HipCo funding deferred in federal budget

Chairman of the Hughenden Irrigation Corporation, Jeff Reid said the budget had affirmed the scheme's remaining funding from the federal government

"Although disappointed our money has been deferred temporarily, we are steadfast in our commitment and delivery of this scheme to regional north west Queensland," he said, adding that the board had spoken directly to federal Environment and Water Minister Tanya Plibersek's office, resulting in a commitment to continue working together.

Mr Reid said the confirmation made it clear the pressure was firmly on the Palaszczuk government to work with HipCo to provide pathways forward and, specifically, an appropriate water licence for its scheme.

"Our greatest hurdle has been the Brisbane bureaucracy charged with the issuing of the water licence being only interested in process and not interested in outcomes; the bureaucracy has told me this directly," he said. "It is clearly time for our political leaders to demonstrate who is leading this state."

Kennedy MP Bob Katter agreed there was still hope for the scheme, saying the federal government would put $1 billion over eight years from 2026-27 in the National Water Grid Fund to support future projects.

"They want a business case (for HipCo), well the business case is already there," he said.

"But this is a project that, unless we're going to accept the depopulation in 95 per cent of Australia, they have to look at Hughenden.

"The survival of this nation seriously depends on the occupation of the landmass of Australia. I think there has been a disconnect between the departments and ministers here."

RELATED:

Mr Katter said he wasn't surprised to see $5.4b for the Hells Gate Dam had been scrapped.

Treasurer Jim Chalmers revealed the government would not support the $5.4b Hell's Gate and $483m Urannah dams, but the budget did confirm the $600m Paradise Dam and $8m Big Rocks Weir, plus the $107.5m Cairns Water Security Project, and $32m to consult and plan central Queensland water options.

"I can understand the decision because the proposal before the federal government, no sane person could have proceeded with that proposal and it didn't produce anything for North Queensland, it destroyed the five great benefits that flowed from the proper Hells Gate proposal," Mr Katter said.

One Nation Senator Malcolm Roberts successfully moved in the Senate on Tuesday afternoon for the government to release a business case for Hells Gate Dam prepared by the Townsville Enterprise Development Centre.

"The business case was given to the state government in July and passed on to the federal government in September," he said. "The Albanese government wants to keep the Hells Gate Dam business case a secret because they don't want to build any dams in this country."

He said only the ALP had voted against the motion, which meant the government had to table the business case in the Senate no later than 9:30am on Thursday.

Nationals leader David Littleproud said the budget had left the Sunshine State high and dry.

"From what I can see, it has all been redirected to the Victorian government and a $2.2 billion rail line around Melbourne," he said.

Queensland opposition spokesperson for Water and Construction of Dams Deb Frecklington said the funding cuts had sent "shockwaves through rural communities".

"Dam projects like Urannah and Hells Gate were set to create thousands of direct and indirect jobs, and a raft of new infrastructure for North Queensland," Ms Frecklington said.

"Urannah was also set to deliver reliable and affordable energy through hydroelectricity at a time the federal government's own figures show power prices will rise by over 50 per cent."

ALSO READ: