Mayor Urges Banana Shire’s Landowners to Exercise Caution in Business Dealings with some Renewable Energy Companies

Mayor Urges Banana Shire’s Landowners to Exercise Caution in Business Dealings with some Renewable Energy Companies

Published: 6th February 2023

Nev Ferrier, the Mayor of Banana Shire Council, has urged landowners in the Shire to exercise caution if they are considering entering a business arrangement with the energy and renewable companies that are currently looking to acquire or lease land in the Shire.

While he recognising the benefits of renewables to the Shire and Queensland, the Mayor emphasised the importance of landowners understanding their rights and not entering into land access agreements without adequate legal representation.

"I’ve heard of farmers being approached by more than one company. "They don’t have to meet with any of them, and they shouldn’t be signing anything without getting advice from legal experts," said the Mayor.

The Banana Shire Council currently has 21 renewable energy projects in varying stages of development, ranging from early planning to commencing operations. The Shire’s existing energy infrastructure and pivotal role in the Queensland Government’s Central Queensland Renewable Energy Zone (CQREZ) have seen an influx of developers and energy companies into the Shire seeking to secure viable land.

The Mayor warned of the pitfalls that landowners could fall victim to when signing agreements prematurely, citing agreements that tie up the land and limit access and prohibitive restrictions placed on land so the farmer might not be able to carry out his normal operations.

Mayor Ferrier warned of a lack of transparency with some companies. "There are also developers running "flip deals," where they offer big money to farmers and then go and sell their projects to bigger companies," said the Mayor. "The problem is, the farmer doesn't know who or what will be built on their property for the next 30 plus years," he said.

Mayor Ferrier stressed that residents should ensure the long-term contracts and access agreements are seen by a knowledgeable lawyer because "not all of the people talking to you have your best interests at heart—they may even be slipping stuff in."

Developers are all in a race to tie up grid capacity and are using very competitive tactics to achieve business dominance. "Some companies might offer big access to cash just to stop their competitors from getting access to the grid," said the Mayor, who was quick to point out that there are resources available for landowners who are being approached. "You can ask the energy companies to pay for an individual consultant as well as a lawyer to assist you. Don't just rush in and sign; we have time, and they have deep pockets."

The mayor suggested farmers press hard on biosecurity issues and seek help from organisations like Agforce or their own industry groups for advice. He said he was in Brisbane last week meeting with the state government. 

“It’s a bit like the gold rush of days gone by,” said the Mayor. “We want to ensure there are better frameworks for everyone and we’re dealing with a lot.

“Not only are we dealing with the lack of real problems with transport and roads but we’re also battling for our farmers and their neighbours about the impact of these projects on our residents.”

Mayor Ferrier said he is working with an energy consultant that has a great knowledge of the energy industry, a passion for regional communities and a farming background.  He said the Council are looking to host their own energy summit in the coming months to ensure everyone is informed. 

“We intend to have energy companies present but also the transmission companies and top lawyers that know the rights of the farmers in these situations. 

“There is also an infrastructure commissioner, Mr Andrew Dyer, and we are inviting him to the region to address the community.    

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