Council won't tell us what happened to dam money

THE Fraser Coast Council has failed to respond to the Chronicle's questions about what has been done with part of a subsidy paid to the previous Hervey Bay City Council to raise Lenthalls Dam.

However, Fraser Coast Mayor Gerard O'Connell said the council would provide information on the subsidy as requested to the State Government.

Premier Campbell Newman ordered an investigation into the funding after complaints made by Esther and Donna Allan, whose property has faced flooding caused by malfunctioning gates on the dam.

"I'm sure that investigation will provide the appropriate responses," Cr O'Connell said.

"Council will provide information as requested from the Premier and Minister (David Crisafulli)."

In April 2006, the State Government approved a subsidy to be paid to the Hervey Bay council.

The subsidy included funding to buy the Allan property because of the increased risk of flooding once the dam was raised.

However, no property has changed hands and Mr Newman has questioned what has been done with the part of the subsidy earmarked to buy the land under the now-amalgamated Fraser Coast council.

In a letter to the Allans, Mr Newman said the total subsidy paid by the state was 40% of the total cost to raise Lenthalls Dam, believed to be about $8.5 million.



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