PRIME MINISTER
FOR MEDIA THURSDAY, 28 AUGUST, 1980
BURDEKIN DAM PROJECT
The Prime Minister today announced the Commonwealth Government's
decision on funding the Burdekin Dam.
Mr. Fraser recalled his announcement on 26 June 1980 which
stated that the Commonwealth Government was prepared, in
principle, to assist the Queensland Government in the
Burdekin Project. At that time, the Prime Minister had
foreshadowed discussions between Commonwealth and Queensland
officials to report on options for financing the project.
Today's announcement stems from the consideration of that
report.-The Prime Minister went on to say that the Commonwealth
Government has decided to offer to Queensland outside the
-National Water Resources Program assistance by way of grants
for the complete cost of the Daim ($ 84.5 million at June 1980
prices). This offer is on the basis that Queensland will
finance, from 1 July, 1980, the initial works associated with
the project ($ 14.9 million) and will also bear the cost of the.
irrigation area development works ($ 109.2 million) possibly
through recourse to the special infrastructure borrowing
arrangements of the Loan Council.
The Prime Minister stated that this decision to finance the
Dam will not be at the expense of projects currently assisted
W in Queensland, or of projects with high priority for future
assistance under the National Water Resources Program.
Mr.-Fraser said that the dam, when completed, would have a
storage capacity of 1.75 million megalitres. It will be utilised
to supply water for existing population centres in the Burdekin
basin and to meet the future urban water needs of Bowen and
Townsville. The dam will give rise to substantial benefits -it has been
estimated that the project will generate an increased average
annual gross value of production of some $ 117 million, on the
assumption of a sugar price of $ 220 per tonne. The benefits will,
of course, be even higher when current sugar prices are taken
into account. / 2
2-
When the project is finished, it will provide an additional
45,125 hectares annually with irrigation water and will lead
to the creation of about 660 new farms.
Mr. Fraser concluded by commenting that the Commonwealth's
decision to DarticApate with Queensland in funding the
Burdekin project will provide a great stimulus to Queensland.
It will produce substantial economic benefits and is a clear vote
of confidence by the Government in the development of the
North. 000---