Multi-million dollar water sweetner stirs up anger

A $50 million sweetener to slash water prices for Queensland farmers has raised questions for diversified North Queensland irrigators, a peak growing body says.

A $50 MILLION sweetener to slash water prices for Queensland farmers has raised questions for diversified North Queensland irrigators, a peak growing body says.

Under a Labor government, fruit and vegetable farmers would see water prices cut by 50 per cent, while broadscale crops including sugarcane would only see a reduction of 15 per cent for farmers who buy their water from one of Queensland’s 35 state-owned irrigation schemes, from July 1 next year.

Premier Annastacia Palaszczuk made the announcement in Bowen yesterday saying the water price slash would mean more jobs and crops.

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“Agriculture is one of Queensland’s traditional economic strengths, and our farm businesses will help underpin our economic recovery,” Ms Palaszczuk said.

“Reducing irrigation water costs means more crops, more jobs and more value.

“A re-elected Labor government will ensure lower water charges – in a way that has been costed, funded – will be delivered.”

Canegrowers chief executive Dan Galligan said the two-tier promise raised questions.

“There are many, many Canegrowers members who grow sugarcane and a vegetable crop pumping water from the same source and through the same infrastructure,” he said. “We’ve never been in a situation before where the destination paddock has dictated the water price.”

The LNP have also announced a plan to slash water costs by almost 20 per cent a year by transitioning SunWater into a regulated asset-base, where assets are paid for annually. This approach recovers costs from customers as incurred yearly rather than attempting to estimate the replacement cost of an asset at the end of its life.

Hinchinbrook MP Nick Dametto said cane farmers had been left in the lurch by the announcement.

“Any cut to irrigated water tariffs is welcome, but why the disparity between broadscale crops and fruit and vegetables?” Mr Dametto said.

“Sugar cane growers across Queensland have every right to be outraged by this. They are being treated like the poor cousin.”

Katter’s Australia Party previously met with the Premier Annastacia Palaszczuk in September to push for a 25 per cent reduction in irrigation water prices, estimated to bring a $220 million boost to the economy.

Ms Palaszczuk said the cost cutting would provide ongoing relief for COVID-affected businesses.

“My government has already frozen water prices for this year and absorbed dam safety costs as part of our ongoing measures to provide COVID relief,” she said.

Originally published as Multi-million dollar water sweetner stirs up anger