Budget news

Treasurer Jim Chalmers yesterday delivered the 2023-2024 Australian federal budget.  On page 74 of Budget Paper No. 2 is an update on legacy projects in the National Water Grid Fund, which states:

The Government will achieve savings of $872.5 million over 11 years from 2022–23 through responsible investment decisions on National Water Grid Fund projects, including not proceeding with … $162.5 million over 7 years from 2026–27 for the Emu Swamp Dam and Pipeline project, which is being reconsidered against alternative options as part of the regional water assessment.

Given the failure of the dam proponents to deliver a new business case, as flagged in October’s mini-budget, this is not a surprising announcement.  In fact, Dungowan Dam’s funding has also been pulled “as the business case did not provide sufficient support for construction of the project”.  It is certain that if a new business case had been delivered for Emu Swamp Dam it would not have provided sufficient support for construction: with the updated costs from the tender process the dam now has a negative benefit cost ratio.

Emu Swamp Dam is unlikely to proceed until there is a new government that is happy to squander millions of taxpayer dollars on a project for a mere 50 irrigators. 

Mayor Pennisi is meant to represent residents, not irrigators, so it’s time for him to show a little leadership and move ahead with other projects that could secure urban water security before the next drought.  These projects are already on the table and can be delivered for less money than Emu Swamp Dam.  They also offer, which Emu Swamp Dam does not, urban water security for Stanthorpe when Storm King Dam is empty. 

10 May 2023