Sharman Stone MP

Ombudsman’s Foodbowl Modernisation Review– Shocking!

November 30, 2011

The Victorian Ombudsman has handed the Victorian Parliament a damning report on the Northern Victorian Irrigation Project, citing mismanagement at unprecedented levels, numerous breaches of the Privacy Act in relation to private landholders information and an unacceptable lack of transparency into its tender processes.

Dr Sharman Stone, Federal Member for Murray, welcomed the long awaited report and said, “I have been raising concerns about NVIRP since its performance became a real worry back in 2007. I have always argued that the project was thrown together without proper consultations and without a proper business plan in order to push the North South pipeline into existence and to justify the shameless theft of irrigator’s water. I repeatedly asked the Victorian Labor Government to review the performance of their plans and was met time and time again with constant refusals.
“As expected, the Victorian Ombudsman’s review of the Foodbowl Modernisation Project has strongly condemned NVIRP’s mismanagement. Their concerns include:

1. NVIRP’s inappropriate use of terms like “water loss” and “water savings” when the losses or savings were not real,
2. “Numerous breaches” of the Privacy Act, in particular in relation to private landowner information,
3. Lack of transparency and co-ordination,
4. Extremely poor communication to stakeholders
5. Staff conflicts of interest, for example undeclared gifts and hospitality
6. Very poor and inappropriate complaints handling,
7. “Inappropriate assistance” given to a private company,
8. The need to review the use of farm designers to ensure they are adequately trained, that there is probity and integrity in their appointment, and so it goes on.

“Most importantly, the Ombudsman calls for an independent review of the objectives and strategic directions of the Foodbowl project. This is of critical importance if the next $1billion is not to be wasted,” Sharman Stone said.

“There has never been any doubt that our state owned irrigation system had not been well maintained and needed upgrading, but to trade the future water security of our region by sending water to Melbourne was grossly unfair and extremely short sighted. We should have had the investment in the irrigation system after proper community consultations and agreement on strategy.

“The Ombudsman’s report clearly demonstrates the appalling way this project has been managed right from the start. It states there have been millions of dollars wasted, substandard equipment installed and proper tender processes simply ignored.

“Our irrigators have been forced to pay outrageous increases in costs and many have had no option but to leave their farms, or be converted to stock and domestic water supply only. The report also comments on the appalling lack of consultation with irrigators. It has been worse than that, in fact people have been pitted one against another,” Sharman said.

“A further $1billion dollars has just been committed by the Federal Government to complete the infrastructure upgrades, they must be seriously nervous about the waste and mismanagement report.
“This review must serve as a call to do better with the new funds, there must be value for money and strategic planning. The right hand must know what the left hand is up to.
“Our food producers must have a world’s best, affordable irrigation system. It must be well managed, well maintained and efficient,” Sharman Stone said.

“The Ombudsman has recommended NVIRP’s task be taken over by Goulburn Murray Water. If only that was a guarantee of a better way. We all know GMW also has serious problems, just recently confirmed by the Victorian Auditor General,” Sharman said.

“I will continue to work hard alongside my Victorian Coalition colleagues to see our next big investment in our irrigation system better spent and that a world’s best, affordable irrigation system is delivered,” Sharman Stone said.