Maryborough’s $18m water storage project ‘secretly cancelled’

Wide Bay’s MP says an $18m water storage project for Maryborough has been “secretly cancelled” but now his fears have been described as being “light on facts”.

Member for Wide Bay Llew O’Brien.

The federal and state governments have been accused of “secretly cancelling” $18m in funding for a water storage project in Maryborough.

Funding was announced for the 6000 mega litre off-stream water storage project at Glendorf by Wide Bay MP Llew O’Brien under the former Coalition Government in April, 2019.

But on Tuesday, Mr O’Brien said the funding was no longer available under the new federal government.

“We know this is the water security project for Maryborough that the Queensland labor government never wanted – and now they have conspired with the federal Albanese government to kill it off,” Mr O’Brien said.

The project was initially delayed when the closure of the Maryborough Sugar Mill was announced in November 2020.

But Maryborough Canegrowers and Rural Funds Management worked with representatives from SunWater to advance the proposal.

“Negotiations between all parties were proceeding up until the time of the May 2022 federal election,” Mr O’Brien said.

Wide Bay MP Llew O'Brien is worried for the future of an $18m water storage project.

“It was anticipated a contract would be in place in time for the new federal government’s contract execution deadline of April 28, 2023.

“But leading up to that deadline there was a wall of silence from SunWater, and inquiries from my office to the Government were not responded to.

“Then (on Tuesday), in Senate Estimates, my suspicions that the deal had been secretly killed off were confirmed, when Senator Bridget McKenzie asked the Department of Infrastructure, Transport, Communication, Regional Development and the Arts if a contract for the project was executed.”

The department said in response that on March 24, 2023 it received advice from SunWater that it would not proceed with the project as the company was unable to meet contract and construction deadlines.

“Such was the lack of interest by the state labor government in this project that it may not have even sought extensions to those deadlines,” Mr O’Brien said.

Queensland’s water minister Glenn Butcher in Townsville to announce $11.5m for regional water assessments. Picture: Shae Beplate.

“It wrapped the project’s cancellation up in secrecy by not telling key stakeholders like Maryborough Canegrowers it had axed contract negotiations.”

Queensland Minister for Water Glenn Butcher responded to Mr O’Brien’s claims on Wednesday.

“As always with half-baked political attacks from the LNP, they’re big on the bluster, but light on the facts,” he said.

“In July 2021, I wrote to then LNP Deputy Prime Minister, Barnaby Joyce requesting the ‘immediate release’ of the $18m to SunWater. I never even received a reply.

LNP Minister Deb Frecklington.

“The only place Llew O’Brien and the LNP should be pointing fingers is at themselves.”

Water supply is a key issue for Maryborough and the Fraser Coast, with this project expected to provide water security to farmers in times of drought.

Shadow Minister for Water and the Construction of Dams Deb Frecklington accused the Labor Government of “hoodwinking” the people of Maryborough and the Wide Bay.

“The chaos and crisis within the Palaszczuk Labor Government has reached a devastating new low for the people of Maryborough,” Ms Frecklington said.

A spokeswoman for the Infrastructure, Transport, Regional Development and Local Government Minister, Catherine King said the $18 million was committed for the Lower Mary Offstream Storage project under the former Australian Government’s Community Development Grant program in 2019.

“Sunwater Ltd advised the Department of Infrastructure, Transport, Regional Development, Communications and the Arts on March 24, 2023, that the project could not be completed by the program’s June 30, 2026, delivery deadline,” she said.

“On this basis, the department advised Sunwater Ltd the funding commitment would be withdrawn.

“If an eligible organisation wanted to pursue the project, grant guidelines have already been released for the first round of the Australian Government’s new $600 million Growing Regions Program, which will deliver targeted funding for priority regional infrastructure and community projects across the nation.

“Through this program, we are delivering on our commitment to establish a new regional grants program focused on integrity, transparency, accountability and collaboration – to ensure a fair process for our regions.

“Expressions of interest under the program will open on July 5 this year, and the government encourages potential applicants to review their eligibility and consider applying.”