Tuck Thompson and Peter Morley

May 08, 2007

DESPERATE farmers are rushing to buy irrigation water from the Paradise Dam that they previously deemed too expensive, as the drought continues to take a toll on crops.

However, the dam faces new criticism from environmentalists that it is an economic dud.

The $200 million dam, built near Bundaberg two years ago, was valued at $76 million in SunWater’s 2005-06 annual report.

The dam is at only 9 per cent of capacity, and farmers initially shunned the water as overpriced.

But with cane, potato, tomato, macadamia and other crops now struggling, farmers are buying up.

Prominent cane grower Alwyn Heidke said growers were taking out “insurance” and a “fair bit” of water had been purchased in recent months with allocations of up to 200ML.

“Growers are getting very anxious because they have crops to finish off after the end of the water year (June 30),” he said. “Without rain, there may be no allocation after that.”

Queensland Greens environment spokeswoman Larissa Waters said the Government’s own figures showed Paradise Dam was an economic disaster.

“It’s now valued at just one-third of what it cost to build,” she said.

“It seems no one can afford to buy what little water is in the dam.”

SunWater said 18,921ML of new entitlement had been sold or taken up since the dam was completed.

“Historically the Burnett River is reliable, but there have been periods where flows have been minimal for an extended period as they are now,” a spokesperson said.

SunWater said the lower valuation of the dam was not a problem.

“Much public infrastructure is built for the long-term benefit of the community and does not aim for full cost recovery,” the spokesperson said.

But Ms Waters said the Government needed to look at affordable, reliable sources, such as water harvesting, which did not destroy the environment.

“These locally based solutions are not politically sexy because they don’t involve hard-hat photo opportunities, but do create jobs and provide water without all the damaging effects and uncertainty of a dam,” she said.