General News
1 February, 2025
Critical project backed
A $403 a year hike in rates over 15 years has been avoided after the Albanese Labor government last week stepped in to provide a $87.5 million lifeline to finalise the funding for Cairns’ $472 million future drinking water supply.
By 2026, demand for water will exceed the capacity of existing infrastructure, but, until last week, ratepayers faced forking out nearly $88m extra for the project, which is the regional council’s biggest to date.
Ratepayers’ bill $82m
The state government has tipped in $195m with the federal government’s $87.5m promise also totalling $195m.
City ratepayers will fund the balance of $82m.
The project includes a new water intake at the Mulgrave River, a new water treatment plant and water reservoirs at Gordonvale. It also includes supporting infrastructure to connect the new intake to the existing water network for 15 years from next year when the first stage is expected to be completed and operational.
The new water treatment plant, water reservoirs and distribution network will provide modern, integrated and long-term water security in Cairns.
Important project
Environment and Water Minister Tanya Plibersek, who made the funding announcement in Cairns last week, said the Labor government knew “how important this project is for this growing region”.
Cairns-based Senator Nita Green said it was “an incredibly important project for the Cairns region”. “Our investment will secure the region’s water supply into the future and creating good, local jobs throughout its construction,” she said.
Cairns Mayor Amy Eden said it had been “many months and many meetings, letters, reports, phone conversations and a couple of trips to Canberra to meet and lobby all sides of politics”.
Win for Cairns
“Today (January 24) we finally got the win. Thank you to PM Anthony Albanese, Minister Tanya Plibersek, Matt Smith – Labor candidate for Leichhardt – and Senator Green for announcing the final piece in the puzzle,” she said.
“The announcement by the Albanese Government is momentous on two fronts.
“First, it secures the future of our water supply to meet our growing population.
“Secondly, this funding provides massive cost of living relief for our residents – around $400 per year for the next 15 years.”
Advance Cairns chief executive officer Jacinta Reddan said the $87.5m commitment from the Albanese government was “a game-changer for Cairns”
“With the Federal Budget now backing this critical project, we have certainty that water security will not be left to chance,” she said.
Locks in funding
“With a federal election looming, this funding commitment locks in a vital investment for our region, shielding residents from potential rate hikes and securing the long-term future of Cairns’ water infrastructure. “This project is not just about meeting today’s needs – it’s about future-proofing our city. The Australian Government’s investment ensures that by 2026, Cairns will have the modern water infrastructure it needs to sustain growth, support industry, and provide certainty for generations to come.”
Key priority
“This was a key priority when we led a delegation of 30 regional business leaders to Canberra in November. It speaks to the power of collaboration and a true team approach across the region.
“If the federal election is called prior to the budget being tabled we would call on the opposition to match this critical commitment.”
