Infrastructure Australia has yet to receive a business case for $480m Dungowan Dam

Infrastructure Australia has yet to receive a business case for the proposed $480m Dungowan Dam.

Prime Minister Scott Morrison visits the Dungowan Dam near Tamworth, with Nats MP Barnaby Joyce, Nationals leader Michael McCormack, NSW Premier Gladys Berjiklian and NSW Nats leader John Barilaro. Picture: Adam Taylor/PMO

Infrastructure Australia has yet to receive a business case for the proposed $480 million Dungowan Dam in NSW, raising questions about when construction can begin.

Earlier this month Scott Morrison made a high profile announcement that the federal and state governments had given the go-ahead for the new dam to replace the existing one which supplies Tamworth in the state’s northeast.

That project had up until that point been listed as one for which the governments still had to reach agreement on how to proceed.

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The NSW government last week announced a fast-track environmental approval process for Dungowan Dam and two others, Wyangala Dam in the state’s central west and some funding for a proposed new dam on the Mole River in the state’s far north.

Deputy Premier John Barilaro said the objective was to start construction on Dungowan and Wyangala next year.

But under questioning from Centre Alliance Senator Rex Patrick, Infrastructure Australia senior officer Anna Chau said no business case had been received for Dungowan Dam.

“We haven’t had any engagement on this particular proposal,” Ms Chau said.

Ms Chau said if Infrastructure Australia were to be asked to assess the project, it would seek alternative proposals to test the integrity of the business case.

Prime Minister Scott Morrison stands in a dry riverbed while visiting the Dungowan Dam near Tamworth to announce $1 billion dollars in new funding for dams in NSW. Picture: Adam Taylor/PMO

Also appearing before Senate Estimates, Agriculture Minister Bridget McKenzie attacked the Queensland government over what she called the “handbrake” some states had put on dam development.

Senator McKenzie said the Queensland government’s decisions in relation to the planned Rookwood Weir in central Queensland would reduce its capacity by around half.

“That alone cuts the potential” for agricultural development on the Lower Fitzroy River, Senator McKenzie said.

“Dam policy is important,” she said. “Obviously the drought impacts on our agricultural industry.”

Department of Agriculture secretary Daryl Quinlivan said that “broadly speaking” the federal government had “spent or allocated” $7.6 billion to deal with the drought, via a range of measures including grant programs, payments under the farm household allowance, and other measures.

Senator McKenzie declined to answer questions put to her by Labor Senator Murray Watt about reports she is out of favour with some of her National Party parliamentary colleagues.

“How long do you expect to remain the minister for agriculture,” Senator Watt asked, before the question was ruled out of order.

Senator McKenzie called on all parties to get behind the government’s drought assistance program, saying it was an issue that could last “weeks, months and potentially years.”