State Development and Public Works Organisation Act 1971

STATEMENT GIVING REASONS (INFRASTRUCTURE FACILITIES OF SIGN IC J )NOTICE (No 1) 2002

Short title

1. This notice may be cited as the Statement Giving Reasons (Infrastructure Facilities ofSignificance) Notice (No 1) 2002.

Statement Giving Reasons (Infrastructure Facility of Significance) [s.125(5) of the Act]

2. Paul Fennelly, Coordinator-General, pursuant to Section 125(5) of the State Developmentand Public Works Organisation Act 1971 has prepared a statement giving reasons, as adopted by theGovernor in Council, and as set out in the Schedule below as to why the following infrastructurefacilities, being:

• Burnett River Dam;

• Eidsvold Weir;

• Jones Weir Raising; and

• Barlil Weir,

were approved by the Governor in Council by gazette notice on 13 December 2002 pursuant to Section125(1)(i) of the State Development and Public Works Organisation Act 1971 as infrastructure facilitieshaving significance, particularly economically or socially, to Queensland and the Wide Bay - Burnettregion, being the region in which the infrastructure facilities are to be constructed.

SCHEDULE

STATEMENT GIVING REASONS WHY THE GOVERNOR IN COUNCIL APPROVED BYGAZETTE NOTICE ON 13 DECEMBER 2002 INFRASTRUCTURE FACILITIES AS HAVING

SIGNIFICANCE UNDER THE STATE DEVELOPMENTAND PUBLIC WORKSORGANISATIONACT 1971

1. Decision

On 13 December 2002 , the Governor in Council approved by gazette notice under Section 125 (lXf) ofthe State Development and Public Works Organisation Act 1971 ("SDPWO Act"):

the Burnett River Dam as having significance, particularly economically or socially, toQueensland and the Wide Bay - Burnett Region, the region in which the Burnett River Dam isto be constructed;

• the Eidsvold Weir as having significance, particularly economically or socially, to Queenslandand the Wide Bay - Burnett Region, the region in which the Eidsvold Weir is to beconstructed;

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• the Jones Weir Raising as having significance, particularly economically or socially, toQueensland and the Wide Bay - Burnett Region, the region in which the Jones Weir Raising isto be constructed; and

• the Barlil Weir as having significance, particularly economically or socially, to Queenslandand the Wide Bay - Burnett Region, the region in which the Barlil Weir is to be constructed.

2. Introduction

On 18 October 2002, the Coordinator-General received an application, dated 17 October 2002, fromBurnett Water Pty Ltd ("BWPL") requesting that the five infrastructure facilities which constitute theBurnett Water Infrastructure Development Project ("the Project") be approved by the Governor inCouncil as infrastructure facilities having significance under Section 125(1)(f) of the SDPWO Act. Thefive infrastructure facilities are the Burnett River Dam, Eidsvold Weir, Jones Weir Raising, Barlil Weirand Walla Weir - Stage 2 ("Walla Weir Raising").

Section 125(l)(f) of the SDPWO Act provides that the Coordinator-General may take land for thepurposes of an infrastructure facility that is:

(a) of significance, particularly economically or socially, to Queensland or the region inwhich the facility is to be constructed; and

(b) approved by the Governor in Council, by gazette notice, as having that significance.

Pursuant to Section 125(2) of the SDPWO Act, in considering whether an infrastructure facility would beof economic or social significance, the potential for the facility to contribute to community wellbeing andeconomic growth or employment levels must be taken into account. In accordance with Section 125(3) ofthe SDPWO Act, in assessing such potential, the contribution the infrastructure facility makes toagricultural, industrial, resource or technological development in Australia, Queensland or the region inwhich the appropriate infrastructure facility is to be constructed is a relevant consideration.

While the Coordinator-General was of the view that the Walla Weir Raising meets the requirements of aninfrastructure facility of significance, the Environmental Impact Statement ("EIS") process for the WallaWeir Raising project is not yet complete. This means that comprehensive information on theenvironmental impacts of the infrastructure facility, as typically associated with an EIS process, was notavailable for the Coordinator-General to assess and the Governor in Council to consider at this time. As aresult, the Coordinator-General was unable to make a final recommendation about whether the WallaWeir Raising was an infrastructure facility of significance. Accordingly, it is appropriate that this aspectof the BWPL application be held over pending completion of the EIS process.

3. Evidence or Other Material on Which Findings of Material Questions of Fact are Based

In forming the decision to approve the infrastructure facilities that constitute the Project as havingsignificance, particularly economically or socially, to Queensland and the region in which the facilitiesare to be constructed, the Governor in Council had regard to the following materials:

• Letter dated 17 October 2002 from Mr Graeme Newton, General Manager BWPL, to theCoordinator-General enclosing BWPL's application that the five infrastructure facilities thatconstitute the Burnett Water Infrastructure Development Project be approved by the Governorin Council as infrastructure facilities having significance under Section 125(1)(f) of theSDPWO Act;

• Department of State Development Briefing Note dated 20 November 2002 to the HonourableTom Barton MP, Minister for State Development, containing the Coordinator-General'srecommendation in relation to whether the five infrastructure facilities that constitute theBurnett Water Infrastructure Development Project are infrastructure facilities of significance;

• The following Legislation:

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• Water Infrastructure Development (Burnett Basin) Act 2001;

• Extract from State Development and Public Works Organisation Act 1971, Sections35, 125 and 174; and

• Water Resource Plan (Burnett Basin) 2000.

• Maps of Burnett River Dam, Eidsvold Weir, Jones Weir Raising and Barlil Weir;

• Constitution of BWPL;

• Coordinator-General's Report on the EIS for the Proposed Burnett River Dam, October 2001;

• Coordinator-General's Report on the EIS for the Proposed Eidsvold Weir, October 2001;

• Extract from Jones Weir Raising Review of Environmental Factors, March 1999, Social andEconomic Impacts, Chapter 5.3 and 5.4;

• Extract from Proposed Barlil Weir Barambah Creek Review of Environmental Factors, June2001, Social and Economic Environment, Chapters 6 and 7;

• Burnett Program of Actions, September 2002;

• Commonwealth of Australia, Environment Protection and Biodiversity Conservation Act 1999(Cth), Decision to Approve the Taking of an Action, Burnett River Dam, 25 January 2002;

• Commonwealth of Australia, Environment Protection and Biodiversity Conservation Act 1999(Cth), Decision to Approve the Taking of an Action, the Eidsvold Weir, 11 December 2001;

• Commonwealth of Australia, Environment Protection and Biodiversity Conservation Act 1999(Cth), Decision to Approve the Taking of an Action, Jones Weir Raising, 16 November 2001;

• Commonwealth of Australia, Environment Protection and Biodiversity Conservation Act 1999(Cth), Decision to Approve the Taking of an Action, the Barlil Weir, 16 November 2001;

• Notice of Ministerial Designation of Land for Community Infrastructure made under theIntegrated Planning Act 1997 for the Proposed Burnett River Dam dated 10 October 2002;

• Appendix A of SDPWO Act Guidelines for acquisition of land for infrastructure projects bypersons other than the state , September 1999;

• Appendix C of SDPWO Act Guidelines for acquisition of land for infrastructure projects bypersons other than the state, September 1999;

• Appendix C of SDPWO Act Guidelines for consultation and negotiation with native titleinterests , September 1999;

• Coordinator-General's letter inviting submissions from persons affected by the infrastructurefacilities dated 25 October 2002;

• Seven submissions received from affected persons in response to the Coordinator-General'sletter dated 25 October 2002 inviting submissions from persons affected by the infrastructurefacilities (these submissions are attached to the Department of State Development BriefingNote dated 26 November 2002 containing the Coordinator-General's recommendation inrelation to whether the relevant infrastructure facilities are of significance);

• Coordinator-General's notice under Section 130(1B) of the Environment Protection andBiodiversity Conservation Act 1999 (Cth), Jones Weir Raising, dated 2 November 2001;

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• Coordinator-General's notice under Section 130(1B) of the Environment Protection andBiodiversity Conservation Act 1999 (Cth), Barlil Weir, dated 2 November 2001;

• Extract from NECG, Indicative Economic Aspects of Additional Water Storage Infrastructurein the Burnett Region, 8 October 2001, Executive Summary, Contents, Introduction andSection 4;

• Explanatory Memorandum to Executive Council Minute in respect of the Burnett River Dam;

• Explanatory Memorandum to Executive Council Minute in respect of the Eidsvold Weir;

• Explanatory Memorandum to Executive Council Minute in respect of the Jones Weir Raising;and

• Explanatory Memorandum to Executive Council Minute in respect of the Barlil Weir.

4. Findings of Material Questions of Fact

From the material to which regard was had the following findings of fact were made.

4.1 Type of Infrastructure Facilities Proposed Including Land on Which the Facilities are tobe Located

The application from BWPL specified five water infrastructure facilities being:

(a) the Burnett River Dam;

(b) Eidsvold Weir;

(c) the raising of Jones Weir;

(d) Barlil Weir; and

(e) Walla Weir Raising.

It has been decided that Governor in Council consideration under Section 125(lXf) of the SDPWO Act inrelation to the Walla Weir Raising be held over pending completion of the EIS process.

Details of the various infrastructure facilities are set out below:

4.1.1 Burnett River Dam

Location: Located on the Burnett River at approximately AMTD 131km, 20km north-west ofBiggenden and 80km south-west of Bundaberg.

Yield: Expected yield is approximately 20,000 ML/a as high priority water and 124,000ML/a as medium priority water.

Potential Uses: Vegetables, sugarcane, fruit and nuts, urban and industrial.

Capital Cost: Estimated $ 168 million.

Approvals: Coordinator-General evaluation under Section 35 of the SDPWO Act wascompleted in October 2001. Commonwealth Government approval granted inJanuary 2002.

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4.1.2 Eidsvold Weir

Location : Located on the Burnett River at approximately AMTD 300.4km, 5km north-west ofEidsvold.

Yield: Expected yield is approximately 32,000 ML/a of medium priority water.

Potential Uses: Vegetables, citrus, peanuts, fruit and nuts, table grapes, pigs, dairy, fodder andurban.

Capital Cost: Estimated $18.6 million.

Approvals: Coordinator-General evaluation under Section 35 of the SDPWO Act wascompleted in October 2001. Commonwealth Government approval granted inDecember 2001.

4.1.3 Jones Weir Raising

Location: Located on the Burnett River at approximately AMID 240km, immediatelyadjacent to the township of Mundubbera.

Yield: The project involves raising the crest by approximately 1.5m, which will increaseyield by approximately 6,100 ML/a with 200 ML/a as high priority.

Capital Cost : Estimated $5.9 million.

Approvals: Commonwealth Government approval granted in November 2001.

4.1.4 Barlil Weir

Location: Located on Barambah Creek, 135km upstream of its convergence with the BurnettRiver and about 8km north-west of the township of Murgon.

Yield: Expected yield is an additional 6,000 ML/a of medium priority water.

Capital Cost: Estimated $2.8 million.

Approvals: Commonwealth Government approval granted in November 2001.

4.2 Demand Projections for the Services Associated with the Infrastructure

The report by NECG, Indicative Economic Aspects of Additional Water Storage Infrastructure in theBurnett Region, dated 8 October 2001 ("NECG Report"), states that the nominal allocation of regulatedsupplies for the Burnett and Kolan catchments of approximately 320,000 ML/a is currently fully utilisedacross the Central, Southern and Lower Burnett Regions to support sugar, citrus, fruit, nut, horticultural,livestock and dairy industries, suggesting that demand exceeds supply.

The Burnett River Dam EIS notes that there is immediate demand for additional water to support existingagricultural and horticultural industries in the Lower, Central and Southern Burnett with 86,000 ML/arequired to stabilise sugar production in the region, 14,000 ML/a required to support the GroundwaterRescue Project. and 20,000 ML/a required to support urban and industrial demands.

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Further market analysis undertaken for the Department of State Development ("DSD") during late 2002focused on the potential users of new water entitlements. This analysis suggests that demand is in excessof the new entitlements to be created.

4.3 Needs Which the Facilities Would Meet and How the Infrastructure Would Satisfy theIdentified Need

The existing shortage of water in the Burnett Basin is limiting agricultural production as well as urbanand industrial development. Additional water is required to provide additional irrigation for existing andnew irrigated farms, meet existing and future urban and industrial water supply demands, allow furtherdiversity of agricultural production in the lower Burnett area and support citrus growers and horticulture.

The Burnett River Dam EIS states that practically all of the existing sugarcane, horticultural and othercropping farms in the Lower Burnett require additional water. An increase in water supply of around400,000 ML/a above the current nominal allocation is required for the Lower Burnett Area to reach itsfull agricultural, urban and industrial development by 2020.

There is also a demonstrable demand for additional water in the Central and South Burnett for theexpansion of existing agricultural activities and the development of new industries. Additional water isrequired for crops such as citrus, tree crops, vegetables, fruits and nuts, grapes, and intensive animalindustries (pigs, feedlots, dairy and fodder).

The Water Resource Plan ("WRP") for the Burnett Basin provides scope for the additional waterallocations to be associated with the Burnett Water Infrastructure Development Project. The NECGReport notes that the construction of the water infrastructure will increase the available water supply inthe Burnett region by approximately 70%.

4.4 Timing of Project or Service Delivery

Project predevelopment work is on-going and includes land purchasing, vegetation management planningand predevelopment approvals. Construction of the Burnett River Dam is targeted for commencement inlate 2003, or early 2004 with an anticipated construction period of approximately two years.

The construction period for Eidsvold Weir is expected to be in the order of 18 months, with the remainingweirs requiring six to nine months for construction.

4.5 Special Assistance Required from Government other than Land Acquisition

BWPL is not seeking any special assistance from Government that is not inconsistent with the Guidelinesfor Financial and Economic Evaluation of New Water Infrastructure in Queensland 2000 and iscommitted to addressing all of the Commonwealth and State approval conditions that are associated withthe Project.

4.6 Financial Analysis Including Project Risk/ Return

The NECG Report predicts that there will be a large improvement to the region in jobs and incomes withan estimated 7,500 new jobs in the agricultural sector to be generated as users take up the water. Furtherjobs will also be created in the -manufacturing and services sectors resulting in an expected verysubstantial increase to the region's gross domestic product.

The Project's predicted strong economic performance can be attributed to a number of key backgroundinfluences, including the region's capacity to capitalise on existing investments, as well as its scope toexport high value crops.

The strong economic viability of the Project suggests that water allocations to be created by thedevelopment of the Project will be able to be sold and/ or leased at price levels that address therequirements specified in the Guidelines for Financial and Economic Evaluation of New WaterInfrastructure in Queensland 2000.

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The market analysis referred to above suggests that there is considerable prospective demand for newwater allocations in the region.

4.7 Possible Environmental Effects

Comprehensive EIS processes, including public consultation, were undertaken in 2001 for the BurnettRiver Dam, Eidsvold Weir and the Walla Weir Raising. In October 2001, the Coordinator-Generalcompleted evaluation reports on the EISs for the proposed Burnett River Dam and Eidsvold Weir butdecided that it would be prudent to defer on environmental grounds the completion of the evaluation forthe proposed Walla Weir Raising EIS. The Coordinator-General determined that the beneficial anddetrimental effects of the Burnett River Dam and Eidsvold Weir proposals were adequately assessedwithin their respective EISs and that the detrimental effects would-be adequately addressed through aseries of recommended mitigation measures.

In December 1998, the Department of Natural Resources ("DNR"), the predecessor to the DNRM,commissioned a Review of Environmental Factors ("REF") in respect of each of the Jones Weir Stage 2and Barlil Weir proposals. The REFS were completed in mid-2001.

The EIS and REF processes identified environmental impacts and proposed management and mitigationstrategies in respect of the proposed infrastructure facilities. Environmental Management Plans ("EMPs")were also prepared in respect of each infrastructure facility. The EMPs covered predevelopment,construction and operational phases.

Commonwealth Government approvals were sought pursuant to the Environment Protection andBiodiversity Conservation Act 1999 (Cwlth) ("EPBC Act") in respect of the above four proposedinfrastructure facilities . The approval applications were accompanied by certification from the StateGovernment that the certain and likely impacts of the four proposed infrastructure facilities had beenassessed to the greatest extent practicable . Commonwealth Government approval was granted in respectof the Eidsvold Weir, Jones Weir Stage 2 and Barlil Weir proposals in late 2001 , and in respect of theproposed Burnett River Dam in January 2002 . Each approval was granted subject to conditions designedto mitigate any likely detrimental impacts of the proposed infrastructure facilities.

4.8 Technical and Financial Capacity of the Proponent to Implement the Proposed Facilities

BWPL, is a proprietary company incorporated under the former Corporations Law (Cth) to construct,own and operate water infrastructure in the Burnett River catchment. BWPL is a wholly stategovernment owned company established as a commercial organisation with the capacity to rapidly andeffectively commission internal and/or external staff (including consultants) with appropriate expertiseand technical capacity to undertake necessary tasks.

The State Government announced in the 2002-03 budget that a $30 million equity contribution would becommitted to BWPL during each of the 2002-03 and 2003-04 financial years, the primary purpose ofwhich is to make funds available for land acquisition and design work. The State Government has alsoput in place the necessary financial arrangements to enable completion of the Project.

4.9 Negotiations to Acquire Land by Agreement

BWPL has developed, for the four proposed infrastructure facilities in respect of which the requiredgovernment approvals have been granted and the required access road for the proposed Burnett RiverDam, comprehensive land purchasing policies to apply to all affected land, including freehold, leaseholdor unallocated State land, road reserves and all other forms of tenure recognised in the Land Act 1994.

These policies have been distributed to all affected landholders and contact has been made, andnegotiations and land valuations commenced, with all such landholders.

In relation to native title, a series of meetings were held in May 2002 to brief interested parties, includingthe regional land councils and other key groups and individuals, on the progress of the Burnett WaterInfrastructure Development Project. Since these meetings, BWPL has made substantial progress indiscussions with native title claimants and other interested parties with the aim of forming an Indigenous

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Land Use Agreement ("ILUA"). BWPL' s preferred position in the future management of land wherenative title may still exist is to form a comprehensive agreement such as an ILUA.

4.10 Investigations on the Required Land

Comprehensive investigations have been undertaken on the land required for the Burnett WaterInfrastructure Development Project. These investigations have included assessment of the environmental,geotechnical, cultural heritage, native title and infrastructure impact aspects of the Project and haveprovided detailed information on likely impacts and mitigation strategies, with BWPL and the StateGovernment developing and implementing a range of measures to address the identified impacts.

The Coordinator-General's report evaluating the EIS pertaining to the Burnett River Dam recommendedthat a Ministerial designation for community infrastructure of the land required for the proposed dam bemade under the Integrated Planning Act 1997 ("IPA") and further recommended that the designationinclude, in accordance with Section 2.6.4 of IPA, a series of requirements about the proposed use of theland and setting out mitigation measures to be implemented to lessen the impact of the works. On 10October 2002, the Minister for State Development, pursuant to Section 2.6.8 and Schedule 7 of IPA,made a Ministerial designation of land for community infrastructure that BWPL intends to construct andoperate on the land described in the notice of designation.

The Coordinator-General in his report on the EIS for the proposed Eidsvold Weir recommended that therelevant land affected by the proposed Eidsvold Weir be designated for community infrastructure inaccordance with the process detailed in Schedule 7 of IPA. It is anticipated that further recommendationsto the Minister that the land affected by the Barlil Weir and Jones Weir Stage 2 proposals be designatedfor community infrastructure will be made during 2002.

4.11 Economic Significance of the Infrastructure Facilities

The Wide Bay - Burnett regions current economic conditions are characterised by a relatively stagnanteconomy, high rates of unemployment and low labour force participation. The failure of the region toconverge towards the rest of the Queensland economy indicates that the region lacks both sufficientdrivers of growth, particularly in terms of infrastructure, both physical and social, and a sufficientlystrong export base.

In the short to medium term, the most promising paths to economic development involve anintensification of the agricultural base of the region, principally through the removal of water constraints,and an increase in the availability of investment finance. The region has shown that it has the capacity torespond to economic stimulus.

The NECG Report states that the development of water infrastructure in the Burnett region can provide aneffective means of facilitating regional economic development, as well as job and wealth creation, as theregion is well populated, already supports many forms of intensive agriculture and is well served byexisting economic and social infrastructure.

The construction phases for the four proposed infrastructure facilities in respect of which the requiredgovernment approvals have been granted is expected to produce nearly 1,200 full-time equivalent jobsand support the retention of an existing 1,700 jobs. The Wide Bay - Burnett region will benefit most astwo-thirds of the new jobs are expected to be taken by local residents.

It is also anticipated that agricultural production enabled by the infrastructure facilities will support thecreation of over 7,500 jobs, three-quarters of which can be expected to be created in the Wide Bay -Burnett region. It has been forecast that the infrastructure facilities will enable an increase in agriculturalproduction of over $1 billion per annum in direct terms and over $1.6 billion in increased turnover(output). This suggests net wealth creation of $800 million per annum.

While the positive economic and employment impacts of the infrastructure facilities will be greatest in theregion, they will have important flow-on benefits to the rest of Queensland. Support for the findings ofNECG is contained in the market analysis conducted for DSD.

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4.12 Social Significance of the Infrastructure Facilities

It is anticipated that the increased water allocation which would be made possible by construction andoperation of the infrastructure facilities constituting the Burnett Water Infrastructure Development Projectwill have the following social benefits:

(a) an increase in population and future demand for water in urban areas;

(b) increased community confidence arising out of increased security of water supplyand development potential;

(c) additional employment and specialist trade/ skill positions;

(d) opportunities for the development of support and processing industries andemployment created by increased water for irrigation;

(e) further impetus for filling service gaps with the increased economic activity andbusiness that will be created by professionals and businesses deciding to relocate to,or remain in, the region; and

(f) maintenance of the rural ethos of independence and self reliance.

The above likely social impacts were highlighted in many of the submissions received by theCoordinator-General during the EIS processes. As an example, the Canegrowers Bundaberg "Submissionon Draft EIS for the Burnett River Dam", dated October 2001, noted that "existing shortfalls in watersupplies for the region are not only limiting future industry growth but are eroding the viability ofexisting established businesses and undermining community confidence".

While the positive social impacts of the infrastructure facilities will be felt most keenly in the region, theywill have important flow-on benefits to the rest of Queensland.

4.13 Summary of the Public Submissions (Particularly Economically or Socially) of theProject

As part of the assessment of the significance, particularly economically or socially, to Australia,Queensland or the region of the infrastructure facilities constituting the Burnett Water InfrastructureDevelopment Project, the Coordinator-General invited submissions on the relevant issues from affectedpersons, in accordance with the Guidelines for Acquisition of Land for Infrastructure Projects by Personsother than the State.

In response to the invitation outlined above, the Coordinator-General received seven submissions fromthe following organisations or individuals:

• Kolan Shire Council;

• Two land owners affected by the infrastructure facilities to be constructed;

• Queensland South Representative Body Aboriginal Corporation ("QSRB");

• Murgon Shire Council;

• Environmental Protection Agency ("EPA"); and

• SunWater.

The matter being assessed by the Coordinator-General, ie whether the infrastructure facilities are ofsignificance, particularly economically or socially, to Australia, Queensland or the region in which thefacilities are to be constructed, was only addressed directly in submissions received from Kolan Shire

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Council and Murgon Shire Council. Both local governments supported a finding that the relevantfacilities have that significance.

The Kolan Shire Council submission highlighted the likely boost to employment opportunities andproduction prospects (existing and new industries), and associated flow-on benefits, that would beexperienced in the district as a result of the infrastructure facilities. The Murgon Shire Council contendedthat the Project would contribute to the wellbeing, economically and socially, of the Shire and regionwhich would in turn benefit the wider economy. The submission argued that an adequate current andfuture water supply is critical and an essential component of the wellbeing and economy of the Shire andregion. Reliable and sufficient water supply is also critical to maintaining and building the Shire'seconomic base, retaining its population base through employment opportunities and enhanced lifestyle,and to remaining viable into the future.

The focus of the submission received from the QSRB was the prospect of compulsory acquisition and theneed for decisions relating to compulsory acquisition to be delayed until impacts on the QueenslandEstate are well understood. QSRB also indicated a desire not to cause any undue delay to the Projecttimetable be pursued by BWPL.

The importance of appropriately understanding and addressing impacts on the Queensland Estate isreflected by the fact that BWPL is required to obtain a permit under the Cultural Record (LandscapesQueensland and Queensland Estate) Act 1987 ("the Cultural Records Act"). BWPL has indicated to theDepartment of State Development that it will adhere to all relevant Queensland laws, includingaddressing the requirements of the Cultural Records Act. BWPL has indicated to the Department of StateDevelopment that it has provided correspondence to QSRB indicating its commitment to working withQSRB to complete a Cultural Heritage Investigation and Management Plan.

Approval by the Governor in Council of the infrastructure facilities constituting the Project as havingsignificance is a pre-requisite to compulsory acquisition where the proposed taking of land by theCoordinator-General is for conferring rights or interests in the land to be taken on a person other than theState. The SDPWO Act requires a one month notification period after the relevant gazettal and then a 4month consultation and negotiation period before consideration of the acquisition of land by theCoordinator-General.

If the Project does not proceed any land acquired would have to be offered back to the former owners ofthe land in which case there would be no impact on the Queensland Estate.

An officer from the Office of the Deputy Coordinator-General met with representatives of QSRB on 20November 2002 to discuss the submission and outline the abovementioned relevant considerations. Theofficer also sent a letter on 20 November to confirm the discussions and document the abovementionedrelevant considerations. The QSRB representatives indicated at the end of the meeting that theexplanation had satisfied their concerns and they acknowledged that a decision on the BWPL applicationmay be made in the near future.

The other four submissions did not address directly the issue of significance, particularly economically orsocially, of the infrastructure facilities constituting the Burnett Water Infrastructure Development Project.

The submissions from the landowners addressed possible impacts of the infrastructure facilities onparticular individuals. These matters are not relevant to the consideration of the application receivedfrom Burnett Water on 18 October 2002.

The EPA submission did not include any points of direct relevance to the matter under consideration.The EPA noted that it "does not oppose gazettal" pursuant to Section 125(1)(f) of the SDPWO Act of theBurnett River Dam, Eidsvold Weir, Barlil Weir, and the raising of Jones Weir but cannot support suchgazettal in respect of the Walla Weir Raising.

This expression of opposition was based on, firstly, some representations that the EPA has made to theDepartment of Natural Resources and Mines ("DNRM") about the Burnett Resource Operations Plan("ROP") and DNRM's proposed approach to addressing the Government's decision to make provision for

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future water allocations to be associated with the Project. The second basis of objection was theCoordinator-General's deferral of the evaluation of the Walla Weir Raising EIS.

It is understood that DNRM is proposing to address the Walla Weir Raising in the ROP in accordancewith the Government's decision to amend the Water Resource Plan, and thereby provide for a futurewater allocation, on the basis of the hydrological modelling used to complete the Burnett River Dam EIS.

The investigations being conducted under the State Government's Burnett Program of Actions are beingadvanced to assist further consideration of the matters that were relevant to the deferral of the Walla WeirRaising EIS evaluation in October 2001.

The submission received from SunWater did not include any matters directly relevant to the assessmentof BWPL's Infrastructure Facility of Significance application dated 17 October 2002. SunWater statedthat it was "supportive of the application for declaration, but notes that valuable weirs are located on theland currently owned by SunWater. We believe that a commercial negotiation between BWPL andSunWater on the future management of these assets is more appropriate than a direct land acquisitionproposal."

SunWater further submitted that aspects of BWPL's land purchasing policy "will be difficult for a waterservice provider to achieve in practice. Outcomes regarding water quality, bank erosion and vegetationmanagement are addressed through the ROP and operating rules that are attached to the ResourceOperating Licence. Outcomes relating to land use are planning controls that are best achieved throughLocal Authority Planning Schemes."

Additional steps in the compulsory acquisition process. will not be considered unless BWPL candemonstrate that it has taken reasonable steps to negotiate with landowners such as SunWater. Mattersrelating to appropriate levels of control of the beds and banks for water quality management and otherpurposes are commercial matters for water services providers, unless land purchase and ownership isnecessary to ensure compliance with legislation such as the Water Act 2000 or IPA.

5. The Reasons for the Decision

For the following reasons, the Governor in Council approved by gazette notice on 13 December 2002under Section 125(l)(f) of the SDPWO Act, the Burnett River Dam, Eidsvold Weir, Jones Weir Raisingand Barlil Weir as infrastructure facilities having significance, particularly economically or socially, toQueensland and the Wide Bay - Burnett region, the region in which the facilities are to be constructed,being:

• The nominal allocation of regulated supplies for the Burnett and Kolan catchments ofapproximately 320,000 ML/a is currently fully utilised. There is immediate demand foradditional water to support existing agricultural and horticultural industries in the Lower,Central and Southern Burnett. This demand exceeds the entitlements expected to be created byall infrastructure across the three regions in the catchment.

• A substantial increase in water supply is required for the Lower Burnett Area to reach its fullagricultural, urban and industrial development by 2020. There is also a demonstrable demandfor additional water in the Central and South Burnett for the expansion of existing agriculturalactivities and the development of new industries.

• The EIS and REF processes for the Burnett River Dam , Eidsvold Weir, Jones Weir Stage 2and Barlil Weir proposals assessed environmental impacts and proposed management andmitigation strategies in respect of the proposed infrastructure facilities. CommonwealthGovernment approval pursuant to the EPBC Act has been granted in respect of the above fourproposed infrastructure facilities.

• The State Government announced in the 2002-03 budget that a $30 million equity contributionwould be committed to BWPL during each of the 2002-03 and 2003-04 financial years, theprimary purpose of which is to make funds available for land acquisition and design work.

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The State Government has also put in place the necessary financial arrangements to enablecompletion of the Project.

• BWPL has developed comprehensive land purchasing policies to apply to all affected land.These policies have been distributed to all affected landholders and contact has been made, andnegotiations and land valuations commenced, with all such landholders. In relation to nativetitle, BWPL has advanced negotiations with native title claimants and other interested partieswith the aim of forming an ILUA.

• In October 2001, the Coordinator-General recommended that Ministerial designation forcommunity infrastructure of the land affected by the proposed Burnett River Dam andEidsvold Weir be made under IPA. It is anticipated -that similar recommendations will bemade to the Minister during 2002 in respect of the land affected by the proposed Barlil Weirand Jones Weir Raising. The Minister for State Development has since made a Ministerialdesignation for community infrastructure of the land affected by the proposed Burnett RiverDam.

• The Wide Bay - Burnett regional economy is under-performing relative to other regions asevidenced by high rates of unemployment and low labour force participation. Economicperformance can be improved by an intensification of the agricultural base of the region,principally through the removal of water constraints. The construction of the waterinfrastructure will increase the available water supply in the Burnett region by approximately70%.

• The construction and operation of the proposed infrastructure facilities is expected to provide asignificant boost to employment in the Wide Bay - Burnett Region. According to economicanalysis undertaken as part of the EIS processes, it is anticipated that the infrastructurefacilities will enable an increase in agricultural production of over $1 billion per annum indirect terms and over $1.6 billion in increased turnover (output), suggesting net wealth creationof $800 million per annum.

• Existing shortfalls in water supplies for the Burnett River catchment area are not only limitingfuture industry growth but are eroding the viability of existing established businesses andundermining community confidence. The increased water allocation which would be madepossible by construction and operation of the proposed infrastructure facilities is expected tolead to an increase in population, additional employment and increased economic activity.

• Public submissions received, in particular from Kolan Shire Council and Murgon ShireCouncil, on the significance (particularly economically and socially) of the infrastructurefacilities to Australia, Queensland and/ or the region supported a finding that the relevantfacilities have that significance.

• BWPL's application dated 17 October 2002 , requesting that the infrastructure facilities beapproved by the Governor in Council as infrastructure facilities having significance underSection 125 (lXf) of the SDPWO Act adequately addresses the information requirementsspecified in Appendix C of the Guidelines for Acquisition of Land for Infrastructure Projectsby Persons other than the State and adequately demonstrates that the proposed Burnett RiverDam, Eidsvold Weir, Jones Weir Raising and Barlil Weir are infrastructure facilities ofsignificance.

ENDNOTES

1. Published in the Gazette on 13 December 2002.

2. To be laid before the Legislative Assembly within 3 sitting days after 13 December 2002.

3. The administering agency is the Department of State Development.

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