Views:
MG/DM/GGGG22057
9 September 2022
Chief Executive
Department of Regional Development, Manufacturing and Water
Water Services North Region
PO Box 1762
Rockhampton QLD 4700
 
Dear Sir/Madam

Re:  Proposal to Replace the Water Plan (Fitzroy Basin) 2011

AgForce is a peak organisation representing Queensland’s cane, cattle, grain and sheep & wool producers.  The cane, beef, broadacre cropping and sheep and wool industries in Queensland generated around $8.4 billion in on-farm value of production in 2020-21.  AgForce’s purpose is to advance sustainable agribusiness and strives to ensure the long-term growth, viability, competitiveness and profitability of these industries.  Over 6,400 farmers, individuals and businesses provide support to AgForce through membership.  Queensland producers provide high-quality food and fibre to Australian and overseas consumers and contribute significantly to the social fabric of regional, rural and remote communities as well as stewardship of the state’s natural environment.

Thank you for the opportunity to provide formal written input from our members on water management in the Fitzroy water plan (WP) area, as well as meeting with AgForce representatives in Rockhampton on 30 August 2021 to discuss and inform the development of the draft replacement plan and the advance of sustainable management and use of water resources in the Fitzroy catchment. We will look forward to seeing how our issues are addressed in the draft replacement water plan and to providing further comment at that stage in the process.

There are a number of general water policy principles relating to water planning and management that guide AgForce’s advocacy efforts:
  1. Water is a vitally important resource and needs to be managed to secure its environmental, social and economic values.
  2. To sustain access and associated ecosystems, planning and management should avoid risks to the long-term sustainability of water resources.
  3. AgForce supports the cost-effective use of objective, scientific information to guide water resource management decisions, including the release of unallocated water.
  4. The water resource planning process in Queensland is supported as it sets up a system of entitlement security, enables tradability and is designed to plan for sustainable management to meet future consumptive and environmental water requirements.
  5. Where water resources are at risk of over-use, there may be a need to manage demand through the use of targeted regulation (noting the primacy of basic stock and domestic (S&D) rights and that planning and management decisions should be transparent, efficient and equitable).
  6. Access to available water for S&D purposes is a basic landholder right with intrinsic volume limits related to land capability and should be prioritised over other competing consumptive uses.
  7. Support making further water available for economic development in a responsible and sustainable way where this does not reduce the certainty, security and reliability of current entitlements, or increases the risk of adverse environmental impacts.
We note the Minister for Regional Development & Manufacturing and Minister for Water will exercise powers under s55 of the Water Act 2000 to postpone the expiry of the plan until 30 August 2025, given the current plan was slated to expire on 1 September 2022.

Process Issues
In relation to the process being undertaken:
  • In past Fitzroy WP processes, multi-interest stakeholder advisory groups were formed to discuss issues together in person and this style of engagement approach would be supported again, such as in the draft WP review phase – agriculture, resources, energy, environmental, local government, etc.  Meeting face to face to present the draft plan to affected irrigators is also supported.
  • It would have been preferable for water user certainty and given a range of issues exist, if this renewal process was commenced earlier without the need to extend the plan by a further 3 years. This will be exacerbated by the finalising by the Department of Environment and Science (DES) of the model and its subsequent population with robust data.
  • It would be preferable if the draft WP is released alongside the supporting protocols and documents so that the best understanding of how issues will be addressed can be developed by affected stakeholders and so that feedback on the draft WP is fully informed and with sufficient time to enable full consultation.
 
Plan Issues
Our submission will follow the layout of issues and risks identified in the public notice of preliminary public consultation.

Effectiveness of the water plan outcomes, strategies and performance indicators
AgForce is of the view that the identified outcomes in the WP remain relevant and that a balancing process is essential for sustaining environmental and socio-economic outcomes through the plan.  We welcome the recognition that the natural state of water resources in the WP has changed with take and use of water and that the Fitzroy is a ‘working basin’.     

Growth agenda for agriculture
We note and support the inclusion (s12 d and f(ii) and f(iii) in the current Plan) of outcomes concerning the protection of the probability of being able to take water under an allocation and to support water being made available for S&D purposes and for growth in water-dependent industries like agriculture.

Similar to recent efforts on Rookwood Weir and the release of Strategic Water Infrastructure Reserves (SWIR) in the Dawson River catchment, AgForce would like to see a clearer program for delivering on the agricultural growth agenda, with exploration of further options and prioritisation within the WP area for the release and availability of water for this purpose.  This does not extend to mandating water use efficiency outcomes onto existing entitlements or causing impacts to third parties or risking environmental sustainability.  
 
In relation to Rookwood Weir, members with volumetric licenses with passing flow conditions in the vicinity of the Weir are concerned to see that they are not disadvantaged by the establishment of the Weir and that their entitlement to water is not diminished by the subsequent allocation and take of water out of the Weir.

Provision of flows to maintain access to water for users and the environment including the Great Barrier Reef

AgForce recognises the effectiveness of actions within the Plan framework to ensure environmental sustainability eg, flow conditions, limiting carry-over to 12 months, etc – which are working well under current settings.  De-politicising environmental sustainability in these Reef catchments would also help provide water users with certainty but is outside the scope of this process.

Optimisation of water sharing rules and water trading to facilitate more flexible management arrangements

Water sharing rules – Don and Dee Groundwater Area
AgForce has welcomed the engagement by the Department with the Don River, the Dee River & Alma Creek Association and its AgForce members in finding a way forward on concerns about the effectiveness of water sharing rules for the groundwater resource in that area.  We support the timely (within 12 months) roll-out of the agreed process to investigate the local user and technical knowledge base about those aquifers and the application of that knowledge to an improved rules-based approach to future announced entitlements.  We seek to maximise security and reliability of supply and opportunity for irrigators and within the limitations of available water over time.

Specifically, we support the WP renewal process addressing:
  • Given the level of connectedness between the ground and surface water resources in the area, opportunities around the bringing together of surface and groundwater entitlements.
  • Ensuring the Department’s key indicator bore network reflects the local conditions and actual operation of the aquifer, particularly in Zone 4, and enabling network bores with telemetry to support more timely irrigator decision-making.
  • Ensuring effective and responsive engagement with the Association and local irrigators prior to the setting of announced annual entitlements and increased transparency on the decision-making process concerning the AEs and its potential inclusion in the Protocol.
  • Improving seasonal transfer rules for surface water, such as current zone restrictions and enabling irrigators with more than 160 ML allocations to be able to voluntarily transfer their entire allocation (eg, Zone 5 to Zone 4), but some protective provisions such as limiting to 160 ML lots as per current rules.  Carry-over provisions could also be reviewed in light of any new knowledge about the aquifer.
  • Revisiting the area to volume conversion process (without disadvantaging other users) to ensure it is fair and operating effectively – the Association reports that the 4ML per hectare area Part B allocation has not been able to be accessed and this should be addressed.
Trading
Our members have identified some limitations and opportunities to trading in the WP area:
  • It would deliver benefits if the process for temporary trade of ground or unsupplemented water was simpler, more efficient and cheaper (currently $188.60 charge but could be free or much reduced if automated as proposed).
  • The conversion of licenses (including area-based) to tradeable volumetric entitlements in the tributaries should be enabled where third party impacts can be avoided. Further, water user concerns remain about the application of an arbitrary 6 ML/ha conversion factor across the state, despite historical use rates often being greater.
 
There are also situations where a lack of historical use exists due to recent purchase of the property with a change in intended land use built on an intention to develop using the license. This should be addressed under the WP review.
  • Review of the trading zones within each river catchment and unless there is a negative risk to current entitlements or adverse environmental impacts, allow trading to occur throughout the catchment (with appropriate conversion factors as required) and not between defined zones.  Ultimately this approach will not change the relative take at the end of the system but will allow water to be more productively and sustainably taken.
Demands for unallocated water and future development use, including any proposals for future infrastructure projects
As noted above, AgForce supports making further water available for economic development in a responsible and sustainable way where this does not reduce the certainty, security and reliability of current entitlements, or increases the risk of adverse environmental impacts. In relation to unallocated water and future infrastructure and development:
  • Earlier iterations of the Fitzroy WP had greater levels of medium priority reserves, such as on the Dawson River, but these volumes have been reduced each plan.  We would support the government looking at unallocated reserve volumes and maximising their availability for agricultural consumptive use, including the release of high priority volumes as a greater amount of medium priority water.
  • We would support the government investing to improve the understanding of the water resource through improved data and modelling so that further opportunities (primarily at a local level) can be identified and enabled.  For example, AgForce members have identified situations where assessments could occur of self-contained lagoon systems (within property impacts only) or where high flows from a river overbank into anabranches from which water could subsequently be taken after the river flow falls, and the downstream river connection ceases.    
  • We support the government releasing the Expert Panel’s report into the Bradfield and like schemes and considering the findings of CSIRO research to inform the treatment of future infrastructure proposals in the WP area.
  • Recognising the need for extensive studies to identify the most promising candidate projects within a region and the whole state, there is an opportunity cost in holding back reserves of water for yet to be constructed infrastructure.  In a sense the government is the largest holder of under-utilised water under these circumstances.  AgForce has supported the temporary release of SWIR water and the recent pilot study has clearly demonstrated the underlying demand and the benefits of such initiatives. Increasing the certainty/longevity of access to those reserves held against very large, long time frame projects should be examined as it increases financier preparedness to invest, as well as progressing other opportunities in the WP area for similar SWIR releases and increased certainty within the process of release.
  • AgForce would also support working through enabling smaller infrastructure projects like weirs and off-stream storages to occur in the Plan area where a viable opportunity presents.     
Water supply security for existing and future urban water users
Whilst recognising the priority to supply water for urban (human consumption) needs, past demand projections have been significantly higher than realised actual urban demand.  There is also significant underutilised capacity within current allocations and efforts should be made to ensure efficient use of existing allocations before reserving or allocating further volumes, with the opportunity costs that represents.
 
Surface water and groundwater connectivity for managing groundwater in highly connected Aquifers
Please see earlier section on the Don and Dee groundwater management area reforms.  Enabling this within the WP area where appropriate would be supported.

The need to incorporate best-available science and information, including hydrologic models to underpin the plan, improved understanding of water requirements of key environmental assets, and consideration of the effect of climate change on water availability

AgForce supports the cost-effective use of objective, scientific information to guide water resource management decisions, including the release of unallocated water and understanding and responding to climate change.  

To continue to remain competitive and develop long-term productive strategies, broadacre industry continues adaption to short-term seasonal variability as well as long-term climate trends. While recognising that climate change is a global challenge and responsibility, AgForce is committed to ensuring the productive capacity of the agricultural industry is maintained and increased in a sustainable manner through being responsive to government policy changes and supporting our members as they work toward industry targets.
Of utmost importance is ensuring that any government responses support the long-term viability of the broadacre agricultural sector, ensuring improved producer resilience to their changing environment.  Responses must support the efforts of the agriculture industry and property rights must be respected and producers provided with flexibility to manage their land and water assets in a way that suits farming business, while maintaining environmental outcomes.

With the above context, AgForce supports water planning incorporating climate change scenarios only to the extent they are expected to impact water resources in the life of the plan or shortly thereafter. There is a significant opportunity cost or uncertainty for water users where water planning factors in long term climate change predictions decades into the future, with only limited confidence they will be expressed fully in terms of changes to the available resource, either increases or decreases.

Risk partitioning within water planning for the impacts of climate change should ensure that all of the costs and risks do not all fall on consumptive users – potentially contrary to National Water Initiative (NWI) identified approaches. Attempting to maintain environmental water flows and characteristics to pre-climate change conditions will push further impacts onto users, are likely be ineffective anyway and should not be a policy feature of the next WP.  AgForce would value being consulted in the process DDG Linda Dobe has underway to look at the government’s approach to this issue across the state.

Sec 96 (2) Daily Volumetric limit for a water allocation
A number of irrigators consider that when their licences were converted to volumetric allocations the water-taking capacity of the pump was different from the daily volumetric limit assigned to them under schedule 10.  For example, a 95 ML/day pumping limit imposed for a 19-day pumping period, whereas installed pump capacity was 120ML/day and takes of up to 140ML/day were possible.  
When licences were converted to allocations, they were done so on the basis of Schedule 10 of the Act which stipulates pump sizes and their relative daily pumping capacity.  For most licences this worked reasonably well, but those irrigators who had licences to take water using a 650mm pump were significantly disadvantaged.  It is unclear why under Schedule 10 pumps of 600 to 660mm nominal size were amalgamated with a single maximum rate and daily volumetric limit when all the other pump sizes were defined separately for those characteristics.  A 650mm pump is going to pump significantly more (potentially 30ML/day) than a 600mm pump. 
 
This historical inequity should be addressed through this WP review process as affected irrigators are able to provide adequate evidence to justify the higher rate of take and the conditions that the chief executive is required to consider:
  1. Conditions under which water may be taken (clear with the 15 & 30 cumec flow conditions)
  2. Water taking capacity of pump under normal operating conditions (pump curves clearly show an increased flow capacity)
  3. Irrigation or water distribution system related to pump for past 10 years (water harvesting claim forms submitted over this period have all indicated a higher rate of daily take)
  4. Efficiency of water use (minimal seepage losses from storages and ability to efficiently pump this water on to crops can be proven).
Section 96 (2) needs to remain in the Plan in order to allow irrigators access to the chief executive if they disagree with the volumes determined in Schedule 10. 

Future monitoring and assessment to maintain plan performance
AgForce supports a risk-based and cost-effective approach to new measurement and metering requirements.  We support a strong focus on communication with affected stakeholders prior to the implementation of any changes and a transparent, clear and publicly available implementation plan and annual reporting.  We strongly support not requiring metering on S&D use, as well as inactive entitlements.  We support not requiring metering for annual water takes at or below 5ML, unless essential for effective water resource management in areas under high water use pressure.

Effectiveness of infrastructure operations and environmental management rules
See earlier statements in support of environmental outcomes and the rules to enable these to be achieved.  Environmental management rules are currently working well with environmental flows being delivered before unsupplemented take is allowed to occur. 

Infrastructure Operations
  • Dawson Carryover – both the length of time and volume allowed to be carried over in the Dawson needs to be increased. This would have significant positive impacts on the environment given that irrigators would leave water in the system longer if they knew they were not going to lose it at the end of the water year. Current spill conditions would also ensure that new season allocations are not impacted
  • Dawson – Orange Creek Weir – usable volumes held in this Weir need to be included in the announced allocation process
  • Dawson – Moura Offstream Storage – restrictions to filling this storage need to be completely removed so that Sunwater can efficiently operate this storage similar to every other storage on the system
  • Dawson – disparities exist with existing Medium A and Medium allocation holders, under the WP both have the same monthly supplemented water sharing index of 82% but in the Operations Manual preference is given to Medium A with a 20% differential at the start of the year. 
Current and emerging interests of Aboriginal Peoples and Torres Strait Islanders in relation to water resources in the plan area
AgForce endorses the following policy relating to indigenous cultural water:
  1. AgForce supports stakeholder consultation in water resource planning and management, including that of Indigenous peoples.
  2. AgForce supports the provision of water for Indigenous use, but only where this does not result in third party impacts to existing entitlement holders, including the environment.
  3. AgForce supports the use of existing held and planned environmental water entitlements for the co-benefit of Indigenous cultural water use.
  4. AgForce supports the use of existing market mechanisms to acquire Indigenous water entitlements from willing sellers for contemporary economic use.
  5. Allocation of water within unallocated reserves (including strategic, general and Indigenous) should be equitable across stakeholder groups and with a consistent methodology that is applied across the state.
  6. AgForce acknowledges that the ownership framework for Indigenous water entitlements for contemporary economic use is a matter for governments and Indigenous peoples however, additional restrictions to Indigenous entitlements that unnecessarily constrain trading should be removed
  7. If the above framework were adopted, the current hierarchy and security of water entitlements, as enshrined in state legislation, would be respected and therefore unaffected.
 
The current Plan has included cultural water reserves and entitlements, but these have apparently not been taken up to date.  This may be evidence of a lack of need, or alternatively of a need for changes to their structuring.  The Department is referred to AgForce’s submissions in the development of the Cape York Water Plan for a fuller treatment of the opportunities and concerns around cultural water planning and management approaches.  Caution should be extended when integrating indigenous economic use within cultural water definitions, with increased need to manage environmental and third-party impacts.  

Requirements under the Human Rights Act 2019
The Department is encouraged to consider s24(2) under the Act, namely ‘A person must not be arbitrarily deprived of the person’s property’, as it relates to WP renewals and impacts on the characteristics of water user entitlements due to changes made.  AgForce supports strong property rights as a basis for ongoing, confident investment and community viability.  Any reduction in access to water resources or security of entitlement by irrigators and other users should be transparent and fully justified, or alternative approaches pursued.     

Conclusion
In this submission, AgForce has raised a number of issues we request the Department respond to in undertaking the process of renewing the Fitzroy WP.
For further information or to discuss this submission in more detail please contact Dr Dale Miller, General Manager – Policy, via email:  millerd@agforceqld.org.au or phone (07) 3236 3100.

Yours faithfully  
Michael Guerin
Chief Executive Officer