Lakeland Irrigation Area Scheme

Food and Water Security

Water and food security have become priority national policy issues on the back of record drought periods in Australia, as well as disruption to supply chains through COVID-19 and recent flooding events. The ability to meet increased demand for fresh Australian produce from Far North Queensland is at major risk due to the lack of a long-term water implementation strategy. Agricultural exports are vital to FNQ with the industry sector output currently valued at $2.7bn, constrained mainly by factors such as irrigation and access to market. Urban demand also continues to increase with Cairns’ population growth averaging 1.9% per annum over the past 10 years. This, combined with a long-running history of three million tourists visiting FNQ annually, means an effective and multi-faceted water supply strategy is required to ensure the growing needs of the region can be met.

Regional Development Australia (RDA) Tropical North has developed a detailed business case for expanding irrigated agriculture in the Lakeland area, funded by a $10 million grant under the National Water Infrastructure Development Fund. The current 1,800-hectare irrigated area is limited by insufficient and unreliable water supplies. To address this, the proposed solution includes constructing a 296,000-megalitre dam to irrigate up to 10,000 hectares of high-quality land, using a small portion of the Mitchell River's outflow. This project is expected to generate up to $382 million annually in agricultural production, significantly boost the region's Gross Regional Product (GRP), and support population growth.

To move forward, bilateral government support is needed to advance the development approval process, secure funding, and review the Mitchell River Water Resource Plan. The state and federal government's commitment to expanding irrigated agriculture in Lakeland will be crucial in realising the project's substantial economic and social benefits.

Benefits to the region

Contributes to food security through a significant expansion of irrigated agriculture in FNQ
Provides major economic opportunities to deliver transformational change to the Cape York Peninsula, addressing generational disadvantage.
Provides a pathway to Indigenous engagement through the Western Yalanji Aboriginal Corporation and ‘on country’ presence.
Provides opportunities for population migration to regional areas of FNQ.

Recommendation

The Australian and Queensland Governments work together to facilitate and coordinate the development approval processes for the Lakeland Irrigation Area Scheme Project through formation of an independently chaired Mobilisation Group to include representatives of government at state and federal level as well as representatives of the local council of Cook Shire, the Western Yalanji peoples and the Lakeland growers.

Queensland Government
1. Expansion of irrigated agriculture in Lakeland as part of the FNQ Regional Planning process;
2. Give serious consideration to allocating water reserves from the Palmer River to Lakeland as part of the Mitchell River Catchment Water Plan review;
3. Work with the National Water Grid Authority, to seek and approve suitable infrastructure to facilitate the Lakeland Irrigation Area Scheme
4. Work with Cook Shire Council to identify suitable infrastructure and planning framework for development of the Lakeland area; and

Australian Government
1. Acknowledgement that development of Lakeland irrigation to its fullest extent be recognised as a catalytic strategic initiative for economic development of regional Queensland and Cape York Peninsula;
2. A commitment to provide the necessary water from the Mitchell catchment through a new Water Plan;
3. Resolution of proposed funding split between Government and private sources to allow determination of one or more project proponents and to provide certainty for farmers about their funding and fee contributions;
4. Gives due consideration to funding the detailed design stage of the Lakeland Irrigation Area Scheme;
5. The Lakeland Area be declared a precinct with established development rules around environmental protection and urban and rural development, based on a regional basis (not individual landholder basis); and
6. Flexibility with the CAPEX payback period from growers (e.g. =>100 years).

Overview

Regional Development Australia (RDA) Tropical North has completed a detailed business case for development of the Lakeland Area as a significant irrigated agricultural area. The business case was funded from a $10m grant under the National Water Infrastructure Development Fund (NWIDF).

Expansion of the currently irrigated 1,800ha area is limited due to a lack of adequate and reliable water. The preferred project includes a 296,000ML dam to irrigate up to 10,000ha of identified high quality land, taking one percent of outflow of the Mitchell River to the Gulf of Carpentaria. The scheme will directly generate up to $382m p.a. in agricultural production with an increase of up to $213m p.a. in Gross Regional Product (GRP). The scheme would also significantly contribute to population growth and boost region wide economic productivity, with up to $300m in additional GRP.

Bilateral government support is now required to progress the development approval processes for the project, support a proponent through the detailed design stage (including funding through the National Water Grid Authority) and accelerate the review of the Mitchell River Water Resource Plan to provide for the required water.

[i] economy.id, Total exports by industry sector – FNQROC, https://economy.id.com.au/fnqroc/exports-by-industry?BMID=25
[ii] Cairns Regional Council, Geography & population, https://www.cairns.qld.gov.au/experience-cairns/facts-figures-history/geography-population

Last updated: July 2024

Regional Development Australia (RDA) Tropical North has developed a detailed business case for expanding irrigated agriculture in the Lakeland area, funded by a $10 million grant under the National Water Infrastructure Development Fund. The current 1,800-hectare irrigated area is limited by insufficient and unreliable water supplies. To address this, the proposed solution includes constructing a 296,000-megalitre dam to irrigate up to 10,000 hectares of high-quality land, using a small portion of the Mitchell River's outflow. This project is expected to generate up to $382 million annually in agricultural production, significantly boost the region's Gross Regional Product (GRP), and support population growth.

To move forward, bilateral government support is needed to advance the development approval process, secure funding, and review the Mitchell River Water Resource Plan. The state and federal government's commitment to expanding irrigated agriculture in Lakeland will be crucial in realising the project's substantial economic and social benefits.

Benefits to the region

Contributes to food security through a significant expansion of irrigated agriculture in FNQ
Provides major economic opportunities to deliver transformational change to the Cape York Peninsula, addressing generational disadvantage.
Provides a pathway to Indigenous engagement through the Western Yalanji Aboriginal Corporation and ‘on country’ presence.
Provides opportunities for population migration to regional areas of FNQ.

Recommendation

The Australian and Queensland Governments work together to facilitate and coordinate the development approval processes for the Lakeland Irrigation Area Scheme Project through formation of an independently chaired Mobilisation Group to include representatives of government at state and federal level as well as representatives of the local council of Cook Shire, the Western Yalanji peoples and the Lakeland growers.

Queensland Government
1. Expansion of irrigated agriculture in Lakeland as part of the FNQ Regional Planning process;
2. Give serious consideration to allocating water reserves from the Palmer River to Lakeland as part of the Mitchell River Catchment Water Plan review;
3. Work with the National Water Grid Authority, to seek and approve suitable infrastructure to facilitate the Lakeland Irrigation Area Scheme;
4. Work with Cook Shire Council to identify suitable infrastructure and planning framework for development of the Lakeland area.

Australian Government
1. Acknowledgement that development of Lakeland irrigation to its fullest extent be recognised as a catalytic strategic initiative for economic development of regional Queensland and Cape York Peninsula;
2. A commitment to provide the necessary water from the Mitchell catchment through a new Water Plan;
3. Resolution of proposed funding split between Government and private sources to allow determination of one or more project proponents and to provide certainty for farmers about their funding and fee contributions;
4. Gives due consideration to funding the detailed design stage of the Lakeland Irrigation Area Scheme;
5. The Lakeland Area be declared a precinct with established development rules around environmental protection and urban and rural development, based on a regional basis (not individual landholder basis); and
6. Flexibility with the CAPEX payback period from growers (e.g. =>100 years).

Overview

Regional Development Australia (RDA) Tropical North has completed a detailed business case for development of the Lakeland Area as a significant irrigated agricultural area. The business case was funded from a $10m grant under the National Water Infrastructure Development Fund (NWIDF).

Expansion of the currently irrigated 1,800ha area is limited due to a lack of adequate and reliable water. The preferred project includes a 296,000ML dam to irrigate up to 10,000ha of identified high quality land, taking one percent of outflow of the Mitchell River to the Gulf of Carpentaria. The scheme will directly generate up to $382m p.a. in agricultural production with an increase of up to $213m p.a. in Gross Regional Product (GRP). The scheme would also significantly contribute to population growth and boost region wide economic productivity, with up to $300m in additional GRP.

Bilateral government support is now required to progress the development approval processes for the project, support a proponent through the detailed design stage (including funding through the National Water Grid Authority) and accelerate the review of the Mitchell River Water Resource Plan to provide for the required water.

[i] economy.id, Total exports by industry sector – FNQROC, https://economy.id.com.au/fnqroc/exports-by-industry?BMID=25
[ii] Cairns Regional Council, Geography & population, https://www.cairns.qld.gov.au/experience-cairns/facts-figures-history/geography-population

Last updated: July 2024

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