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Category: Energy / Hydro Energy / Electricity Energy and Utilities

Joyce praises SA royalties plan for farmers on gas-rich land

Friday, 17 Mar 2017 08:02:23 | Stephanie Anderson

Barnaby Joyce has voiced support for certain aspects of SA Premier Jay Weatherill's energy plan. (ABC News: Ted O'Connor)

Deputy Prime Minister Barnaby Joyce has praised the South Australian Government's plan to pay royalties to farmers whose land is subjected to gas and oil extraction.

The Nationals leader has backed a proposal announced by the Labor State Government to give landowners 10 per cent of state royalties generated from gas wells on their properties.

His support comes one day after Federal Energy Minister Josh Frydenberg and South Australian Premier Jay Weatherill clashed in a bizarre press conference — an incident which followed repeated attacks from the Commonwealth on South Australia's approach to energy.

Mr Joyce said while he was critical of the Weatherill Government's "failed energy policies", he backed moves to see landholders as business partners instead of obstacles.

"Landholders have a right to a greater annuity from their land," he said in a statement.

"By paying a royalty, it means the value of a farmer's land increases as a result of gas extraction, rather than decreasing."

Concerns have been raised by farming and anti-fracking groups in the wake of the South Australian announcement earlier this week.

Mr Joyce also cautioned the lifting of gas restrictions should not be seen as a go-ahead for all potential developments.

"We must protect prime agricultural land and we must protect productive aquifers," he said.

"Where these caveats are abided by in relation to gas extraction, then a strong return back to the landholder means a strong return to the town and the whole local economy; and it means a vastly better chance of a cooperative environment with landholders."

Power stoush comes to a head

The plan to pay landholders royalties was part of the Weatherill Government's half-a-billion-dollar blueprint to shore up the state's fragile power supply, a blueprint which was dismissed by Mr Frydenberg as a "$550 million admission of failure".

The fractious relationship between the Commonwealth and the South Australian Government came to a head yesterday, when Mr Weatherill and Mr Frydenberg found themselves conducting a joint press conference in Adelaide.

Mr Weatherill said it was "galling" to be standing beside Mr Frydenberg after he and Prime Minister Malcolm Turnbull had spent the past six months "bagging South Australia at every step of the way".

"It's a disgrace the way in which your Government has treated our state," he said.

"It is the most anti-South Australian commonwealth government in living history."

His comments were later dismissed by Mr Turnbull, who said the remarks "spoke volumes about the Premier's state of mind".

Coalition frontbencher Christopher Pyne described Mr Weatherill's behaviour as "quite unbecoming", adding that as a South Australian, he was "embarrassed".

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