More questions have been asked about the scrutiny of dam funding. 

The Federal Government has allocated $168.5 million to the Emu Swamp Dam project in Queensland, despite official documents for the project estimating it will cost $84 million to build.

Reports say the dam project’s estimated construction costs have blown out, causing some irrigators to pull their investments.

On budget night last week, the Federal Government announced an additional $126.5 million for the project, on top of $40 million already set aside. The announcement did not include any explanation for why the significant additional funds are needed.

This has raised significant questions about the value for money of the project, given that even the dam’s proponents say in their business case that the cost of building the dam will significantly outweigh its economic benefit.

The 12,000-megalitre dam and irrigation project will contribute about $139 million to the local economy over 30 years, but at a cost of up to $205.5 million to build. 

Richard Denniss, chief economist at the Australia Institute, says that the funding decision is “not taking the job of managing Australia’s economy seriously”.

“If you were going to be really generous to the proponents, maybe it stacked up at the original cost. But by their own analysis it clearly doesn’t stack up now,” Mr Dennis said.

“For decades previous finance ministers have said ‘no’ to crazy ideas like this.

“[Funding these projects] is not taking the job of managing the Australian economy seriously. This is reckless public spending that they’re proud of.”