Water Issues
Irrigation Policy
Issues
- Irrigation is critical to the sugarcane industry and there are around 3500 irrigated canegrowers throughout Queensland. This represents around 55 percent of total growers and 60 percent of production.
- Canegrowers use around 1 200 000ML of water per year which is around 350ML per grower.
- The main irrigation areas are the Atherton Tablelands, Burdekin, Proserpine, Mackay, Bundaberg, Isis and Maryborough and the vast majority of growers irrigate in the areas. Without irrigation, most of these growers would not be able to grow cane.
- In recent years, there have been considerable changes to irrigation policies in Queensland that are significantly impacting on canegrowers including irrigation water pricing. Government has been increasing water prices significantly and could increase them even further putting at jeopardy the viability of many growers.
Objective
Ensure growers maintain economic, environmental and socially sustainable access to resources within the context of changing government legislation.
Policies
Water Pricing
- Irrigation water charges in irrigation areas be based on a zero rate of return on capital for existing irrigation schemes.
- Efficient scheme operating costs be paid by the direct user including operational, maintenance and replacement costs.
- Growers meet the efficient resource management costs of Sunwater and that all resource management costs in Resource Operations Plans are justifiable (i.e. directly related to running an irrigation scheme in a catchment), necessary and transparent.
- Water prices are negotiated at the scheme level by Customer Councils and Sunwater with the Queensland Competition Authority to set prices where agreement cannot be reached.
- Contributions on new assets should be negotiated with each scheme when the scheme is being developed. Also, if water and infrastructure costs are purchased up front (eg water entitlements), no rate of return should be subsequently charged.
- Capacity to pay be determined at the scheme level based on predominant crops and the performance of typical growers.
- Those parties who are direct users and direct beneficiaries of irrigation water and dams should contribute towards the cash cost of operation and thus help defray the costs of irrigators.
- Variation of water charges apply as follows:
- different industry sectors be charged at different rates;
- different rural industries be charged at the same rate;
- consideration of source of supply, for example river versus channel access, should be made in determining charges.
- Some tempered differences in water prices can occur within schemes when there are significant differences in costs unless otherwise agreed between irrigators in a scheme. Also, that pricing differentials within state schemes should reflect the COAG user pays principles as they apply to the delivery of water at strategic locations.
- Growers not be charged for externalities and scarcity of water.
- Oppose any contribution to the resource management costs of government in managing Queensland water resources.
Local Management of Irrigation Schemes
- Local management of state owned irrigation schemes should be supported.
- Local management arrangements include the option for control and management of all headworks including storages so that there is the prospect of a large degree of self determination to suit local irrigators.
Water Entitlements
- Granting of a water licence and associated works licence be in perpetuity.
- Any loss of water entitlement as a result of a Water Allocation Management Plan should be fully compensated.
- Transfer of water entitlement be supported within sectors provided that the irrigation system is capable of supporting such transfer.
- Where Sunwater proves to the relevant customer council that a reduction in losses has occurred in a scheme, this reduction in losses be converted to a tradeable water allocation.
- Sunwater maintain responsibility for policing overuse of water in Sunwater schemes.
Dams and Land and Water Management Plans
- Dam owners should not be required to undertake a hazard-assessment, by a professional engineer to determine the impact of dam failure on downstream people, more than every 10 years.
- Land and water management plans be required by regulation only in circumstances of the acquisition of water and by agreement in areas of significant environmental risk.
