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Flinders Shire Council 15 Mile Irrigated Agricultural Development Project Initial Advice Statement

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Flinders Shire Council 15 Mile Irrigated Agricultural Development Project Initial Advice Statement Flinders Shire Council 15 Mile Irrigated Agricultural Development Project Initial Advice Statement August 2018 Executive summary The Flinders Shire (Shire) is located in the heart of North West Queensland covering area of 41,632 square kilometres (MITEZ 2018). Hughenden is the main business centre for the Shire, which also encompasses the smaller communities of Prairie, Torrens Creek and Stamford (FSC 2018). Hughenden is situated on the banks of the Flinders River at the crossroads of the Flinders Highway and the inland Hann Highway (FSC 2018 and MITEZ 2018). The Shire is predominantly a grazing area with the major industry being beef cattle production (FSC 2018 and MITEZ 2018). There are approximately 230 rural grazing properties, with a gross agricultural production value of $73.5 M, within the Shire (MITEZ 2018). Despite this, the Shire has experienced negative average annual growth rates over the past decade (-1.9%) with an increasing negative trend in the last 5 years (-3.2%) (QGSO 2018). The Shire is experiencing above State average economic disadvantage, with most major demographic indicators trending below the average for the whole of Queensland. In line with their Guiding Principles, Flinders Shire Council (Council) is committed to taking actions that promote sustainable growth in the Shire and has identified that future development will be in establishing the Shire as an emerging centre for irrigated agriculture. Council consider the 15 Mile Irrigation Project (the project) a key development that aligns with this principle. The project arises from the CSIRO report, Agricultural resource assessment for the Flinders catchment (CSIRO 2013)1 as part of the North Queensland Irrigated Agriculture Strategy (NQIAS). The report identified that the Flinders Catchment has potential to support significant areas of irrigated agricultural (CSIRO 2013). CSIRO (2013) also determined that the high capital costs of water infrastructure might preclude reliable economic returns on irrigated farming. However, with the introduction of third party investment commercial returns on irrigated agriculture are possible. In order to address these barriers to entry for new irrigated agriculture investment, Council purchased Lot 168 on SP262319, a 918 HA property that formed part of the Reserve known as “15 Mile”. Council plan to obtain major development approvals and water licences for the project and reconfigure the allotment into viable agricultural development blocks for private investment. Council will promote intensively grown, efficiently irrigated, low volume, high value horticultural crops which will result in better returns and outcomes for the Shire when compared to broad acre, low-return, high volume crops. These types of enterprises meet Council’s goals of providing employment prospects for residents as well as encouraging migration of skilled workers to the Shire. The documents provided in support of the application for coordinated project status i.e. the Capability Statement, Pre-feasibility Assessment and this Initial Advice Statement (IAS) demonstrate the suitability for ‘coordinated project’ determination as set out in section 26 (2) 27 and 27AC of the State Development and Public Works Organisation Act 1971 (SDPWO Act). These documents have been developed to demonstrate that the project is of strategic significance to Flinders Shire with regards to economic and social benefits, capital investment and employment opportunities. This IAS outlines the projected benefits of this project to the region, with an estimated 208 FTE employment opportunities and $9.4 million gross production value to be generated per year at 1 https://www.csiro.au/en/Research/LWF/Areas/Water-resources/Assessing-water-resources/Flinders- Gilbert GHD | Report for Flinders Shire Council - 15 Mile Irrigated Agricultural Development Project, 4220452 | i full development. Further, the project will require significant investment (in the order of $47 million) for farming, irrigation and water infrastructure. Under section 26(1) of the SDPWO Act, the Coordinator General may declare the project to be a ‘coordinated project’ for which an Impact Assessment Report (IAR) is required if satisfied the environmental effects of the project do not, having regard for their scale and extent, require assessment through the Environmental Impact Statement (EIS) process. The requirements for a declaration under section 26(b) (for a project that requires an IAR) are set out in Coordinator General’s Application requirements for ‘coordinated project’ declaration and are addressed as follows: The expected magnitude and scale of the project and impacts are less than those of a coordinated project requiring an EIS The risk of environmental harm arising from the potential impacts of the project is considered to be significantly less than a coordinated project requiring an EIS, given the nature or extent of those impacts. The project is well defined and entails approximately 344 HA of developable land for high value horticultural crops and 101 HA of developable land for farming infrastructure and low value crops. The balance of the site (473 HA) will consist of a water storage dam (approximately 25.5 HA providing up to 4 ML capacity) and environmental buffers to watercourses, wetlands and regulated vegetation (447.5 HA). There is limited potential for negative impacts of any magnitude or scale to amenity (noise, air quality, vibration, lightning, urban design and visual aesthetics) and the social, economic and built environment of the Shire as a result of the Project. Council consider that the project will deliver positive outcomes with respect to these settings. The magnitude and scale of impacts to the site environmental setting have been significantly reduced to a low to medium level through the accommodation of key natural features in the master plan inclusive of 447.5 HA of environmental buffers to watercourses, wetlands and regulated vegetation identified as matters of state environmental significance (MSES) relevant to the site. The only matters of national environmental significance (MNES) of relevance to the site are listed threatened species and migratory species. Based on currently available information, Council consider the potential for the project to have a significant impact on these MNES as low. The IAR will include additional fauna and flora survey inclusive of significance of impact assessments to confirm this assessment. Further, the project will ensure sustainable take and application of groundwater with additional investigations planned to ensure that sustainable pumping schedules are developed for production bores (i.e. pumping rates, recovery periods, etc). Groundwater monitoring will be undertaken to confirm no impacts to the groundwater aquifers and associated ecosystems. The impacts and measures to avoid or mitigate any potential adverse impacts of the project are well understood, widely practised, easily applicable and/or adequately managed by application of standard conditions or codes. CSIRO (2013) identified a number of risks to the natural environment associated with irrigated agricultural development in the Flinders catchment. Key issues as deemed relevant to the project are identified as follows: the risk of rising water table levels (e.g. salinity); the risk for increased groundwater discharge to rivers in the Flinders catchment; the risk of increases sediment, nutrients and pesticides loads from irrigation to the Flinders River; ecological implications of altered groundwater and surface water flow regimes on riparian ecology. GHD | Report for Flinders Shire Council - 15 Mile Irrigated Agricultural Development Project, 4220452 | ii These can be further expanded on with respect to the project site environmental setting as follows: risk of loss of biodiversity as a result of vegetation clearing, habitat destruction and low of connectivity for agricultural development and associated infrastructure; soil erosion and degradation; over abstraction of groundwater aquifer and associated flow on ecological and social impacts; and introduction of invasive species and diseases. The primary mitigation measure to minimise impacts associated with these risks has been through incorporating natural features with vegetated buffers into the precinct master plan. The key outstanding impact to be addressed is ensuring the sustainable take and application of groundwater. This along with other best practice mitigation measures will be adopted and include: construction phase Environmental Management Plan to ensure best practice construction phase management controls are implemented (including erosion and sediment control); completion of a land suitability assessment to further inform the precinct master plan as required to address relevant State Codes; implementation of operational controls based on current best practice farming techniques for the control of irrigation (i.e. sustainable water use and application rates); monitoring soil nutrient balances; minimising potential for run-off contaminants; and weed management. The key outstanding impact to be addressed is ensuring the sustainable take and application of groundwater. Council will continue to undertake further groundwater assessments as required to facilitate the development and subsequent approvals and licences to demonstrate that precinct water requirements are sustainable in the context of aquifer production, linkages and recharge. Investigations will be undertaken to ensure that sustainable pumping schedules
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