Electricity Prices
Mr PERRETT (Gympie—LNP) (2.36 pm): Spiralling cost-of-living expenses, especially from
unsustainable electricity prices, continues to be the No. 1 issue in homes and businesses in rural and
regional Queensland. It is no secret that electricity prices have risen in Queensland and businesses are
under pressure. The impact of electricity price increases on rural and regional farm businesses is
seriously affecting their economic viability. Queensland farmers who have to irrigate have had to
manage electricity price increases of between 130 and 200 per cent over the past decade. This is a
massive increase when one considers that during the same time CPI increased by just 24 per cent. It
is clear that the inequality associated with the unfair and unsubstantiated electricity price increases that
have crippled intensive agricultural production needs to be urgently fixed.
Compounding this dire situation, the state Labor government is presiding over an electricity price
cliff with the impending phase-out of obsolete tariffs in 2020. I cannot overstate how serious this is. It is
affecting the viability of our farming businesses. This government does not want to know about it and
continues to ignore the looming problem. Even the Queensland Productivity Commission says that more
than 10,000 customers on existing obsolete farming and irrigation tariffs, such as T62, T65 and T66,
will be worse off after these tariffs are switched off in 2020. The government’s continual inaction, by not
addressing the impending cliff that is 2020, is creating serious confidence issues for our irrigators.
Whether it comes to crippling our farmers with onerous vegetation management laws or failing to
address spiralling power prices, this Labor government is happy for farmers and rural and regional
communities to suffer.
While this government continues to have its head in the sand regarding the impact that this 2020
tariff change will have on our farmers, the Liberal National Party is listening and working with industry
groups to find a practical and viable solution. Through our Agriculture Energy and Water Council we
are working closely with key agricultural industry groups such as the Queensland Farmers’ Federation,
Canegrowers, Cotton Australia, Growcom and AgForce to develop and inform plans to lower spiralling
farm electricity and water costs. We are hearing loud and clear that electricity prices are out of control.
We are hearing that industry needs a suite of new electricity tariffs to appropriately reflect the diverse
and varied needs of modern agricultural production in this state.
Farmers need access to tariffs that meet the demands of irrigators, packing sheds, refrigeration
for coldrooms and the heating and cooling functions required for intensive animal industries. Those
varied systems require loads of energy at different times and for different purposes. While there is some
initially positive news coming from the Ergon Energy tariff 33 trial being pioneered by the Bundaberg
Regional Irrigators Group, Canegrowers and QFF, any such large-scale application of the tariff would
only be suitable to a select type of farm business. While certain agricultural industries can handle supply
interruptions, others cannot afford to even consider such a model.
Credit should be given to all those involved in the work done to date on this new tariff, but it is
only one piece in the puzzle when it comes to delivering the suite of affordable tariffs that Queensland
farmers need to help remain productive and viable. I can reassure Queensland farmers that the LNP is
committed to holding this government to account on tariff issues that need to be fixed now, well before
the 2020 deadline. It is the LNP that understands the importance of the water and electricity nexus, and
the relationship that exists between getting those inputs right and having a profitable and efficient
agricultural sector.
The issue of electricity affordability through water pricing will continue to be put under the
microscope while the state government finally gets around to delivering the now long-overdue regional
water price referral to the QCA. The LNP will stand up for farmers and hold the government to account
in appropriately considering and responding to the impact that high electricity costs are having and will
continue to have on farmers’ ability to access affordable water. Only the LNP is standing up for rural
and regional Queensland businesses in the face of Labor’s spiralling costs for electricity and access to
affordable water. Only the LNP will fix Queensland’s anti-farmer record-high electricity prices,
unaffordable water for irrigation and unfair vegetation management laws. Only a Deb Frecklington LNP
government will end the divide between the south-east corner and rural and regional Queensland.