State government likely to stick with 'flawed' Dungowan Dam business case

Water minister and Tamworth MP Kevin Anderson didn't clearly answer when asked about the recommendation, made by federal agency Infrastructure Australia.

The independent Commonwealth body's report assessing the business case of the $1.3 billion project was released last month.

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"What we've seen is a massive push for Dungowan Dam," he said.

Asked a second time, Mr Anderson seemed to suggest the state would likely stick to its guns.

"Well, the business case clearly says - the summary business case - says that Dungowan Dam is the option which will provide more water for Tamworth," he said.

Federal water minister Tanya Plibersek has the ultimate power to kill or build the project, because the federal government is covering half the cost of the dam.

Minister Plibersek told media last month that "Infrastructure Australia has said they would welcome a revised business case" and "the report identifies a number of alternative options that could be further examined. I look forward to getting NSW's views."

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She told the Leader on Thursday that the independent report had "identified a number of alternative options that could address the region's water security issues."

"It's up to NSW to decide if they wish to submit a revised business case to Infrastructure Australia," she said.

"We need to ensure that any solution delivers water security but is also economically responsible."

Mr Anderson said Ms Plibersek had asked for "complimentary options" to the dam to be provided to her, which has been done.

"But as I've said to the minister, Dungowan Dam continues to be the number one option to provide water security with complementary options as well, well into the future," he said.

The state minister for water claimed Infrastructure Australia was sceptical of the dam option, because it "didn't want our region to grow".

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