FEDERAL Labor has backed a damaging Senate report that will put pressure on the State Government to scrap the Traveston Dam.

In a major blow to the $1.7 billion project, three Labor senators sided with the Coalition in raising "serious concerns" about the controversial dam, near Gympie.

The long-awaited report -- to be released today -- questions the impact of the 180,000-megalitre dam on the environment and the State Government's lack of consultation with the community.

Doubts are also raised about the project's hydrology and engineering.

Federal Labor's endorsement of the report could give Environment Minister Malcolm Turnbull added justification to cancel the Traveston Dam project, after an assessment under the Environment Protection and Biodiversity Conservation Act, which is under way.

The endorsement also signals a widening rift with state Labor, following the damaging stoush with the Beattie Government over forced council mergers. Labor fears mergers could cost Opposition Leader Kevin Rudd votes at the upcoming election.

But Deputy Premier Anna Bligh last night slammed the inquiry as a "political stunt" and committed the Government to pushing ahead as planned.

"They have no power or capacity to influence the Queensland Government on this matter," she said.

"This dam will be providing water for 2.2 million southeast Queenslanders and it is too important to play politics with."

A key recommendation in the report asks Mr Turnbull to carefully consider the impact of the dam on the Mary River and rare animals such as the lungfish. Another recommendation urges the State Government -- if it does proceed -- to properly consult and compensate affected communities, as well as release any relevant reports in a "timely" fashion.

Source: The Courier-Mail