A GROUP of North-West Tasmanian farmers has welcomed the chance to work with Tasmanian Irrigation (TI) engineers, in setting up a private scheme at Circular Head.
The farmers have set up the Circular Head Community Irrigation scheme, at the the same time as opened water sales for its proposed 5000 megalitre Duck scheme.
Mawbanna dairy farmer, Matt Gunningham, a member of the community scheme working group, said it was hoped to deliver water at a cheaper price and over a larger distance, than that proposed by TI
"But we would love to be able to tap into their expertise and understanding of how to build a scheme," Mr Gunningham said.
"We would love to work together with TI, but our scheme offers water at a lower cost and with more flexible delivery - whether that's possible, I'm not sure.
"We really would like to be able to tap into their expertise in building these schemes, so we can get some really good outcomes."
Mr Gunningham said the community scheme was looking at a larger amount of low cost water, to drive productivity and growth.
At the moment, the community scheme was gathering expressions of interest from local farmers.
"We certainly would like to think they (TI) would assist us, I know the government has directed them to help, so we will be looking to see if they make good on that when we have our scheme up in a more fleshed out format," Mr Gunningham said.
The community scheme would come in at around $600 per megalitre, about half the cost proposed by TI for its project.
It would also deliver water over a shorter period of time and looked at long-term expansion.
"We think that's a major problem for our area, we know more water will be required in time to come,"
TI chief executive Chris Oldfield said he was aware of criticism of the proposed Duck River project, at Circular Head, that the $1200 megalitre charge was excessive.
"This is not the case," Mr Oldfield said.
"In fact, the price has been set consistently with those in other schemes and requires significant public contribution under TI's private-public partnership development model."
Generally, the Tasmanian government would ask TI to investigate the feasibility of irrigation schemes, proposed by local farmers, that would have a positive economic benefit, but which also required a level of initial state funding.
The Duck scheme was the remaining one of three original schemes, farmers requested Primary Industries Minister Jeremy Rockliff pursue, through TI.
"In undertaking this task, we have worked closely with Mr Rockliff and local MP Joan Rylah, who has been a strong advocate for local farmers and for the Duck scheme," Mr Oldfield said.
"The cost of building the Duck scheme to provide 5000 ML of water is estimated to be $23.7 million, which is $4740 per megalitre.
"Of that $23.7 million, it is proposed that irrigators will contribute $6 million and the Australian and Tasmanian governments the balance of $17.7 million, subject to an approved business case that will be developed in partnership with local irrigators who have already committed to the scheme."
He said irrigators would pay about a quarter of the actual costs, for each of the 500ML on offer.
Mr Oldfield said they paid a 10 per cent deposit, of $120/ML and the balance of $1080/ML when the scheme was implemented and commissioned two years later.
"In real dollar terms, this price is consistent with all schemes that TI has constructed, apart from the South East Stage 3 scheme where $2700 per megalitre was offered.
"In the meantime, TI bears all the financial and environmental risks and the responsibility for community engagement during construction.
"TI is contractually bound to deliver the volume of water to each nominated delivery point on the farm on time and at the agreed price."
Mr Oldfield said the price per megalitre in each scheme took into consideration the total capital cost as well as the potential irrigable land, the final use of the water and prevailing market price.
"If a standalone, private scheme could be developed without the requirement of public funds, TI would not stand in the way, in fact, we would welcome it.," Mr Oldfield said.
At the request of Mr Rockliff, TI had offered assistance to the local proponents to assess the viability of their proposal.
"Quite separate to anything else we are doing, TI has some nationally renowned irrigation and engineering experts we can make available to work with them.
"If these farmers take up the offer for assistance, we've been asked to report back within 90 days to enable them to refine and present any proposals and costings to their potential investors without undue delays," Mr Oldfield said.
