Water Minister Glenn Butcher defends Flinders River water tender threshold

Traeger MP Robbie Katter took aim at the the threshold, which requires upstream water applicants to prove that their projects would have no more than a 0.1 per cent impact on a downstream user's annual volume probability, at the latest Budget estimates session.

He called it unworkable and a shifting of the goal posts, thanks to a 'dam phobia' embedded in the culture of the state's public service, which he feared was using process to "prosecute the ideals of the Labor Party" in Queensland.

Mr Butcher said that in the last 12 months, right across Queensland, the water department had been managing water releases that will see 229,045 megalitres of water made available for new or expanding projects.

"As with all allocation decisions, we use the best available science," he said. "It is a feature of any water application process that existing water rights and catchment flows are protected, in-line with the relevant water plan."

The department's director-general Linda Dobe had told the Estimates session that the threshold was occurring in the Flinders River water tender process "because of the way the river behaves where it is dry a big period of time and then has flood events".

Mr Katter had put forward a scenario where, in his words, "if there was an irrational downstream user that would flat out refuse and you need 100 per cent compliance, then that dam that could help supply to hundreds of people would never go ahead because then we would never build a road or a bridge in Australia if you cannot impact on someone else in the process".

"The conditions for them is that 0.1 per cent are not affected, as you are outlining there," he said. "Do you not see that as an almost impossible barrier for them to ever comply with."

Ms Dobe responded that all water projects, including ones underway such as Rookwood Weir, had to build them in such a way that they don't impact downstream existing water entitlement holders.

"That is what compliance with the water plan means," she said.

Mr Katter then asked if the department would consider amending the thresholds of the tender "so that there is some chance of an outcome".

"At 5 per cent it is tolerable but at 0.1 per cent it seems like a ridiculously small tolerance that I am sure would be unprecedented for impact on downstream users," he said.

Prompted by further questioning, regarding whether there was any trigger in the process, to ensure downstream water users didn't have all the bargaining power, Ms Dobe confirmed that the tender process didn't have any such trigger.

"I think that is a flaw in the process," Mr Katter said.

Ms Dobe had outlined the theory behind the release of the competitive tender for 110,000 megalitres of water from the Flinders River general reserve, at the end of November 2021, which is still underway.

She said a market-based tender with a confidential reserve price was being used because interest in water for new agriculture proposals was known to exceed the remaining volumes available in the catchment.

"Using a competitive process protects existing investment decisions while ensuring water goes to its highest value use," she said.

"The tender process was broken down into three stages to enable flexibility while ensuring only projects that could deliver on the purpose of the release will proceed.

"The staged approach distinguishes itself from previous water tenders by allowing only projects that demonstrate a clear water usage plan to advance to the next stage.

"It uses features such as computer modelling, eligibility criteria and a call options deed with conditions which ensures any water sold will be used.

"The assessment considers the project against criteria which protect environmental, social, economic and cultural outcomes as well as the reliability of existing entitlements stated under the Gulf water plan.

"This framework ensures the release of unallocated water remains competitive and aligns with water plans, and that is why a structured process is so important."

Mr Butcher said the government continued to deliver water infrastructure Queenslanders need, right across the state.

"We are proud of our record in North Queensland - moving forward with the raising of Burdekin Falls Dam, progressing Big Rocks Weir and delivering both stages of the Haughton Pipeline," he said.