Water pricing concerns

It recommends increasing water bills by 21-24 per cent every year for five years, which the National Irrigators Council highlighted would add up to $40,000 to a ‘typical’ farmer’s water bill by 2030.

MRSG - a coalition of industry, community and irrigation groups across the NSW Murray Valley - says the proposal would see farmers wear the majority of costs for running the state’s water activities, even though many of these have no connection with farming.

MRSG executive officer Shelley Scoullar said this was unreasonable, as many of the costs associated with water operations are for public services and activities including environmental planning and protection, recreation, cultural and managed environmental flows and construction of fishways.

“We find the pricing proposal submitted to IPART to be disappointing, and perhaps even showing a lack of understanding around both the principles of fair cost distribution, and the challenges faced by modern-day farmers,” she said.

Mrs Scoullar said under the Murray-Darling Basin Plan, one third of available water has been moved away from food production to the environment, yet food producers are still being asked to pay the cost of providing water for environmental benefit.

WaterNSW’s proposed pricing structure is based on a Cost Reflective Base Case revenue requirement of $2.9 billion ($2,950.0 million) over the five-year determination period, which is a 44 per cent increase in the average annual revenue requirement from the current IPART 2020 and 2021 Determinations.

It says high security customer bills are forecast to increase by 24 per cent per annum on average, and general security bills by 21 per cent per annum.

However, after feedback from rural customers, WaterNSW has put forward three scenarios to “assist IPART in assessing affordability for rural customers”.

Alternative scenario one suggests ways to extend asset lives and reduce user shares, scenario two proposes extending asset lives and removing major policy projects and scenario three is for regional pricing to be adopted, which would see each valley pay a legacy charge for the capital expenditure it has incurred up to 30 June 2025.

MRSG has written to NSW Premier Chris Minns expressing its concern at the recommendations and asking the Premier to intervene.

“The state should not expect farmers to wear the majority of cost associated with running the state’s water activities,” Mrs Scoullar said.

“They expect to pay a fair share, but not virtually the entire amount.

“No reasonable person would agree that’s a suitable outcome.

“It is up to all New South Wales residents to cover the environmental costs associated with running our waterways.”

Mrs Scoullar said if governments do not want family farmers to remain in business, they should at least have the courage to say so.

“Australians generally believe in a fair go, but there are farming families at present who consider this principle has been abandoned by some of our politicians.

“We need Premier Minns and Water Minister Rose Jackson to intervene in this process and protect regional New South Wales.”

Mrs Scoullar said MRSG is concerned that city-based politicians at state and federal level are not considering the impact on rural communities when making water policy decisions.

“Without productive farmers, especially family farmers, rural communities suffer.

“These families are often the backbone of sporting clubs, schools and numerous other activities in rural towns.

“If we don’t support them, the decline of rural communities will continue.

“Many rural people are feeling let down by governments and would welcome a renewed level of understanding and support.”