THE federal government could withhold billions of dollars for state water infrastructure projects amid mounting frustration at delays in finalising the plans for irrigation upgrades.
The July 2008 agreement on Murray-Darling Basin Reform said the federal government could withhold all or part of its $3.7 billion for state priority projects "if progress is determined to be unsatisfactory". According to The Australian Financial Review, The Council of Australian Governments reform council is expected to report on the projects' progress in May.
There is growing frustration within the federal government at the length of time it is taking for states to finalise and submit acceptable business plans for projects that were identified more than 20 months ago.
Half of the water savings achieved through the schemes are supposed to be delivered to the federal government for the environment.
Farmers and the irrigation industry are also angry at the delays in the projects, which include almost $1.4?billion in irrigation upgrades in NSW and $1.1 billion for Victoria's foodbowl modernisation project in the state's north.
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