Mr PETER DRAPER (Tamworth) [4.35 p.m.]: I acknowledge the presence of the Minister for Water Utilities in the Chamber and thank him for being here to take part in this important debate. I would like to thank also the member for Murrumbidgee for allowing me the opportunity to contribute to the debate. I have on the business paper a notice of motion regarding Chaffey Dam, which is the main source of water supply for Tamworth and the Peel Valley irrigators. Chaffey Dam is now below 15 per cent of capacity, and Tamworth is now experiencing level five water restrictions. Dam water levels have fallen so badly that I could see the old river bed running through the dam when I was there recently.
Tamworth residents are limited to using only grey water outside their homes. Some sporting facilities have ceased operation due to a lack of water. The regional council has asked business to reduce water consumption significantly, and our irrigation industry faces yet another season of zero water allocations. Even though the community is very much aware of the dire state of our water supply and winter is here, along with much-reduced demand compared to the warmer months, consumption is still around 29 megalitres a day. The regional council has told the community that water will become more expensive in future and that less will be available. The council is introducing a three-tiered pricing system that will result in water bills rising from about $408 a year to $470 a year by 2009-10.
It took just 79 days for the level of Chaffey Dam to drop from 20 per cent to 15 per cent of capacity, and with the dam's reserves now at just over 10,000 megalitres we have less than 12 months supply. The State Government has provided funding to the regional council to recommission wells in the city, but those wells have the potential to deliver only six to eight megalitres a day. It is clear that without substantial rain the situation will deteriorate drastically. Tamworth is the region's major growth centre, and the combination of drought with population growth and development certainly is highlighting the problems caused by an over-stressed and ageing infrastructure. Without augmentation of Chaffey Dam the region will face increased water restrictions in coming years and there will be a huge economic cost for the community to bear.
The State Government has committed to fund $4.697 million of the estimated $14.6 million towards augmenting the supply from the dam, in addition to the $14.5 million already committed for the safety upgrade. It is now time for the Federal Government to commit the $6.545 million as recommended by the Chaffey Dam upgrade community reference panel augmentation subcommittee. This recommendation is based on the agreed approach of the national water initiative for cost sharing on such infrastructure programs. Chaffey Dam was built in 1979. State Water, recognising a shortfall, established the reference panel in 2003. The panel comprised members of the local community, Tamworth Regional Council, Peel Valley Water Users Association, Namoi Water, Namoi Catchment Management Authority and all appropriate New South Wales government agencies, along with State Water. The panel was chaired by deputy mayor Phil Betts.
It quickly became apparent that unless the dam was enlarged in the near future there would be no irrigation industry in the medium term and that Chaffey Dam would be unable to cater for an estimated increase in demand for the city of Tamworth from 10 gigalitres per annum to 14 gigalitres per annum. The current reliability of supply for irrigators, which is already 11 per cent below minimum acceptable levels, would drop even more and the probability of receiving 80 per cent allocation on 1 July each year would drop to zero within 10 years. This dramatic reduction in reliability effectively means that the current irrigation industry supply from Chaffey Dam will progressively become unviable over the next 10 to 15 years.
Water is the most important challenge facing all tiers of government. There is opportunity to secure supplies for future water provision in Tamworth at minimum cost. An investment of $6.5 million will deliver an asset worth up to $280 million. It really is a no-brainer. It is time for action, and it is time to end the games that are being played with irrigators, residents and businesses, all of whom, quite rightly, choose to live and work in this wonderful area. As Tony Windsor, who raised this issue in the Federal Parliament, pointed out the request to the Federal Government breaks down to costing $162 per megalitre. Irrigation water on the market at the moment is selling for between $2,500 and $3,000 a megalitre, and in the urban water market it is selling for up to $7,000 a megalitre. In effect, the Tamworth community is asking the Federal Government for $162 a megalitre for an asset that could deliver something worth up to $7,000 a megalitre. This is a very fair request on behalf of our community. It is an issue that not only local residents but also the local media have become extremely interested in and are advocating strongly for. It is something on which I suggest the Federal Government consider taking urgent action.
Discussion concluded.
