Queensland irrigators have won a slight reprieve from increased water pricing, with the state government implementing a price freeze for 12 months.
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Natural Resources Minister Dr Anthony Lynham made the announcement on Tuesday, saying that the government would absorb price increases in 2020-21, as well as pass on any decreases, which had been recommended by the Queensland Competition Authority.
The government will also subsidise $42 million worth of dam safety upgrades across the state over the next four years rather than ask irrigators to contribute towards them.
"The freeze is a temporary relief measure, just as other Queensland businesses are receiving because of COVID-19," Dr Lynham said.
"The government will monitor conditions over the next 12 months before it reassesses and decides on prices to apply from 2021-22."
The announcement has been welcomed by industry bodies like Canegrowers and Queensland Farmers' Federation, who had been calling for a price freeze since the QCA handed down its recommended price path for 2020-24 at the end of January - prices that ignored concerns about farmers' ability to pay for water.
Canegrowers CEO Dan Galligan said they are pleased to see the Queensland government listening to concerns and providing some temporary relief.
"This gives some certainty for the next year to irrigators who are trying to manage escalating domestic price pressures in a difficult global market, but it leaves pricing after 2021 up in the air," Mr Galligan said.
"The COVID-19 pandemic has reminded everyone how much we rely on farmers and our food systems, and a government 'investment' towards water supplies to keep production happening at an affordable level is justified.
"However, this one-year price freeze is a temporary measure. It still puts farmers in the firing line of potential massive price increases in the future.
"For example, irrigators in the Pioneer Valley are facing increases in recommended water prices of up to 45 per cent over the next four years."
Mr Galligan said the next year needs to be used to address some outstanding issues and put in place long-term plans for irrigation schemes to be productive and viable to support food production.
QFF president Allan Dingle said with clarity regarding the long-term viability of some schemes and positive benefits for the productivity and profitability of Queensland farm businesses, farmers could now continue producing high quality food, fibre and foliage.
"However, QFF is disappointed the announcement has maintained the long-standing inequity that some irrigators continue to pay well above 'lower-bound' costs, which is the level of pricing the government has been aiming for," Mr Dingle said.
"While the government has heard and acted on our concerns, we expect them to continue consulting with industry over the next 12 months as they reassess and decide on prices to apply for 2021-22."
While the announcement has been welcomed by many, the LNP believes the move is more about the upcoming state election than helping farmers in the long-term.
Opposition Natural Resources spokesman Dale Last said farmers were already paying too much for water and needed a long-term solution to give them a viable and secure future.
"This announcement fails to address the larger structural issues that affect water pricing in Queensland," Mr Last said.
"Farmers are already paying too much for water and kicking the issue into the long grass will only continue the pain for another year.
"Sadly, Labor has failed to deliver affordable water and this announcement will cost future investment and regional jobs, particularly in the agricultural supply chain."
