By Jeremy Sollars
A lengthy legal battle involving a group of Granite Belt producers and the Southern Downs Regional Council over contracts to use recycled water from the Stanthorpe wastewater treatment plant has been resolved through negotiation.
The former Dobie administration in December 2017 terminated contracts held since 2004 by seven producers to purchase recycled water for farming irrigation even though the contracts were due to run until late 2019.
The council at the time attempted to seek new users for the recycled water – through the Stanthorpe Recycled Water Scheme – at a higher price through a public tender process, but the irrigators involved instigated legal action to keep the contracts running, adamant the council had no legal right to terminate their entitlement.
The case came close to a full-blown hearing in the Supreme Court of Queensland but was resolved in recent weeks through negotiation between the irrigators’ legal representatives and the new council administration, with the contracts now reinstated.
Councillors at their December 2017 meeting voted on termination of the contracts, with former mayor Tracy Dobie and then councillors Rod Kelly, Neil Meiklejohn, Yve Stocks and Sheryl Windle voting in favour and Vic Pennisi and Marika McNichol against.
Former deputy mayor Jo McNally and Cr Cameron Gow were not present for the vote after declaring potential conflicts of interest.
A public notice issued by Stanthorpe’s Catanzaro Solicitors shortly before Christmas 2017 stated that should “any third party” outside of the irrigators seek to enter into a new contract with the council for the recycled water they could become embroiled in future legal action over the original contracts.
The notice also stated that in such an event the irrigators would “take such steps as may be necessary to enforce their rights”.
The former council stated in 2017 that it had received “a number of applicants” for the water via an Expressions of Interest (EOI) process but did not disclose their identity.
The irrigators lodged a formal court action on 19 June 2018 through Stanthorpe’s V C Catanzaro solicitors, with the plaintiffs being Antonio Baronio, Pieter and Laura Hendriksen, William Taylor, Christopher and Jennifer Wren and Scurr Investments Pty Ltd.
The group sought court orders that the council continue to supply them with the treated water under the terms of their contracts and that they be charged for the water as per those terms.
The irrigators’ contracts were due to run until 2019, with the option of a five-year extension on each of them. The original contracts were drawn up in early 2004, when the ‘Stanthorpe Recycled Water Scheme’ was initiated by the former Stanthorpe Shire Council.
As well as supplying water to the irrigators – who pay a base annual fee of $4180 plus a consumption charge of $108 per megalitre – the Stanthorpe Recycled Water Scheme has also supplied water to local sporting groups, the cemetery, the showgrounds and the Stanthorpe State High School’s agriculture program.
Court documents indicated part of the council’s argument was that new users for increased volumes of the recycled water were necessary to help prevent accidental overflows from the Stanthorpe Wastewater Treatment Plant into Quart Pot Creek.
In their Supreme Court claim the irrigators stated they received correspondence from the council in August 2018 foreshadowing the termination of their contracts, on the basis that they and the council were within a “negotiation period” in relation to the renewal of the contracts.
The irrigators disputed that assertion, writing back to the council stating that their contracts remained in force and that they had not breached any conditions relating to renewals.
They also claimed the SDRC had been over-charging them for the water at a rate of $190 per megalitre (ML).
The council also at the time suggested the group of irrigators were attempting to “lessen competition in the market”.
In mid-2019 spokesman for V C Catanzaro Solicitors Michael Catanzaro said the water agreements with the council “have been running for many years without any problems until recently”.
“As anyone can appreciate, especially in this region, water represents a significant asset to our clients and one which any grower would fight to protect,” Mr Catanzaro said at the time.
In a statement released to the Free Times this week Mr Catanzaro said “after a lengthy and complex legal battle spanning nearly two years with Council, the irrigators are pleased to have resolved this matter and to have the agreements reinstated”.
“This resolution provides certainty for the irrigators and their use of the water scheme moving forward,” he said.
“This matter was just days away from being listed again in the Supreme Court and at which time, both the irrigators and Council would’ve been exposed to some significant costs in progressing this matter.
“It was clear that the change in Council was critical to this joint outcome and the irrigators are thankful to the Council as a whole and in particular Mayor Pennisi, Deputy Mayor Bartley, Councillor Tancred and Acting CEO Jane Stroud who took the time to review the extensive material, understand the issues and who reopened communication with the irrigators.
“It was refreshing to work collaboratively with Council as opposed to the prior adversarial approach.
“The irrigators look forward to moving forward with Council and restoring the working relationship that was once there.”
