The state government, in its own budget, has contributed $32 million towards the pipeline extension project that is designed to improve water reliability for farms and towns from Great Western to Streatham.

The state government’s plan relied on money from the federal government to meet the pipeline’s $82.5 million total price tag.

Victorian Water Minister Lisa Neville accused Coalition water spokesperson and Euroa MP Steph Ryan of having “failed irrigation communities across the state”.

“The federal budget does not provide a cent for water infrastructure in Victoria, putting these projects, and the jobs and economic activity they would have brought to our regions, at risk,” Ms Neville said.

“Steph Ryan is out of excuses - she needs to finally admit she simply can’t deliver for regional Victoria and is out of her depth when it comes to fighting for irrigation communities in Victoria.”

In response, Ms Ryan said the state government had “been caught out in a lie on rural water security” as it did not submit an application for federal funds within a reasonable timeframe.

Ms Ryan said an application was finally submitted on May 8, the day of the federal budget.

“Lisa Neville’s been caught in a lie on rural water security and she’s trying to divert attention by shifting the blame,” Ms Ryan said.

“Lisa Neville’s decision to use the East Grampians Water Supply Pipeline as a political football has denied East Grampians landholders the opportunity for the project to be delivered in full.

“I will continue to speak to my Federal colleagues about Victoria’s water needs. It’s a shame that Lisa Neville isn’t doing the same.”

The East Grampians Pipeline project called for 1600 new kilometres of pipeline to service 530,000 hectares, including Ararat, Willaura, Tatyoon and Buangor. 

It would bring $215 million in economic benefit to 1500 enterprises in the region.