Barnaby Joyce takes swipe at Qld Premier while announcing $483m to build dam

Deputy Prime Minister Barnaby Joyce has taken a swipe at the Queensland Premier while announcing a half-billion dollar project.

Deputy Prime Minister Barnaby Joyce has taken a swipe at the Queensland government while announcing $483m in this month’s federal budget will be put towards building a massive dam in the state’s north.

Mr Joyce formally revealed the huge cash injection to cover 50 per cent of construction costs for Urannah Dam near Mackay during a speech to the Rural Press Club in Brisbane on Thursday.

The idea for building the dam – which is one and half times the size of Sydney Harbour – at Urannah Creek has been talked about for decades with 25 feasibility studies carried out.

Bowen River Utilities is the company behind the project and had asked for $483m in federal cash through the National Water Infrastructure Development Fund.

However, it didn’t ask for the other half of funding from the state government, with plans to instead source it from the private market.

In a clear swipe, Mr Joyce’s announcement noted that while the Queensland government “claimed” to support the project, it had so far “failed to commit to any funding”.

“Our government understands that building and growing our nation requires industries that produce wealth, such as the mining, agriculture and farming sectors,” the Deputy Prime Minister said.

Barnaby Joyce will announce $483m in funding to build the dam. Picture: Emma Brasier

“It is these industries that earn the export dollars that will help make our country as strong as possible as quickly as possible.

“That’s why have put $483 million in the bank to build Urannah Dam.

“Our investment will further drive the development of Central Queensland, ensuring businesses and industries have the water security they need to grow into the future.”

Last month the federal and Queensland governments signed a bilateral agreement to progress the Urannah Dam project in what was at the time described as “a significant step forward in delivering water security for the Broken River Valley”.

Queensland Minister for Regional Development and Water Glenn Butcher noted the state government had made an application for funding on behalf of the Bowen River Utilities in June 2021.

But this $483m budget investment is still dependent on the project demonstrating value for money and sufficient public benefit.

Environment Minister Sussan Ley said the dam would be scrutinised under national environmental laws.

This week she announced major reforms to this process had been funded in the upcoming budget, including streamlining approvals to allow state and territory governments to tick off on projects without the duplication of federal sign off.

“It will go through a staged assessment process,” Ms Ley told ABC radio.

“The proponents are right now preparing an environmental impact study.

The proposed site of the Urannah Dam west of Mackay. Picture: Supplied

“It will be considered by Queensland, then effectively they hand the report to us.

“We will consider matters of national environmental significance, the impact of the dam on world heritage places, on national heritage on migratory species and threatened species and so on.”

When she was asked if she would abandon the project if it didn’t stack up economically she said: “We’ll take one step at a time”.

Federal Member for Capricornia Michelle Landry said she fought hard to secure the 50 per cent funding commitment from the Coalition government.

“I have fought hard for federal funding for Urannah Dam since 2013 and I’m overjoyed that 50 per cent of the construction costs will be funded by the Coalition government,” Ms Landry said.

“The Coalition government knows just how vital water projects like Urannah Dam are for local industries, their workers and the communities that rely on them.”

It is estimated the project would create 1000 jobs during construction and support 650 ongoing positions.

Concerns have previously been raised that the Urannah Dam would destroy the natural habitat of a turtle species which was discovered by the late Steve Irwin.

Greens senator Sarah Hanson-Young slammed the funding, saying Mr Joyce had been “let loose with this “boondoggle of a project”.

“This proposal, half a billion dollars, is actually all about helping expand the coal mining industry in the Bowen basin,” she told the ABC.

“It’s not actually about helping water security for even farms or for towns or to help communities deal with the rising increase of extreme weather.

“The idea the government wants to spend half a billion dollars expanding the coal industry at the same time as towns in northern NSW and in southern Queensland are still cleaning up after these disastrous climate floods is just unthinkable.”