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Weekly Bulletin

23 January 2012

WENTWORTH GROUPS CALLS FOR A HALT TO BASIN PLAN PROCESS

THE Wentworth Group of concerned scientists last week issued a public response to the draft Murray Darling Basin Plan, stating that the government should stop the process and also suspend the buyback and infrastructure programs. The statement is available here. For the Wentworth Group to so strongly reject the entire process will be unwelcome news across the Basin, and will be seen by farmers and regional communities as an unconstructive approach. Irrigators and communities have been toiling away at water reform for many years now and all stakeholders are determined to develop a workable plan that delivers certainty over the long term. While the current process will see this continue for several years yet, irrigators are hoping for security of tenure, and communities are hopeful that the government can work with them to prevent the severe socioeconomic impacts that could occur as the Sustainable Diversion Limits are implemented. As is the case with the Wentworth group, irrigators are not satisfied with the contents of the draft Plan but they would strongly oppose the Wentworth Group proposal. QFF is currently preparing a submission to the MDBA on the draft Plan.

NEW WORKPLACE AND SAFETY LAWS IN EFFECT

NEW workplace health and safety laws came into effect on January 1, 2012, and farmers are urged to be informed of the changes and how they impact their farm operations. Full details are available here. Some of the changes include:

• All forklift operators must now hold a licence issued by Workplace Health and Safety Queensland.

• All tractors over 560kg must have a Roll Over Protective Structure (ROPS) fitted to them. The ROPS may be lowered or removed if the tractor is used in an orchard or other situation where the ROPS would be a hindrance due to height restrictions, as long as other measures are in place to minimise the risk of rollover. The new legislation does not provide a ROPS exemption for tractors used in a stationary position, or driven to/from the area where it is to be used in a stationary position (e.g. when used for irrigation). These tractors must be fitted with ROPS.

• New requirements related to remote or isolated work, chemicals and asbestos.

• From July 1, 2012, business operators will be required to develop procedures to deal with workplace emergencies, such as evacuation procedures, medical treatment and assistance and providing information,and training and instruction of staff.

QFF has been working with the Government to try and develop a sensible response to these reforms, which have been largely driven as part of a national agenda. For many primary producers they will mean a huge level of compliance uncertainty and the industry will have to work hard, together, to ensure farmers are provided with adequate tools, resources and assistance to be able to remain compliant with the law and also operate a viable and safe business. We will continue to work with our members in this regard.

SCHEMES COMPLETING THEIR SUBMISSIONS ON SUNWATER PRICES

THE Queensland Competition Authority draft report on irrigation water prices in SunWater schemes has covered a wide range of complex issues. Irrigators in many of the major schemes have had a difficult task analysing the issues for their regions but should lodge submissions by early next week. It is expected that the distribution based schemes will focus on concerns over renewals, operating and overhead costs and the need to address the costs of distribution losses. For those that will face difficulties achieving cost recovery, the focus will be on addressing ways to adjust the scheme for more efficient operation. The bulk schemes will want their prices to be set at cost recovery and not at a level that generates significant profit to SunWater. Overall, schemes will be seeking significant improvement in the provision of information by SunWater on cost performance and on consultation at the scheme level. QCA has a lot more investigations to do to prepare their final report due by April 30.

FOREIGN INVESTMENT REVIEW HIGHLIGHTS IMPORTANCE OF OVERSEAS INVESTMENT

ABARES released last week a report into foreign investment in Australian agriculture, available here. The ABARES report makes a number of sensible findings and largely supports comments from QFF on foreign investment made on a number of occasions in recent years. QFF has pointed out that foreign investment plays an important part of the farm investment landscape, and in addition that foreign capital entering Australia is a show of faith that agriculture in Australia is a good investment. The concerns about foreign investment and food security have at times been overstated and confused with concerns about land use rather than land ownership. Nonetheless, it is an issue that must be watched, measured and monitored. The government has not announced major changes to its policies around foreign investment, although the Coalition is proposing to lower the $231 million trigger threshold for the Foreign Investment Review Board being informed of foreign acquisitions.

GAS BLOCKADE RAMPS UP IN THE SCENIC RIM

PROTESTORS last week continued their blockade in the Scenic Rim, seeking to lock out Arrow Energy from a site where it was conducted exploratory work relating to coal seam gas activities. This included one protestor who mounted the drilling equipment and was subsequently arrested. The community group is calling for baseline water testing before drilling and an independent study of the underground water to be undertaken by a mutually agreed party, and the report to be made public. They are also seeking greater community consultation. It is interesting to note the significant increase in metropolitan based news interest in this issue now that gas exploration has moved into areas more closely identified with Brisbane and major population centres. Nevertheless, the concerns being raised and the issues to be resolved are very similar to those expressed repeated by rural communities.

MEMBER NEWS

GROWCOM RELEASES FIRST STATE ELECTION PRIORITY: PLANT BIOSECURITY NEEDS FUNDING BOOST

GROWCOM has launched its biosecurity platform as the first of its priorities for the upcoming state election. At its core, the policy is calling for a significant boost to plant biosecurity funding in line with animal biosecurity funding. Growcom CEO Alex Livingstone says that biosecurity is the first of many critical areas for horticulture that need to be addressed by the incoming government. In recent years state government funding for plant biosecurity operations has been significantly less than that for animal biosecurity. As part of the ongoing implementation of Queensland Biosecurity Strategy 2009-2014, Growcom would like to see a commitment from candidates to increasing plant biosecurity funding to equal that of animal biosecurity. “Biosecurity is an important matter for all Queenslanders, not just the horticulture industry, as a pest and disease incursion such as citrus canker or fire ants can have significant consequences throughout the whole economy,” Mr Livingstone said. “Asian honey bee is just one example of a pest that has entered Australia through northern Queensland and now threatens a wide variety of agricultural industries in Australia.”

MORE RIGOUR IN ASSESSMENT OF FOREIGN OWNERSHIP: YES PLEASE

CANEGROWERS has welcomed news that the Australian Government has promised more rigour in its assessment of foreign investment in agriculture, following the release of a report into Foreign Investment and Australian Agriculture by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES). It is a topical story for Australia’s sugarcane industry, with sugar mills and land being a very public target in recent years. CANEGROWERS says that as much as this intense international investment telegraphs a very bright future for Australia’s sugarcane industry, absolute transparency is the key to a mutually beneficial system. “A clear understanding of the real-time impact of foreign investment in Australian agriculture – not just commodity by commodity but agriculture and economy-wide, before making policy decisions, is an essential,” says Steve Greenwood, CEO of CANEGROWERS. CANEGROWERS believes with the right policy in place, foreign investment can be an important part of the mix when it comes to drivers of employment and prosperity.

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