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Media Release
2/04/15
Cotton industry welcomes NSW Minister,
urges action on landholder issues
Cotton Australia has welcomed the appointment of Niall Blair as NSW Minister for Primary
Industries and Minister for Lands and Water, and has urged the State Government to ensure
its policies support cotton growers and other landholders.
Cotton Australia Policy Manager, Michael Murray, says that while the NSW Government had
focused the election campaign on seeking a mandate for the privatisation of the electricity
network, there was a need to seek reforms of the overarching National Electricity Rules prior
to the lease of the state’s asset.
“Our cotton growers have been subject to sustained electricity price rises, up to 300% since
2000. At the same time inflation was less than 50% so clearly this is affecting the bottom line
of our growers,” Mr Murray says.
“These significant increases are due to network charges which have grown astronomically in
response to the gold plating of our electricity networks, and excessive operating and capital
expenditure of the electricity networks.”
“The AER has released a Draft Revenue Determination for Essential Energy which will
redress to some extent the massive profit windfalls seen by the networks in recent years. We
would ask the Premier, Mr Blair and Mr Fels, in his role as the Electricity Price
Commissioner, to support the proposal of the AER and drive improved network efficiency
and lower electricity prices prior to the leasing of the electricity networks.”
Mr Murray also voiced the importance of getting policy right around the key areas of water
security and land access.
“We look forward to the NSW Government implementing the NSW Gas Plan in full and will
be asking the Government to introduce the Aquifer Interference Policy as legislation to
ensure the protection of our State’s vital groundwater resources.”
“Our growers also face consistent challenges in relation to water security and require
certainty to make investment decisions - a long-term, holistic solution for Broken Hill’s water
supply from Menindee Lakes is important not only for the community of Broken Hill but for
our industry.”
“We will invite the new Minister for Primary Industries, Lands and Water to tour the state’s
cotton-growing regions so he can meet with our fibre producers and better understand the
challenges they face in the policy areas of energy costs, water and land access.”
“Appropriate policy decisions are crucial to ensuring the future of the cotton industry and
allowing our growers to bring their product to market efficiently.”
Mr Murray says the cotton industry urges the new Government and regulators to focus on
electricity pricing, mining and coal seam gas and water security. Cotton Australia calls for the
NSW Government to take action in the following crucial policy areas:
Electricity pricing:
 urgently address crippling electricity prices through the National Electricity Rules,
which are the driving force behind unsustainably high network charges, including the
re-evaluation of the Regulated Asset Base.
 further drive reductions in electricity network charges by supporting the AER Draft
Determination which tightens Essential Energy's revenue and reduces capital and
operating expenditures.
 support the implementation of food and fibre electricity tariffs that better align with the
needs of primary producers, including the option of a volume-based tariff.
 commit to extending support for on-farm energy audits for growers.
Mining and coal seam gas
 upgrade the "gate" on the current gateway process so that project proposals that
threaten high quality agricultural land and water resources can be stopped at the
approval stage.
 commit to implementation of the NSW Gas Plan in full.
 introduce the NSW Aquifer Interference Policy as legislation.
 hold individuals and/or organisations accountable for their management of land and
water resources through adequate support for enforcement of licence compliance.
Water security
 minimise water buybacks and other measures that reduce water availability for
irrigation, and instead promote more effective measures including on-farm irrigation
modernisation and efficiency programs.
 ensure a long-term, holistic solution for Broken Hill’s water supply from Menindee
Lakes.
 commit to a Drought Relief Trigger on the payment of fixed water charges in
extraordinary climatic circumstances.
 do all it can to work with the Federal Government in the implementation of the Murray
Darling Basin Plan to ensure growers and their communities are not further
negatively impacted.
“We look forward to working with the Premier, Mr Grant, Mr Blair, Mr Roberts and their
colleagues to help advance the NSW cotton industry.”
Cotton Australia is the peak representative body for Australia’s cotton growing industry.
Cotton Australia media contacts:
Michael Murray
Policy Manager – Cotton Australia
0427 707 868
Chris Larsen
Communications Manager, Cotton Australia
0488 189 502
[email protected]