I would like to update the community on the challenge regarding the high price of bulk water in the Peel Valley.
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People who buy bulk water for their businesses from the Peel River and Chaffey Dam includes irrigators and Tamworth Regional Council.
Council owned Dungowan Dam is also a source of bulk water for Council and ratepayers whereas Chaffey Dam is owned by the state.
It is expensive to maintain Chaffey Dam, and the money to pay for that comes from irrigators and ratepayers in Tamworth Regional Council.
It’s a complicated funding mix but there are a low number of irrigators that have to share that cost with Council ratepayers.
If we had more users then the price would drop.
Other valleys across the state have more irrigators/ water users to share the cost of maintaining dams in their regions or don’t have a dam so don’t need to pay for the infrastructure, all they pay for is water that comes from the river or underground.
This is why the cost of bulk water in other valleys and regions is much lower than that of the Peel Valley.
Finding a solution to cheaper bulk water in the Peel Valley has been a big challenge for many years.
If it was easy, it would have been done by now.
I have facilitated meetings with the irrigators, Council, stakeholders, the past three Primary Industries Ministers, various departments as well as the Land and Water Commissioner.
We have tried several options that have not been successful.
We have also made submissions and suggestions to IPART and the ACCC.
The latest option which was agreed to by the irrigators involves changing the water usage and service charges; however this option has also raised a significant challenge.
I will again be making a submission to IPART and I am on record highlighting that the high price is crippling the irrigation industry and the importance and the effect that their determinations are having on businesses.
We are getting closer to fixing this problem. Another potential solution involves sharing the supply from Dungowan Dam and Chaffey Dam.
This would occur following the anticipated upgrade of Dungowan Dam.
Peel Valley Water Users Association also agrees that this is a potential solution to driving down bulk water prices.
I will continue to work with Council to explore this option which requires cooperation at all levels.
I assure all irrigators and water users within the Peel Valley that I am fighting hard for fairer water pricing and I have no intention of giving up.
I am always looking for options and welcome any input that irrigators and stakeholders would like to offer to help drive down the price of bulk water in the Peel Valley.
Kevin Anderson
Member for Tamworth
Parliamentary Secretary for Regional Roads, Maritime and Freight