Millers call for cuts to ‘crippling’ water cost

SUGAR millers have called for urgent talks to discuss the easing of crippling irrigation costs and boosting agricultural growth to kickstart Queensland’s recovery from COVID-19.

The Australian Sugar Milling Council (ASMC) welcomed recognition of sugar’s importance to the economy in the Queensland Government’s Economic Recovery Plan, which was released last week, but hoped a strategy would be actioned through more a supportive water pricing policy.

“The Queensland sugar industry has persevered during the pandemic downturn and played an integral part in keeping the state in a strong economic position,” ASMC chief executive David Pietsch said.

“We can help Queensland back on the road to recovery and support the Premier’s focus on job creation, but not without a return to affordable water pricing levels.

“With the release of the Economic Recovery Plan (last week) we are seeking urgent follow-up talks with the government.”

A report by ASMC handed down in April demonstrated that a 25 per cent reduction in the price of irrigated water could deliver up to $220m in additional economic activity and an additional 140 direct jobs and indirect jobs.

The additional revenue would also assist mill viability, given today’s low sugar prices.

“It is clear the severe economic impacts of COVID-19 will be with us all for years,” Mr Pietsch said.

“We need a longer-term commitment to reduced water pricing.”