally Forward