In Wednesday’s Council meeting a letter was tabled from the Department of Regional Development, Manufacturing and Water in relation to the Toowoomba to Warwick (T2W) pipeline (see page 11 of the Council agenda).  The letter states that the Queensland Government has approved funding that will allow Seqwater to discount the water charges on water supplied to SDRC for 10 years from 2026 to 2036.  As the letter makes clear “This means that SDRC will not be required to pay for any fixed bulk water supply charges on water provided by Seqwater for a period of 10 years.”

The letter goes on to say that “to further assist with affordability around the ongoing operation of the pipeline” on 12 December 2022 the Premier approved a grant to SDRC which would reduce the operating and maintenance costs for a 10 year period from $560,000 per annum to $305,000.

The T2W pipeline will provide Warwick with water during a drought in the event that Leslie Dam is empty.  Let’s compare that with Stanthorpe and Emu Swamp Dam.  The minimum estimated annual charge to SDRC under the Emu Swamp Dam documents was $233,140 and was payable even if the dam was empty, or if no water was supplied.  (Let’s be generous in assuming these costs haven’t tripled, unlike the estimated construction cost of the dam.)  This annual cost was in addition to the net buy-in cost for SDRC which I estimate at around $2.4 million.

Here’s some facts from the last drought: 

• Storm King Dam was empty, and water carting was required from Connolly Dam

• If it had been built, Emu Swamp Dam would have been empty in the last drought (based on GBIP’s own modelling and modelling by the Department of Water)

• By contrast, Connolly Dam had enough water to support carting until August 2022 (carting stopped in March 2021)

• And Leslie Dam had enough water to support carting until November 2022

SDRC will pay $305,000 per year for the T2W pipeline, a guaranteed drought supply for Warwick’s population of approximately 15,000 people.

For Stanthorpe’s population of approximately 5,000 people SDRC want to pay $2.4 million upfront and north of $233,000 per year for a water supply that would have been empty in the last drought.  What this means is that SDRC will also have to pay for carting from Warwick when Storm King Dam and Emu Swamp Dam are both dry.  In the last drought this cost $800,000 per month, which was funded by the Queensland Government.

Mayor Pennisi has been downplaying the pipeline to anyone who will listen.  The Chamber president Graham Parker worried about the costs of the T2W pipeline in Chamber’s submission to the Queensland Government (though not, of course, the costs related to Emu Swamp Dam and its pipeline).  Given this approach, do we expect that the Queensland Government will offer to pay for water carting next time we’re in drought?  Or will they leave Mayor Pennisi and Mr Parker to get themselves out of the very dry hole they have dug for all of us?

On the facts above, the deal proposed for the T2W pipeline, which actually does drought-proof the larger population of Warwick, looks far better value for the ratepayers of SDRC than an investment in Emu Swamp Dam.  No doubt if the T2W pipeline were extended to Stanthorpe, which is already a shortlisted option under the Regional Water Assessment process, there is no reason that the Queensland Government might not assist SDRC with the costs again.  And the pipeline is guaranteed to provide water in drought, unlike Emu Swamp Dam.

It's pretty hard to see why the Mayor would not be more open to the possibility of extending the pipeline to Stanthorpe.  If it provides a proper drought supply of water, and it costs less to Council than Emu Swamp Dam, then why wouldn’t you do it?  I just don’t understand.

10 March 2023