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Parliamentary Questions


Question On Notice No. 2169 asked in the Legislative Council on 16 May 2019 by Hon Diane Evers

Question Directed to the: Minister for Agriculture and Food
Parliament: 40 Session: 1


Question

I refer to the proposed Southern Forests Irrigation Scheme (SFIS), and I ask:
(a) is the Minister aware that the projected benefits have been based on the letter of intent process indicating that 26% of water uptake would be for avocado growing, while SFIS Co-operative Directors indicate that 50-60% of water allocated as of November 2018, would be for avocado production:
(i) if yes to (a), what are the implications of this discrepancy;
(b) is the Minister aware that according to 'Avocados Australia’s 2018 OrchardInfo Report', existing plantings already in the ground of between 0-6 years old and covering 1400 ha will increase avocado production by a factor of approximately 2.5, without additional irrigation:
(i) if yes to (b), what are the implications of this in terms of the business case for the SFIS;
(c) is the Minister aware of evidence that shows the Directors of the SFIS Cooperative had prior knowledge of the Department of Water and Environmental Regulation imposed moratorium and passed that information on;
(d) if any of the Directors of the SFIS Cooperative applied for and gained large license bodies for their own properties, is this a breach of their role under the Rights of Water and Irrigation Act 2014; and
(e) is the Minister aware that large percentages of allocated water in west Manjimup is not being utilised, and that a lack of markets is seen by many farmers as the key limiting factor to increasing production, rather than a lack of water:
(i) if yes to (e), how has this factor been included in modelling for the SFIS business case?

Answered on 26 June 2019

(a)        A letter of intent (LOI) process was used to provide a guide as to the level of demand for water. LOI responses indicated that around 44 per cent of the proposed water uptake was for growing avocados. I am advised the 26 per cent figure referred to by the Hon. Diane Evers is the estimated amount of land that would be used for avocado growing, and not water uptake.

i.          It would be reasonable to assume that an uptake of 50-60 per cent, compared with an indicative 44 per cent (and not 26 per cent as claimed) would not have any significant impact given the variability of other factors such as production rates, price and demand.

(b)       The OrchardInfo Report, as with other market commentary, predicts a strong future supply of avocados. The Southern Forest Irrigation Scheme is an industry-led project and reflects the commercial decisions of experienced and professional growers in the region.

i.          The Southern Forests Irrigation Scheme (SFIS) business case notes the projected growth for avocadoes and challenges ahead associated with increasing supply. Statistics from Avocado Australia highlight that despite avocado supply growing strongly in the last decade, the value of avocado production, including farmgate value, has also grown strongly.

(c)        I am advised by the Office of the Minister for Water that the temporary cap to water allocation licensing was effective from 16 November 2017. The Warren Donnelly Water Advisory Committee was notified of the temporary cap by the Department of Water and Environmental Regulation on 23 November 2017, and the Southern Forest Irrigation Project Steering Committee was notified on 22 November 2017. This was after the cap came into effect, but prior to public notification on 20 December 2017.

(d)       Directors of the Southern Forest Irrigation Co-operative do not have a regulatory role under the Rights in Water and Irrigation Act 1914.

(e)        I am aware that some farmers in the Manjimup region are concerned about increasing the supply of avocados, and the need for export markets to be further developed.

i.          The SFIS Business Case looked at the potential future state which was informed by LOI responses, infrastructure requirements and general market commentary, including the role of both domestic and international markets in absorbing supply.