THE irrigation industry in the Peel Valley is facing a battle to stay afloat as it continues “to get hammered by costs”.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The enduring and complicated fight for fairer bulk water charges for irrigators using regulated water from the Peel River has reached a critical point, after another blow in recent days.
Tamworth Regional Council resolved to oppose any change to the 40:60 ratio of fixed charges to usage charges, unless the NSW government would offset any resulting increased costs, because it would shift too much cost onto the council.
It will, however, register its opposition to the large differential water usage charges.
The Independent Pricing and Regulatory Tribunal (IPART) draft determination on WaterNSW’s proposed charges was based on a 40:60 ratio.
Local water users had implored council to support an 80:20 ratio, which was turned down.
Dungowan irrigator Ildu Monticone understood why irrigators didn’t get the council’s support and urged the mayor to go to Water Minister Niall Blair and ask about “subsidies for council”.
“People are not irrigating as much as they should, so we’re not producing as much as we should,” he said.
“It’s cheaper to truck in hay from Scone than it is to produce it here.”
He urged locals to make a submission to IPART before on April 17.
“This is our last-ditch effort until the next state election,” he said.
“If it’s not resolved by then, it will be an election issue.”
Irrigators using Peel River water currently pay $58.26 per megalitre and WaterNSW’s proposal for bulk water charges for the next four years ($54.97) offers little relief to the Peel valley.
Peel Valley Water Users Association president Tom Woolaston said “nothing has changed”.
“I don’t know if it will be the end, but it will be wound back,” Mr Woolaston said of the industry.
“The 80:20 split was recommended by Niall Blair; it was favourable for us, but it wasn’t favourable for council because they don’t use as much water. If it was the 80:20 split, I would’ve saved $12,000 last year.”
David Gowing said the costs could spell the end of the local industry. He was able to avoid regulated river water costs by getting a Peel alluvium licence.
“That will be adequate for me to operate, but I had to make that [$50,000] capital expenditure to enable me to do that.”