QUESTION ON NOTICE

No. 1037

asked on Friday, 10 June 2005

MR MULHERIN ASKED THE MINISTER FOR NATURAL RESOURCES AND MINES (MR ROBERTSON)—

QUESTION:

Is his department or Sun Water undertaking any water projects to address water shortage and relieve demand pressure in the Mackay ?

ANSWER:

I am pleased to advise that there are a number of projects that my Department and SunWater are undertaking to address water shortages and to alleviate water demands in the Mackay Whitsunday region.

Mackay Wastewater Recycling Project

My Department has assisted the Mackay City Council in securing federal and State funds for the Mackay Wastewater Recycling Project. This is a major initiative that will recycle most of Mackay’s wastewater, including that from the Bakers Creek abattoir. The recycled water will be used as an irrigation supply for up to 3,200 hectares of existing sugarcane that is being grown on farms to the south of Mackay. The Project will result in a more sustainable and productive sugar cane industry by reducing the sugar industry’s dependency on overcommitted groundwater resources that are currently at risk of seawater intrusion.

Other major benefits resulting from the use of the nutrient-rich water for irrigation include protecting the Great Barrier Reef from the 250 tonnes of nutrients that otherwise would be discharged to the sea each year. By ensuring appropriate disposal of the wastewater generated by the Bakers Creek abattoir, the Project will also underpin the viability of the meat processing plant that employs 500 staff.

The $86.4 million Project is scheduled to come online by February 2008, under equal funding from the Australian and Governments and the Mackay City Council.

Water Planning

One of my Department’s primary initiatives for the region involves the development of a Resource Operations Plan (ROP) for the Pioneer Valley. The ROP, which commenced on 20 June 2005, converted 746 water entitlements into tradable water allocations with a total volume of over 146,000 megalitres. Based on prices achieved elsewhere in the State, these water allocations are likely to have a total value of well over $150 million.

The conversion of water entitlements in the Pioneer and Eton water supply schemes into tradable allocations, separated from the land to which they have been tied, will become an important driver for investment, efficiency and innovation in water use and higher value use, leading to greater wealth and employment per megalitre of water used.

The ROP also sets out a process for releasing an annual allocation of 4000 megalitres of unsupplemented water that will be made available to groundwater users in the Sandy Creek sub catchment to assist in the management of saltwater intrusion into coastal aquifers.

My Department is also in the process of amending the Pioneer Valley Water Resource Plan to specifically address issues of groundwater use. This will include the introduction of water trading in groundwater entitlements, again to drive investment, efficiency improvements and better use of the available resource.

Central Queensland Regional Water Supply Strategy

My Department is working closely with local councils and water service providers in developing long term water supply strategies in , including the coal mining areas in the Nebo-Broadsound area. A draft report will be prepared in consultation with a representative steering committee during August/September 2005, with a view to a report being available for public review later this year.

Rural Water Use Efficiency Initiative

The State Government’s highly successful Rural Water Use Efficiency Initiative has supported the Mackay sugar industry in improving water use efficiency through the following:

• continuing to promote Best Management Practice (BMP) and demonstrating new technology; • increasing the understanding of soil/water interactions and crop water requirements; • promoting and delivering land and water management plans; • promoting and co-ordinating the delivery of the Combining Profitability and Sustainability in Sugar (COMPASS) program in the region as a means of addressing BMP; • promoting and coordinating regional soil testing and training in nutrient management programs; and • promoting industry development of Farm Management Systems and its roll out to regional growers via the pilot program.

SunWater

SunWater manages the Proserpine River, and Eton Water Supply Schemes. Currently, is storing 24 percent of capacity or 120,000 megalitres, Teemburra Dam is storing 28 percent of capacity or 41,300 megalitres and is storing 36 percent of capacity or 22,400 megalitres. For the coming water year, in recognition of expected low announced allocations, SunWater will make its spare allocation available to water users within these schemes.

Eungella Dam is the main water storage that services customers in the Bowen Broken Scheme. The Dam is currently storing only 19 percent of its full capacity, or 21,600 megalitres. To improve the scheme’s performance, SunWater has constructed the 5,200 megalitre Gattonvale Offstream Storage near Collinsville at a cost of $22 million. This is expected to relieve the current critical supply issues for existing customers.

Burdekin River to Moranbah Pipeline

To address longer term water supply needs of the coal mining industry in the area, SunWater is investigating a pipeline from the to Moranbah. This was at the request of five mining companies, which have underwritten $5.2 million in design costs. If the pipeline proceeds, SunWater plans to incorporate some spare capacity to underpin future development in the area. SunWater is also designing two extensions to the existing Eungella Water Pipeline on behalf of its subsidiary, the Eungella Water Pipeline Company. Mining customers in the Moranbah area have requested the extensions.