Following the irrigation price path announced in 2012, irrigators raised concerns about the long term sustainability of SunWater’s eight channel irrigation schemes. In response to these concerns the Government committed to investigating the possibility of the schemes transitioning to local management arrangements (LMA).
In June 2014, interim boards established for each scheme submitted business proposals to the government to transfer ownership and operation of the infrastructure to scheme customers. In September 2015 the government decided that local management in Emerald, Eton, St George and Theodore, where financial viability and strong customer commitment to local ownership had been demonstrated, should proceed (Transition schemes). It further decided that support should be provided to Bundaberg, the Burdekin-Haughton, Mareeba-Dimbulah and the Lower Mary to continue to investigate the potential for transition to local management (Investigation schemes).
Separate companies for each of the four Transition schemes have been established, with the purpose of negotiating with government on the terms of transition to local management. These are companies are currently owned by government, with the company boards representing the interest of local irrigators. The intention is that these will transfer over to customer-ownership if and when LMA proceeds.
Four boards were also formed for the schemes undertaking further investigations on how the irrigation channels could operated under local management. Legislation has also been introduced to facilitate future implementation of local management arrangements.
In October 2016, the government provided a formal response to the schemes 2014 business proposals. Transitioning schemes were made a formal offer that identified a proposed separation payment to ensure the financial viability of the schemes, the assets to be transferred and key terms for any final transfer. Investigation schemes received feedback on their business proposal and description of the changes that will be required for the scheme to be considered for a move to local management.
As a result of investigations during 2017, Bundaberg and Lower Mary boards withdrew from the LMA process, while Burdekin-Haughton and Mareeba-Dimbulah submitted revised business proposals to government.
| Key dates | Transition schemes |
| End of 2016 | Transition boards established and re-engage with customers about local management |
| 31 January 2017 | Board’s of transition schemes to indicate whether they wish to proceed with further investigations into local management, based on the offer from government. |
| By March 2018 | Negotiation between transition schemes and government complete and transfer agreement signed. |
| January-March 2018 | Transition schemes provide a formal offer document to customers to determine whether there is support to move to local management. |
| Mid 2018 | Transfer of transition schemes (subject to customer support) |
| Key dates | Investigation schemes |
| End of 2016 | Investigation boards established and re-engage with customers about local management |
| October/ November 2017 | Investigation schemes consult customers on revised business proposal |
| By 31 December 2017 | Revised business proposal submitted to government if supported by customers. |