Extract from NSW Legislative Assembly Hansard Wednesday, 26 September 2007

CHAFFEY DAM UPGRADE # 1

Mr PETER DRAPER (Tamworth) [6.08 p.m.]: Part of the title of one of Slim Dusty's most famous songs is "When the Rain Tumbles Down". Sixty-one years after Slim immortalised those words to become part of our folklore, we may have to change our future perspective to "if the rain tumbles down". H2O is one of the few molecular formulas most of us remember from our school days, but how our perspective on water has changed over the last sixty-one years. Australia is the world's driest continents and recent forecasts indicate that we are far from out of the worst drought in 100 years. Everyone, barring our rural residents who manage this precious resource out of necessity, has taken our water for granted. Suddenly water is a tradeable commodity that farmers, facing financial ruin after years of drought, are selling to financial institutions and traders. Some are selling their long-term futures for short-term survival. More than $1 billion will be spent in Sydney to build a desalination plant that will safeguard its future water requirements, while reports show that it will cost up to $50 million a year to operate, even if not a drop of water is produced.
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Where does this all lead me? I return to the augmentation of Chaffey Dam, which is vital to ensure water security for Peel Valley irrigators, to supply the resources needed to allow for further business expansion and also to provide water security for Tamworth residents. Today in question time I asked the Minister for Climate Change, Environment and Water what New South Wales needs to do to access the Federal Government's promised $6.6 million to upgrade Chaffey Dam. While the Minister reconfirmed the State Government's commitment to the project, I am still unsure what the next step needs to be.

I have been very pleased by the responsible attitude taken to water conservation by the people of our region. After enduring level 5 water restrictions people have reacted conservatively to the easing of restrictions following recent rains. Residents respect our water resources. Initially the Peel River itself provided water, then wells were added, and in 1898 Moore Creek Dam was opened to supply Tamworth. By the mid-1950s additional infrastructure was required and Dungowan Dam opened in 1957. Continued growth saw the vision of our city forefathers combine with the State Government to build Chaffey Dam in 1979. Nearly 30 years on and an ongoing drought plus further sustained growth have seen Chaffey Dam unable to meet the needs of irrigators, residential consumers and businesses. To secure the region's future we must proceed urgently with augmentation. Since 1990 plans for the upgrade and enlargement of this dam have been public property. I have copies of minutes from a public meeting in 1990 in which State Water's Barwon regional manager stated:
The State Government has provided funds for the preparation of the EIS and preliminary design plans. The EIS is scheduled to be put on public display in mid January 1991 and environmental clearance is scheduled to be obtained in June 1991.

He went on to say:
If the above timetable is achieved construction could commence in mid 1992 provided that the Government has given approval to proceed, and be completed in early 1995.

At the time the price tag was $18 million; today it is $29 million. We are now 17 years down the track and not a sod has been turned. Until recently the Federal Government's refusal to commit funds to the plan as proposed by the Chaffey Dam Reference Panel appeared to be the major sticking point. Local residents had welcomed the New South Wales State Government's commitment of $14.5 million for the safety enhancement, plus $4.697 million for the capacity enhancement. Local irrigators and Tamworth Regional Council had committed their share of funding to the project.

With an election in sight, the Federal Government recently committed $6.7 million to bring the funding package together, and its announcement appeared to indicate that the project was a fait accompli. But, unfortunately, nothing is ever as it seems. Deputy Prime Minister Mark Vaile's announcement has conflicted with statements attributed to Federal Water Resources Minister Malcolm Turnbull. Comments from Mr Turnbull's office that there are still hurdles to clear have cast doubt over the commitment. Mr Turnbull is also quoted as saying it was:
now contingent on the NSW Government submitting an appropriate business plan … that is consistent with the principles of the National Water Initiative and the objectives of the National Plan for Water Security.

From the planning of the early 1990s through to the work of the Chaffey Dam Reference Panel, the information required to achieve the upgrade and enhancement has been on the public record. Environmental outcomes, economic outcomes, impacts on Aboriginal archaeology, fauna, fisheries, flora, foreshore erosion, water quality and many other factors have all been carefully investigated and the results have been included in the feasibility process that determined whether the project should proceed.

On behalf of the people of Tamworth and the Peel Valley I ask that the State Government explain to Minister Turnbull that the Chaffey Dam Reference Panel has already submitted a business plan for this project. To my knowledge his office has at least six copies of the plan. Mark Vaile used the panel's business plan to announce that the Federal Government would provide their identified share of funds needed to complete the project. It is time to start the construction process, not to continue playing political games with the most important infrastructure project needed to secure the future for Tamworth residents, businesses and the Peel Valley irrigators.

NSW Legislative Assembly Hansard