Nationals Water Minister Says Federal Contribution to Dungowan Dam Is a Loan

The NSW Labor Opposition has serious concerns regarding the ever-changing details being provided by the Liberal-Nationals Government regarding the $480 million Dungowan Dam which was jointly announced by the State and Federal Governments in October 2019. 

Mystery surrounds the funding of the replacement Dungowan Dam after Nationals Water Minister Melinda Pavey said in today’s Budget Estimates hearing that the Federal Government’s contribution of $100 million was a ‘loan’. 

Labor Shadow Minister for Water Clayton Barr MP said ‘Not only has no decision been made as to who will own the dam once built, but now the Minister has said the Federal Government’s contribution is a loan’. 

‘Who has to pay back the loan – is it the State Government or do they intend to pass it on to the Council and the local community?’ 

‘What are the terms of the loan? Nowhere since the Dungowan Dam announcement was made last year has a loan from the Federal Government been mentioned. Federal Resources Minister Matt Canavan even said ‘the Commonwealth were not asking for money back’’.