Water charge for Rockhampton irrigators jumps 50 per cent as Fitzroy Barrage replacement value soars to $100m

Water from Rockhampton’s Fitzroy River barrage just got significantly more expensive for irrigators wanting to access it after replacement costs rose to nearly $100m.

Fitzroy River barrage on February 4, 2020 with the gates open as the storage level reached 100 per cent capacity.

Hundreds of farmers using water from Rockhampton’s Fitzroy River Barrage will see fixed charges jump 53 per cent as the replacement cost of the storage soars to almost $100m.

Rockhampton Regional Council approved the increase this week after a five-year review outlined a substantial increase in the barrage’s valuation from 2019, rising 8 per cent from $37.5m to $40.6m.

The replacement cost for the ageing storage (completed in 1970) leapt $22m to $97.7m.

The top of the barrage on the Fitzroy River. Photo Sharyn O'Neill / The Morning Bulletin

Mayor Tony Williams said infrastructure replacement costs were now substantial across all areas of council’s operations.

“We have to be mindful of the money that is invested into the refurbishment of the barrage and prolonging the life of that asset,” he said.

“We have to have that in the back of our mind regarding cost recovery and how we manage that going forward.”

A senior Fitzroy River Water officer delivered a report on the fixed price increase for about 300 medium priority water irrigators which rises from $37.15 per megalitre to $56.96 per ML with a minimum charge of $300.

The few high priority water irrigators will see an increase from $53.73 per ML to $85.44 with a minimum charge of $400.

The officer said those prices were still very low compared to what large irrigators are paying at other Central Queensland storages.

“While we think that is significant, when we compare it to a similar charge for the Rookwood (Weir) structure we know that Sunwater will be seeking to charge them (irrigators) in the order of $330 per ML per annum for the high priority as a fixed annual charge regardless of how much you would use on your allocation,” he said.

“So hence our medium charge for $57 per ML is really quite low and I think it gives a good balance in comparison.”

Flood water flows through the Fitzroy River Barrage into Rockhampton.

Previous council studies on irrigator industry type costs show the medium priority sits around $200 to $225 per ML.

He said smaller irrigators using barrage water pumped about 1 to 2ML a year for livestock and gardens however when annual volumes moved into the 10ML range that amount indicated a large cropping business with a substantial return for the operator.

He said the electricity costs for such users would be far greater than the cost of the water.

During the council meeting he reported on the barrage open day held last weekend which attracted 1100 residents to the facility.