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Legislative Council - Fifty-First Parliament, Third Session (51-3)
2009-05-13 Daily Xml
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Parliamentary Committees

NATURAL RESOURCES COMMITTEE: WATER RESOURCE MANAGEMENT IN THE MURRAY-DARLING BASIN

The Hon. R.P. WORTLEY (16:20): I move:

That the 27th report of the committee, on Water Resource Management in the Murray-Darling Basin—Critical Water Allocations, be noted.

This is the second report of the Natural Resources Committee relating to this inquiry. This report was drafted after the committee's visit to the South Australian Riverland on 22 and 23 April 2009. This report takes the form of an urgent issues paper dealing with the matter of critical water allocations and is supplementary to the three major reports addressing the terms of reference brought down by the Legislative Council on 1 August 2007.

This paper is presented to the parliament due to the extreme urgency of this problem. The committee has formed the view that the unfolding crisis in the Riverland is critical and requires immediate action and advice to the parliament.

In 2008-09, the state government provided critical water allocations to qualifying Riverland growers to enable them to keep some of their permanent plantings of citrus, stone fruit and grapes alive, thus maintaining their business viability. This policy was designed to prevent the widespread loss of productive plantings that have taken many years to establish. The policy was not enough to enable commercial cropping but provided a stopgap measure on top, whereby many growers were able to choose to purchase top-up water in order to grow a commercial crop.

Committee members heard that the critical water allocations were extremely well received and much appreciated by growers. The committee has recommended in its report that the critical water allocation policy be extended on the same terms for another 12 months to give growers time to adapt and restructure their operations in line with the reduced allocations and difficult market conditions. Any decision to allocate critical water also needs to be communicated to growers as soon as possible to allow them to plan for the next 12 months.

As members would be aware, recent unmitigated growth of wine grape vines nationally has resulted in the Australian wine grape industry becoming oversupplied by approximately 20 per cent. While oversupply might mean lower prices for wine drinkers in the short term, the bigger picture is one of depressed grape prices for growers, with the industry now facing a painful restructure that will have to involve significant reductions to wine grape production nationally. In the Riverland members heard that the net effect of this oversupply has been that virtually no grape grower has been able to turn a profit for a number of years now, and many are going broke and abandoning their vines.

In the Riverland, committee members viewed dead and dying vines and crops left to wither on the vine. It was put to the committee that a river full of water would have made things worse for grape growers, as bumper water allocations would have translated into bumper grape harvests, compounding the oversupply problem. The lack of water has also confused the situation, with many in the industry becoming distracted and mistakenly viewing the lack of water, rather than the oversupply of unsaleable grapes, as the main problem in need of fixing.

Members heard that, while grape vines are hardy and can survive times of low water and still recover well, both citrus and stone fruit trees suffer permanent damage if water is withheld too long and are unable to recover to produce the quality of fruit required for domestic and export markets. Members heard that, effectively, the choice was between abandoning trees and keeping them up to full water demand to maintain the quality. This is why a decision on providing critical water allocations needs to be made and communicated as soon as possible.

The committee heard that extra water allocations for wine grapes are unlikely to be enough to help growers in this difficult industry. However, members also heard that Riverland stone fruit and citrus growers would be able to benefit from extension of the critical water allocations policy, which would help them get through these difficult times. As well as assisting individual growers, critical water allocations play an important role in maintaining productive capacity in the region, which in turn is important for maintaining the viability of local communities, now under extreme and ever-increasing pressure.

I will leave members with a quote from one of the growers that sums up the pressure these salt-of-the-earth growers are now experiencing, which was taken from a recent industry survey of Riverland stone fruit growers. It reads:

The mind is continually, that is 24/7, on the situation. The stress never leaves. Whereas in the past you could work a hard day, come back and enjoy an evening meal with the family and relax and watch TV in the knowledge that you've got a good, sound business into the future, that feeling is gone.

Members heard that this sentiment was representative of how the majority of Riverland growers are feeling at the moment. In terms of this inquiry, one more fact-finding tour is planned for later this year to the Barmah Choke, Hume and Dartmouth dams and the Snowy Mountains scheme. This final trip, together with evidence from additional expert witnesses, will provide the necessary material to complete the report.

I wish to thank all those who gave their assistance to the committee on this inquiry. I also commend the members of the committee: Presiding Member Mr John Rau MP; the Hon. Graham Gunn MP, the Hon. Sandra Kanck, the Hon. Stephanie Key MP, the Hon. Caroline Schaefer MLC, the Hon. Lea Stevens MP, and the Hon. David Winderlich MLC, for their contribution and support. They have worked cooperatively throughout this inquiry. Finally, I thank the staff of the committee for their assistance.

Debate adjourned on motion of Hon. J.M. Gazzola.

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