Media | Local News

Water price surges in the pipeline for farmers

4th April 2019

Queensland farmers are staring down the barrel of substantial water price increases under the Palaszczuk Labor Government's move towards 'cost-reflective' pricing for water.

The review currently underway by the Queensland Competition Authority (QCA) has highlighted several irrigation schemes that are facing significant and unstainable price increases.

LNP Shadow Minister for Natural Resources Dale Last has pointed directly to the submission from peak industry representative group Queensland Farmers' Federation (QFF).

"The QFF used state owned Sunwater's own 'cost-reflective' numbers to identify significant price increases for farmers already struggling under the burden of high water and electricity prices*," Mr Last said.

"The projected price increases we are seeing for some irrigation schemes are unacceptable and should be of major concern to farmers and the communities that rely on them.

"If the Labor Government wants to move to 'cost-reflective' pricing for water then it has a lot more work to do to ensure SunWater is providing value for money to its rural customers.

"There are serious questions that need answering around SunWater's ability to deliver value for money for farmers."

Member for Nanango, Deb Frecklington, said the projected increase in the Barker-Barambah scheme is completely unacceptable and out of touch with the real world.

“There is a proposed increase in water prices from $30/ML to $74/ML and this is simply unaffordable for our Barker-Barambah irrigators. If these increases go ahead, many irrigators will have to cease production,” Mrs Frecklington said.

Mr Last said it was clear Queensland farmers are currently getting a bad deal with SunWater.

"SunWater's own 'cost-reflective' pricing will effectively kill numerous irrigation schemes in regional Queensland," Mr Last said.

"Where there is water there is wealth and opportunity. Without water these rural and regional communities will lose production resulting in less jobs and more expensive food and fibre for all Queenslanders.

"These price increases have real world impacts on our rural and regional communities.

"It's time for Labor to step in and guarantee the future of irrigated agriculture in Queensland."

QFF was able to identify the following SunWater cost blowouts:

  • 112 per cent increase in Non-Routine expenditure across all schemes from the QCA target for 2013 - 2018 totalling $69,160,000 compared to the actual $146,566,000.
  • 59 per cent increase in non-direct costs for irrigation customers from an actual $11.1 million in 2017 to a forecast $17.6 million in 2019 representing a $6.5 million increase in two years.
  • $7.6 million increase over two years from 2017 in irrigation operational expenditure.

*Source: https://www.qff.org.au/wp-content/uploads/2017/04/20190308-QFF-submission-to-QCA-re-rural-irrigation-pricing-review-2020-24-SunWater-WEB.pdf