Public servants warned dam spills were political risk to Labor before state election
The risk of dams overflowing and becoming an election issue for Labor was flagged by an independent water authority before the government moved to cancel its desalination order in 2022.
Internal emails received by Age The demonstration water officials flagged the “material reputational risk” of the leaks as households paid for desalination in the days before then water minister Harriet Shing canceled the remainder of the 15 gigalitre order based on independent advice.
The revelation is found in hundreds of pages of correspondence obtained by . Age Also included under freedom of information laws is an email in which a public official warned two months before the state election that the opposition could use high water levels as a weapon as a government failure.
At the time, water storage levels were approaching 95 percent capacity (the highest level since 1997) and La Niña wet conditions were predicted to continue. Within weeks, Thomson Dam would flood for the first time in 26 years, ahead of devastating floods in October 2022.
Documents show that on September 15, 2022 – eight days before the public announcement to cancel the remaining water order – Melbourne Water’s “early informal advice” was that it was “not possible or feasible” to cancel or postpone the order.
A Melbourne Water presentation prepared for the September 13 quarterly storage management meeting recommended managing increased storage levels through the release of water. He did not request that the desalination order be rescinded.
But days later, Shing said the government would abandon the rest of the 15 gigalitre order.
Under Victoria’s water governance framework, statutory water companies provide independent, technical advice and manage water supply in the public interest.
But correspondence from South East Water shows staff were considering the political implications of the dam leak in the week before the decision.
In an email, a water authority employee wrote that Melbourne Water’s technical information on its own provides limited insight. But he warned of political risks to the government “consistent with our internal knowledge”.
The most significant of these was the “financial reputational risk” of water flowing over the Thomson Reservoir spillway as desalinated water enters the system. The employee warned that in an election year this “could be perceived by the opposition as a failure of the current government”.
“Whatever the opposition’s stance, there are likely to be news articles about the community paying for desalinated water while the system is falling apart.”
Melbourne Water is consulting other water authorities before making its recommendations to the government, which it insists is independent.
However, the correspondence appears to support insider claims that the process has become politicized. A source who worked in the water sector in 2022 and could not speak publicly said that there was an impression that the minister wanted the order to be canceled for political reasons.
Announcing the cancellation on September 23, Shing said Melbourne Water had provided independent advice to the Victorian government recommending it cancel the remainder of the order. He said he accepted that recommendation and the desalination order was stopped immediately.
Households and businesses in Melbourne pay for desalination through their bills. The suspension of the order resulted in bills being nominally cheaper for the rest of the year.
Dr D., a senior lecturer in water policy at the University of Melbourne’s School of Law. Erin O’Donnell said it was “extremely unfortunate” that political consequences were being highlighted by South East Water.
“This is outside their remit as independent organisations, and by doing so they undermine both their independence and technical expertise,” he said.
O’Donnell said there are good reasons to suspend the desalination order when water storage levels are high. He said households and businesses in Melbourne should not have to pay for more water than they need and authorities should act as efficiently as possible.
Dam leaks also increase the risk of flooding, he said, and desalination has environmental impacts.
“Future water security should always be part of planning, but when tanks are full or close to full, adding more water at that point has limited value,” O’Donnell said.
“Decisions that balance the risks of getting more water than necessary and the need to ensure future water security are highly technical. That’s exactly why we need independent water authorities who can give clear, fearless, evidence-based advice to ministers. Ministers will then decide for themselves what the political consequences are and how they should be managed.”
The documents also reveal the minister’s office shared a media briefing with Melbourne Water on September 20, details of which were redacted hours before the water authority advised Shing’s department to cancel the order.
Board minutes also reveal South East Water reaped customer savings from the cancellation, partly due to “political sensitivity” and uncertainty from La Niña rains.
Much of regional Victoria has been struggling with drought since then and the 2026 water outlook has warned there is a chance Melbourne residents will return to water restrictions.
The government has since begun considering plans for a second desalination plant or expansion of the existing Wonthaggi plant in preparation for future water demand and periods of drought in a changing climate.
The minister’s office, Melbourne Water and South East Water did not respond directly when asked whether political consequences had influenced independent authorities or advice.
“We have put the safety of Victorians first by canceling the 2022 desalination order to help prevent avoidable flooding – this was based on expert advice from Melbourne Water following unusually high rainfall and storage levels,” a government spokesperson said.
“We built the Victorian desalination plant to ensure Victorians have access to safe drinking water when they need it.”
A Melbourne Water spokesman said the authority provides independent advice to the government each year.
“Based on advice at the time, Melbourne Water assessed the unusually high rainfall and determined that the desalinated water order was no longer necessary.”
South East Water strategy and stakeholder general manager Karen Lau said desalination was an important part of Melbourne’s water supply.
“Melbourne Water consults South East Water when advising the Victorian government on desalinated water orders,” he said.
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Rachel Eddie is The Age’s Victorian political correspondent. Contact her at rachel.eddie@theage.com.au, rachel.eddie@protonmail.com or via Signal at @RachelEddie.99.Connect with: X or email.
