Council provides update on dam project

Former National Leader Michael McCormack, Federal Maranoa MP David Littleproud, members of the Stanthorpe and Granite Belt Chamber of Commerce and Southern Downs MP James Lister at the government's funding announcement for Emu Swamp Dam.

By Jess Baker

Southern Downs Regional Council has revealed the details of its agreement with Granite Belt Water to buy into the controversial Emu Swamp Dam project.

A ‘framework agreement’, as well as a ‘confidentiality agreement’, ‘probity and communications protocol’ and general update, was tabled at the council’s ordinary meeting of Wednesday 22 September.

Southern Downs CEO Dave Burges explained in his report to SDRC that the agreement between parties would allow them to negotiate “legally binding ‘framework documents’ to facilitate (the) council’s participation in the Granite Belt Irrigation Project”.

Both the council and Granite Belt Water have until 1 November to enter into all of the framework documents – including an infrastructure agreement, a water rights transaction deed, a water supply deed, and a land acquisition contract – before the agreement automatically terminates.

Mr Burges said in the September meeting of SDRC that while both parties must agree on each of the documents, the cost and workload of preparing each had been divided between both SDRC and Granite Belt Water.

He said SDRC had prepared, and been charged with preparing, the infrastructure agreement, while Granite Belt Water was wearing the cost and responsibility of preparing the other three documents.

The water rights transaction deed stated that, subject to SDRC acquiring 580 megaltires of water rights in the Emu Swamp Dam project, the council will “use best endeavours” to transfer 450 megalitres of its water entitlement and 59 megalitires of “sleeper and dozer” licences to the scheme.

Since SDRC agreed to participate in the project in December 2020, concerns have been raised by the public about the legal liabilities and expenses the council – and ratepayers – might face as a result.

Warwick/Stanthorpe Today reported in its 23 September edition of the paper that financial documents obtained by group ‘POW!’, or Protect Our Water, revealed the council had spent more than $100,000 on legal fees for advice on the project between December last year and 25 June this year.

POW! member Melissa Hamilton said her group had filed a Right To Information request that revealed the council had spent more than $112,000 in six months.

“(The) council seems to be putting the cart before the horse, incurring legal fees that must be paid by ratepayers, all before (the Granite Belt Irrigation Project) even knows whether it has tenders within budget for the dam and pipeline,“ Ms Hamilton said.

The framework agreement tabled at the council’s 22 September meeting stated Granite Belt Water had agreed to provide $200,000 to SDRC for “internal and external costs directly pertaining to the project”.

The contract indicated “provision of legal, technical, financial and other advice in connection with the project”, attending to queries, drafting and reviewing documents, and other actions undertaken by the council may be paid for by Granite Belt Water up to $200,000.

Also tabled at the September meeting of SDRC was a fact sheet for local residents, which detailed the history of the Emu Swamp Dam project and the council’s involvement.

The fact sheet stated the Granite Belt Irrigation Project was expected to deliver a 12,000-megalitre dam, Emu Swamp Dam, and 136 kilometres of pipeline through the Granite Belt.

It also reiterated construction of the project was expected to commence in 2021 and be completed in 2023, though the results of the project’s tenders in dam design and construction of the pipeline are yet to be revealed.

The $3.5 million the council has committed to investing in the Emu Swamp Dam project was also addressed in the fact sheet, which stated building the dam would have “the least impact on ratepayers compared to other proposals on the table at present”.

“Initial assessments of Connelly Dam suggest a cost of $20 million to meet necessary safety upgrades and raising Storm King Dam is estimated at $30 million plus, whereas investing $3.5 million in (Emu Swamp Dam) would have far less impact on ratepayers in the future,” the fact sheet read.

For updates on this story, keep an eye on the Warwick/Stanthorpe Today website and future editions of the paper.