Kimberley Appropriate Economics Interim Report - Australian ...

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54 3e. Physical Barrier The damming of the Ord River has restricted certain species from following their usual migration path, such as the barramundi and freshwater crayfish or cherabin (Volkman & Watson 2002). This can result in genetic isolation, and in extreme droughts, the localised loss of species in a reach upstream from a migratory barrier (Storey et al 2001). This barrier effect and loss of habitat is also likely to have resulted in a reduction of other aquatic species (WRM 2003, unpub.). 3f. Agriculture There are a number of ecological impacts on the river system as a consequence of farming in the Ord River Irrigation Area (ORIA). Current environmental problems within the ORIA, in addition to those relating to changed hydrology from the dams, include rising groundwater and salinity, and decreased water and air quality (WRM 2003, unpub). The ORD, KDD, and construction of the M1 channel have resulted in rising groundwater levels and changed flows (Salma et al 2002). Salinity problems have already begun in the Packsaddle area, and other areas are predicted to follow (Salma et al 2002). The sensitivity of fish populations to irrigation practices in the Ord is highlighted by periodical fish deaths in the proximity of irrigation drains, with pesticides strongly implicated as the cause (mainly DDT in the 1960s and 1970s and Endosulfan in 1997) (OBP 2001, Doupé et al 1998). Studies on the Ord have also shown that irrigation increases the loads of phosphorus and total oxidized nitrogen entering the river, raising the nutrient concentrations (Lund & McCrea 2001, Doupé et al 1998). Ecological summary The damming of the Ord River has changed the hydrological regime of both the river and the surrounding floodplains, significantly impacting ecosystem processes such as flooding, sedimentation, maintenance of floodplain habitat, vegetation, composition and distribution of aquatic fauna and control of weed infestations. 4. Economic The validity of the economic rationale supporting construction of the Ord River Dam has been seriously questioned since it was first proposed (Davidson 1972, Davidson 1982). For the past 30 years, the dam has been heavily subsidised in the expectation that it will eventually provide a significant benefit to the community. Up until 1991 the Dam had cost the public over $500 million ($330M discounted) and the project did not provide a positive cash flow until 1989 (Hassall & Associates 1993). It is estimated that a positive return on the original investment will never be obtained (WWF-Australia 2003 unpublished). Extrapolating the model used in Hassall analysis, it is likely that the project has only contributed an additional $33 million in Net Present Value between 1991 and 2002. As discussed above in the social aspects of the dam construction, the economic viability of the project was not assessed, and the money was spent on creating the dams for political purposes rather than sound financial decisions (Davidson 1982). The grant for the ORD was available, so construction began with no evaluation of the KDD and the initial farms, although the original aim was to continue to the ORD if the KDD had proved successful (Davidson 1972, 1982). Problems encountered early in the project, and extra costs unforeseen included the distance to markets, waterlogged crops, leaking channels, overflowing drains, low yields, pests and diseases. Environmental impacts were not costed in or included at all. The Joint Commonwealth and Western Australian Ord River Irrigation Area Review Committee (1979) concluded that the project had failed ‘as a result of it’s own inherent high cost structure’ and ‘incomplete understanding of the basic Ord agronomy’ (cited in Graham-Taylor 1982). A view that has been repeated many times since (e.g. Davidson 1982). The reasons why the second phase was accepted appear to be economical, so much money had already been invested that it seemed appropriate to continue investing. Graham-Taylor (1982) summarises this view by suggesting that “early low cost decisions created precedents making the later, high cost decisions to proceed with Stage II a seemingly inescapable commitment – despite failures and increasing problems.”
The Future The entire river system, including the lakes, is in a state of ecological re-adjustment (Watkins et al 1997). The dearth of baseline data prior to damming, the relatively short timeframe of regulation, and the lack of a comprehensive monitoring regime to identify the range and rate of community change makes an accurate assessment of the magnitude of current and future threats to the ecosystem very difficult (Watkins et al 1997). It is expected that the problems of the present will be exacerbated if they are not addressed. From an economic and social point of view, the river is a significant feature and attraction providing water for recreation, tourism, aquaculture and electricity generation (hydropower). However, many cultural values have been degraded since damming, including loss of heritage sites and dis-connection to country. Social, economic and ecological issues of the past are only now beginning to be addressed. In order to provide a healthy river system able to maintain the wide suite of values across the different sectors, mistakes of the past must be understood so that a sustainable system is provided for the future. Summary An appropriate development considers the full range of values (ecological, social, cultural and economic) and provides a net benefit. The Ord River Dam is widely regarded as a political decision based on poor economics, poor science, no ecological sustainability and no regard for Aboriginal custodians (Graham-Taylor 1982). Given the information outlined above, the Ord I decision was not a sustainable development decision. The ORIA has not demonstrated best management practice in irrigated agriculture to date, although there are recent local initiatives to try and improve this situation with the development of a land and water management plan among other community and agency initiatives (OLW 2000). Irrigation in the Kimberley has a relatively large ecological footprint (water storage, river management, water supply management, land clearing etc) and social and cultural impact (alienation, access to resources, cultural and heritage disturbance) within a defined area. The Ord River project has illustrated that the cost of developing irrigated agriculture in remote regions is very expensive, and the location continues to put producers at a competitive disadvantage. At present, there is little evidence that further major developments of this nature in tropical northern Australia are justified due to the costs of development, inherent competitive disadvantages and highly competitive and volatile overseas commodity markets. Of particular relevance to future development in the Ord is the WA State Sustainability Strategy Guiding Principle that “Decision-making processes should effectively integrate both long and short-term economic, environmental, social and equity considerations” (Government of Western Australia 2003). The Strategy recognises that while there are a variety of economic opportunities, not all are socially and environmentally responsible. The future of the Ord, should therefore, act as a case study for northern Australia and embrace a process that fully integrates economic, environmental and social/cultural factors to promote positive net outcomes such as a Sustainability Assessment, as advocated in the State Sustainability Strategy. Future planning decisions in the Kimberley, including those on the Ord and any new developments in the Fitzroy, must consider the full range of values, not just the economic alone if they are to avoid the mistakes of the past. A community planning process coupled with long term scientific investigation of sustainable use of land and water for these resources must form part of the sustainability framework for northern Australia. For the future health of the river system and all the values that rely on it, ORIA Stage I should be made as sustainable as possible. This will need to include a process to ensure the environmental impacts of Stage 1 are arrested, and wherever possible mitigated. Both Stage I and Stage II should adopt world’s best practice in irrigated agriculture to avoid exacerbating the problems, or repeating the mistakes created during the first stage. In addition Stage II should not proceed unless proponents can demonstrate that it will produce a net positive benefit; ecologically, socially, culturally and economically. References: Australian Terrestrial Biodiversity Assessment (2002) National Land and Water Resources Audit, Natural Heritage Trust, Canberra. Davidson, B. R. (1972) The northern myth: a study of the physical and economic limits to the agricultural and pastoral development in tropical Australia, 3 rd edition, Melbourne University Press, Melbourne 55
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Kimberley Appropriate Economies Rou
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Kimberley Appropriate Economies Rou
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Why would you? The first three word
Page 8 and 9: From our culture, we have certain r
Page 10 and 11: We have won some battles, at least
Page 12 and 13: INTRODUCTION The Kimberley Appropri
Page 14 and 15: appropriate development in the regi
Page 16 and 17: SUMMARY OF WHAT HAPPENED AT THE ROU
Page 18 and 19: Pastoralism Workshop Danielle Eyre,
Page 20 and 21: actions to come out of the Roundtab
Page 22 and 23: OUTCOMES There were two main Outcom
Page 24 and 25: in the Kimberley with rules based o
Page 26 and 27: Research Action 2 Action 3 the regi
Page 28 and 29: Action 9 Tour operators from the Fi
Page 30 and 31: 26 Projects or enterprises that ach
Page 33 and 34: APPENDIX A PAPERS PRESENTED AT THE
Page 35 and 36: And sometimes people like myself an
Page 37 and 38: forgetting that intrinsic value tha
Page 39 and 40: Keynote Address Wayne Bergmann, Exe
Page 41 and 42: Is there a role for Aboriginal know
Page 43 and 44: Ian Lowe President, Australian Cons
Page 45 and 46: Address by Tom Birch Chairman, Kimb
Page 47 and 48: Address by Pat Lowe, Founding Membe
Page 49 and 50: In recent years, Aboriginal people
Page 51 and 52: from the freshwaters of the river.
Page 53 and 54: ecorded. Dolores Cheinmora and Agne
Page 55 and 56: development of the area. Failures i
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Page 61 and 62: Woirnarski, J.C.Z. (1992).Introduct
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Page 78 and 79: 74 Don Henry ......................
Page 80 and 81: 76 APPENDIX F TABLE OF PRESENTERS
Page 82 and 83: 78 APPENDIX H ROUNDTABLE SPONSORS A
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