FROM THE CHAIR

By Owen Menkens, Chairman, CANEGROWERS

Mill performance, season length, workforce shortages, diversification, and government policy were just a few of the issues tackled by the CANEGROWERS Policy Council when grower-leaders gathered in Brisbane for their first meeting of the year last month.

Each of CANEGROWERS’ three policy committees presented, and the council approved policy decisions on market-based instruments, diversification and workforce issues.

CANEGROWERS is calling on both parties to come together to reach agreement that is in the best interests of the sugar industry. Hopefully that meeting will take place sooner rather than later.

One of the biggest issues that is looming for growers in the next period is electricity and water prices.

The Queensland Competition Authority (QCA) has started consultation on electricity prices and tariff determination. It looks like there could be some significant increases to current tariffs, but CANEGROWERS will be working hard to fight this, while also calling for the introduction of solar tariffs that reflect the cheaper costs of pumping during the day.

The QCA process is frustrating, but we must go through it as Ergon is a monopoly asset operator and owner.

Anytime you have a monopoly asset owner-operator the QCA process can be triggered, which brings great costs to all the players involved.

We will be pushing the State Government for more competition in the electricity sector in regional Queensland, similar to what is available in urban areas.

We will also seek the removal of the solar bonus from tariff charges, as well as making sure the Community Service Obligation is paid on the Ergon network instead of Ergon Retail.

The use of microgrids was also discussed at Policy Council. We have a unique situation in the sugar industry in that sugar mills produce electricity which is supplied into the grid and growers use electricity purchased through the grid.

The difference between what the mills receive and the growers pay is massive, with most of that difference being pocketed by government.

There is an opportunity for government to change policy to allow local grids to be established for the benefit of the industry.

There are also reviews underway into the Pioneer Valley, Mary River and Lower Burdekin water plans.

These reviews are fundamentally important in determining how the management and pricing of those systems are dealt with going forward.

CANEGROWERS, along with the Queensland Farmers’ Federation, will be closely involved in consultations as we try to ensure fair and equitable pricing for all growers.

Grower directors will be closely involved in this process to make sure we get the best outcome for the industry. 