Media Release: WBBROC expresses concern over proposed cost increases to water.

Mayors in the region are strongly opposing proposed water pricing increases currently being considered by the Queensland Competition Authority. 

Cr Mick Curran, Chair of the Wide Bay Burnett Regional Organisation of Councils (WBBROC) said that the Queensland Competition Authority should not be “rubber-stamping” the huge price increases being sought by State owned bulk water providers.

Under the current review of water pricing, a proposal was submitted for increases in water charges that could impact a wide range of users.  In some schemes, the new charges will amount to 174% of current prices and the impact across the Wide Bay Burnett could significantly impact irrigators, industrial users and urban communities.

“This has the potential to hit farmers and business very hard,” Cr Curran said.  “In fact, it has the potential to make some farms unprofitable.”

A price rise of this size could force many irrigators to reconsider their future plans and could discourage further investment reliant on affordable water in the region.  The flow on effects to economic development, productivity and jobs could be significant.

Mayor Mick Curran, believes that providing water at an affordable price should be a key part of the State’s support for regional communities.  He said, “Collectively, all the Mayors in the Wide Bay Burnett hope that the Government understands the key role that water plays in the economy of the Wide Bay Burnett.” 

WBBROC has previously identified water as a key enabler of economic development in the WBB.  These proposed price increases have the potential to seriously impact on our regional economy in a negative way.

Collectively, the proposed price increases potentially affect a large number of irrigators at a time when rising electricity costs, drought and low commodity prices are affecting the sector’s viability. The biggest factor is the introduction of increased charges in 2020 to recover cost blowouts from previous regulatory periods.  

On top of these price rises, the cost of dam safety upgrades totalling $12.5million are also being considered and these costs could also be passed on to irrigators under the review.

Cr Curran said that the Wide Bay Burnett region currently has plenty of available water, but we can’t afford to continually pay higher and higher prices if we are to compete on an equal footing.

Under the referral from the State Treasurer, Jackie Trad, the QCA is meant to consider;

Cr Curran said that the QCA needs to carefully consider this in its deliberations.

WBBROC will be advocating to the Treasurer and Minister for Natural Resources Mines and Energy to limit cost increases.   WBBROC is concerned that the pricing structure currently proposed doesn’t put our farmers out of business.  

While he was thankful that the time for consultation had been extended for an extra 2 weeks, this did not change to ability for these proposed price rises to impact the region hard.

In particular, WBBROC is concerned about the punitive measures on farmers who decide to give up their water allocations.  The termination fees for doing so require a payment of 11 times the annual water charges

Cr Curran added that “It’s not as if water users can go anywhere else for water. Like rail and electricity, the State runs a service monopoly through it’s bulk water providers and that prevents customers transferring water purchases elsewhere. It will be the QCA’s role to ensure that the review recommendations do not allow this advantage to exploit water users.”

WBBROC has made a detailed submission to the QCA review outlining its concerns and proposing alternate measures to protect the regions water security.

Each local Council is also expected to submit a submission detailing the local impacts of the proposed price increases.