Morrison government pledges $5.4bn to build Hells Gate Dam in north Queensland

Scott Morrison has pledged $5.4bn to build what would become Queensland’s largest dam, creating 10,000 jobs and opening up an irrigation area bigger than the entire Gold Coast.

The federal government has committed $5.4 billion for what will become the state’s biggest dam, 84 years after it was first proposed.

Hell’s Gate Dam in the state’s far north would cover a 60,000ha irrigation area – bigger than the entire Gold Coast – to deliver a $6 billion economic and jobs boom under the Morrison government budget pledge.

Veteran independent MP Bob Katter has been pushing for the dam’s construction for years, often raising it as a condition for his parliamentary support which could be vital in the event of a hung parliament after the election.

At 2100 gigalitres it would become Queensland’s largest dam and one of Australia’s largest, on par with Sydney’s Warragamba Dam but well shy of Tasmania’s Gordon Dam.

The dam, 120km northwest of Townsville, will cost $5.4 billion to construct, but it will deliver $6 billion straight back into the economy within the following years as well as creating 10,000 jobs.

Prime Minister Scott Morrison in Queensland this week. Picture: Brendan Radke

Its 2100 gigalitre capacity is more than four Sydney Harbours, and will help provide 60,000Ha of irrigation for farmers – about the same area as 60,000 Suncorp Stadiums, as well as supporting Charters Towers water supply.

While the project is still waiting for the business case to be finalised before it can get final approval from the state authorities, Prime Minister Scott Morrison is putting the money on the table to show the government’s commitment.

“We need to build more dams in Australia. Building dams makes our economy stronger by supporting our agricultural industries to realise their true potential,” Mr Morrison said.

“We’ve done the homework on Hells Gate Dam and it’s now time to get on and build it.

“We’ve put out money on the table, so let’s cut the green tape, get the approvals and get it done.”

The project is expected to create 7000 jobs during construction and another 3000 after its operational through new and expanded agricultural opportunities to water supply will bring.

A business case for the project is expected to be finalised in June, when it will move into environmental assessment by the state government.

The Burdekin River where it flows into the proposed Hells Gate Dam site. Picture: Matt Taylor

The scale of the project means there will be a long construction time, with some speculation of a completion date around 2032, though no specific time has been locked in while the business case and approvals process remain ongoing.

Mr Morrison said there had been “frustrations” in previous attempts to build dams in Queensland.

“I’m hoping that will change and we’ll get greater support now from the Queensland Government to support our dam projects … which will both deal with important issues of managing floods and … open up major agricultural opportunities right across Queensland.”

Deputy Prime Minister Barnaby Joyce said it was an investment in helping the region realise its potential as a food producer both domestically and globally.

“The sooner water flows in the west, the sooner we can sell more products to the world and earn the money that will help make our nation as strong as possible as quickly as possible,” Mr Joyce said.

Herbert MP Phil Thompson said it would have flow on effects for Townsville.

“The Townsville Port is well-placed to handle exports from the region, especially after our forward planning and investment into the channel widening project,” he said.