That was one of a number of options that were being considered in strategic planning initiatives, said Chairman of NQ Water Ian Hamilton.

The prospect of a greater population, more large industry and another extended dry spell were all real issues that had to be taken into account, said Mr Hamilton.

"Growth forecasts for the twin cities put the population at 198,000 in 2021," he said. "Civic leaders have been quoted as saying thatís conservative and the figure could be closer to 300,000. * There are also indications we could be facing another drought."

"On the industrial front, we have to plan for the likelihood of Sun Metals Stage 2, a base load power station, and possible expansion of the QNI Yabulu Refinery. That could represent a 40 percent increase in water usage."

"The Board must meet the demands of growth in the twin cities, in a cost effective way that meets customer expectations of quality."

NQ Water was in the process of planning water provision for the next 20 years, taking into account all options including more infrastructure, new technology, more stringent standards and possible alternatives, Mr Hamilton said.

"The argument for industry use of reclaimed water is strong. It reduces demand on limited supplies, leaving more for residential use. Reclaimed water is also extremely attractive from both an expenditure and an environmental viewpoint."

"It can cost ratepayers millions of dollars a year each time we have to pump from the Burdekin. Industrial use of reclaimed water will reduce this risk and also defer tens of millions of dollars investment in new water supply infrastructure"

The case NQ Water planned to put to the councils was strengthened by the fact that existing treatment plants were located close to industry that consumed significant quantities of water, Mr Hamilton said.

Attention Chief of Staff:
Ian Hamilton is available on 0418 777 284 or in New Zealand on 001164 9302 1111. Ken Diehm will be available for comment at the Douglas Water Treatment Plant at Angus Smith Drive Douglas Thursday 8 November at 10.30am. Mr Diehm can be contacted on 4726 0000.

For further information ring Media Liaison Robert Dark on 0417 623 156.

*Townsville Bulletin Wed 29 Aug, 2001.

© 2004 NQ Water