IN a setback for Premier Peter Beattie's plan to drought-proof southeast Queensland, his federal
Labor colleagues have signalled they will not oppose a Senate inquiry into the $1.7 billion Traveston
Dam.

And Liberal senators have indicated they would support a move by Nationals and minor party
senators to force an inquiry, raising fresh doubts about whether the Howard Government would
approve the dam.

The controversial dam, on the Mary River near Gympie, 160km north of Brisbane, is a key plank of

Mr Beattie's $8 billion water strategy, but has met fierce opposition from residents and
conservationists.

Nationals senator Barnaby Joyce described the dam last month as an "environmental disaster" and
said he would support Greens and Democrats senators in a move to refer it tothe Senate's
environment committee.

With the federal Opposition keen to gain the initiative on water and environmental issues in an
election year, water spokesman Anthony Albanese signalled yesterday that Labor senators would not
oppose the move.

"The environmental impact assessment process for the dam is under way so we would have a close
look to see whether there was a case for an inquiry," Mr Albanese said. "There are legitimate
concerns with these issues. We acknowledge that."

The commonwealth has the power to block the dam because it could threaten three endangered
species -- the Mary River turtle and cod and the Queensland lungfish, one of the world's oldest
creatures.

Queensland Liberal Russell Trood said Liberal senators would consider supporting an inquiry
because of concerns over the dam.

"I am not convinced that this project is going to make a significant contribution towards addressing
southeast Queensland's water problems," Senator Trood said. "From what I have seen, this dam is a
social, economic and environmental disaster."

Save the Mary River Co-Ordinating Group chairman Kevin Ingersole said many of the 1000
landholders whose properties were marked for resumption were refusing to sell.

"The Government is only offering market value and that is not enough for people to be able to
resettle," Mr Ingersole said.

He said it was inappropriate that the environmental impact study being prepared for the
commonwealth was being done by state government company Queensland Water Infrastructure,
which is building the dam.

"The study should have been commissioned from an independent body," Mr Ingersole said.

Federal Environment Minister Ian Campbell said the study would be subjected to "robust and
forensic scientific review and assessment". And Acting Premier Anna Bligh said the company would
appoint specialists to undertake technical studies.

Ms Bligh said the federal Government had the option of holding a public inquiry into the project, but
had instead decided to assess it under a state-federal government agreement that provided for a
high level of public consultation.

She was concerned that a Senate inquiry could jeopardise the timing of what she described as a
"critical plank" of Queensland's water strategy.

"The state Government has no concerns about the dam meeting the commonwealth assessment
requirements and the interests of senators," Ms Bligh said.

"It is precisely because the Traveston Dam is so well-suited to meet the long-term water needs of
southeast Queensland that the Government is determined to build it."

Source: The Australian