Department of the Legislative Assembly, Northern Territory Government

Mr BALDWIN - 1995-05-18

I understand that the minister attended the historic signing of a memorandum of understanding between the Northern Territory government and the Western Australian government for expansion of the Ord River project. Will this development present more opportunities for agriculture in the Northern Territory as well as in Western Australia, and how will this recently signed agreement assist in developing the Ord scheme to its full potential?

ANSWER

Mr Speaker, honourable members will be aware that the Chief Minister signed a memorandum of understanding with Premier Court of Western Australia on 19 April 1995. The memorandum of understanding will progress the development of stage 2 of the Ord River irrigation project, of which about 25 000 ha of green area is contained within the Northern Territory. That presents an estimated future production of about $60m per annum. The memorandum of understanding addresses a number of points and the processes involved in dealing with those points: land availability, irrigation works, drainage and flooding, supply of water, roads, electrification, establishment of a coordinating body, environmental impact,

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sacred sites and heritage, community and Commonwealth relations, and the planning framework.

The planning framework is in 3 stages. Currently, we are developing a concept plan which is due for completion in July 1995. We will move then to the feasibility study and will then enter the development phase. Briefly, the concept study objectives are to: define suitable soil types; identify Aboriginal sites; establish contours to intervals suitable for conceptual engineering studies; understand and model groundwater tables for drainage, salinity and irrigation management purposes; develop engineering concepts of irrigation infrastructure development and costing; and establish the scope of further study. Following completion of the concept study, we will move to the feasibility study which will go into further detail in relation to the development methods, capital and operating costs, financial analysis and financial methods.

To progress all this, my department and the Northern Territory government have undertaken quite a substantial amount of work. We have completed a soil survey of the Knox Creek and Keep River plains. That was done by the Western Australian Department of Agriculture in conjunction with the Conservation Commission of the Northern Territory. We have completed topographical surveys of Northern Territory irrigable land. That work was completed by a Western Australian consultant funded through the Northern Territory Department of Lands, Housing and Local Government. The Water Division of the Power and Water Authority has completed a major hydrogeological study of the Knox Creek and Keep River plains area. The Northern Territory Aboriginal Areas Protection Authority has cooperated with Western Australia on the identification of sacred sites in the potential development area and heritage sites are being evaluated. With the Conservation Commission of the Northern Territory and the Northern Territory museums, the Northern Territory government has provided input to a publication released in December, entitled The Ord River Irrigation Project.

This is an exciting project, not only for Western Australia and the Northern Territory, but indeed for all of northern Australia. I will detail some of the flow-on effects. Given that there will be about 5000 ha of the currently-developed land under sugar this year and, with CSR currently building the first sugar plant to be constructed in Australia in 70 years, the indications are that much of the land contained in the Ord River irrigation area will be taken up for sugar production.

One of the opportunities presented to us is catering for the displaced horticultural crops such as melons and cucurbits. Indeed, a major banana grower from the Ord River has already taken up property at Lambells Lagoon where it is in the process now of installing the irrigation, and planting. That will be a project of about 100 ha. Indeed, other growers from the Ord River are looking to Darwin and areas around Darwin to grow horticultural crops because we present better market opportunities now. Our backloadings to the southern states are much more convenient in that the refrigerated vans have otherwise to go from Katherine to Kununurra and back to the Stuart Highway, and that adds substantially to the freight costs. Darwin International Airport presents opportunities for the export of fresh fruit and vegetables to our near northern neighbours and to the south states.

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The project is proceeding. We will hasten slowly. We want to ensure that proper planning is in place. Obviously, it will come down finally to the willingness of private investors to invest money in the Ord River area and to display faith in the project. However, there is no reason to believe that that will not happen. The 14 000 ha contained in stage 1 of the Ord River irrigation area are now fully utilised and people are demanding increasing amounts of land. I foresee that, with proper planning and development processes, this project will come to fruition in about 5 to 10 years time.

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Last updated: 09 Aug 2016