The Morrison government’s promise to spend $7.4bn building a series of new dams is probably “the biggest pork barrel in history,” says the author of new research that claims other investment would deliver significantly better economic outcomes and more jobs.
The report by the Australia Institute said the vast majority of new spending on water infrastructure had been “allocated to where the National party vote is highest, not where the agricultural potential is highest”.
It compared the economic impact of spending $5.4bn Hells Gates dam – a project where funding was committed before a business case was finalised – with the benefits of investing the same amount in aged care.
Investment in aged care would create 48,000 jobs, compared to about 28,000 from the dam, the report found.
“Pouring concrete creates jobs,” said chief economist at the Australia Institute and the report’s co-author, Dr Richard Denniss.
“But it only helps the economy if it’s in the right shape and in the right place. You could build carparks in the desert and create jobs, but they just won’t be of any use.”
The research questioned why – if the dam investment was designed to benefit the agricultural sector – most of the $7.4bn water infrastructure spending was allocated to projects in north Queensland, which contributes about 3% of the nation’s food production.
“The vast majority of Australian agriculture takes place outside of Queensland and, in turn, the vast majority of Australian agriculture will receive little or no benefit from what is one the largest investments in Australian water infrastructure, all without a business case, and announced on the eve of an election campaign,” the report said.
“This level of spending is nationally significant, but the main beneficiaries appear to be the National party in very specific locations. Despite the water and economic policy challenges nationally, there is no investment in this announcement for South Australia, Victoria, or Tasmania.”
Denniss said the scale of the $7.4bn allocated to dam construction dwarfed other programs – like the “sports rorts” grants or funding for commuter carparks – for which the Morrison government has previously been accused of pork barrelling.
“Is this the biggest pork barrel in history? I can’t think of a bigger one,” he said.
Deputy prime minister, Barnaby Joyce, has been contacted for comment.
The report said dams had become a symbol of the National party’s ability to extract a “good deal” for regional voters from their Coalition partners, the Liberals.
“As a result of the symbiotic importance that dam building has taken on within the Coalition, decision making about the size and location of dams appears to have been separated from the collection of evidence to support such dams, to the detriment of other water projects, other infrastructure more generally, and other states and regions that are not represented.
“While there is nothing illegal about building dams, car parks, or other projects in regions based seemingly on political calculations rather than economic ones, there’s also no reason to expect they will deliver any lasting economic benefits beyond those paid to pour the concrete.”
