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21 Dec 2009 WEEKLY BULLETIN DECEMBER 21, 2009

HAPPY CHRISTMAS AND BEST WISHES FOR 2010
On behalf of all the board and staff at Queensland Farmers’ Federation, (QFF) we wish our readers and their families a safe and happy Christmas, and look forward to working together again in 2010. The QFF office will be closed from 2pm Thursday December 24, and will re-open on Monday January 4, 2010. For all media enquiries during that time, please contact Jamie O’Brien on 041 762 6420 or jamie@qff.org.au.

FORUM ON THE MURRAY DARLING
The Murray Darling Basin Authority (MDBA) conducted a two-day forum last week for representatives of peak organisations to consider how Sustainable Diversion Limits (SDLs) will be assessed in the preparation of the Basin Plan. A draft of the Plan is to be released mid next year. SDL’s are enforceable limits on the quantities of surface water and groundwater that can be taken from Basin catchments for use by farmers, towns and industries to achieve key environmental outcomes in all parts of the Basin. QFF and irrigator representatives from the Queensland Murray Darling (QMD) catchments who attended the forum are concerned about three key issues at this stage of the development of the Basin Plan.
• There is insufficient attention being given to seeking a balance between economic, social and environmental issues in the setting of SDL’s. While the MDBA argues it is working in accordance with the requirements of Commonwealth Water Act, delegates at the Forum were critical that the Authority was not giving adequate attention to the impacts on industries and communities particularly at a local level in the preparation of the plan.
• The MDBA could only provide very broad advice on how SDL’s would be set whereas at this stage in the development of the plan, Forum delegates were looking for more advice on the practicalities of defining and applying these SDLs. This issue was compounded by the fact that the Authority was not yet able to table lists of environmental assets and functions that would be addressed in the Plan. Forum attendees recommended that independent expert advice should be provided on the science applied in the consideration of environmental issues in the development of the plan.
• There is a growing concern that the preparation of the Basin Plan is well behind to where it should be to allow adequate development and pre plan consultation to obtain useful feedback. QFF is concerned about trying to provide constructive comment once the draft Plan is released if the planning process has been rushed and as a result shifts critical issues to the jurisdictions to address.
QFF and other stakeholders will have only have February and March next year to have further contact with the Authority on the Plan before consultations end to allow the final preparation of the plan.

PRODUCTIVITY COMMISSION REPORTS ON BUY BACK
The Productivity Commission has released its draft report on Market Mechanisms for the Recovery of Water in the Murray Darling Basin. Significant issues addressed in the draft report are as follows:
• Governments need to clarify for irrigators in the Basin the distinction between reductions in availability of water for consumptive use that are compensable under the provisions of the Commonwealth Water Act compared with water that may be recovered through buyback or water infrastructure investment.
• MDBA must address the tradeoffs between providing water for the environment and for consumptive water but appears to be precluded from this through the process involved in setting sustainable development limits.
• Targeting buyback to rationalize irrigation schemes or reduce environmental problems in areas will compromise the key objectives of buyback to recover water for the environment and ease the transition to lower levels of water availability
• Buyback and irrigation infrastructure programs need to be better coordinated to ensure that investment in irrigation infrastructure projects is only approved where the cost per megalitre is similar to the market prices paid for buying back water. The Commission is of the view that irrigation infrastructure investment is not cost efficient and is a poor use of taxpayer funds relative to buybacks.
• The buyback program could be improved by introducing other products such as seasonal allocations, options contracts, leases, purchasing changes to licence conditions and contracts to deliver specified environmental outcomes. Direct government purchases could also be introduced where water markets are well developed. Improvements to the existing tender process are also recommended.
• A range of impediments to the sale of water entitlements are also discussed in the draft.
The Commission is seeking feedback by February 12. The draft report can be viewed at www.pc.gov.au/projects/study/water-recovery/draft.

ACCC RELEASES WATER TRADING RULES
ACCC has released its draft advice on trading rules for inclusion in the Murray Darling Basin Plan. QFF made a submission in response to sixty eight ‘preliminary positions’ for draft water trading regulations for the Basin outlined by the Commission in a paper released earlier in the year. ACCC is seeking responses by February 1. QFF will focus attention on how the Commission has converted very broadly stated principles in the positions paper into specific trading rules and the implications of these rules for the conduct of water resource planning in the Queensland Murray Darling catchments. The draft ACCC advice is available at www.accc.gov.au/content/index.phtml?itemId=906693.

DROUGHT EMERGING ON FRONT PAGES
While most farmers in southern and central Queensland are well aware that drought conditions have worsened with the failure of spring rains, it is interesting that the consequences of the near decade long drought are again attracting mainstream media attention. With regional towns like Dalby and Cunungra joining Toowoomba, Kingaroy and others with critically low water supplies for residents (and farmers), it seems that TV and newspaper editors have again seen this as newsworthy. Such media attention however may not be useful for farmers since it often produces kneejerk reactions from politicians and poor policies are the result. QFF continues to urge Ministers Burke and Mulherin to implement the national drought reforms to provide for support for proactive programs and welfare systems that kick in when farmers need it rather than where Government officials deem it by drawing lines on maps. We have already seen many politicians aligning themselves with this issue to deliver short term solutions. This is not a good sign as further ad hoc responses are likely if summer rains are delayed much longer, and the long awaited systemic reform that is required gets pushed further into the background.

CLIMATE CHANGE SUMMIT OVERVIEW
The Copenhagen Climate Change summit concluded in Denmark last week, with negotiations certain to be ongoing throughout 2010. The two-week debate focussed on what level of environmental control is acceptable to limit the global temperature rises and what is the practical support and assistance that can be offered to small island countries and developing nations. It appears the summit generated little more than a promise to do something and a lot of debate around funding to be allocated to developing nations. For farmers, it is encouraging that the National Farmers’ Federation (NFF) was actively engaged in the summit and used its alliances with 83 other countries in the International Federation of Agricultural Producers to bring some science and common sense into the emissions trading debate. It is hoped that there has been some influence in the ongoing evolution of international protocols that do not currently have farming as a priority.

QLD RURAL SKILLS AND TRAINING DEMAND REPORT
The annual Queensland rural skills and training demand report is provided annually to the Queensland Department of Education (DET) to inform readers of their investment decisions in regards to vocational education and training for the primary industries and fisheries sectors. An update of the 2009 report is in the process of being prepared and will inform readers of the negotiations between DET and public training providers for training delivery in 2010 – 2011. DET will be undertaking extensive consultation with industry across Queensland in order to gather information for the 2010 report. QFF will be participating in the process so that a greater understanding of the skills development need within the industry are gained as well as the issues impacting upon the uptake of accredited training. The reports are published on the website of the Department of Employment, Economic Development and Innovation (DEEDI) and can be found at www.dpi.qld.gov.au by searching for rural skills and training demand report.

MEMBER NEWS

GROWCOM CONTINUES TO ADVOCATE FOR INDUSTRY
Growcom have last week pledged to continue to promote and advocate on behalf the horticulture industry and its interests. Chief Executive Officer, Alex Livingstone recently made a presentation on the horticulture industry at the Future Forum 2009, which looked at statistics on the Queensland horticultural industry, including that it is a $2 billion industry which employs 12 600 full time people (according to the last census data; which estimates 75,000 people including all casuals and backpackers), produces over 120 different commodities, and that 80 per cent of the industry’s product is consumed in Australia. The presentation outlined a number of the pressures on the industry, including big increases in the costs of employment and fertiliser in the last ten years, decreasing amounts of good quality agricultural land, and the increased price of inputs such as water, fuel and electricity.

NGIQ – ANNUAL GVP FIGURES RELEASED
The peak industry body representing nursery production in Queensland last week welcomed the release of the Gross Value of Production (GVP figures in the September 2009 edition of Queensland Primary Industries & Fisheries (QPIF) Prospects. The reviewed figure for nursery production is now at the more relevant figure of $788 million per annum thanks to the commissioning, by QPIF, of Queensland Treasury’s Office of Economic and Social Research to comprehensively survey the industry. Nursery & Garden Industry Queensland (NGIQ) Executive Officer Donald Scotts said that when considering the great diversity of cropping in nursery production and the distribution of the industry across the state NGIQ is not surprised at the official GVP being close to $800 million. “Growing greenlife for urban horticulture, revegetation and mine site rehabilitation identifies the industry as a critical contributor to both our amenity and environmental values,” Mr Scotts said. “Producing the starter crops for forestry, fruit, vegetable and nut producers demonstrates the close supporting role production nurseries have in the horticultural food and fibre industries of Queensland.” Mr Scotts further highlighted that the stereotypical classification of nursery production, as an industry servicing a single urban market and the discretionary dollar, is outdated and a broader recognition is required of the complex $4.5 billion value chain that the industry services across horticulture.

OTHER NEWS

WOMEN ON CLIMATE CHANGE - TIME TO BE HEARD
Condamine Alliance, the peak natural resource management organisation for the Condamine catchment, is tackling climate change and wants to hear from women who support rural communities and industries. If you have something to say about climate change and its impacts upon your families, your communities or your industries please join us - we're ready to listen and to act. If you'd like your voice heard please phone Sarah Hood on 0428 255 506 or email sarah.hood@bigpond.com.au before January 15 2010.

GOVERNMENT TO REVIEW QCA'S 2010-11 ELECTRICITY PRICE DECISION
Mines and Energy Minister Stephen Robertson has last week raised serious questions over the Queensland Competition Authority (QCA) draft determination on electricity price increases, to apply from July 1 2010. The QCA last week (Friday December 18) released a draft decision on the Benchmark Retail Cost Index (BRCI), recommending the maximum price of electricity should rise by 13.8 per cent from July 1, for twelve months. The BRCI is used to adjust regulated electricity prices each year. Mr Robertson said he believes the QCA draft determination gives a significantly higher price rise than Government and members of the public would consider reasonable, and would be directing the Department of Environment and Resource Management (DERM) to carry out a rigorous analysis of the QCA's methodology. Mr Robertson said although electricity prices were rising across Australia, until now Queenslanders had enjoyed below average charges.
An annual comparison of residential electricity bills in July this year showed that despite the price rises of recent years, Queenslanders had the third cheapest electricity in the country. For further information on the QCA's draft determination and to provide feedback visit www.qca.org.au.

ELECTRICITY COMPANIES TO PAY MORE FOR FAILING TO GUARANTEE SERVICES
Queensland's electricity distributors Ergon and ENERGEX will have to make automatic payments for failing to ensure all guaranteed service levels to consumers from the middle of next year. Minister for Natural Resources, Mines and Energy Stephen Robertson said amendments being introduced to the Electricity Industry Code from July 1 2010 would require electricity companies automatically reimburse Queensland customers and most small businesses if guaranteed services were not provided. Mr Robertson said the amendments also increase the amount paid for Guaranteed Service Levels by 30 per cent on current levels, to reflect Consumer Price Index changes over the past several years. Mr Robertson said the Queensland Government was committed to ensuring the reliable supply of electricity to all Queenslanders and electricity companies must ensure they provide reliable and quality services to customers. Information on the Electricity Industry Code is available at www.qca.org.au or the Queensland Competition Authority telephone 3222 0555.

CONSIDERING THOSE LESS FORTUNATE
With the impact of the Global Financial Crisis, Foodbank Queensland is currently feeding 60, 000 Queenslanders a week, half of whom are children. The not-for-profit charity supplies food to more than 300 charities. Foodbank is a Deductible Gift Recipient (DGR) endorsed by the Australian Tax Office. All donations of produce are a legitimate tax deduction for your farm business. To donate fruit and vegetables, growers need only provide Foodbank with an invoice for the amount donated. It is up to the grower how they price their goods as most growers have a good idea what their food is worth. Foodbank then issues a tax receipt. Foodbank will gladly pick up all donations and can also supply cardboard boxes where necessary. Foodbank will take produce considered seconds or ‘not fit for market’ that may otherwise be discarded by the farmer or packing house. As a general rule, if the food is good enough for someone to eat, Foodbank will be more than willing to take it. For more information visit www.foodbank.com.au.

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