COST squeezed agricultural industry is calling on the Palaszczuk government to drop irrigation water prices by up to 25 per cent to help drive Queensland's economy post the COVID-19 crisis.
The call in the run-up to the October 31 election follows the release of the Queensland Government's Economic Recovery Plan, which maps out the state's recovery plan emerging from the pandemic.
Australian Sugar Milling Council chief executive David Pietsch said agriculture could help steer Queensland on the road to recovery, but Premier Annastacia Palaszczuk's focus on job creation could not be achieved without affordable water prices.
An ASMC report delivered in April showed that a 25pc reduction in the price of irrigated water could deliver up to $220 million in additional economic activity. The additional revenue would also assist mill viability, hampered by current low sugar prices.
Irrigation water prices have increased 4pc a year on average for the past 20 years.
Mr Pietsch said while the Palaszczuk government had frozen irrigation water prices for 12 months and dam upgrade costs for four years, more needed to be done.
The LNP Opposition has already committed to irrigation water price cuts of up to 20pc, a move welcomed by farm industry groups including CANEGROWERS, AgForce and Queensland Farmers Federation.
Shadow Minister for Natural Resources Dale Last said if elected, an LNP government would reduce water prices by implementing the recommendations of the Queensland Competition Authority and transition SunWater to a regulated asset-based (RAB) approach for financing asset renewals.
Mr Last said the RAB approach recovered costs from customers as incurred yearly, rather than attempting to estimate the end-of-life replacement cost of an asset.
"The LNP will deliver the New Bradfield Scheme and support six new dam projects in regional Queensland - but we will also deliver cheaper water too," Mr Last said.
"A near-20pc reduction in water costs will be a major job-creator for regional Queensland."
Burdekin River Irrigator Area Irrigators chairman Mario Barbagallo said more affordable water and electricity would increase productivity.
"It's going to mean more jobs locally, more jobs in the mills, more jobs at the sugar terminals, right through the whole industry," Mr Barbagallo said. "We need certainty from government and from the opposition, in the lead up to the election to know exactly what we're doing."
Mr Barbagallo said a strong sugar industry was key to Queensland's fightback from COVID-19, adding that when the sugar industry suffered, sugar communities up and down the coast and Queenslanders in general suffered as well.
It was a view shared by Burdekin Mayor Lyn McLaughlin.
"Any changes or increases in production cost always has an effect on our community," Cr McLaughlin said.
"The effects of that will be far reaching, it doesn't just affect the farmer, it affects businesses in town, it could affect the production and processing at our mills.
"A strong sugar industry in the Burdekin is really vital for us to sustain the Burdekin community, and I think that Queensland benefits from anything good that the Burdekin does."
Mr Pietsch said it was clear the severe economic impacts of COVID-19 would last for years. "We need a longer-term commitment to reduced water pricing."
