Time for all of NSW to pay up

The Independent Pricing and Regulatory Tribunal (IPART) is reviewing water prices, to begin on July 1 this year, and NSW Farmers is concerned about the determination thus far. 

NSW bulk water charges are at risk of failing farmers and, in some cases, whole regional communities. Draft water charges for some valleys are proposed at unviable levels.

The NSW Government must act to ensure fair water pricing that does not needlessly restrict farming activity. While some valleys will see lower water charges, prices will rise significantly for those affected by the Murray Darling Basin Authority (MDBA) charges, with the NSW government set to pass on the bulk of charges to users. Over two determination periods, prices will effectively double.  

The MDBA charge is particularly frustrating for farmers as we are effectively being asked to pay for the MDBA twice; once through the loss of productive water, and now through bearing the costs associated with keeping the MDBA afloat.

Going by the “beneficiary pays” principal, the environment and community at large are supposed beneficiaries. The state government should pay, not farmers.

Other concerns include unworkability in some valleys to cost-recover, including the failing Peel Valley water market.

Water prices in the valley have risen by 250 per cent since 2009, with larger farms paying close to $100,000 per annum for water. This is four times more than the NSW average. These price hikes have nothing to do with water shortages and everything to do with inappropriate public policy.

The NSW government can address this – it can pay a fair share of MDBA charges. It can also address cost-recovery on the North Coast, South Coast and Peel Valley, to ensure a water price that sustains and promotes continued farming.