Sisu Wines expansion plans hinges on federal funding for the Great South East Irrigation Scheme

Sisu Wines owner Jake Sheedy says plans to expand the business have been put on hold until there is further certainty around the cost of water. Here’s what’s holding things up.

Sisu Wines. Picture: Facebook

The Coal River Valley is renowned for its wine making, however it needs one thing to fully realise its potential: water.

That’s the belief of Sisu Wines owner and winemaker Jake Sheedy who established his vineyard in the region due to its great growing capacity.

He said plans for an on-site restaurant were on hold until there was more certainty around the Great South East Irrigation Scheme.

TasFarmers CEO Nathan Calman and Sisu Wines owner and winemaker Jake Sheedy. Picture: supplied.

The scheme missed out on federal government funding in this year’s budget and farming advocacy body TasFarmers is urging for the Commonwealth to get behind the “game changer”.

Mr Sheedy said millions had been invested into his vineyard, including planting 25 hectares of vines, wine making facilities and cellar door operation.

“We’ve literally taken a farm with less than one full-time worker and we’re transforming it into a winery with around 20-plus local workers,” he said.

Plans for an on-site restaurant have been placed on hold until there is more certainty around the Great South East Irrigation Scheme, he says.

“If the new scheme is not approved, it will result in an increase in water charges to irrigators of more than 500 per cent,” he said.

“This would make almost every agricultural enterprise reliant on stages 2 and 3 water uneconomic for local farmers, resulting in the hand back of water entitlements, and a collapse of the schemes and most related agricultural enterprises in the district.

“This would be an economic disaster for the state which can only be avoided by the commitment of funding by the Federal Government for the construction of the Greater South East Irrigation Scheme, and the new water source it will provide.”

TasFarmers chief executive Nathan Calman. Picture: Stephanie Dalton

TasFarmers CEO Nathan Calman is stepping up the campaign for the Federal Government to provide a $150m share of funding for the Greater South East Irrigation Scheme.

It is the first year the Greater South East Scheme, one of 18 irrigation schemes in the state, wasn’t included in the federal budget.

“We have had a lot of dialogue with all spectrums of government as well as producers and there wasn’t a specific reason given for why the scheme wasn’t funded in this year’s budget, but we think with the updated business plan Tas Irrigation has submitted this week for the scheme that it will be included in next year’s [budget],” he said.

Mr Calman predicts that the scheme will bring a net benefit of $291m as well as creating 225 construction jobs and 468 direct and indirect ongoing jobs.

He said the state government had provided $75m in funding that added to the $75m irrigator contribution.

“Irrigation in agriculture is a real game changer and is incredibly important in the state achieving its farmgate target in 2050 of $10b when its currently sitting at $3b,” Mr Calman said.

“There’s a lot of confidence in this area’s potential for agriculture and I guess what you can see is people investing ahead of that water becoming available as they know that water has a lot of potential.”

Originally published as Sisu Wines expansion plans hinges on federal funding for the Great South East Irrigation Scheme