In a 50:50 funding agreement the Government and Great Lakes Council will share the $370, 000 project cost.

To cover its portion of the project, Great Lakes Council has proposed a one per cent increase to its environmental rate.

Spokesperson for the Myall River Action Group, Gordon Grainger said it was a dual triumph for the region’s waterways.

“We’ve achieved two major milestones. The first is the State Government’s announcement to dredge the Western Channel so commercial businesses can operate without a problem.

“The second is Great Lakes Council’s recognition of the importance of our waterways in their application of a one per cent rate increase that will be dedicated to all dredging projects.”

Three weeks after a yacht ran aground in the channel, Minister for the Hunter Jodi McKay said the project would boost the regions “tourism and recreational boating industries.”

“These projects will enhance the attraction of the area for recreational boaters and boost the regional economy.”

But Member for Port Stephens, Craig Baumann said there is more to be done to reverse the environmental problems of the river.

“The State Labor Government isn’t off the hook yet – this will do nothing to ease the environmental degradation of the Myall River.

“There is still the problem with sediment build up in the eastern channel that must be addressed.

“There is still a problem with low salinity levels, blackened water, mass fish kills and feral animals accessing the internationally-recognised RAMSAR Corrie Island, including two dingoes spotted there last week.”

Dredging is expected to begin in the 2009-10 financial year. The Myall River’s Western Channel is one of three dredging projects announced by the Government on Monday. The other two allocations are for Piper’s Creek and The Step in Wallis Lake.