Queensland emperor Peter Beattie's palace is under siege.

But the veteran Labor premier has at least one thing up his sleeve - he doesn't have to face the slings and arrows of an election until 2009.

This week Mr Beattie faced two serious challenges to his government's ability to make its own decisions which it believes are beneficial to the state.

First there was Prime Minister John Howard's decision to intervene in the council merger issue.
New federal laws will overturn the Beattie government's legislation to sack councils that put planned mergers to a local vote.

Mr Howard described the Queensland premier's move as "jackboot tactics", denying people a say in the future of local government.

Mr Beattie, in response, has threatened to take the federal laws to the High Court, claiming unconstitutional interference in his state's affairs.

Mr Howard's decision will play well in Queensland regional federal seats at risk of falling to a resurgent Labor at the election due later this year.

It is also likely to boost the coalition's Senate vote in the Sunshine State.

But it raises questions about the state government's ability to govern itself and make reforms it sees are necessary to improve the lives of Queenslanders at grass-roots level.

Also, this week saw the tabling of the Senate inquiry report into the controversial Traveston Crossing Dam near Gympie, north of Brisbane.

While the report merely recommended that a federal environmental study be broadened and that the state government improve its community consultation, federal coalition senators spun the report a different way.

Queensland Liberal senator Russell Trood said the report proved the $1.7 billion dam was unviable and should not go ahead.

"The conclusions of the report are devastatingly clear - the financial, economic, environmental and social costs of this dam will far outweigh any potential benefits for the people of south-east Queensland," Senator Trood said.

Queensland Nationals senator Barnaby Joyce was also scathing.

"It's bad government, it's a bad decision, it's a waste of money and it completely isolates people from a sense of having participation in their state," he said.

Even the two Labor senators on the committee, Claire Moore and John Hogg - both of whom face election later this year - were critical of the poor consultation and keen to have federal authorities cast a close eye over the environmental impacts.

Queensland Deputy Premier Anna Bligh acknowledged that better consultation was needed.

"While we will be studying the report in more detail, the Queensland government clearly accepts the need to continue to support communities and businesses affected by the proposed dams," she said.

But she condemned the coalition senators' approach to the inquiry, after they all but promised local residents the inquiry could actually stop the dam - something well beyond the power of a Senate probe.

"The expectations raised within the local community by National Party senators Joyce and (Ron) Boswell must have left a bitter taste in some people's mouths," Ms Bligh said.

"Raising false hope is callous thing to do."

The dam still faces another federal hurdle.

Once an environmental study is completed next month by the dam's builders, Queensland Water Infrastructure, it will then fall to federal Environment Minister Malcolm Turnbull to assess the dam's impact.

The state government is hoping the assessment will allow it to complete the first stage of the dam by 2011, delivering a much-needed additional 70,000 megalitres of water a year to a thirsty south-east Queensland.

But the result of the federal assessment - expected some time next year - is by no means a foregone conclusion.

The Traveston issue and the debate over council mergers raises a wider question about the Beattie government's ability to govern.

With the federal government looking to intervene on a range of issues traditionally the domain of states - such as local government, the environment, water, health and roads - it is eroding the relevance and power of state government.

While it may have some short-term electoral advantage for the federal government, it could have long-term consequences for the Beattie government's ability to deliver major projects and reforms.

As the smoke clears from the siege some time after the federal election, it can only be hoped that the political warriors at a state and federal level go back to their barracks and get on with the job of delivering services necessary to keep Queensland growing.

Source: Australian Associated Press General News