12 minute read
Water Security
Water Security MINISTERIAL BRIEFING NOTE
ORGANISATION
DELEGATION CONTACT
DELEGATES ATTENDING
DELEGATE ISSUES Cairns TNQ Convoy to CapitalQ
Advance Cairns, Tourism Tropical North Queensland and Cairns Chamber of Commerce are leading the region’s largest ever business delegation to Brisbane. The delegation includes more than 50 business leaders over a two-day period (February 18-19), representing 12 key business sectors to meet with State MPs and attend the Speaker’s Cocktail Reception.
Further information: Nick Trompf, Executive Chairman Advance Cairns E: nicktrompf@advancecairns.com | M: 0412 786 719
Water Security:
Allan Dale
1. Dr Allan Dale, Professor of Tropical Regional Development James Cook University 2. Mike Barry, Chief Executive Officer MSF Sugar 3. Cr Warren Devlin, Mayor Etheridge Shire Council 4. Mark Vis, General Manager Infrastructure Services Tablelands Regional Council 5. David Kempton, Chair Regional Development Australia Far North Queensland & Torres Strait and Lawyer Preston Law
Attached are bios on each delegate.
Water Security issues to discuss:
• Dams and Water Security
Attached are briefing papers on each issue.
WEBSITE LINKS
• Attendee biographies • Briefing papers
Allan is a Professor of Tropical Regional Development at The Cairns Institute, James Cook University. He has a strong interest in integrated governance, with a particular focus across the tropical world, northern Australia and the Great Barrier Reef.
He has both extensive research and policy expertise in building strong governance systems, but particularly in regional, rural and social development and natural resource management.
Allan was previously the Chair of RDA FNQ&TS, CEO of Terrain NRM and before that was responsible for natural resource policy in Queensland. He is also now the Chief Scientist for the Cooperative Research Centre for Developing Northern Australia.
Allan has a long research background in analysing complex and multi-level governance system and is an Honorary Professorial Research Fellow with Charles Darwin University’s Northern Institute.
MIKE BARRY CEO MSF SUGAR
Mike was appointed to the position of CEO in February 2008. Before he joined MSF Sugar, Mike was previously managing director of the private equity-owned Hudson Building Supplies, one of Australia’s largest building supply companies.
For the ten years prior to holding that position, Mr Barry held a number of senior management roles within Boral Limited, the most recent being Regional General Manager for Boral’s Construction Materials business in Western Australia and South Australia, where he had responsibility for the company’s concrete, quarries, transport, pre-cast concrete, asphalt and mining activities in those regions.
C R WARREN DEVLIN MAYOR ETHERIDGE SHIRE COUNCIL
Warren Devlin was born in Camden NSW, grew up in Nimbin then moved north to Georgetown in his late teens. He and his Father pegged several mining leases in the Etheridge Shire and commenced Gold Mining as a family operation giving Warren approx 30 years’ experience in the mining industry and a firm understanding of operating and managing a business. This business acumen has proved to be invaluable throughout Warren’s life.
In 2003 Warren completed building the Georgetown Roadhouse / Supermarket and has continued to grow his business portfolio in recent years diversifying into the industrial and grazing industries.
Warren was elected as Mayor of the Etheridge Shire in 2008. He immediately set about putting together the Gilbert River Irrigation Scheme and put in a submission to the federal govt to build a bridge across the Einasleigh river, addressing the issues of flooding and road closures during our wet seasons. This has been an economic stimulus to the whole of the gulf region.
Warren is currently serving a second term as Mayor of Etheridge Shire, having been re-elected in 2016. He is continuing to drive economic development into the Gulf region with a number of projects.
MARK VIS GENERAL MANAGER INFRASTRUCTURE SERVICES TABLELANDS REGIONAL COUNCIL Mark Vis was born and raised in the Netherlands. He has a Bachelors Degree in Civil Engineering and a Post Graduate Diploma in Business Management.
Mark commenced his career with Public Works Rotterdam working in civil design, construction and project management for 14 years. Mark migrated to Australia in 2006 and since then, has worked in operations and management roles at Townsville Water, Townsville City Council and now Tablelands Regional Council.
Mark has extensive experience in the planning, construction, maintenance and operation of public infrastructure, including bulk water infrastructure. He lives in Malanda where he is starting a small hobby farm with his wife, son and daughter.
DAVID KEMPTON CHAIR REGIONAL DEVELOPMENT AUSTRALIA FAR NORTH QUEENSLAND & TORRES STRAIT David Kempton has worked and lived in far north Queensland for over 30 years. In 1988 David established the first law practice in Cooktown since 1935. After over a decade of legal practice in Cooktown and Cape Y ork, David relocated his family to Cairns to provide his girls with a broader education.
David was a key negotiator on behalf of pastoralists in the Wik native title claim which saw the pastoralists rights enshrined in a binding agreement. He has been a specialist consultant with Preston Law since 2007 providing advice to farmers across Queensland on a arrange of matters including tenure, native title, vegetation management, water rights, EPBC Act and planning appeals.
From 2012 to 2015, David took a break from law as the elected Member for Cook and appointed Assistant Minister for Aboriginal and Torres Strait Islander Affairs.
For the past 12 months, David has chaired RDA FNQ&TS. In this role he has selected a dynamic board and surrounds himself with dedicated staff with a view to developing the necessary infrastructure and promoting a strong regional economy to underpin business and growth. He is keen to ensure all projects consider not only the economic impacts and benefits but take into account the environment, cultural and social aspects.
COUNCIL: CAIRNS, MAREEBA, ETHERIDGE, COOK, TABLELANDS STATE ELECTORATE: CAIRNS, BARRON RIVER, HILL, TRAEGER FEDERAL ELECTORATES: LEICHHARDT, KENNEDY ENABLING INFRASTRUCTURE
DAMS AND WATER SECURITY
BRIEFING NOTE SUMMARY
• The ability to supply increased demand for fresh Australian food from North Queensland is at risk due to a lack of long term water implementation strategy
• To cater for growing demand fresh foods, five significant water supply and infrastructure projects are considered essential enablers for the region: Nullinga Dam, North Johnstone River Diversion Scheme, Lakeland Irrigation Area Project, Gilbert River Irrigation Scheme and Tablelands Irrigation Project.
• All five projects require bilateral commitment and shared investment (split 50:50) to facilitate environmental approvals and progress to construction stage.
• In 2020-2021, a $7 million investment is required to progress the North Johnstone River Diversion Scheme business case.
• Nullinga Dam is the most advanced project and requires bilateral investment of $854 million to unlock additional agricultural production worth more than $200 million per annum while supporting the growing urban water needs of the region.
THE ISSUE Tropical North Queensland (TNQ) has seen sustained population growth during the past 30 years underpinned by expansion of industries including agriculture, tourism, fisheries, education, health and retail. At the forefront of agricultural growth has been the Atherton Tablelands, driven by the Mareeba Dimbulah Water Supply Scheme (MDWSS) with rapid expansion in high value crops such as avocados, bananas, berries and sugarcane. Water is now 100% allocated and 80% used, with purchase prices rising more than threefold since 2011, peaking at $4000ML. To address high prices and supply issues on the Tablelands, a short term and long term implement strategy needs to be agreed and acted upon. The short term strategy requires efficiency improvement in the current MDWSS and the construction of the North Johnstone River Diversion Scheme. These projects need to be fast-tracked to construction. During 2019 the proposed long –term solution for the region, Nullinga Dam was shelved as not meeting the current economic criteria. We believed that the detailed business case did not include all the relevant information. This needs to be re-assessed as it is the only long term solution for the region to meet the projected long term growth for water in the region. In addition, agriculture in areas such as the District of Lakeland and Etheridge Shire have potential to expand rapidly with high value crops such as bananas, grains, cotton and watermelons proving feasible. Water security has been a concern for a number of years and is now limiting supply in both regions.
2020 STATE ELECTION PRIORITIES FOR TNQ Agricultural exports are vital to Tropical North Queensland (TNQ) with the industry sector output currently valued at $2.8 billion, constrained mainly by factors such as irrigation and access to market. Recent trade deals secured with China, Japan, Korea and Indonesia present new market access opportunities, with Cairns International Airport providing direct air access to these markets from northern Australia where agricultural exports underpin sustainable tourism flights. Urban demand also continues to increase with Cairns’ population growth averaging 1.4% per annum. Combined with an estimated three million tourists visiting TNQ annually, to ensure the growing needs of the region can be met an effective and multi-faceted water supply strategy is required. Five significant water supply and infrastructure projects are considered essential enablers for the region: • Nullinga Dam • North Johnstone River Diversion Scheme • Lakeland Irrigation Area Project • Gilbert River Irrigation Scheme • Tablelands Irrigation Project
BACKGROUND On the back of record drought periods in Australia, water security and food security have become priority national policy issues, leading to controversial decisions around water allocations and infrastructure. In recognition of this, in 2019 the Federal Government expanded the National Water Infrastructure Development Fund by $500 million to more than $1 billion, adding to the existing $2 billion for the National Water Infrastructure Loan Facility program.
In strengthening the role of northern Australia as a food bowl, substantial feasibility work has progressed in the past three years to explore new agricultural development opportunities. With many of these studies now coming to a close, there are clear priorities for progressing environmental impact and construction activities and a coordinated approach to development is required. NULLINGA DAM AND NORTH JOHNSTONE RIVER DIVERSION SCHEME: The Queensland Government, through Building Queensland, has released a detailed business case showing costs for a 74,000ML stand-alone dam at $1.068 billion. The project will require shared State and Federal investment of $854 million on top of industry contributions of $213 million (based on $2900ML price). A Queensland Department of Agriculture and Fisheries study showed agricultural output on the Tablelands grew 30% in four years to $552 million. Nullinga Dam would unlock additional agricultural production worth around $200 million per annum. The Queensland ALP Government has announced it would ‘protect’ the proposed dam site but would investigate alternative water supply solutions such as the North Johnstone River diversion scheme in preference to Nullinga Dam. The diversion scheme is considered a viable short-term option to stimulate the economy, delivering up to 50,000 ML with a lower capital cost, and a $7 million investment for a full business case is sought to progress this project. However, longer-term Nullinga Dam will also be required to service the growing agricultural and urban water supply needs of the region. LAKELAND IRRIGATION AREA PROJECT: Regional Development Australia FNQ&TS, through the National Water Infrastructure Development Fund (NWIDF), funded a strategic business case that investigates new water storage options to expand the Lakeland irrigation area. When constructed, the proposed dam will store 200,000ML and irrigate 8,000ha of arable land. The Federal Government has committed an additional $10 million to further develop the business case. The project will require bilateral Government support to facilitate and coordinate the development approval processes for the dam. GILBERT RIVER IRRIGATION SCHEME: Etheridge Shire Council proposes to manage water from the Gilbert Catchment general reserve and facilitate construction of an irrigation scheme along the Gilbert River, distributing water to an estimated 30,000ha of irrigable land. A detailed business case funded by the State Government’s Maturing the Infrastructure Pipeline Program is currently under way and due for completion in March 2020. Preliminary modelling suggests the scheme is economically feasible, and that the area is suited to a range of irrigated crops including grains, pulses and cotton. TABLELANDS IRRIGATION PROJECT: The prefeasibility of the Southern Atherton Tablelands Irrigation Project has been completed and indicates a detailed business case would cost $2.2 million, with an additional $5 million required for an environmental impact study. The Tableland Regional Council is seeking an investment of $7.2 million through the National Water Infrastructure Development Fund to progress this project. The proposed Woodleigh Dam includes a 35,000ML capacity and 98.5% water reliability, and the project would facilitate a land use transition from predominantly beef cattle to higher value crops. The dam will also provide hydro power benefits, irrigating 4,200 hectares.
NEXT STEPS Development of the five proposed water infrastructure projects would meet a range of State and National Policy objectives: • Expand northern Australia’s agricultural productive capacity – this is nationally significant given the impact of drought on food and water security in southern Australia; • Increase northern Australia’s contribution to GDP through an increase in agricultural production; • Diversify northern Australia’s economic capabilities to facilitate investment and reduce reliance on tourism; and • Strengthen Australia’s international competitiveness through proximity to Asia.
OUR RECOMMENDATION
• That in 2019-2020 the Queensland Government invest $7 million through SunWater to progress the full business case for the North Johnstone River diversion scheme.
• That the State and Federal Governments commit to invest $854 million as a 50:50 contribution to the construction of Nullinga Dam with $10 million of Federal funds going towards an environmental impact statement in 2019- 2020.
• That, subject to completion of the business cases, the Queensland Government works with the Federal Government to facilitate and coordinate the development approval processes for the Lakeland Irrigation Area Project and the Gilbert River Irrigation Scheme.
• That in 2021-2022 the Federal Government invest $7.2 million through the National Water Infrastructure Development Fund to progress the Tablelands Irrigation Project.
RECOMMENDED INVESTMENT
Estimated project cost $868.2m
State Investment Federal Investment
2020-2021 2021-2022 2022-2023 2021-2022 2027-2031
Business Case (North Johnstone) Environmental Approvals (Nullinga) $7m - - $10m
Planning and Design (Nullinga)* Business Case (Tablelands) Procurement and Construction (Nullinga)* $50m - $377m* $50m $7.2m $367m*
