THE TASMANIAN company responsible for developing the state’s latest irrigation schemes has moved to clarify its pricing structure, after potential misconceptions over a new project in the north-west.
Tasmanian Irrigation (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, 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 mpleted 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.
“TIis 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.
Several farmers at Circular Head had proposed a private scheme, additional to the Duck scheme.
“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.
“So far, they have not accepted the offer but our doors remain open.”
