Compensation dispute could delay the Northern Midlands Irrigation Scheme

The Northern Midlands Irrigation Scheme (NMIS) may face delays due to arguments over compensation costs between Tasmanian Irrigation (TI) and a small group of landowners.

TI CEO Andrew Kneebone shared in State Parliament’s GBE Estimates today that a small group of landowners are seeking seven times the compensation amount originally evaluated by TI before they will agree to construction on their land.

In order to complete the $217 million scheme, which is set to provide over 25,000 megalitres of reliable irrigation water to central Tasmania, TI requires access to 60 properties.

The landowners affected by construction are then entitled to compensation for any loss of production or value associated with their properties.

Mr Kneebone said TI were “very concerned” in respect of advancing the scheme and not seeing it delayed any further.

“We’ve made various attempts to offer mediation, offered to pay for additional valuations, we’ve even offered to pay for them to get their own legal advice in respect of those outcomes and they declined all of those options other than the legal advice and we’re still waiting to hear back on that,” Mr Kneebone said.

“This isn’t a matter of TI not being willing to pay compensation for the impact that we’re going to have, we understand that this has to have an impact on people’s properties.

“We just can’t give in to the amount that is being asked of us.”

Mr Kneebone said TI doesn’t believe that there will be an ongoing or substantial impact on these properties in terms of farming operations once the pipes are in the ground but says they remain open to discussions with the group.

Primary Industries and Water Minister Jane Howlett said she has visited the landowners in question to hear their concerns firsthand, urging them to engage with TI to prevent any delays to the project.

“I’ve encouraged them to engage with TI to resolve the matter and to ensure that this really important project is not delayed for the northern midlands region,” she said.

“I know TI has continued to work with these landowners in good faith to ensure a mutually acceptable resolution is agreed.”

Mr Kneebone said that the scheme would lead to a massive increase in farming revenue in the region and a $54 million dollar boost to the Tasmanian economy as well as supporting a range of job outcomes, further expressing concern over the potential delays.