RGA blames Water reform and high prices for SunRices difficult situation
- By: "Farm Tender" News
- Cattle News
- Nov 29, 2018
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The Ricegrowers Association of Australia (RGA) is devastated by the news that SunRice finds itself in the extremely difficult situation of needing to reconfigure milling operations in Deniliquin and Leeton. Closing a Deniliquin Mill and reducing operations at the others will result in nearly one hundred employees losing their job.
SunRice has explained that the much smaller rice crop in 2018/2019 is due to low water availability and high water prices.
In a submission made to the Department of Agriculture and Water and Resources; before SunRice made their announcement, the RGA reiterated their long standing message that it does not support the recovery of an additional 450 gigalitres of water from productive use. The RGA provides that all water recovered from productive use results in negative social and economic impacts for basin communities, irrigators and industries, in particular due to the flow on effects of increased water prices.
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The RGA argues that it was not the intention of the Basin governments’ water reform agenda - to destroy industries and the related communities.
RGA President Jeremy Morton said “While the drought is a significant factor, there is no doubt that the Basin Plan is responsible for some of these people losing their job. All the evidence shows us that the reduction in the pool of productive water means less people with a job. All those who voted for this reform in 2012 need to own this outcome” Mr Morton said.
Murray Darling Basin Ministerial Council (MinCo) of State and Federal Water Ministers meet on the 14th December to decide on the way forward with future water recovery through the Basin Plan. “A decision at MinCo to further reduce the amount of water available for producing food and fibre means more people without a job, fewer jobs across our entire community and the nation. That is the power of water, because without water we have nothing.
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“In our close Riverina communities this situation is very distressing, these are our family and friends who find themselves without a job. The impacts flow through from the farms to the service and processing sectors. On behalf of the RGA we extend our deepest concern to everyone who is affected and encourage all to look out for each other.”
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