Mr PETER DRAPER: My question is directed to the Minister for Climate Change, Environment and Water. Given that Deputy Prime Minister Mark Vaile recently announced a $6.5 million grant to upgrade Chaffey Dam, yet Malcolm Turnbull has since stated that funding is dependent on the New South Wales Government submitting a business plan consistent with the principles of the National Water Initiative, can the Minister advise the House what is now required from the State Government so that work can start on enlarging the dam?
Mr PHILIP KOPERBERG: I thank the member for Tamworth for his question and acknowledge his ongoing interest in water, which is one of the most critical issues in all of the State's valleys, particularly the Murray-Darling at the moment. I am pleased to note that the Chaffey Dam water level has increased and is now at 44 per cent. Whilst on the one hand that is good news, with the prevailing weather patterns it may be that some time in the not too distant future the drought will further impact upon and severely test the capacity of that and other storage systems in the Tamworth area and around the State.
More than six months ago the New South Wales Government confirmed its commitment to two projects for the Chaffey Dam—one, an upgrade to make the dam more efficient and, two, an expansion to increase its capacity from 60 gigalitres to 100 gigalitres. It is ironic that only a matter of weeks ago the Federal Government finally committed to funding its share of the enhancement of the dam. Even so, we get two different stories. The Prime Minister announces one thing and Malcolm Turnbull announces something else, and the devil is more likely than not in the detail. The proposal that sought the Government's commitment came from a community reference panel discussion paper. We reconfirmed our 100 per cent commitment to funding the dam safety upgrade component. The planning for that work is well in hand. As I said, the project to expand the dam will increase its capacity from 62 gigalitres to 100 gigalitres. I note that finally on the eve of the election the Federal Government has agreed to fund its share of the Chaffey Dam project. Even then its commitment is unclear. We are now left with more work to do to uncover the inevitable devil in the detail. We will keep pushing for clarification. A deal of clarification is required. Once we have received clarification from the Federal Government about its commitment we will be in a position to commence preliminary investigations into the project works.
The New South Wales Government has worked closely with the council to ensure secure town water supplies. This includes an investment of $400,000 early this year to assist the council to investigate a water reuse treatment plant for industry to offset potable water consumption. The council is also recommissioning drift wells, which were the former water source for Tamworth and for which the New South Wales Government has provided more than $1.5 million. Upgrading the Chaffey Dam is about improving reliability and is not necessarily in its own right designed to increase extractions. The Peel Valley is included in the cap arrangement for the Namoi Valley. While there is no specific water sharing plan for the Peel Valley and no current arrangements for environmental water, the Namoi Valley cap can be accommodated as a consequence of the more reliable workings of the Chaffey Dam.
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As I said, the Iemma Government has committed unequivocally to providing the funding for the upgrading of that dam. The enlargement and development of a water-sharing plan for the Peel Valley will result in improvements in environmental outcomes for the valley. But all of this is contingent upon the Federal Government guaranteeing funding for the project. I would encourage those opposite, including the member for Murrumbidgee and the Leader of The Nationals, to seek an undertaking from their Federal Coalition colleagues that the funding will be forthcoming and that there will be no strings attached. That is what the people of Tamworth deserve and I am sure that is what the member for Tamworth will keep pursuing. He will have the Government's full support in securing the expansion and upgrading of that dam as soon as it can possibly be done.
