Central Queensland Herald (Rockhampton, Qld. : 1930 - 1956), Thursday 1 June 1933, page 42


DAWSON VALLEY

IRRIGATION SETTLEMENT Land Administration Board's Report ROCKHAMPTON, May 27.

in March last the Land Administration Board, acting as a Royal Commission, comprising Messrs. W. L. Payne (chairman) and A. G. Melville, conducted an inquiry into the Dawson Valley irrigation settlement, to "investigate the position of the settlers and to recommend development plans for the future."

The report states : "For the purpose of the investigation we proceeded to Theodore, which is the centre of the irrigation settlement, arriving on March 17 last. Before commencing the inquiry two days were spent in making an inspection of a large number of irrigation farms in tho area in order to acquire first-hand knowledge of the; settlement and the character of its soils, to see for ourselves the crops that were being grown, as well as the methods of irrigation and cultivation in vogue, and to discuss with settlers, on the ground, any difficulties they were encountering in working their farms. Subsequently inspections were also made of the lands to the north and south of Theodore which were likely to present possibilities of new settlement activities in the immediate future. "Public sittings were held at Theodore on March 20. At these sittings a committee of settlers addressed the Board and, at some length went into details regarding the shortcomings of the settlement. Private sittings were then held from March 22 to 29, inclusive and evidence was taken from each settler individually. These private sittings were arranged so that the Board could ascertain the financial result of the working of each holding, and obtain from each settler his experience in detail. Settlers are generally reluctant to disclose such details publicly, and without such essential information an economic investigation is impossible. At these private sittings, if settlers desired other persons to be present to assist, or to hear their evidence, their wishes were respected, otherwise all private evidence was regarded as confidential as between the witnesses concerned and the Board. "Of the 134 settlers who hold blocks on the area, 100, or 88 per cent. of the total attended the inquiry and gave evidence. We, therefore, have at our command practically all the information that is available regarding the settlement." ORIGIN OF SETTLEMENT. "Irrigation projects inevitably loom large in the minds of men. To bend the forces of nature to his well has always been the dream of man. And whereby harnessing a great river, life-giving water has been conveyed to arid but cultivable soils, that dream, in at least one important particular, has been fulfilled." "The Dawson Valley irrigation project was a bold conception. The country along the Dawson comprises a very

large belt suitable for cultivation, and when to this circumstance is added the fact that a gorge through which the Dawson flows seemingly provides a site for a dam that would have a storage rapacity only second to the largest dam in the world, it as small wonder that attention became fastened on this locality as a probable field for a vast irrigation settlement. In 1920 investigations were commenced at the Nathan Gorge. A dam site was surveyed, and it was estimated that the dam, when constructed, would impound 2,485,000 acre feet of water. The immensity of this projected storage may be realised from the fact that it would be sufficient to supply a city like Brisbane with water for 50 years, without any rainfall during that period. It was estimated that this immense reservoir would submerge 130 square miles (83,200 acres) of country. At the same time analyses were made of typical Dawson Valley soils, and contour surveys of the irrigable areas were undertaken. After this preliminary work the Government decided to launch a big irrigation settlement scheme in the locality. An Irrigation Commission was constituted under "The Irrigation Act of 1922." and a Commissioner was introduced from outside the State to administer the new activity." The newly appointed Commissioner, with commendable energy and enthusiasm, immediately formulated plans for the projected settlement. The irrigable land, estimated at 100,000 acres, and extending for a distance of approximately 65 miles along the Dawson was divided into five zones, viz., Isla, Theodore, Huon, Moura, and Coolibah, as shown on the accompanying map. Each zone was about 18 miles in diameter, and it was intended to develop each one separately with a central township in each. ''The scheme provided for both irrigable farms and dry or nonirrigable land. Altogether it was proposed to establish about 5000 new farms, and it was estimated by the Irrigation Commissioner that, with the population in the townships, the area would provide a livelihood for 50,000 persons." The farms were to he irrigated by a system of gravitation from the main storage dam at Nathan Gorge. Pending the construction of this dam an initial irrigation settlement was to be established at Castle Creek. The water supply for this settlement was to be assured by the construction in the river of a low over-shot weir at a relatively small cost, and from the storage so provided water was to be pumped along earth canals to the farms.

"The lands at Castle Creek (subsequently named Theodore) were surveyed, contoured, and made available for settlement in 1927. The area comprised 8526 acres of irrigable lands, which, was divided into 264 irrigable farms of an average area of 13 acres, and 109 dry blocks of an average area of 211 acres." For purposes of irrigation a low weir was constructed, a power house was built and equipped, and 28 miles of excavated earth canals were made. When settlers had been establish ed on the 264 irrigable farms at Theodore, it was then intended to settle the other zones in turn. "MISLEADING BOOKLET." "To induce the settlement of the land and to advertise the potentialities of the Dawson Valley, an attractive illustrated booklet was issued in 1926 by the Irrigation Commissioner, and was circulated far and wide to prospective applicants. This booklet set out the intentions of the Government regarding the construction of the Nathan Dam and described in somewhat extravagant terms the suitability of the lands for a large number of purposes. It set out that the Dawson Valley was destined a decade hence to be the heart of rural Queensland, and invited settlers to make their homes in this Valley of Content and to grow with Queensland. "All this energy and enthusiasm, however, did not procure the desired result. The optimistic estimate of new settlement has not been realised. To day 111 settlers are farming in the Theodore area, and thirteen in the adjacent Plainby area, making 124 in all. Even with this small number extensive adjustments are needed to make the settlement progress. Moreover, the building of the Nathan Dam has been in definitely postponed, and with it, all prospects of creating a thickly populated mixed farming district in the near future." CAPITAL COSTS OF SCHEME. "The capital costs of the Dawson Valley Irrigation Scheme have been enormous for the small settlement results obtained. It must be regarded as the most expensive settlement project in Queensland's history." "Expenditure has been incurred by the Government under two main headings: (1) Expenditure by Irrigation Commission in general irrigation works, including the construction of roads, buildings, etc., and loans to settlers. (2) Railway expenditure on the extension of the line from Baralaba to Theodore. " "The indebtedness of the Dawson Valley irrigation works to the Treasury as at December 31, 1932, was as follows: Total loan expenditure, £611,811; interest accrued and not paid, £92,687 ; total £704,498. Less revenue received and repayments — Rents, £18,870 ; sales of plant and equipment, £22,269 ; settlers' loan repayments, £14,738; total £55,877. Net indebtedness to the Treasury as at December 31, 1932, £648,621. "The capital cost of the extension of the railway from Baralaba to Theodore, which was built expressly to serve the irrigation settlement, and which was opened to traffic on the 7th May, 1927, was £404,436. Under 'The Railway (Capital Indebtedness) Reduction Act of 1931,' the capital of the Queensland Railways was reduced by 43.048 per cent., which reduces this cost to £230,244. The total outlay on the Irrigation Settlement Scheme was thus £1.053,057, or an average of £8492 per settler for each settler so far established. This matter is commented on later. ASSESSMENTS AND RECEIPTS. "The total revenue assessments on the Theodore Settlement by the irrigation Commission for the past five years are as follow: — Rents of town lots, £1667; rents of farms, £11,155; hotel and cottages, £2626; electric light rates, £764; town water rates, £256; miscellaneous receipts, £1139; sundry sales, £95; grand total, £17,702. "For comparison purposes cash receipts for this period are as follow: — Rents of town lots, £1336; rents of farms, £8424; hotels and cottages, £2655; electric light rates, £738; town water rates. £225, miscellaneous receipts, £641; grand total, £14,019. "During the first of these years (1927 -28) the cash receipts £4913 exceeded the revenue assessments £1838 because of the rental deposits paid by new settlers who had not been assessed, but who came in during the year. During each of the following years the cash collections fell far short of the revenue assessments. It will be noticed that the cash receipts for the last year £1942 amount to merely 45 per cent. of the revenue assessments £4342. This is partly accounted for by the havoc of the flood in December, 1931, which is referred to later, and also the tendency some settlers have developed of sitting back and not paying in the belief that, by this course, they will eventually obtain from the Government larger concessions. When the affairs of the settlement have been equitably adjusted this latter tendency must be firmly checked. "Operating expenses for the five years wore as follow:— 1927-28, £3749; 1928-29, £4793; 1029-30, £4138; 1030-31, £7486; 1931-32, £7370. On the basis of expenditure and cash receipts, a profit of £1164 was made in 1927-29, but in the succeeding four years, the losses were £2765, £1934, £4546, and £5248 respectively. "These figures take no account of the

capital expenditure of loan moneys or of the interest payable thereon by the Government. "The Commissioner for Railways is unable to furnish figures as to the revenue and working costs of the Baralaba -Theodore Railway, as no separate record has been kept for this section. The only available figures are in respect of the whole branch railway from Kabra to Theodore, and these the Commissioner has supplied, as follow: — 1926-27, revenue £49,795, expenditure £61,801, interest £43,400, Ioss £55,406; 1927-28, £42,797, £54,016, £47,381, £58,600; 1028-29, £35,649, £51,559, £46,839, £62,749; 1929-30 £36,188, £44,729, £46,914, £55,455; 1930-31, £34,255, £41,502, £47,200, £54,447; 1931-32, £29,429, £34,510, £24,284, £29,365. "The apparently improved position of last year's working is due to the writing down of railway capital value and not to increased revenue. It is probable that the revenue per mile of the railway from Baralaba to Theodore (59 miles) is less than the revenue over any similar length of this branch rail way. "In land settlement schemes certain elementary economics should be observed. All new settlement involves the expenditure of public funds, whether in the construction of railways or roads, or in the making of advances to settlers to help them in developing their holdings. Before expenditure is incurred it should first be established beyond reasonable doubt that, directly or indirectly, whether by increased production or by the taxable capacity of the new community, the scheme will, within a reasonable time, pay its own working costs, interest on the loan capital invested, and a sinking fund sufficient to provide for the repayment of the loan when it falls due. "In formulating the Dawson Valley Irrigation Scheme these preliminary requirements were not observed. With sublime optimism and confidence the then Commissioner of Irrigation made estimates of settlement which had no possibility of being realised. Nor was any effort made to check such estimates from other sources. "Perhaps the accumulated knowledge of all Government Departments, and particularly, the Lands and Agricultural Departments, would not have been an adequate safeguard in launching such an ambitions project. But the fact is that all such knowledge remained neglected and unused, and the Commissioner proceeded, unaided, to formulate his plans. "In November, 1926, when £367,600 had been expended by the Irrigation Commission, and £303,400 by the Railway Department in extending the railway from Baralaba to Theodore, the State Government applied to the Commonwealth Government, under the £34,000,000 agreement, for a loan of £3,370,000 to further the scheme. An investigation was duly made by the Development and Migration Commission. "On May 15, 1928, that Commission reported to the Commonwealth Government that it was of the opinion that until the economics of irrigation practice in the Dawson Valley area had been thoroughly explored, it wag necessary for the Commission to defer decision with regard to the scheme as submitted by the Premier of Queensland. The full recommendations of the Commission were as follows: — (1) That decision as regards the scheme as submitted be deferred. (2) That a sum, as required, not exceeding £100,000, should be advanced under terms of clause 16 of the agreement for the purpose of carrying out a five years' programme of demonstration, details of which are to be agreed by the parties concerned. (3) That the all-important task of a detailed soil-survey should be completed. (4) That the economic aspect of the various forms of farming be fully investigated on the data obtained from the proposed demonstration areas. (5) That £12.500 be allocated from the advance of £100,000 for the testing of the site of the dam at Nathan Gorge. (6) That a sum not exceeding £30,000 be allocated from the advance of £100,000 for the construction of a permanent weir at Theodore to insure (as advised by the Queensland Commissioner of Irrigation and Water Supply) a supply of water for the proposed demonstration areas and for the existing settlement at Theodore." "The State Government decided not to accept the offer of £100,000 on the terms mentioned and the settlement of the area proceeded in accordance with the plans of the Irrigation Commission. "Concurrently with opening the lands for settlement, diamond-drilling operations were continued at Nathan Gorge, in order to test the suitability of the proposed site for the construction of the great dam. It was found necessary to go to a depth of 100 feet below the river bed before impermeable strong sandstone was encountered. Above this bed the sandstones carried water under, considerable pressure. This meant that the cost of a dam would be too high for economic construction and the site was abandoned. "Reconnaissances were then made along the river for a better site, and at a suitable place where the gorge was only slightly wider than at the original site, good, red sandstone was found at river bed level. Diamond drilling was commenced in this new area, but after

only four holes had been put down, the investigation work ceased owing to the shortage of loan money. So far as it went, the boring indicated that this new site would be suitable in all respects, but much more, investigational work would be needed before a definite decision could be given. "In order to ensure a satisfactory supply of water in dry seasons the storage at Theodore was increased in 1931 by raising the existing weir. This storage now impounds 6000 acre feet The total cost of the original weir and subsequent alterations was £15,962. Additional storage of a further 5000 acre feet was provided in 1932 by the construction, with relief labour, of another weir in the Dawson River at Orange Creek, 25 miles above the original weir at Theodore. These two stoages afford a sufficient supply for the present settlement. "In view of the immensity of the scheme that was projected, and of the fact that much of the expenditure may be claimed to relate to the whole scheme, it is perhaps unfair to charge all the expenditure to date against the existing small settlement at Theodore. Yet the existing settlement is the only tangible result which has accrued from the expenditure. Including the expenditure on railway construction the total cost of the scheme to date has been £1,053,057. One hundred and twenty-four (124) new settlers have been established on the area (including Plainby) which equals an expenditure of £8492 per settler, "Queensland has never before had to pay such a huge and uneconomic cost for its land settlement. "Added to this capital cost is the annual cost of working and of maintenance. Figures show that, over the past five years, this has amounted to an average of £5507 per annum, whereas the average annual cash collections received from the settlement over the same period were £2805. Working costs and maintenance have thus resulted in an average loss of £2702 per annum. There is also the annual loss on the working of the railway to be considered. With the adjustments later recommended in this report, and with the increased settlement that we propose on certain lands within convenient reach of the existing railway, the revenue of the settlement will become more stable, but we think that, for the next few years, the working costs are likely to exceed the revenue collections by about £2000 per annum. "From a financial aspect the net result of the whole matter is that not only must all the capital expenditure incurred in the scheme be written off, but, in addition to carrying this burden, the community will have to find, irrespective of railway losses, approximately £2000 per annum as a continuing charge for the State's experiment in inland irrigation. "The truth of the matter is that the whole Dawson Valley irrigation project, as an economic proposition to the State, was about fifty years ahead of its time. Intense cultivation, with the uid of irrigation, along the banks of our inland river systems, will doubtless come in time, but before even modified schemes in this direction can be economically sound, the population and the markets will need to be such as to absorb, at prices profitable to the producers, the products already grown on our fertile coastal belt with its assured rainfall. Some hundreds of thousands of acres of good cultivable laud, much of it alienated from the Crown, is lying unused throughout the rainfall belt, and future schemes for increasing production should aim at the use of this land instead of more romantic projects for irrigating and cultivating the semi-arid lands of the interior. We recommend that all further consideration of the construction of the Nathan Dam be definitely postponed for a period of at least twenty-five years. "By altering the complexion of the Theodore settlement from a purely irrigation project to a general land settlement scheme, as recommended later in this report, we think that the settlement can be made satisfactory alike for the settlers and the State. The estimated annual loss of £2000 per annum which the State will have to bear will probably diminish as adjacent dry areas are developed and brought into production, and, in any event, it will be a comparatively small charge for the State to carry, in the effort to place the whole existing settlement on a satisfactory and permanent basis." "The following table gives information as to the size of the farms on irrigable and dry lands: — "Number of settlers in the Theodore section irrigating blocks of under — 15 acres, 31; 20 acres, 44; 25 acres, 61; 30 acres, 69; 35 acres, 80; 40 acres, 84;

more than 40 acres, 8; settlers on irrigable land only, 25; settlers on irritable and dry land, 67; settlers on dry land only, 19; total, 111; average area of dry blocks per settler (86 settlers), 298 acres; average area of dry blocks per settler, in the Plainby section (13 settlers), 1430 acres. "A large variety of crops has been successfully grown on the irrigated farms. An experimental farm conducted in previous years by the Commissioner established that the area was not suitable for certain crops such as citrus fruits, fig's and deciduous fruits generally, tobacco, and several types of fodder such as rape and clovers. On the other hand. certain crops did extremely well. Cotton has yielded more than four bales (2,000 lb.) to the acre, while the average crop exceeds two bales (1000 lb.) to the acre. Oats, maize, onions and vegetables generally, all grow well. Lucerne has been successfully grown and the area under this crop is extending. "Cotton has been the stable crop of the settlement mainly for the reason that the market for other crops has been too uncertain. With seed cotton at 4d. to 5d. per lb. a good return was obtainable from the irrigable blocks. With the slump in cotton values, however, to the present low level of probably loss than 3d. per lb., the settlement has been hit hard, and it becomes necessary for settlers to find a now line of activity. "Gradually the settlers have been going in for dairying because of the certain monthly return which it gives. But here again the decline in prices of butterfat — at present it brings about 6d. per lb. at Wowan for A1 grade— has knocked the settlement back. It is common knowledge that, at this price, the profits from dairying, even in the most suitable districts, are miserably low. "It has been a matter of extreme difficulty to obtain from settlers, reliable returns regarding the financial results of the working of their holdings. Farmers are usually poor bookkeepers, and the data available to us is far from complete. It is undoubted, however, that a number of the settlers, after investing all their available capital, are going bark financially. A contributing factor to this result, in many instances, is the poor working of their holdings. The settlers are of varied types, and we are of the opinion that a number of them are unsuited for the life on an irrigation settlement. "Amongst the original settlers there were comparatively few experienced Queenslanders. A large proportion of the settlers came from England and the Southern State of Australia. Notwithstanding some farming knowledge possessed by many of them, they were nevertheless handicapped by their lack of knowledge of local conditions, and had much experience to gain. Some few of them also never intended to be farmers, having been attracted to the settlement by prospects of the fat lamb trade and like avenues, which the Commissioner's booklet led them to believe could be followed. Most of the dry country in the locality is not sheep country and such hopes were therefore doomed to disappointment. "There are, however, on the settlement a good sprinkling of really capable farmers who would do credit to any farming community. These men had, of course, much lo learn about irrigation methods, but experience is teaching them, and generally they are achieving satisfying results. The real test of the settlement lies in the fact that most of these men wish not only to retain their holdings but also to acquire further areas for themselves or their sons. (To be Continued. )