Local ratepayers appear certain to be called upon to foot the bill for mitigating the risk to life of an earthquake-compromised Dungowan Dam and creating a one-in-10-million-year flood event. But three separate reports in recent years have raised concerns about the level of expenditure across the state on dam safety measures. 

In 2010, the Independent Pricing and Regulatory Tribunal advised the government that “given the high costs of dam safety” it is “important to ensure that benefits from increased dam safety and security outweigh the costs”.

Two years later, a review of government spending found that to meet the Dams Safety Act’s requirements, “very small reductions in risk are being achieved at a disproportionate cost”.

The following year, a KPMG review recommended the government “seek comment from the community on its failure and the appropriate level of dam safety investment”.

In response, Primary Industries Minister Katrina Hodgkinson announced a review of the state’s “dams safety regime” in September 2013 that, according the 

Department of Primary Industries website, is “currently being considered”.

Tamworth Regional Council (TRC) resolved this week to press ahead with plans to spend up to $17.6 million – to be raised through a levy on ratepayers’ water charges – to relocate 11 at-risk homes in the Dungowan Valley.

As well, more than 40 other landholders could have portions of their properties re-zoned as flood plains in a move that would likely impact on their property values and insurance premiums.

Tamworth MP Kevin Anderson, who has been asked to approach the state government for funding to build a new $160 million dam, said he had been informed by Water Minister Kevin Humphries that TRC does not need to rush to act.

“Council do have the option to wait until (the earthquake capacity) review comes out in 2016, so they don’t have to do anything urgent at this time – that’s the message from the minister,” he said.

However, Tamworth’s deputy mayor Russell Webb said any delays in addressing the issues identified with Dungowan Dam would only cause the valley’s affected residents more pain.

He said council had received advice that in “no way, shape or form” will future studies override the fact that without relocating the 11 houses to higher ground, up to 50 lives could be lost in the event of a catastrophic dam break.

“I’m thinking of the owners of those 11 homes,” he said. “Do we let them sit in limbo for another two years, knowing what we know now, and knowing that the most likely outcome will be that we’ll have to do something?

“Or do we act now and everybody feels a bit of pain, but the job’s done and we move on?”