Government pledges $5.4bn for North Queensland dam before business case

Up to $5.4 billion has been “locked in” to build the Hells Gate dam on the Burdekin River in North Queensland by the federal government, which would store enough irrigation water to grow sugar cane over 50,000 hectares inland from Townsville.

Prime Minister Scott Morrison and Deputy Prime Minister Barnaby Joyce announced on Wednesday the federal government is “100 per cent” committed to providing all the funding for the dam south of Townsville, prior to completion of a business case that the government said would be completed before public funds are spent.

Deputy Prime Minister Barnaby Joyce said there will be environmental objections to the dam “but we know that the future of this nation depends on us doing it”.Credit:Alex Ellinghausen

“All the state government has to do is get out the big stamp and go approved,” Mr Morrison said, speaking in Townsville. “We are saying to them, 100 per cent, we will fund it, you approve it, let’s get on with it.”

The government also released a statement on Wednesday saying funding was “subject to the completion of the final stage of the business case, expected in June this year” – which would come after the federal election that is due in May.

When asked by reporters if the funding would remain committed to Townsville if the dam didn’t go ahead, Mr Morrison said “we’re going to build the dam”.

Deputy Prime Minister Barnaby Joyce said the project would be opposed by “green cynics”.

“There is a frog, there is a beetle, there is something that will stop it, but we know that the future of this nation depends on us doing it,” Mr Joyce said.

“All I know is under our government it’s going to happen. And we’re at the point of ‘go’ now.”

Construction of the dam is expected to create more than 7000 jobs, according to the government’s statement, and inject up to $1.3 billion into the local economy. Expanded agricultural production is expected to support more than 3000 jobs and generate up to $6 billion in gross regional product.

A feasibility study prepared in 2017 estimated the dam could support irrigation for sugar cane across 50,000 hectares and support a mill that produces 400,000 tonnes of sugar per year as well as ethanol production.

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