Mid Season. Newsletter 2014/15. Happy new year to all customers.

Transcription

1 Mid Season Newsletter 2014/15 Happy new year to all customers. There is a sense of optimism in the agriculture sector with the drop in the value of the Australian dollar boding well for Northern Victorian producers and exporters. Good beef prices have been recorded at the first sales for 2015 and a positive year forecast by the dairy industry. The signing of the China-Australia Free Trade Agreement last November, as well as with Korea and Japan earlier in 2014, will see reduced tariffs eventually benefit the grain, dairy, wine, livestock, seafood and horticultural sectors. The commitment by a number of food manufacturers to upgrade and expand plants across Northern Victoria is also a sign of increased confidence in the ability of the region s producers to meet the predicted boom in international and domestic demand for food and fibre. We recognise that input costs underpin profitable, productive farming and in 2015 we will continue to deliver on our commitment to be a lean and efficient organisation with a strong customer focus. This involves removing $20 million in operational expenditure by Already, more than $6 million per annum of savings have been achieved through streamlining internal operations and processes with over $17 million of costs in aggregate taken out of the business in the last two years. You have told us we need to continue in this direction and as a result, during the next two months external contracts with suppliers of a range of services will be reviewed to ensure we re getting best value for money. This review is expected to realise significant savings. Water Services Committee (WSC) members provide invaluable insight and advice on how our charges affect your farm business. With planning for Water Plan 4 (our proposed revenue, operating and capital costs and pricing for 2016 to 2020) well under way, our WSCs will be playing a crucial role in representing customer interests and informing its development. WSC members will also be involved in discussing implementation of the gravity and diversion tariff strategies and development of a drainage tariff strategy. I urge you to contact your WSC for more information about these strategies and encourage you to get involved in the Water Plan 4 consultation process. After a promising start to the season, a dry spring/summer (see pages 2 and 3 for more detail) means it is critical that we continue to support our customers to make good business decisions to use available water as efficiently as possible. Our Connections Project met its annual milestones for 2013/14 but we recognise there is still a lot of work to be done and challenges to overcome. Our targets for 2014/15 significantly increase, requiring us to decommission 427km of channel, relocate 1897ML/day of delivery share to the backbone and install 1115 meters and we remain committed to delivering the project on time and on budget. This once-in-a-lifetime $2 billion investment to modernise the irrigation network in Northern Victoria will not only save 429 GL of water, a significant contribution to Victoria s commitment to meet Murray Darling Basin Plan water savings targets, it is supporting innovative farming practice and irrigation technology, creating jobs, attracting investment to the region and boosting confidence in the agriculture sector. Finally, I wish acknowledge former Board Chair Llew Vale and Managing Director Gavin Hanlon, who both stepped down in late 2014, for their guidance in leadership over the past three years. Our new Chair Sarah Scales, the first female to hold the position in GMW s history, and new director Margaret O Rourke were appointed in September. A priority for the Board in 2015 will be the search for a new managing director. John Calleja Interim Manager Director

2 Storage inflows Low reliability allocation and spill Low-reliability water shares can only be allocated when there is enough water set aside to ensure that high-reliability entitlements will be fully available in the following season, assuming inflows we expect to receive 99 years out of every 100, occurs. Although water has been deducted from spillable water accounts in the Murray system, the relatively low inflows since August and lower projected future inflows have meant that this year, like the last few years, there has not been enough water available to ensure the full allocation of high-reliability entitlements in the following season. We have experienced a very dry spring and start to summer with low inflows into many of our storages as a result. The table below highlights that inflows have been well below average over the past six months, while the graphs compare actual inflows for the past eight months compared to wet, average and dry conditions and highlights the reduction in inflows since July. December July - December Inflow (GL) % of average Inflow (GL) % of average Eildon % % Goulburn Weir % % Dartmouth % % Hume % 1, % Eppalock 0 0% % Nillahcootie 0 0% % Loddon storages 0 0% % More information about the water balance and how seasonal determinations are made, please visit Inter-valley transfers About 110 GL of inter-valley transfer water will be delivered from the Goulburn to the Murray system until March. The transfers started late October to meet customer demand in the Murray system. Deliveries from the Campaspe to the Murray system will also continue until the end of March. In the Broken system, water is still being delivered and will continue until all the water traded downstream this season has been delivered.

3 Water trading update Trade restrictions have been in place from upstream of the Barmah Choke to downstream as well as out of the Goulburn system this season. These restrictions have been implemented to protect the ability to supply water as well as reduce the potential impact on reliability in the Murray system. Restricting trade across the Barmah choke reduces the potential for water trade to occur that would require more water to be delivered downstream of the choke. If this occurred then the amount of water needed to be supplied downstream of the Barmah choke may not have been possible. For more information about the Barmah choke restriction, please visit mdba.gov.au/media-pubs/mr/ choke-trade-restricted. Customers participating in the water trading market can monitor trade availability on the Water Register website waterregister.vic.gov.au/watertrading/allocation-trading. Information about releases is available at our Managing Water Storages webpage which is updated daily at The information includes a forecast for up to 10 days of releases from storages. These forecasts may change due to rainfall and downstream flow requirements. The Goulburn Inter Valley Trade (IVT) account tracks the balance of trade between the Goulburn and Murray systems. When the balance of the Goulburn IVT account exceeds 200 GL (i.e. the Goulburn system owes the Murray system 200 GL), trade out of the Goulburn system is limited. This limit reduces the possibility of the IVT account not being able to be delivered to the Murray system in any given year and as a result reduces the chances of a spill from the account. If a spill occurs from the IVT account, the volume available to support the Murray system is reduced. Please note that a spill from the IVT account is not a spill from spillable water accounts. For more information about water trading at the limits, please visit waterregister.vic.gov.au/watertrading/allocation-trading#allocat iontradeopportunities. If you have any queries about the river operations please phone

4 Water Services Committee Loddon Water Districts WSC The year finished with some very handy rainfall figures across the district, resulting in an interrupted harvest for some customers. I would like to take the opportunity to thank customers for continuing to use water from the system in a responsible manner. The two pipelines continue to function exceptionally well during periods when demand has increased across the two areas. If you do experience any issues then please contact the GMW Customer Service Centre to report the issue. GMW undertook the dam fill run for Mitiamo and surrounds in January, so please let them know if there are any problems with the drains for this. All the best for Grant Malone Loddon Valley WSC There s no doubt that if the current dry weather conditions stay upon us, GMW will be in for a very busy sub-pasture watering time and also with customers pre-irrigating their winter crops before the irrigation season ends. It is unfortunate that we have been unable to get an allocation of low reliability water shares at this time. The very high demand for irrigation water at the start of the season forced GMW to explore the option of implementing rationing for the customers west of the Loddon River. Fortunately GMW could supplement the flow of irrigation water with a reserve held within the Loddon storages. The modernised irrigation system is showing its benefits as improved water availability has increased with demand on the system. With many channels running close to capacity, GMW has tested its capability at near capacity and it has performed well. GMW Connections are still the main concern for local customers, who are anxiously waiting to update on-farm infrastructure and gain the benefits connected customers have. Some customers have been waiting for extended periods to be upgraded and connected, but Connections staff are working towards seeing every customer. On behalf of the Loddon Valley WSC, we hope you enjoyed the festive season and wish you all the best for Rochester-Campaspe WSC Welcome to our newest member Georgie Sims and many thanks to Bill McMinn for his time spent on the WSC representing customers. The Connections Project continues to gather momentum with a number of landowners anxiously waiting to see what their solution may look like. Our WSC continues to offer advice to Connections to ensure the best possible solution for both GMW and the landowner is met. GMW is currently reviewing a number of tariffs and Georgie is representing Rochester/ Campaspe on the Drainage Tariff Review working group & I will participate on the Gravity Tariff Review working group. Both groups will have the opportunity to provide input to shape future tariffs. We also have two representatives on the Greens Lake Community Reference Group to assist with the implementation of the Greens Lake Land & On-Water Management Plan. With the dry spell amongst us and minimal spring rains, deliveries across the district remain high with a number of channels reaching capacity for short durations. I encourage customers to provide as much notice as possible when placing orders, even on the modernised system, to ensure smooth delivery. On behalf of the Rochester/Campaspe WSC I trust everyone had a great Xmas and New Year and wish everyone a bumper Richard Anderson John Nelson

5 (WSC) Chair reports Torrumbarry WSC The WSC welcomes Ann Hodge from Leitchville and Russell Robins from Cohuna and thanks Ross Gordon and Grant Davies for their valued contributions over their respective terms on the WSC. We saw some large irrigation flows during early spring and with 100% allocation on the Murray system there are some great opportunities to take advantage of this water for productive use. Inflows into Northern Victorian storages were half of the long term average during winter and spring in the Murray, and reduced inflows mean that the possibility of announcing seasonal low reliability water shares in Murray, Goulburn, Campaspe and Loddon systems is now low. GMW will soon hold customer meetings, predominately to consult about changes to gravity and drainage tariffs. Customer input is encouraged. The change to carryover rules at the start of this season has been well accepted by irrigators with most carrying over entitlements within their limits. Thanks to GMW staff for contacting those with entitlement in excess of their limits and making them aware of their options prior to July 1st. There have been some new additions to the local GMW Connections team that will help keep the project progressing. I would suggest talking to your family and neighbours regularly about the future so that you are well prepared for when the Connections team visits. On behalf of the WSC, I wish everyone a safe and prosperous Charlie Gillingham Ovens King & Mid Murray WSC l would like to welcome Robert Cook and Allan Curtis to the Committee is shaping into a challenging irrigation season. Spillage ceased early, due to low inflows which are only 20% of normal flows into Lake William Hovell and Lake Buffalo. If we don t have any substantial rainfall in our catchments, we will be facing irrigation rostering. Our committee is for enlarging William Hovell and Buffalo, therefore we were very disappointed that the state government have ruled out enlarging either dam. At our October WSC meeting we passed a motion that the land surrounding Buffalo should not be sold. Early this year we hope to have the newly elected GMW chair Sarah Scales visit the Ovens and King area. Sarah will be able to see firsthand the diverse situation and difficulties we have as irrigators. The WSC is continually working at trying to keep irrigation costs down to a minimum: streamlining applications and approvals; encouraging the cost effective use of irrigation water; and trying to make sure our region is not disadvantaged by decisions and changes made by GMW. On behalf of the RWSC we wish all irrigators a prosperous Malcolm Carson Kiewa Mitta Mitta & Upper Murray WSC Over the next 12 months your committee will be involved with exploring unbundling of unregulated water, and with that tagged trading. We will also be overseeing the further implementation of the tariff review, with water plan 4. Regulated diversions and gravity were unbundled in 2007, and unregulated water was to follow. So what is unbundling? Having a water right held by an individual person, separating water from land. Water parcels trade freely, keeping their original flow characteristics, which is maintained through the water register. At present unregulated water cannot temporary or permanently trade with regulated water. There will still be local trading rules that would need to be further developed. So I ask the question of all water holders, Is it appropriate to unbundle all water? GMW has to submit water plans to the Essential Services Commissioner, with this next one (Water Plan 4) being for four years. This sets out service levels and prices for the next water plan - this will also involve how we will implement the tariff review which started in Contact your local WSC member to find out more and to have your say. Peter Serpell Loddon & Campaspe WSC Prevailing dry weather throughout the Loddon is very disappointing after a wet winter. The Campaspe area has had more rainfall, and crop and pasture growth has been better, however, both catchments have received little inflow. Increased minimum and fresher flows, license use and capture by farm dams have seen storage levels decline.

6 Most ground and surface water customers have received full allocation, however, the Newlyn Groundwater Zone is at 75% allocation. With use below historical levels, recharge has been low compared to other zones. The reasons for the anomaly need to be investigated and then shared by GMW so water users can have up to date information to plan their business. Welcome to new RWSC members Hilary Jankelson (Redesdale), Ross McKinistry (Goornong), and Richard Carter (Newlyn) and many thanks to retiring members Bill O Connell and John McKinistry for their commitment and significant contribution over many years. The initial stage of the Diverter Tariff Strategy has been introduced, the aim being each customer pay for the cost of their service. With 100% allocation and significant carryover, the ability of any business to use temporary water profitably is very difficult. Many assumptions regarding the viability of agriculture and their communities and the MDBA Plan need realistic evaluation - how much water needs to be sent to the lower lakes to achieve desk top objectives with minimal northern basin inflow? Wishing you all the best for Alan Rothacker always discussion around the topics of allocation, temporary trade, trade rules, efficiency of water delivered and spraying of drains and channels to name a few. The commitment to the WSC by all members has been excellent with all topics raised and addressed benefiting all in the Murray Valley. On behalf of the WSC I would like to wish you all a safe and prosperous New Year. Jason Andrew Goulburn Broken WSC I recently took over chairmanship from Morris Brown and would like to thank him for his long service to the WSC, GMW and customers. I d also like to welcome new member, Craig Winnell. We have recently seen changes in the Broken system and the introduction of changes to carryover and more flexibility in trading. We have also developed the Mid-Goulburn Groundwater Management Area Local Management Plan which will include things such as trade and carryover and from it we wish to develop a simple trading scheme that connects people wishing to trade. Additionally, we have seen the development of the Shepparton Irrigation Region Groundwater Management Area Local Management Plan that recognises the risks and the need for groundwater level control. In the coming months, we will see further implementation of the new tariff strategy that will reflect the actual cost of holding a diverter s licence. We will tour the Lower Goulburn area to better understand the potential impacts of the Murray Darling Basin Constraints Management Strategy. I also wish to look into the potential long term impacts and loss of opportunity of diversion licences only using an average of 30% of licenced volume per year. Craig Madden Murray Valley WSC Welcome to our newest member dairy farmer Patrick Connolly from Cobram East. It is important that we get new members - if you would like to get involved please contact the WSC members or the Cobram office. Discussion about Connections project communication, processes, strategic outcomes and how WSC can have further constructive input into the project continues. In the last 3-4 months the structure of the project has improved and the results are starting to come through. The challenge is to finish this project on time and on budget with the opportunity for irrigators to receive on farm funding if they choose. The committee has had two meeting tours in the Murray Valley and they have been a great way to understand local problems, concerns and outcomes. The next 6 months will see the WSC involved in gravity tariff strategy discussions and development of a drainage tariff strategy, planning for Water Plan 4, and an up-date of the blue print. There is Tungamah District I would like to take this opportunity to thank customers for their responsible use of water from the system. I would also encourage customers to keep a record of your water usage to ensure that you do not use more than you are entitled to. Customers are also advised that their supply needs to be connected to a tank. Those that currently do not have tanks or are not connected will be receiving correspondence to advise them of the necessary requirements. In October the then Water Minister Peter Walsh launched the start of the works project for the Cosgrove Pipeline Project, which is now finished. Benefits to Tungamah customers will be the renewal of four pumps as well as replacement of all filters. If customers have any queries or issues, I urge them to contact the Shepparton office on On behalf of the Tungamah WSC members I would like to take this opportunity to wish everyone a safe and prosperous New Year Rod Squires

7 Central Goulburn A disappointing end to a season that promised so much saw large quantities of water used throughout Central Goulburn. The lack of rain and below average run off has seen our chances of a low reliability allocation evaporate as well. I will be representing Central Goulburn during the drainage tariff review this year while Deputy Chair Jen will represent us on the Gravity Tariff Implementation Working Group. Both these groups will report back to a co-ordination committee before making recommendations to the Board. We have received regular Connections reports with nine of the 46 separate projects in Central Goulburn yet to start. Peter Costello has resigned from the Committee. He has been a strong advocate for all customers during his years of service. On behalf of Central Goulburn, I would like to thank him for his dedication and wish him well for the future. The WSC has recently invited several young farmers to be guests at our meetings for the purpose of increasing their understanding of the complexities of the irrigation industry and stimulate their desire to have input into the future. If there are others out there, who would like to interact with the Committee, I would be happy to hear from them and see what I can arrange. On behalf of the WSC I would like to wish all customers a safe, happy and prosperous Peter Hacon Shepparton WSC Early in the season, irrigation deliveries were stop/start due to the intermittent rain. Unfortunately, some of these events created havoc in some areas causing considerable damage to orchards and crops. December saw demand increase with the onset of summer and the conditions becoming drier. Customers are encouraged to plan their irrigation in advance to ensure they avoid the peak demand periods due to capacity restraints. Allocation trade has been steady so far this season with prices remaining constant with little fluctuation. The Shepparton East modernisation project continued over the winter months. Works that were needed to be done were completed ahead of time allowing for channels to be filled providing water for frost control at the start of the irrigation season. Regulators that were installed in the 2013 winter season are now being trialled in TCC with promising results. The Connections unit will be addressing the non-backbone areas in Shepparton East in 2015 and customers will be contacted at this time. Capital works in the Shepparton area over the winter period saw culvert constructions on Wisely Road and the EG17. GMW is keen on having WSC members input on prioritising the capital works program and I see this as a good initiative. Currently the Shepparton committee has two vacancies so if you are interested in becoming a member, please contact the Shepparton office on Craig Reynolds Welcome to our new WSC members: Daniel Mongan Central Goulburn Georgie Sims Rochester Ross McKinstry Loddon Campaspe Hilary Jankelson Loddon Campaspe Richard Carter Loddon Campaspe Robert Cook Ovens/King/Mid Murray Allan Curtis Ovens/King/Mid Murray Craig Winnell Goulburn Broken Patrick Connolly Murray Valley Russell Robins Torrumbarry Ann Hodge Torrumbarry Rohan Verley Loddon Water Districts Thank you to our retiring/resigning WSC members: Ross Gordon Torrumbarry Grant Davies Torrumbarry Jamie Craig Shepparton John McKinstry Loddon Campaspe Bill McMinn Rochester Bill O Connell Loddon Campaspe Rien Silverstein Shepparton Morris Brown Goulburn Broken Peter Costello Central Goulburn Damian Carpenter Murray Valley For details on how to contact your WSC, visit

8 Reminders Variable charge accounts Customers who have used over 20 megalitres or incur an above entitlement storage charge will receive an interim variable charge account in March, otherwise a variable charges account will be sent in June. This account is the actual cost to deliver water from storages to properties. Fixed charge water accounts Customers paying their fixed water account in four instalments are reminded the final payment is due February 16. If you are having difficulties paying your account, you re encouraged to contact us. For more information about payment options, phone or visit NEW - SMS reminder service Avoid overdue fees and reduce risk of write off this year by signing up to GMW s SMS reminder service. Customers will be sent a text message to notify them about: Account/invoice due dates Carryover deadlines; and A warning if your water entitlement is at risk write off. These reminders will help customers manage their accounts to help save time and money. Customers can opt out at any time and this service will be cancelled. How to sign up: I opt in for SMS along with your name, account number and mobile number to reception@ gmwater.com.au or send a text message with your name and account number and I opt in to Groundwater/Surfacewater licence renewals due to expire 30 June 2015 A reminder letter and application form will be sent out to customers in February for Groundwater/Surfacewater Licences that are due to expire 30 June Waste concrete disposal GMW Connections Customers who have waste concrete structures that are the result of works completed as part of the our Connections Program (or NVIRP) on their property are encouraged to contact us to discuss their safe and timely disposal. Before February 27, please either telephone Thomas Liphuyzen on or concreteremoval@ gmwater.com.au detailing: 1. Your Connections Agreement Business Case Number 2. The nature of the concrete structure, and, 3. Your understanding of who is responsible for arranging its removal. Your Agreement will then be reviewed and if removal is your responsibility, we will contact you, or if someone else is responsible for its removal, arrange with them for its safe and timely removal. e-services Our expanding range of web, and text message (SMS) services aim to keep you informed about important issues relating to your water services. To subscribe to one or all of our e-services follow the links below: Irrigator e-news Allocation and irrigation updates ed to you each month. Subscribe at e-dams Water storage levels ed to you daily, weekly or monthly. Subscribe at Twitter Follow us on Online Payments Via our website at SMS Allocations Allocation announcements sent directly to your mobile phone. Register through WaterLINE. SMS Start/stop Reminders of when your water order is set to start and stop. Register through WaterLINE. WaterLINE Order water online at or over the phone on Not only can you order water you can also adjust flow rates and duration all with 24 hour convenience.