Farmers in the Gympie region could be looking at some price hikes, and some price falls when it comes to the State's irrigation review.
Farmers in the Gympie region could be looking at some price hikes, and some price falls when it comes to the State's irrigation review. Renee Albrecht

Some farmers will win, some lose in water price review

PIE Creek and Cedar Pocket irrigators might be looking at higher than inflation increases to fixed water prices, but those on the Mary River may luck out.

As part of their submission for the 2020-2024 period Seqwater has identified these two schemes are priced below the actual cost of delivering the service.

Under the terms of the referral, this would result in irrigators being set on a price path of inflation plus an additional $2.38 per megalitre.

Map of the Mary Valley Water Supply Scheme, which Seqwater says could be in line for price reductions as they're cost to deliver is likely less than farmers are paying.
Map of the Mary Valley Water Supply Scheme, which Seqwater says could be in line for price reductions as they're cost to deliver is likely less than farmers are paying.

However, the volumetric prices are above Seqwater's cost reflective values which "would result in variable price reductions”.

It is a similar story for irrigators on the Mary Valley Water Supply Scheme. Their submission reports the MVWSS' fixed price was "above the cost reflective level proposed for 2020-2021”.

A Mary Valley farm.
A Mary Valley farm. Craig Warhurst

"This would mean no increase to the fixed prices from 2020-21,” the report said.

The Supply Scheme includes Borumba Dam, then follows the Mary River downstream for 142km before terminating west of Tiaro. Pie Creek is part of the scheme, and is made up of 4.5km of channel and 6.8km of pipeline.

Gympie Times


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