The state’s livestock producers reliant on expensive mains water are reaching boiling point.
In the past decade, SA Water prices have skyrocketed more than 300 per cent with a cow-calf unit costing more than $100 each year to maintain.
During the state election campaign the Liberals, SA-Best and Family First made a range of promises to provide economic relief from the $3.33 a kilolitre being paid.
The Liberal Opposition pledged an independent inquiry into water pricing and third-party SA Water access agreements that would massively reduce water charges.
But, three months on, producers, particularly those on the Coorong, are still waiting for Water Minister David Speirs to announce the next step
Stock Journal understands the inquiry may begin late this year but it will be up to the Treasury as to whether it even occurs.
Meanwhile mains water prices is likely to be hit with another 1.9pc rise – equivalent to inflation – from July 1.
Throughout the years there have been numerous attempts to assist producers, including a PIRSA-Livestock SA survey, instigated by former Agriculture Minister Leon Bignell, late last year.
The 50-page report, handed down in February, discussed how different regions were tackling the problem.
But it has been criticised for having just 300 respondents.
Woods Well farmer Adam Merry is frustrated that after five years of discussions and three years of active consultation with the community, politicians and SA Water, the issue is still in “no man’s land” for SA livestock producers.
“I had hoped, and was perhaps a bit naïve to the system, that with the change of government that we would achieve a sharper response than has occurred,” he said.
He is frustrated by the prospect of another report when a wealth of information has already been gathered by the Essential Services Commission of SA, Seed Consulting commissioned by the Coorong District Council and PIRSA’s 90-day project.
“There is ample data to support our concerns and Mr Speirs in person has acknowledged this on water security tours, so I fail to see what is unknown and what is hoped to be achieved by yet another report,” Mr Merry said.
“Unfortunately at this stage the name on the door we are knocking on has changed but what we find inside looks much the same.”
Water security was one of six key priorities identified by Livestock SA prior to the election.
Livestock SA chief executive officer Andrew Curtis says the group is still in “discussions with PIRSA about the way forward”.
It hopes progress would be made during winter so producers had alternatives by summer.
“It is not the biggest cost to raising livestock but any increases certainly cut into profits and it is a threat to the growth livestock industries in many regions of the state,” Mr Curtis said.
“All the work done has shown the solution is around decoupling from the SA water network, rather than being tied to an expensive mains system.”
Unfortunately at this stage the name on the door we are knocking on has changed but what we find inside looks much the same.
- ADAM MERRY
Mr Speirs was contacted late last week to provide comment and details on how the government plans to assist the state’s livestock producers.
He did not respond by Stock Journal’s deadline on Wednesday.
On-farm asset offers solution
COORONG Water Security Advisory Group chairman Henry Angas is hopeful the state government will deliver on its pre-election promise of an independent inquiry into water pricing and wants to see it soon.
But he is concerned that if it is up to Treasury to sign off on an inquiry, it may not because the government gains significant revenue from SA Water customers each year.
“We were never going to get anywhere with the previous government and it still seems like the incoming government are still finding their feet,” he said.
“Governments like to draw out discussions as long as they can, hopeful interest groups run out of steam. But we know the squeaky wheel gets the oil.”
He says during a meeting with the government last month it had indicated its preferred support was for a third-party, bulk supply scheme, where a group would obtain a River Murray Water licence and use excess capacity from the SA Water pipeline to deliver the water to individual producers.
This would be similar to the Clare Valley Water Transportation Scheme, used by Clare vignerons.
A third-party access scheme had been the Coorong group’s first option too but was dismissed by SA Water mid-last year.
“How much that will be and when it happens we don’t know,” Mr Angas said.
“It is already legislated that it can be done but it is a complicated process.
“I suspect unless it is a minimum of a 30pc reduction, to about $2/kl, producers won’t see it as worth it.”
Mr Angas says investing in on-farm water security such as desalination plants or lined catchments was the best long-term option but concedes livestock producers may have to fund these projects themselves with the government reluctant to assist with low-interest rate loans or grants.
“Now is the time to make the decision to get off the SA Water system while we have good commodity prices, rather than waiting for legislative change or government policy, which could be reversed at any time,” he said.