A CASH injection of $121 million in federal government funds will create new jobs during construction of the new Dungowan Dam, according to New England MP Barnaby Joyce.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The former Deputy Prime Minister said the federal government's total investment of $242 million into the project would help stimulate the region's COVID-19 ravaged economy.
"It's not just great for water storage, it's great for the economic stimulus for our local contractors," Mr Joyce said.
"That is how we stimulate the economy, through capital infrastructure projects.
"This is a great outcome and comes off the back of the money we've put into Quipolly Dam, Mole River and the Tenterfield treatment works."
Read Also:
The funds, announced by Deputy Prime Minister Michael McCormack on Sunday, will replace a $121 million federal government loan, which will no longer need to be paid back by taxpayers over time.
The $480 million project, which was announced in October last year, is currently being reviewed by a parliamentary inquiry chaired by Greens MP Cate Faehrmann.
Several key stakeholders such as Tamworth ecologist Phil Spark, have questioned the project's benefits and the government's decision to begin construction before submitting a final business case.
"I am absolutely confident any inquiry brought forward by the opposition is going to say we are terrible people," Mr Joyce said.
"I think the business case has been made an awful lot easier by the fact the government is just saying here's a quarter of a billion dollars.
"I put it to the cynics to go out and find a quarter of a billion dollars.
"To them I say good luck."
On Sunday, Tamworth mayor Col Murray said while the dam's water sharing plan was not yet known, he was confident the project would help secure the city's water supply.
"We haven't seen how the water sharing plan will unfold," Cr Murray said.
"[But] we are better understanding the commitment to increase the water security for the city and that is what we've been lobbying for."
The final business case for the project is expected to be handed down next year.