The council has dismissed suggestions that the Highland Source pipeline is "a white elephant."
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Resident Tempe Hornibrook described the 81km water pipeline from Bowral to Goulburn as such during open forum at Tuesday night's council meeting.
Ms Hornibrook was opposing the increased expenditure on the new Performing Arts Centre at the time.
"If you don't agree then don't lumber the community with another white elephant like the Highland Source pipeline," she said.
"It's $55 million plus, plus, plus maintenance. It's not called the soaker hose for nothing."
Cr Andrew Banfield said it was disappointing that people perceived the pipe was never used and asked general manager Warwick Bennett to respond.
Mr Bennett told the meeting that the infrastructure was used every day of the year.
"Goulburn uses about 6.5 megalitres of water each day and about 1ML is supplied from the pipeline. We need to use it every day simply because the water will go stale or the pipe will crack from drying out too much," he said.
However, recent reports to councillors showed that in June, a total 0.9ML was transferred from the pipe into Goulburn's supply. In May it was 10.53ML, April- 6.66ML and March - 1.75ML.
Utilities director Marina Hollands said the pipeline occasionally experienced breaks, like any other pipe, but her department was assessing the pump station this year in an effort to reduce these.
The Highland Source Pipeline cost $50 million and was officially 'opened' in October, 2011 before an operating regime had been finalised.
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