Rivers of Dreams

Transcript from Landline 6/4/2014, reporter Pete Lewis

PIP COURTNEY, PRESENTER: For some, northern Australia is farming’s final frontier. A field of irrigated dreams just waiting for the right people and the right projects to unleash its full potential.

Yet others are cautious about triggering an unsustainable land and water grab that tramples over the natural and cultural significance of some of the world’s largest unspoilt tropical savannah country.

The ABC’s rural and regional reporter Pete Lewis headed to Queensland’s Gulf, where one single project has brought both sides of this agricultural development debate into sharp focus.

(Graeme Connors “A Little Further North”)

SONG: I head a little further north each year. Leave the cities behind, out of sight, out of mind. Up where my troubles all disappear I head a little further north each year.

KEITH DE LACY, I-FED: We believe that this is groundbreaking. This is going to change the way agriculture is carried out in Australia. For the last 50 years we’ve been talking about developing the north, the food bowl of Asia. We’ve had white papers and green papers. We’ve found a way of actually doing it. And the great thing about it, it’s absolutely sustainable.

PETE LEWIS, REPORTER: The grand plan is to harness the power of this river in Queensland’s Gulf Country for irrigated agriculture on an unprecedented scale.

CSIRO’s scientists spent two years and $10 million looking into the land, the water and the climate in the Flinders and Gilbert river catchments and they’re not quite so bullish, which some say is just as well.

GAVAN MCFADZEAN, WILDERNESS SOCIETY: We don’t want to see the mistakes of the past now characterise future development in northern Australia and we urge decision makers around this project, but also the Federal Government’s northern development inquiry, to look at sustainable long-term development options for this region, not the legacy of a failed business and development model of the past.

PETE LEWIS: Over the course of the next year, authorities both state and federal will assess the arguments for and against agricultural developments in northern Australia. Whether to opt for the CSIRO’s more precautionary approach to opening up more irrigated projects or a complete game changer, that might not just change the course of mighty rivers up here, but how the water in them is allocated.

So the first line in the sand between those for and against substantially more irrigated agriculture has been drawn here, where a private consortium, Integrated Food and Energy Developments, is seeking Federal Government imprimatur and formal State Government approval for its $2 billion project – and yes, in this case, size does matter.

I-FED is factoring in 65,000 hectares of irrigated crops, mostly sugarcane, fed by two large off-river dams. That justifies investment in a sugar mill, whose by-products in turn would be used to both generate electricity and ethanol to power the mill, as well as stockfeed for beef cattle that will also be processed onsite.

KEITH DE LACY: The message we’ve got to get across and this is really the breakthrough, is that you’ve got to have the scale to make this work. The scale that can – so that we can create all of the processing architecture that enables us to grow agriculture in this isolated part of the world. If they allocate water so that we can develop projects to this scale, then you will get enormous times more economic benefit or jobs, if you like, per megalitre.

(Speaking to audience) We’ll have 12 months supply of stock, then that justifies…

PETE LEWIS: Keith De Lacy, a former Queensland Labor Treasurer, told the recent ABARES Outlook conference that this project brings him full circle, back to where he grew up, but with a keener sense now of what’s possible, honed after careers in state politics and the corporate world.

KEITH DE LACY: (Speaking to audience) I’d just really like to see, as we say, bringing government policy to life. You just have to do it differently than you did it before. Analyse everything that’s been done, find out why it didn’t work and say, ‘Well, is there a way to make it work?’ and we believe we’ve found it.

PETE LEWIS: Someone with a more cautious outlook is CSIRO scientist Dr Peter Stone.

DR PETER STONE, CSIRO: History’s shown that capitalising on the north’s advantages has its challenges and uncertainties. And this erodes confidence, which in turn can deter investment. So unlocking significant new investment in the north’s agriculture requires confidence about the scale of opportunities and the risks that attend them.

(Speaking to audience) A high-level view of what we did and the sorts of results that we found as part of the Flinders Gilbert Agricultural Resource Assessment. I’m a kind sort of person, so I’m not going to take you through 4,000 pages. If you’re wanting a little bit more detail, there’s the 15 or 16-pager that you’re either sitting on or have in your hands. That’s where I probably prefer to start myself. It gives a nice high-level overview but also enough information to really wrap your head around what we did.

DR PETER STONE: In the Gilbert catchment, we found over 2 million hectares of soil that is at least moderately suited to irrigated agriculture production. That’s a lot of soil. We found sufficient water resources to irrigate 20,000 to 30,000 hectares of that 2 million. To some people, 20,000 or 30,000 hectares sounds like an awful lot of land and to others it doesn’t sound like much.

So just to put it into perspective, the Ord River irrigation area currently irrigates about 14,000 to 15,000 hectares. So the 20,000 to 30,000 hectares that we’ve identified in the Gilbert could increase all of the irrigation area in northern Australia – so, north of the Tropic of Capricorn – by 15 to 20 per cent – that’s a big increase.

PETE LEWIS: Any comparisons with the Ord River scheme in Western Australia’s east Kimberley tends to stir some sceptics into campaign mode. The Wilderness Society has made a detailed submission to the northern Australian development white paper, arguing less is more.

GAVAN MCFADZEAN: There’s two projects already on the drawing board in this catchment which far exceed what CSIRO say is possible. One project, the I-FED project, wants to, at a minimum, take out three times more water and use twice as much land as what CSIRO was suggesting is possible. And that’s just one project.

There’s another project which has already started land-clearing in the Gilbert and wants to clear up to 100,000 hectares of land.

So both of these projects together result in almost 200,000 hectares of land-clearing and vast extraction of water, far beyond what CSIRO say is possible.

(Sound of heavy machinery)

PETE LEWIS: Third generation Gulf grazier Greg Ryan isn’t a fan of I-FED or its super farm either. Indeed, he’s not cleaning up land for crops. He’s weeding chinee apple out of his floodplain pastures that sprouted after the first decent rainfall here after fires and a long drought.

GREG RYAN, GREEN HILLS STATION: You’d hope we’re just at the bottom of the cycle and things will sort of pick up if the weather’s kind to us and the markets are kind to us and everything else sort of turns around, well, yes, we’ll hopefully start working our way up the cycle to the boom end.

PETE LEWIS: While he’s not opposed per se to increased irrigated agriculture here on the Gilbert River floodplain, Greg Ryan says the huge I-FED proposal simply hasn’t had the due diligence it deserves and that’s split the community.

GREG RYAN: It does concern me. I think everyone would like to see a successful project in the district for the benefit of everyone within the district. But we’ll only get one shot at this and we have to get it right, so I think the split clearly indicates that there’s not enough information and enough research being done to tell us whether it’s a viable sort of project or not.

PETE LEWIS: On neighbouring Forest Home Station, cropping helped get Ken Fry and his family through the big dry. They grew stockfeed for hungry cattle. The family moved up from Queensland’s Burdekin region, the engine room of Australia’s sugarcane industry, for a crack at irrigated cropping Gulf savannah style.

KEN FRY, FOREST HOME STATION: This was the perfect spot for us at the end. It had irrigation potential, a 400-hectare irrigation licence, farmland, irrigators… Essentially we’re cattle people, but I figured we had to be able to diversify and for the last couple of years, it’s been keeping us going, being able to grow crops on our country with irrigation.

PETE LEWIS: Today he’s checking his emerging guar crop; a legume that’s sometimes referred to as poor man’s soybean. Guar gum is a thickening agent used in everything from fast food and toothpaste to coal seam gas fracking.

Forest Home Station’s rich alluvial soil profile is around 4m deep. They grow everything from cavalcade hay to peanuts and corn and are hopeful they’ll get not only approval to clear more scrub, but a crack at more water on the open market against I-FED and others.

Do you think there’s enough for all of you?

KEN FRY: Ah… Yes, I wouldn’t like to say. I don’t really actually know what water, what percentage of water will be released. I don’t have those figures. We need a considerable amount. The Gilbert River precinct needs a considerable amount. I-FED’s proposal, they’re asking for a considerable amount. A lot.

If we’re all equal, if we’ve got to go and put our tenders in for the water or go to auction and bid on it, it will all be fair, but if anything else besides that happens, they get granted water, they will be the biggest water holders and they will hold and they will organise the markets around that.

Saying that, I hope there is enough water here that we can survive and they can survive and it will be so much better for the area if we can both go in tandem.

PETE LEWIS: Huenfels Station was a soldier settler block that’s been in John Bethel’s family since the 1920s, mainly running cattle. But thanks to an agreement he signed with I-FED, it may eventually boast an expansive water feature, a header dam for the irrigated farm.

JOHN BETHEL, HUENFELS STATION: What is attractive about it is they’ll lease it back to us for a peppercorn rental for three years and then you’ve got the option to lease it back after all the development’s done, whatever’s left, so probably a godsend really for a lot of people that are under pretty stiff financial circumstances.

PETE LEWIS: And for John Bethel, that’s the rub. There just simply aren’t a host of development alternatives in this part of the country that could underpin economic growth quite like the super farm.

JOHN BETHEL: One of the things that holds the shire back is it has a very small rate base and projects like these are the only opportunity they’ve got to grow their rate base, but from my perspective I’m more concerned about the next generation that want to stay on the land and be involved in the area and I think that without these sort of projects, the future looks pretty grim really.

PETE LEWIS: Perhaps not surprising the local council is pretty excited about the potential windfall too. The population projections alone would result in a tenfold increase in Georgetown’s 250 residents.

WILL ATTWOOD, ETHERIDGE SHIRE MAYOR: I see that it’s going to be good for a town, to grow the economics of our town, the economics of our area. It’s going to make a lot of opportunity for people to have businesses around. But we’re doing it really tough just at the moment. I mean this is an absolutely huge boost, but really any boost to us at the moment would be great.

(John Denver “A Little Further North”)

SONG: Up where there’s silence and the night sky is clear I head a little further north each year.

PETE LEWIS: So where is that boost likely to come from?

KEITH DE LACY: Well let me say, we would go to the Australian capital markets first. We would prefer to get the money from Australia. Nevertheless, getting money from offshore is good for Australia anyway.

We expect there will probably be a mix of it, but we’ve had enormous interest from the United States, from North America, enormous interest, probably the most interest from there, I’ve got to say that. But, no – we’re ecumenical about that. We want to develop this project and we’ll raise the funds where we’ve got to raise the funds.

PETE LEWIS: First they’ll need to raise $15 million to get the project to the next stage, and undertake the environmental impact and detailed engineering assessments, before pitching for a half a million megalitres in water entitlements and tree-clearing permits. To say nothing about winning over all the locals.

JOHN BETHEL: I don’t think there’s ever been a community born where there wasn’t polarised views. This community – if I’m any judge of the community sentiment – I’d say there’s a small number that are strongly opposed. There’s a small number like myself that are very pro. And everyone else is sitting a leg on either side of the fence. And if you’re a business owner, you’re hoping like hell it’s going to go ahead but probably thinking that it’s too good to be true. And that’s where I think most of the community sit. I’m pretty sure of it actually.