State Government wants more money to build Rookwood Weir

THE Palaszczuk Government will demand more money from the Commonwealth to build the Rookwood Weir after releasing a shock business case pointing to major cost increases. The Premier has also insisted her controversial tree clearing plans are not bad laws.

The business case for the Rookwood Weir project in central Queensland shows costs have blown out.

THE Palaszczuk Government will demand a major boost to the $130 million in Commonwealth money promised to build the Rookwood Weir after releasing a shock business case pointing to major cost increases.

Despite predictions of a $261 million price tag for the long-mooted dam, near Rockhampton, Building Queensland has put the cost at a whopping $352 million.

In a blow to the long-awaited dam project, which would be a major boost for central Queensland industry and farming, the business case says more Commonwealth funding is “critical for reducing the net funding gap”, meaning it’s unlikely to progress without it.

“Break-even prices, with no Commonwealth and Queensland Government funding is likely to result in water prices that are unattractive for water users, particularly for agricultural producers,” the 262-page report says.

Natural Resources Minister Anthony Lynham said federal MPs had long discussed a $260 million price tag, but that would just not be enough.

“Building Queensland has assessed all the facts in its detailed business case and says that the project is not commercial with the Commonwealth offer of $130 million,” he said.

“It shows, quite clearly that without a fair contribution from Canberra, the price of the water will be too high for farmers and other potential users.

“It’s time for Central Queensland’s federal parliamentarians to step up to the plate and secure extra dollars from their Canberra bosses.”

Dr Lynham has already sent the business case to his federal counterpart, fellow Queenslander David Littleproud, to lobby for more money.

He said the Palaszczuk Government could not decide whether it wished to proceed with the project until it knew whether the Turnbull Government was willing to pay more.

As well as the cost blowout, and a predicted cost escalation of 2.5 per cent every year the project is delayed, the business case said the weir could add 76,000 megalitres of water for agricultural production along the Fitzroy River, as well as an eventual back-up supply for Gladstone, Rockhampton and Livingstone Shire.

The project would create 100 construction jobs, increase agricultural production and provide for irrigated crops like citrus, grapes and other vegetables, as well as cattle feedlots.

Water would be available within two years of construction starting.

At a press conference in Rockhampton, Dr Lynham would not detail how much more the state wanted from the Commonwealth, what percentage of the project each side of government should fund or what extra money the State Government might be prepared to put forward.

Meanwhile, Ms Palaszczuk insists her controversial tree clearing legislation are not bad laws, despite it being the only piece of defeated legislation in the last parliament.

Travelling through Western Queensland today – where the laws have been touted as being unpopular – Ms Palaszczuk said the laws would not be fast tracked through parliament for their reintroduction and would go through the normal committee process.

Longreach Regional Council Mayor Ed Warren said the laws did present an “issue” for regional Queenslanders but acknowledged it was an election commitment by Ms Palaszczuk.

“It is an issue for some, but a lot of our country out here is open downs country on it with not many trees on it,” he said.

“I think they (locals) are pretty keen to engage with the government to have themselves listened to and I think that is pretty important to do that.”

While the laws will be introduced to the parliament and go through the normal committee process, the legislation is unlikely to be watered down due to Ms Palaszczuk now enjoying a two seat majority on the floor.