By Dominique Tassell
Local elected officials and groups have reacted to the news, delivered in last night’s federal budget, that funding for Emu Swamp Dam has been deferred over four years.
$126.5m was allocated to the project and will now be “reconsidered once business cases are completed and viable pathways to delivery are determined and assessed”.
The Nationals Leader David Littleproud said in a statement that “Labor’s Budget has ripped regional Australia’s future from them, by taking away the tools they need to grow and produce Australia’s food and fibre”.
Mr Littleproud said it would put more pressure on the cost of living.
“Taking $4.6 billion away in dam funding not only takes away opportunity, it takes away flood mitigation to regional communities, which just doesn’t make sense.”
Member for Southern Downs James Lister spoke out against the announcement, stating that Emu Swamp Dam is an essential project that will create jobs and prosperity for the region.
“We need Emu Swamp Dam,” he said. “A pipeline carrying someone else’s water from Toowoomba to Warwick won’t do a thing for jobs and production in our fruit and vegetable industry, and it won’t do a thing for Stanthorpe’s town water supply.”
“So the state Palaszczuk government minister for water, Glen Butcher, needs to get on the blower to his Labor mates in Canberra and start fighting for us in Queensland.”
“The Labor party is laughing at us in Southern Downs,” Mr Lister said. “All those Labor promises over many years – at both state and federal level – that they supported Emu Swamp Dam were just deceptions to string us along.”
“What happened to the old Labor Party of generations past which was proud to build dams to provide food security, jobs and prosperity for country Australians? The Labor Party must explain how our country is going to pay for their welfare and social spending agenda when they slash the infrastructure projects our economy needs to grow and keep up with government spending.
“We’re heading into a recession next year. Petrol and diesel prices are through the roof and still climbing, and the price of electricity is going up by about 50 per cent next year. These things mean that people are going to be losing jobs. So now is the time to invest in productive, job and food-creating infrastructure – not to abandon it.”
Mr Lister said he would “continue to fight hard for water security for farmers and householders”.
“I will forcefully remind Labor every day of their promises to support Emu Swamp Dam.”
Granite Belt Irrigation Project (GBIP) stated the Board of Granite Belt Water Limited “recognises that it is the role of the Australian Government to review expenditure programmes and projects in light of the current economic and fiscal outlook”.
GBIP Chief Executive Officer, Lloyd Taylor, said that while funding has been deferred Granite Belt Water continues to work cooperatively with both the Queensland and Australian Governments to facilitate the project’s construction.
“All infrastructure projects have experienced hyper-escalation in costs due to the impacts of Covid, supply chain challenges and international events. Reviews of government expenditure are appropriate because ultimately the taxpayers are required to fund the majority of the cost of building any infrastructure whether it be road, rail or water infrastructure,” Mr Taylor said.
“We completed our detailed business case in 2018 and after a tender process provided advice to both the Australian and Queensland Governments on the anticipated cost of the project in 2021.”
“We will continue to work cooperatively with the Australian and Queensland Governments to develop the viable pathways to the delivery of this vital project for the Granite Belt.”
“This vital project not only provides an additional 28 per cent of urban water storage capacity for Stanthorpe but also mitigates climate change and provides drought resilience to the horticultural sector which supplies the East Coast of Australia with apples, tomatoes, strawberries, wine grapes, strawberry runners, capsicums and green vegetables over summer.”
“Without a reliable source of water to this vital Queensland food bowl, the cost of production will increase further impacting on the cost of living and the economic prosperity of the region.”
“This project will not only increase water security to the region, it will also create nearly 200 jobs during construction, as well as 700 long-term full-time positions in agriculture and supporting businesses, to help substantially grow the productivity of Southern Queensland,” Mr Taylor said.
He stated that local irrigators remain committed to providing $23.4 million toward the construction of this project, the highest proportion of community investment in water infrastructure in Queensland’s history, and a conditional commitment of $13.6 million from the Queensland Government.
When asked whether GBIP would pursue additional funding through other avenues, Mr Taylor stated that “the project will require funding and approvals from the three major stakeholders, the irrigators, the Australian and Queensland Governments to proceed”.
“Granite Belt Water is working cooperatively with all stakeholders to progress the project.”
If the project is further paused as a result of this budget decision, will you reduce expenditure on things such as PR, the office in Stanthorpe, travel, advertising, or other expenses?
When asked if expenditure will be affected by last night’s announcement, Mr Taylor stated that “the project remains paused and any activities undertaken by (Granite Belt Water) will be done in consultation with the stakeholders and within available budgets”.
Protect Our Water (POW) released a statement in response to the news.
“The current business case does not stack up based on the reported total cost following tenders,” they said. “Those costs are now more than a year old in a high inflation environment.”
“The issue of cost overruns has never been addressed, and neither State nor Federal governments have shown any appetite to cover these. GBIP does not have the land it needs, it does not have the water allocations it needs, and the true cost of its environmental offsets are yet to be properly factored in.
“GBIP has had more than a year since the tenders came in to update the business case, and the fact that it has not speaks volumes about the likely impossibility of making an acceptable economic case.
“If our Council was prudent it would wait until the new business case is produced. It would wait until GBIP can show it is viable. Continuing to waste ratepayers’ money on a project that may never happen needs to stop, now.”
