November 1, 2017
The Queensland Farmers Federation says electricity prices will be a major factor in the outcome of the State election, but says the “jury is still out’ on how the various parties will address the issue.
QFF president Stuart Armitage said that despite assurances from politicians over years of “downward pressure on electricity prices”, there had been no reprieve.
He said the time for “downward pressure”‘ was over, immediate price relief was needed now.
“The ongoing energy crisis continues to have viability and profitability ramifications for Queensland farmers, who over the past decade had experienced electricity price increases of at least 130 per cent,” Mr Armitage said.
“For some, the cost of this basic need and critical farm input has risen by 300 per cent. Over the same period, CPI has increased by just 21 per cent.
“Farmers are fed-up with the lack of action and are looking for those candidates and political parties willing to do what it takes to reform the current broken electricity system.
“Modern farming businesses rely on a range of energy-intensive activities for irrigation, heating, cool rooms and packaging sheds to produce high quality food, fibre and foliage.
“Reliable, affordable electricity is a must for farmers to keep the doors open so they can continue to employ people and support Queensland communities.
“Government programs addressing energy efficiency and demand management have been an important resource for helping Queensland farmers to identify, learn and implement energy efficiency practices and changes to their businesses.
“These programs must continue and must evolve to factor in linked activities, address broader productivity issues and provide implementation incentives.
“But they must also be ramped up so more farmers can benefit, and they have only dampened the unsustainable price increases imposed on farmers.”
Mr Armitage said the QFF was advocating for “sensible and practical actions” for a vibrant and thriving agricultural sector:
- Direct Energy Queensland to optimise network assets and set network prices at efficient levels, at least 40 per cent below existing levels
- Remove the “hidden taxes” on the government-owned corporations, such as competitive neutrality payments
- Remove the solar bonus from a network charge
- Deliver a comprehensive reform of existing electricity network tariffs that are appropriate and affordable for farmers
- Commit $36 million over three years to an integrated industry-led energy program that addresses the energy-water-productivity nexus.
