ALTHOUGH the moratorium on any new water development in the Wet Tropics has been likened to putting a moratorium on sand mining in the Simpson Desert, its effect has gone further than eliminating the income of water-related businesses such as water boring contractors and irrigation equipment suppliers.
Last week, the directors of the proposed NQ Bio-Energy Corporation Limited mill at Ingham called a meeting of all the growers, who had indicated they would supply it. The meeting was called to explain as the moratorium didn't allow any new or increased water use, until the situation was resolved development of the mill was on hold.
Consequently as the growers have a three year supply agreement with CSR, which is due to be rolled over on February 28 to include 2012, the year the new mill was planned to be commissioned, they needed to know the mill would not be ready by then.
The news brought a scathing rebuke from the Federal Member for Kennedy, Bob Katter, who proclaimed North Queensland's abundant water reserves were being wasted with the Ingham bio-energy mill the latest victim and it could cost hundreds of jobs.
"We're constantly fighting rumours that existing mills are going to close and a new environmentally-sustainable mill has been shelved, a vital industry project and one that had legs." he said
"Unless the sugar industry moves into the production of bio-fuels and electricity in a major way, its outlook is not good and this was to be the first mill to seriously go down this track in the area north of Townsville where the average rainfall is about 2.5 metres a year."
Regarding Mr Katter's comment about the mill being environmentally sustainable Mr Carey said it had been designed to emit 90 percent less greenhouse gasses than a similar sized conventional mill.
Commenting on the moratorium he said it was an obstacle they didn't need.
"The water situation could have been investigated without a moratorium as the Department of Natural Resources and Water has been monitoring the underground reserves and extraction rates for more than 40 years and all the figures are available.
"Although the moratorium is only planned to go for 12 months, history shows they have a habit of going on for three or four years, but I expect our situation to be resolved quickly as we've sought an urgent audience with the Premier to explain our situation and we're hopeful of a successful outcome. The mill project hasn't been stopped, only delayed - it will be built," he said.
Regarding the holdup adding to the cost Mr Carey said it had already cost a considerable amount but it was impossible to say whether the delay would add to the cost. He said that would depend on the global economy, the cost of aluminium and steel and the value of the Australian dollar at the time the mill components were ordered.
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