Cairns water security ratepayer costs revealed in business case

Every ratepayer in Cairns could be slugged with $6800 in extra fees if the state and federal governments refuse to play ball.

A BUSINESS case has doubled down the dire need for water security investment in Cairns as the cost to ratepayers of a funding refusal is revealed.

Cairns Regional Council has jumped through what it hopes is the final hoop to secure state and federal cash pledges to source water from the Mulgrave River.

External consultants have completed an options analysis business case for the project, which will cost $248m, not the $215m previously estimated.

It found the region faced a potential drinking water shortfall by 2026 if nothing was done – and significant financial impacts on ratepayers if no funding was forthcoming.

Cairns’ primary water source, Copperlode Falls Dam, was built in 1976 when 58,000 people lived here. The dam has served Cairns well, but the city’s service population has more than tripled to 198,000 (residents and visitors). Picture: Brendan Radke

Increases in costs would peak at 32 per cent initially, then progressively decrease over the next 30 years.

Mayor Bob Manning said that translated to an average of $226 extra per year for each water user over 30 years – or about $6800 in total per user.

“The state government has said to us perhaps we could do this with debt,” he said.

“That would then take us into ratio-red territory, where we’re not supposed to go.

“And yet we’re being led there.”

The Mulgrave River will be used as a new water source for the city. Picture: Tourism and Events Queensland

Leichhardt MP Warren Entsch has previously stated an election commitment would be unlikely because the request “has only been put on (his) desk in the past 12 months”.

Labor candidate for Leichhardt Elida Faith has also made no commitment – and while state MPs are supportive, no deal has been struck.

Division 2 councillor Rob Pyne said if the Prime Minister and Opposition Leader came to Cairns on the campaign trail without funding, they did so in the knowledge they were failing the community.

Mayor Bob Manning said Cairns deserves its fair share. Picture: Brendan Radke

“I think it’s relevant that there is unanimous support for this project,” he said.

The council is requesting the same amount from each political tier despite the higher new cost estimate.

That means ratepayers would still have to front the new $33m shortfall.

“We know that council and ratepayers will have to meet some of the costs of this project, and we accept that,” Cr Manning said.

“But when state and federal governments are investing hundreds of millions of dollars in water projects for other regions in Queensland – surely our water needs warrant similar support.

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Originally published as Cairns water security ratepayer costs revealed in business case