Both the Libs and the Labs were going to build a Desal plant, so not political party specific regarding the existence of the Desal plant.
I don't know much about the N\S pipeline, so can't comment on the merits one way or the other. Though to say if the Libs believed there would never ever be a need to use it, they had plenty of opportunity to sell it as scrap.
It would cost Victorians a lot more than any possible compensation to build the EW, and the money saved could be more effectively spent on other transport issues.
The same as the stock market, if there are better areas to invest your money, it makes sense to sell shares (even at a loss) and reallocate the cash into more productive and immediate performing stocks.
