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House of Assembly - Fifty-First Parliament, Third Session (51-3)
2009-03-04 Daily Xml
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RIVERLAND IRRIGATION

The Hon. G.M. GUNN (Stuart) (15:28): I would like to draw to the attention of the house concerns which have been brought to my attention by my constituents in the Riverland and which have been conveyed to the minister by the Chief Executive of the Central Irrigation Trust, Mr Jeff Parish. I want to quote from that document because I think it is important that the house is aware of the difficulties these people are facing. The letter states:

The directors of the Central Irrigation Trust would like to formally convey to you the concerns that I outlined when giving the opening address to yourself and your parliamentary colleagues and community members at the Murray-Darling Association meeting.

The substance of my address was that, whilst long term planning for the Riverland is a worthwhile activity that CIT supports, there is a much more pressing issue at the moment as the engine room of our region, the horticultural industry, faces the biggest crisis during the next six months that I have seen in over 40 years involved in irrigation.

Our two biggest commodities, citrus and wine grapes are suffering from extended and ever worsening water restrictions that at the moment we see no end to. Irrigators and their water allocations are being strangled by obligations on our State to use most of our monthly shares of available water to meet payback requirements and provide for critical human needs in advance.

CIT applauds your initiative to provide Critical Water Allocations to ensure the survival of trees and vines, the continuation of carryover provisions and support we know our State gave for introduction of Small Block Exit Grants by the Commonwealth. We also cannot overstate the importance of Exceptional Circumstances provisions for assisting many of our family farmers with interest rate subsidies and living allowances and the good use made of the Commonwealth $20,000 Irrigation Grants for installation of drip irrigation in this region as a drought measure.

To date, farms exiting the industry have been mostly marginal businesses but this year will see the departure of second and third generation farmers as well. The regional economy is about to be exposed to a harvest that will cripple many soundly managed properties due to the combined impacts of low water allocations, prices for temporary water that cannot be recovered growing many of our traditional fruit varieties and unknown as yet low prices for our main commodity, wine grapes. To add to our difficulties, since my address to the MDA the region has experienced 40C temperatures for the last eight days with a further three forecast—

I am reading this because it is terribly important. The letter continues:

CIT Directors and Managers are frequently hearing from farmers that intend to review their future in the industry after harvest. Their properties cannot be sold as going concerns and many intend to sell the only redeemable asset on the farm, the water entitlement. Even the CIT policy of permitting 12 per cent of permanent water be traded out will not cope with the expected departures from industries in 2009...Secondly, by urging the Commonwealth to urgently extend Exceptional Circumstances status for the region, to continue and extend the provision of Small Block Exit Grants to include large properties and to reinstate Irrigation Grants for further installation of drip irrigation as a drought survival measure.

The right mix of safety nets can provide multiple benefits by assisting the majority of farmers to stay on the land...On behalf of 1,500 family growers from the 10 irrigation districts in the CIT group, and in the interests of all irrigators, the CIT Directors urge you to strongly support the safety net programs outlined in our letter so that our horticultural industry can survive the current downturn and minimise the crisis we expect the Riverland to face in 2009.

I think it is very important that the house is aware of these hardworking people. I only represent a small section, but when you see orchards and vines dying, it is most heartbreaking for all concerned. I will be visiting some of my electorate late Friday afternoon.

I am most concerned about the effect it will have not only on the growers but on the region and the people who support the region, because, unless we have reasonable numbers, we will not be able to maintain the infrastructure. I say to the government: it is a great pity it has decided not to continue sealing the Blanchetown to Morgan Road, which is a long overdue project which the people in the Riverland want and which they have been denied.

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