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Community pressure is building for a pause in the application of the Murray-Darling Basin Plan as irrigators see water supplies diminish.

“Disastrous” forecast from Water Group — page 3 | Warning of adverse affect on productivity— page 2

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More water could go oulburn-Murray Water has warned G that some Murray-Darling Basin Plan proposals have the potential to take

large volumes of additional water from the Goulburn Murray Irrigation District, adversely affecting regional productivity.

In a submission to the Federal Parliament, G-MW argued that the efficiency measures program (EMP) should not proceed until there was a clear demonstration there would be no adverse economic and social impacts.

Although details of the program are not yet available, G-MW understands the EMP will look like on-farm water savings projects with 100 per cent of the water savings being returned to the Commonwealth. ‘‘This will take water out of production; it will increase the potential for the program participants to recover water from the market to utilise on their improved farms,’’ the submission to the Senate standing committee said. ‘‘This will further compromise the regional productivity. The Commonwealth have not demonstrated how this program will achieve its objectives for additional water recovery without adverse economic and social impacts. ‘‘Any program of this nature will reduce water deliveries, which reduces G-MW’s variable revenue, which will lead to tariff increases to recover the operating revenue requirement thus putting customers under further pressure. ‘‘There will be increased incentive for termination of delivery shares, thereby ultimately affecting G-MW’s fixed revenue, leading to tariff increases to recover the revenue requirement for operating the distribution system and thereby further

Will future water efficiency programs short-change northern Victoria’s irrigators? affecting those irrigators not participating in the EMP who require ongoing delivery services.’’

G-MW argued the Commonwealth should look for opportunities to utilise budget from the Water for Environment Special Account for better outcomes.

As an alternative, the G-MW Connections project could deliver better water savings outcomes by aligning new on-farm water savings and adjustment initiatives with reconfiguration plans in a manner that better manages adverse socio-economic impacts. ‘‘The basin plan allows for the downward adjustment of the SDL (sustainable diversion limit) through the recovery of additional water through the EMP, provided that the additional water recovery does not have adverse

Call to halt ‘up-water’

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economic and social impacts,’’ the submission said. ‘‘This qualification is important and it is important that the test is applied at the local scale, where the impacts will be most evident. ‘‘This test must also be considered in the context of the generally positive outlook for agribusiness. ‘‘Water availability has declined through the implementation of the plan and is further threatened by climate change, and is a constraining factor for the otherwise positive outlook. ‘‘GM-W is of the view that the further reduction of the SDL thorough this mechanism is not warranted, cannot be justified and will not meet the safeguard that is built into the plan.’’

water is being used before further transfers away from productive use are made, according to the National Irrigators Council.

The council is also lobbying for a halt to the extra 450 Gl of ‘‘up-water’’ until the existing recovery target is met.

In a submission to the Senate standing committee inquiring into the MurrayDarling Basin Plan, the council pointed out contracted water recovery in the Murray-Darling Basin was estimated at 1951 Gl or 71 per cent of the targeted 2750 Gl, yet the study used to provide a baseline and

justify the need for the basin plan — the Sustainable Rivers Audit, designed to be replicated over the longterm to continually monitor ecological conditions — was one of the first activities cut by the MurrayDarling Basin Association when faced with budget cuts.

The council contends that new monitoring and surveys are not immediately comparable to the baseline. ‘‘Communities need to see the evidence around how the water recovered for the environment will be used, where it will be directed and for what purpose. The Australian public also needs to be satisfied that there is value in their investment,’’ the

submission said. ‘‘Our view remains that there should be no acquisition of 450 Gl of upwater until the existing recovery target is met. It must be remembered that this measure was an add-on to the basin plan. ‘‘The 450 Gl has not been subjected to the same level of scrutiny as other aspects of the plan, principally due to the fact that this measure was a last-minute inclusion to secure the support of the South Australian Government. ‘‘The NIC challenges the theory of just add water as the environmental solution to a complex structure of environmental challenges in the basin.’’

Concern about asset impact

oulburn-Murray Water does not want G to carry liability for river flooding created by higher environmental flows.

The Murray-Darling Basin Plan provides for higher flows designed to recreate minor flooding on rivers such as the Goulburn.

The water corporation is concerned that the high flows could have impact on river operations and its assets.

In a submission to the Senate inquiry into the plan, G-MW said it had identified concerns about operational risks, asset ownership and consequential impact on landowners. ‘‘A large number of complex issues have been considered and future work programs identified,’’ the submission to the Senate standing committee said. ‘‘G-MW supports additional rain and flow monitoring in the Goulburn catchment and

the development of operational models to assist operational decisions. ‘‘The assignment of these operational risks has not been resolved. Whilst we acknowledge that assignment of risks is subject to further work, G-MW cannot accept a transfer of risk from project beneficiaries to G-MW and its customers. ‘‘Resolution of issues relating to the ownership and maintenance of assets on this and other related projects is on-going. ‘‘Resolution of the arrangements for the ownership and maintenance of existing, new or refurbished assets is required. G-MW maintains that the ownership and associated costs of levees must be the responsibility of the project’s beneficiaries and should not be transferred to G-MW and its customers.’’

‘Water Talk’, March, 2016—PAGE 3

water talk

Less water will be ‘disastrous’

By Geoff Adams

A

gricultural and regional Victorian leaders are arguing for a temporary moratorium on the extra 450 Gl of ‘up-water’ required under the Murray-Darling Basin Plan, to avoid a ‘disastrous’ impact on agricultural production.

The Australian Dairy Industry Council and a water leadership forum want to see a pause in the implementation of the transfer of water to the environment.

The Goulburn Murray Irrigation District Water Leadership Forum warns that implementation of the 450 Gl up-water program would result in: ➤ Water available for the dairy sector declining by 100 000 Ml or more. ➤ An overall 10 per cent to 20 per cent decline in dairy production with some offset from an increase in maize production as fodder. ➤ A likely price rise of $35-$50/Ml in the cost of allocation water — putting more pressure on the cost of production.

Even if the 450 Gl is achieved through a farm efficiency program,

where farmers get money for onfarm upgrades, the water savings will still be a loss to the region.

The basin plan says the target could be achieved this way through projects, which have ‘‘neutral or improved socioeconomic impacts’’.

The leadership forum says the major route through which the 450 Gl will be generated is the Commonwealth On-Farm Further Irrigation Efficiency program, which will assist irrigators in the Murray-Darling Basin to modernise their on-farm irrigation infrastructure while returning water savings to the environment.

In actual practice, the leadership forum says that on completion of the projects, landholders have often purchased additional water to replace the water transferred to the Commonwealth.

The proponents of COFFIE argue the program can be implemented with neutral or improved socioeconomic impacts, as individual landholders are voluntary participants in the scheme and use the proceeds to offset debt and enhance productivity. ‘‘This assumes that individual landholders would not participate

unless they believed that the program delivered personal benefits,’’ a forum submission said. ‘‘This submission argues that using COFFIE to generate the 450 Gl of water savings may be neutral at a farm scale but that it will generate severe adverse socio-economic impacts when assessed at a community and whole-of-system scale. ‘‘The proposal will, at a minimum, reduce the total water available for diversion by 450 Gl in all years except the drought scenario, where a reduced allocation of high-security entitlement will result in an average reduction of 225 Gl.’’ Representing the Australian Dairy Industry Council, Natalie Akers said the work should be focused on achieving the 2750 Gl first.

The council wants to see the ‘‘neutral impact’’ test changed. ‘‘We do know that when there is less water in the system, it does have socio-economic impacts on the region,’’ Ms Akers said.

The council is worried the plan will remove more water from productive agriculture.

Australian Dairy Industry Council’s Natalie Akers speaking at the recent Australian Dairy Conference. Less water in the system will mean an impact on productive agriculture.

Region damaged by ‘drought’, says Sheed ncreased water scarcity in the southern connected Murray-Darling IBasin as a result of Commonwealth

water purchases has effectively created an enduring governmentinduced drought that is causing very real socio-economic damage to the region, according to State Member for Shepparton Suzanna Sheed.

Ms Sheed made the observation during her evidence to the Senate Select Committee inquiring into the MurrayDarling Basin Plan. ‘‘While it is critical that the environment has sufficient water to promote sustainable outcomes, we argue that these outcomes can be better met by managing the available water more effectively than by undermining the economic and social viability of northern Victoria,’’ she said.

Ms Sheed was giving evidence on behalf of the Goulburn Murray Irrigation District Water Leadership Forum that is commissioning its own socio-economic study. ‘‘There is a widely held view that the

MDBA studies are not showing what people are seeing on the ground,’’ she said.

Committee for Greater Shepparton chairman David McKenzie supported the leadership forum’s views and argued on behalf of the Goulburn Murray Irrigation District.

Ms Sheed said the GMID was highly developed for irrigated agriculture and horticulture, with an excellent gravity irrigation system now being modernised with a $2 billion investment by state and federal governments. ‘‘We are told by governments to take advantage of the free trade agreements that have been entered into,’’ she said. ‘‘We have the farmers capable and willing to do that but they cannot do it if they have one arm tied behind their backs because of a water shortage induced by government policies. ‘‘We have the soil and the climate — we just need to add water.’’

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What they said: The Goulburn Murray Irrigation District Water Leadership Forum reached the following conclusions on water: ➤ Changes in climate over the past 20 years have altered the probability of different climate scenarios — with an overall shift in frequency from wet to drought scenarios and the in-seasonal rainfall patterns. ➤ Those different climate scenarios are the primary driver of outcomes for allocations, water use between sectors and price in the water market. These differ substantially between seasons. ➤ The Murray-Darling Basin Plan has already driven changes in those outcomes by reducing the quantum of water available for irrigation, with the effect, in practice, of shifting all parameters along the spectrum towards drier scenarios. ➤ Other factors also impact on supply

availability — including the use of carryover and restrictions on trade.

These then have a similar impact on water use and price. ➤ There has been a marked change in the relative water use by sector, driven by a shift to higher value products and reflecting the reduction in water availability and the increase in price.

The most marked changes are a reduction in use for annual summer crops such as rice, and an increase in demand from horticulture — particularly nut tree crops. These changes will continue to grow in scale. ➤ In drought scenarios the total volume of water available is now close to the projected future demand for high value permanent horticulture — so any further reduction in available allocations will have a significant economic impact through constraining high value production.

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Checking bank condition as part of the monitoring program.

Flows help fish breed onitoring during M summer 2014 and autumn 2015 found

environmental flows during those seasons triggered golden perch spawning and encouraged bankstabilising plant growth.

Environmental water deliveries in 2014-15 to the lower Goulburn River, focused on increasing base

flows from 250 Ml/day to at least 500 Ml/day (river height of 2.5 m at Shepparton) throughout the year to increase food and shelter for native fish and water bugs.

Additional ‘‘freshes’’ (pulses of higher river flow) were delivered in spring, autumn and winter to provide cues for native fish breeding and passage,

Streamology’s Geoff Vietz on the Goulburn River near Yambuna checking bank condition as part of the monitoring program. maintain water quality and support plant growth on river banks.

Goulburn Broken Catchment Management Authority environmental water manager Simon Casanelia said the data, collected as part of the Commonwealth Environmental Water Holder’s Lower Goulburn River Long Term

Intervention Monitoring Project, confirmed environmental water was improving river health. ‘‘The scientists involved in the monitoring program confirmed the environmental water delivered during spring played an important role in triggering fish spawning, particularly golden perch,’’ Mr Casanelia said.

Goulburn Broken CMA said monitoring also found increases in the number of some types of water bugs (and other insects) after the spring freshes and that flood-tolerant plants were re-establishing on the river bank. ‘‘While we are only one year into this five-year monitoring program, it would appear

environmental water delivered to date to improve the health of the Goulburn River, is achieving its goals,’’ Mr Casanelia said.

Information collected during monitoring will help inform the timing and size of future flows along the Lower Goulburn River. ➤ For more information, including YouTube clips and fact sheets, go to www.gbcma.vic.gov.au

‘Water Talk’, March, 2016—PAGE 5

water talk

Speak up at forum rrigators’ concerns with IConnections Goulburn-Murray Water’s project reset, water

trading and the Murray-Darling Basin Plan will be put directly to Victorian Water Minister Lisa Neville at a forum in Echuca this week.

Chaired by VFF president Peter Tuohey, the water forum in Echuca on Thursday, March 3 could give irrigators the chance to express their issues or ask questions about the plans.

Mr Tuohey said the water forum should spark some interesting debates. ‘‘It’ll be pretty open — and there is a lot of passion within that area, so it will be interesting,’’ he said.

The forum will run for about two hours. Mr Tuohey said Ms Neville would make her presentation at the beginning of the event. ‘‘It’s certainly a good opportunity for farmers who are concerned,’’ Mr Tuohey said.

Following Ms Neville’s presentation, she will join VFF Water Council chairman Richard Anderson and UDV president Adam Jenkins in a panel discussion.

Mr Tuohey said the VFF water forum was open to all farmers, whether or not they were VFF members. ‘‘This is your chance to hear from Minister Neville on the $2.1 billion G-MW Connections project, MDBA plan and water trading, as well as ask her questions on these issues,’’ Mr Anderson said.

Mr Jenkins encouraged all farmers to come along and talk about their

Pipeline on VFF wish list he construction of the T $18.6 million Mitiamo stock and domestic

Victorian Water Minister Lisa Neville will answer questions at a water forum in Echuca this week. water issues, but the VFF also wanted to hear farmers’ ideas for solving the problems. ‘‘Now’s your chance to tell Minister Neville how we need to get on with the job of getting Connections back on track,’’ he said, State Member for Northern Victoria Wendy Lovell said she had been advocating for Ms Neville to convene an open water forum.

‘‘It is disappointing that the only forum is going to be in Echuca, and that she hasn’t convened one in the Shepparton district as well, but I encourage all irrigators in the region to attend this meeting and voice their concerns,’’ Ms Lovell said. ➤ The VFF water forum will be held on Thursday, March 3 at 5.30 pm at the Echuca Racing Club, corner Murray Valley Hwy and Scott St, Echuca (not the harness club).

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pipeline is on a wish list put together by the VFF for this year’s Victorian budget.

The VFF has been lobbying for improved access to stock and domestic supplies as it says the current supply arrangements are inefficient and inequitable.

The Mitiamo reticulated water supply system will cover a minimum of 50 000 ha and potentially up to 80 000 ha and about 200 farms that are currently serviced by 10 existing stock and domestic dam fill schemes.

It runs from Dingee in the south to Bald Rock in the north, and from Terrick Terrick East in the east to Bullock Creek in the west, including the township of Mitiamo.

State Member for Murray Plains and Nationals leader Peter Walsh has been advocating for the scheme.

VFF president Peter Tuohey said the state’s peak farmer group had worked well with the Victorian Government in the past and hoped the

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government would deliver on key infrastructure projects for agriculture. ‘‘Rail and water projects top the VFF’s list of infrastructure priorities, as does more funding to rid rural Victoria of mobile black spots,’’ Mr Tuohey said. ‘‘We’re working closely with the government to deliver these projects and want to see the dollars committed in the budget.’’

The VFF has called on the government to support the development of a long-term stock and domestic water strategy that will build the capacity of rural communities to survive drought while also retaining the productive carrying capacity of their land. ‘‘While the drought has drained the state’s water reserves, we need real solutions to secure water supplies,’’ Mr Tuohey said. ‘‘Obviously, each region will require a different solution, but we need to start building pipelines, bores and other water infrastructure now.’’ ➤ A copy of the VFF’s prebudget submission can be found at www.vff.org.au/prebudget2016

PAGE 6—‘Water Talk’, March, 2016

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Is your whole farm plan outdated?

Borrow will be a temporary fix outhern Riverina S Irrigators chairman Graeme Pyle has

congratulated Murray Irrigation on its Snowy Hydro initiative, which, if finalised, will borrow 200 Gl of water from the With temporary water prices peaking Onleys also specialise in: scheme ahead of the at $290 your water needs to work as 2016-17 irrigation season hard as you do.

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Work with our trusted team of professionals. ‘‘But it’s like giving a painkiller to someone who ‘We are your complete land development professionals’ has a badly broken leg — you might ease the pain, but it won’t fix the leg,’’ Mr Pyle said.

SHEPPARTON He said it was imperative 5 Telford Drive, Shepparton there were ongoing efforts to change the basin plan, get Phone: (03) 5821 7171 politicians to acknowledge its Email: mail@onleys.com.au flaws and have the intestinal fortitude to do something www.onleys.com.au about it. ‘‘There must also be a total SURVEY DESIGN IRRIGATION SURVEY DESIGN IRRIGATION SURVEY DESIGN IRRIG culture change within the

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Southern Riverina Irrigators chairman Graeme Pyle Murray-Darling Basin Plan, forcing it to properly consult and accept the social and economic damage the plan is causing,’’ Mr Pyle said. ‘‘Only then can we properly fix the problem.’’

Speak Up campaign spokesperson Shelly Scoullar said she welcomed the Snowy Hydro announcement, but encouraged everyone involved to continue fighting to rectify obvious problems within the basin plan.

She said the proposed Snowy Hydro borrow was relevant following advice this week from the Department of Primary Industries that there was a 90 per cent chance Murray food producers would be on three per cent allocation by November. ‘‘The Snowy borrow is a great initiative by MIL and

Snowy Hydro, and the work behind the scenes of Sussan Ley (Member for Farrer) also needs to be recognised,’’ Ms Scoullar said. ‘‘However, the need to go to this measure highlights flaws in the basin plan and, ultimately, the Water Act, which we must address. ‘‘The Act must be altered to provide flexibility in water delivery when communities are under real stress, as we have been experiencing. ‘‘As food producers, we all understand and accept the importance of caring for our environment.’’

She said it would bring welcome balance to water supply negotiations if it was recognised that humans needed water as well as the environment.

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he deadline for submissions to the Australian Competition and Consumer Commission’s Water Charge Rules Review Draft Advice has been extended to Friday, March 4.

Previously, people were encouraged to provide a written statement regarding proposed amendments to the water charge rules to the ACCC

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Those wishing to submit their opinions have been

granted an extra month to send their submissions to the ACCC. The rule amendments are aimed at giving irrigators and other water users protection within the Murray-Darling Basin in relation to infrastructure charges.

The rules were brought into question on December 17, 2014 when the Parliamentary Secretary to the Environment wrote to the ACCC requesting advice on possible amendments to the water

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individual who participates, who then commits to repay from their water account once future allocations hit a certain allocation trigger rather than a fixed date.

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The ACCC is expected to deliver its final advice, including draft rules, to the minister by May.

Advance negotiated urray Irrigation announced last month it had signed a letter of intent to negotiate an advance of water from Snowy Hydro Limited for the 2016-17 water year.

Murray Irrigation chief executive officer Michael Renehan said there had been talk about making potentially about 200 Gl available as an advance from the future for an

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PAGE 8—‘Water Talk’, March, 2016

water talk Murray System Outlook for Seasonal Determination of High-Reliability Water Shares Inflow Conditions Wet Average Dry Extreme Dry

July 1, 2016 42% 8% 0% 0%

August 15, 2016 69% 35% 15% 0%

October 17, 2016 100% 67% 33% 0%

February 15, 2017 100% 100% 50% 2%

Goulburn System Outlook for Seasonal Determination of High-Reliability Water Shares Inflow Conditions Wet Average Dry Extreme Dry

July 1, 2016 44% 19% 5% 1%

August 15, 2016 88% 44% 22% 7%

October 17, 2016 100% 86% 40% 15%

February 15, 2017 100% 100% 54% 21%

Loddon System Outlook for Seasonal Determination of High-Reliability Water Shares Inflow Conditions Wet Average Dry Extreme Dry

July 1, 2016 44% 0% 0% 0%

August 15, 2016 88% 44% 0% 0%

October 17, 2016 100% 86% 5% 0%

February 15, 2017 100% 100% 17% 0%

Outlooks suggest a dry start to the season.

Allocations to open lower

t’s shaping up to be a dry start Ifor irrigators for the 2016-17

season.

The dry conditions could be due to storage levels falling to their lowest in five years, according to Goulburn-Murray Water.

G-MW seasonal determination outlooks suggest the Murray system will have 35 per cent allocation in August and the Goulburn system 44 per cent, under average conditions.

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manager Mark Bailey said the volume of water flowing into the Murray system so far this season would be greater in 91 years out of 100.

Dr Bailey said other northern Victoria system inflows would be

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larger in 96 to 99 years out of 100. ‘‘This means low seasonal determinations are likely early in the new water year even under improved weather conditions and a poor outlook if it stays dry,’’ Dr Bailey said.

Murray increase he NSW Murray general T security allocation has increased by four per cent to

23 per cent entitlement.

NSW DPI Water said lower inflows were due to recent rains and improved inflows to the Snowy scheme, which produced an increase in assured Require Annual Release.

DPI Water said the NSW Murray results were also slightly better than forecast tributary inflows.

In the major storages, Dartmouth Dam is currently 45 per cent full, holding 1 745 000 Ml, and Hume Dam is 36 per cent full, holding 1 086 000 Ml. System inflows this water year have been very dry, well below the long-term average and also below the average for the past 10 years, according to DPI Water.

It said this outlook was based on extremely dry, 99th percentile inflows for the remainder of the year, which meant that 99 years in 100 would provide more water than this outlook.

DPI Water said actual future conditions were almost certain to be better and outlooks would be updated monthly.