WEEKLY BULLETIN

GOVERNMENT TO INTRODUCE FLOOD LEVY

THE Commonwealth Government has announced the details of its flood levy to assist with the recovery of flood-affected regions of Australia, which will take the form of an income tax levy on a sliding scale commensurate with income brackets. While we still need to see detail about who will be exempt from the levy and how the funds will be applied, QFF broadly welcomes the levy. The recovery task looming will cost an enormous amount of money. The main thing we ask of Governments is to not look for the silver bullet in this task. Cutting expenditure on some programs, looking for new revenue streams and staying open-minded about how long the budget will need to be in deficit are all tools to assist in finding funds in the budget. Meanwhile QFF continues to be actively involved in a number of flood recovery committees, as well as providing continuous feedback to government about the requirements of a speedy recovery in the agricultural sector. With the levy to be in place from July 1, it is vital that this funding is put to the areas of most need and that critical transport infrastructure is rebuilt. Getting roads and railways functional again will be of absolute importance to ensure that produce can be moved around the State once farms are producing again and also so that the economy doesn’t hit further setbacks in the months ahead. QFF is also pushing hard for additional resources to be put on the ground in the regions affected to work with producers to access assistance payments, provide contacts and advice for assisting in returning to production and providing feedback to industry and Government on the areas where individuals may need further assistance.
QFF also notes that although people who received the $1000 Australian Government Disaster Recovery Payment will not have to pay the tax, the exemption does not cover other forms of assistance. For instance, hard hit farmers who receive Category C assistance (up to $25,000) are not necessarily exempt from the tax unless they have also claimed the $1000 payment.

CENTRELINK PAYMENTS AVAILABLE FOR FLOOD RELIEF

CENTRELINK is delivering two emergency assistance payments on behalf of the Australian Government to support those people affected by the recent floods and storms – the Disaster Income Recovery Subsidy and the Australian Government Disaster Recovery Payment. For more information click here.

SUNWATER PRICING PLANS FOR IRRIGATION SCHEMES

THE Queensland Competition Authority (QCA) has released the network service plans, prepared by SunWater, for each of the irrigation schemes across the State. These plans provide SunWater’s assessments of the costs of providing bulk water services over the next five years for all schemes, with separate plans prepared for each of the eight channel distribution schemes. QCA plans to consult with each scheme in the March-April period focussing on issues such cost efficiencies, programs for refurbishment of scheme assets and tariff structures. Each scheme will have some homework to do to understand what SunWater is proposing in these plans and to prepare submissions to the QCA by April 22.

NEW MURRAY-DARLING AUTHORITY CHAIR MIGHT HAVE AN IMPOSSIBLE JOB

THE former NSW Government Minister Craig Knowles has been appointed to replace Mike Taylor as the chair of the Murray Darling Authority. QFF and the Queensland Murray-Darling irrigation communities will take little comfort from this announcement as the Authority has done little to work with irrigation communities to respond to concerns about the Basin Plan Guide since it was released last October. The planning process appears to have come completely off the rails. Mr Knowles faces a mammoth task to restore confidence that an effective but practical Basin Plan can be prepared in consultation with irrigation communities.

WATER PLAN LOWERS HOUSE PRICES

THE softening of house prices in Murray Darling Basin towns is proof that the government needs to work quickly to provide certainty for communities and irrigators about the proposed Murray Darling Basin Plan. Sales data from the RP Data website and published last week shows that house prices across the Murray-Darling Basin have fallen by an average 10.5 percent in 20 towns since last October. Some towns have been hit harder than others, with St George down 37pc, Forbes down 24pc, Goondiwindi down 23pc, Swan Hill down 18pc Narrabri down 14pc and Griffith down 13pc. QFF is adamant that there is a need for more consultation on the Plan, and for the various Parliamentary committees to visit the northern Basin as a matter of priority once the flood recovery is underway.

TRIAL TO END AT KINGAROY UCG PLANT

THE Underground Coal Gasification (UCG) trial plant near Kingaroy will not recommence, with the Department of Environment and Resource Management and the independent Scientific Expert Panel concluding that the there was an unacceptable risk of causing environmental harm. Minister for Climate Change and Sustainability, Kate Jones, said that trial owners, Cougar Energy, would only be authorised to undertake a full rehabilitation of the site. DERM Director General, John Bradley, said the agency was not satisfied with two of the three reports the company was directed to provide after contaminants resulting from the UCG process were detected in groundwater monitoring bores. The independent scientific panel report into the operations at Kingaroy stated that “the Cougar Energy trial not be reignited” and “Cougar Energy did not act sufficiently rapidly to shut down the facility when changes to infrastructure were first observed.” QFF has continued to point out to the government the very high risks associated with UCG technology, and in particular the adverse impacts that have occurred at similar sites overseas.

MEMBER NEWS

MILK PRICE CUT A CRUEL BLOW TO DAIRY INDUSTRY

THE Queensland Dairyfarmers’ Organisation (QDO) is extremely concerned about the move from retail giants Coles, Woolworths, Aldi and Franklins to cut the price of ‘supermarket-brand’ milk, and the financial strain and pressure this will inevitably place on already stressed farming families. Supermarket chains have announced a 33 percent cut on two litre bottles of milk to $2. “We are now facing the bleak prospect of retail milk prices reaching a point that is unsustainable for the milk value chain. This will flow back through the processing sector and ultimately to farmers,” QDO President Brian Tessmann said. “Commodities around the world are rising – and so are farming costs – but milk prices are under unsustainable downward pressure from the retailers.” Mr Tessmann said it was kicking family farmers when they were down. “This is happening at a time when the industry is battling the devastation of the massive Queensland floods. These floods are taking a heavy financial and emotional toll on farmers, and for Coles to give farmers this announcement on Australia Day is cruel and insensitive. We want our farmers to have confidence in the future and to be rebuilding their businesses after the flood. We know from a recent Senate Inquiry that the growing trend toward supermarket brand milk is putting a squeeze on the value chain and ultimately the farmer. This price drop will increase the price difference between large retailer ‘supermarket brand’ milk and milk processor branded milk. So of course shoppers will opt for supermarket brand milk and, with that, lower returns go to processors and that will flow on to the farm gate.”

AUSTRALIAN FRUIT AND VEGETABLES STILL OFFER EXCELLENT VALUE

GROWCOM has gone on the front foot to explain that Australian grown fruit and vegetables still represent excellent value for money for consumers. That is the opinion of Rachel Mackenzie, spokesperson for the peak horticulture organisation, Growcom following the release of the Consumer Price Index figures last week, which showed a price rise for fruit of 15.5 percent and vegetables of 11.4pc due to seasonal factors and limited supply because of adverse weather in the December quarter. Ms Mackenzie said that in November and December, Queensland tropical tree fruit crops, for example, had experienced light harvests due to cloudy days and heavy rainfall affecting flowering and nutrition. This was exacerbated by flying fox predation of fruit. She said that the next quarter’s CPI figures could reflect further price movements for fruit and vegetables because this week’s figures did not factor in the flood damage to horticultural regions in Queensland and Victoria this month. However, she said this would not translate to improved returns to growers across the board since a number of factors including an increase in the cost of fuel of 2.1pc resulted in price rises in the supply chain beyond the farm gate. “Clearly, some lines are able to be grown in more than one geographical region but where product lines are scarce, growers who have produce will do better than growers who don’t. However, growers overall are largely price takers who are in no position to pass costs on further down the supply chain. Many Australian, and particularly Queensland, fruit and vegetable growers have been doing it tough due to adverse weather since November last year leading up to the recent floods, so there is no better time for consumers to get behind the industry and buy more local produce.”

COTTON AUSTRALIA RELEASES FLOOD RELIEF ACTION PLAN

WITH some flood affected cotton growers in Queensland now facing the grim prospect of no income for the second year in a row, Cotton Australia has released a 30-point action plan detailing the industries response to the flood crisis. Cotton Australia Chairman Andrew Watson says after eight years of drought, nature played a cruel hand, flooding some cotton crops before harvest in February last year and bringing more flooding this year. “Losing one crop to flood waters is always going to be heartbreaking; watching that same thing happen two years in a row is simply devastating. This double impact means some growers now won’t see any income until 2012.” Mr Watson says Cotton Australia has been on the ground during the flood crisis, talking with growers and developing a plan to relieve some of the strain as affected growers begin the long haul towards recovery. “Everyone who has been touched by these floods will know that the recovery process will be a long one. We are aiming to make our flood relief action plan a flexible document, able to adapt and change, providing ongoing support and encouragement during the long road to recovery.”

CONSUMERS URGED TO GET BEHIND LOCAL FRUIT AND VEGETABLE GROWERS

GROWCOM has joined the chorus of politicians and other figures calling for consumers to support Queensland fruit and vegetable growers by buying flood damaged local produce rather than imported product. CEO Alex Livingstone said that where produce had only been dinted or blemished on the skin but was otherwise unaffected consumers should buy it. “The abundance of relatively cheap food we have enjoyed in the past has made us complacent about the resources dedicated to its supply. We have been conditioned to buy only perfect fruit and vegetables for many years but with the major damage to horticulture caused by floods across several states it is time for consumers to get behind the industry to ensure its survival,” Mr Livingstone said.

OTHER NEWS

EASING RESTRICTIONS IN CLEAN UP TO HELP PREVENT FIRE ANT SPREAD

BIOSECURITY Queensland has made special provisions for the disposal of flood waste that could contain fire ants. Approvals have been granted for landowners to move flood waste containing fire ant restricted material without the need for completing a fire ant declaration or requesting a property inspection. Waste must be disposed of through an approved waste disposal system. All south east Queensland council tips are lifting restrictions on the disposal of restricted items that could carry fire ants until February 10, 2011.