Wednesday, April 23, 2025

Issue:

Mackay and Whitsunday Life

Committees Call For Urgent Price Freeze On Irrigation Water

Two Burdekin water committees are urgently calling on the State Government to freeze irrigation prices and to exercise common sense and compassion for regional primary producers in the Giru irrigation area.

The Giru Benefit Area (GBA) Irrigation Committee, supported by the QCAR Water Committee, is appealing to the Queensland Minister for Local Government, Water and Volunteers, MP Ann Leahy, and her government, to immediately dismiss the Queensland Competition Authority’s (QCA) recommendation to slap a 100 per cent price increase on GBA irrigators. GBA Irrigation Committee Chairman Robert Stockham said the QCA bowing to Sunwater’s unreasonable and unsustainable demands would send many primary producers relying on the scheme spiralling into financial hardship.

“We need Minister Anne Leahy to step up to the plate and put our GBA producers’ sustainability and viability before profit,” Mr Stockham said.

“Sugarcane farmers and other primary producers are already hurting due to the significant damage to infrastructure, crops and pastures in last month’s substantial rain events – none of our rural businesses can stand up to the financial pressure of increased input costs that are effectively being doubled.”

He said the QCA’s apparent unjustified recommendation to double irrigation water prices, if accepted by the State Government, would come into effect on 1 July 2025 and remain through to 30 June 2029.

“This will cripple our GBA producers with tens of thousands of dollars being added to their annual expenses, when many of their businesses are already running on tight margins in addition to being battered through the recent tropical low rain events.”

The QCA’s recommendation formed a part of its report to the government following its five-year Irrigation Price Investigation 2025-2029, which reviews the irrigation pricing practices of Sunwater and Seqwater.

QCAR Water Committee Chair Kayleen Walsh said the reports and recommendations were delivered to the government on 31 January 2025 and published on 7 February 2025.

“We know the State Government is not bound to consider the QCA’s recommendations, but we cannot afford to sit and wait for the outcome without stating the dire outcomes for GBA producers should this staggering increase be accepted.

“We’ve met with everyone there is to meet with and stated our case, and we’ve written to Queensland Premier David Crisafulli and asked him to intervene in this decision-making process,” Mrs Walsh said.

“This recommendation is unacceptable and claims to prioritise ‘cost recovery’, well, we’d like to see the evidence that shows this doubling of input costs is fair and can be absorbed by our farmers without sending them to the wall.”

Ms Walsh said this recommendation appeared to have been made in a boardroom without consideration of the adverse implications to Giru area irrigators, all for the sake of a balance sheet.

“Both water committees are not opposed to equitable contributions, but this is neither fair nor sustainable and we stand together on this.”

She said the committees advocated for genuine consultation and invited further engagement to find a solution that was equitable to all parties, and specifically to include recognition of timing and circumstance.

“The GBA has been on a 50 per cent Target Price with low operator (Sunwater) inputs. The costs for these irrigators to access water is significantly higher than other schemes and they do not get the same service or access.

“While Sunwater can sit back and say everyone is now set up and got all their pumps and pipes and other necessary equipment sorted – well, half of that has gone missing or been damaged in the recent weather events, not to mention the additional costs for erosion restoration work.”

The Queensland Government is expected to make a decision in coming weeks.

“We are saying the same things we’ve said in meetings and in correspondence; we are imploring the Queensland government to maintain existing arrangements while we work together to find an equitable solution,” Ms Walsh said.

Leahy and Last KW and MKern:

Attending a recent QCAR Water Committee meeting are, from left,  Queensland Minister for Local Government, Water and Volunteers, MP Ann Leahy, Member for Burdekin Dale Last, QCAR Water Committee Chair Kayleen Walsh and QCAR Chief Strategy Officer Michael Kern. The two water committees are urging state government representatives to ‘step up’ and immediately freeze a proposed 100 per cent irrigation water price increase for the stricken GIRU area irrigators. Photos supplied: QCAR

GBA1:

Giru area cane farmer Frank Scarabel inspects his washed out irrigation system at Healey's Lagoon in the Giru area. Recent flood waters have washed the banks away and re-bedding with rock will be required

GBA2:

QCAR District Manager Angelo Licciardello is doing the rounds with farmers to assist with disaster recovery assistance following the significant rain events across the Burdekin and other parts of Queensland last month

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