Wagga-based Nationals MLC Wes Fang has accused Murray MP Helen Dalton of trying to "derail" a deal to improve water levels in Lake Albert.
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Wagga City Council is working on a proposal with the NSW government to gain credit for treated effluent it is already pumping into the Murrumbidgee River and then use that credit to top up the lake.
Ms Dalton, from the Shooters, Fishers and Farmers Party, wrote to Water Minister Melinda Pavey urging her to delay the deal for a "full and transparent risk assessment" on pumping treated effluent into the river and "consultation with all downstream stakeholders".
Lake Albert's low water level has caused blue-green algae blooms and damaged Wagga's economy through the loss of major water sports events.
Mr Fang said Ms Dalton had either misunderstood the technical aspects of the proposal or was "playing politics" with a crucial deal for Wagga's future.
"The greatest failure in her letter is that [Wagga] council are putting the treated water back into the river and that is the point that council is raising," Mr Fang said.
"Council are putting up to 5000 megalitres into the river for nothing; it's treated, it's safe and it passes all regulatory requirements already.
"What council are seeking in exchange for that water is a much smaller amount of 2000 megalitres per year for the lake; it is something that everybody in Wagga and the surrounds have been wanting for generations."
Ms Dalton said she wrote the letter after being contacted by Coleambally irrigators, who had concerns about the deal's potential impact on the quality, availability and price of water.
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"I think it's terrible what has happened to Lake Albert but I'm not going to forgo water quality or reliability because they haven't done a proper job or done due diligence in Wagga," she said.
"I'm not trying to derail anything; I'm just trying to get to the bottom of what's happening."
Wagga council will need Ms Pavey to approve the deal, which has been delayed multiple times already due to disagreements with the Department of Planning, Industry and Environment.
Council general manager Peter Thompson said Ms Dalton's letter "had a range of statements in it that were completely wrong".
"It would be a shame for Wagga if something that isn't even factually correct influenced the outcome," he said.
Independent Wagga MP Joe McGirr said Ms Dalton's "concerns are misplaced".
"We know Lake Albert is important to the Wagga community and we also know the health of the river is important to Wagga and the communities downstream," he said.
"The proposal that the council has put forward maintains the health of the river and also gives certainty to Lake Albert."
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