Sharman Stone MP

Victorian Auditor General’s Report more bad news for local irrigators

November 29, 2011

The recently released Victorian Auditor General’s report on the State’s water entities is bad news for irrigators in the Goulburn Murray irrigation district.

Federal Member for Murray, Sharman Stone said today “the Auditor General has highlighted the ongoing poor financial performance of Goulburn Murray Water (GMW) and bought into question the financial viability and sustainability of the authority.”

“For the past two years GMW has operated with a negative cash flow, unable to service its debt.

“GMW receives 85% of its income from fixed service charges. This includes a delivery share fee paid by property owners who do not have a water use licence because the water has been sold, in many cases to the Commonwealth for environmental water purposes.

“It is very likely that both irrigators and non-irrigators will have to face massive increases in fixed costs if GMW is to reduce its debt and deficit,” Sharman Stone said.

“It is time to benchmark GMW against world best practice if the modernised system is to be managed effectively and efficiently.

“Since 2007 GMW has increased its staff by over 40 and currently employs over 700. This is at a time when the Northern Victorian Irrigation Renewal Project (NVIRP) is doing the maintenance work of the GMW system as it implements the Foodbowl Modernisation Project. This work includes removing channels, which will of course lessen the maintenance workload,” Sharman said.

“The local irrigator operated and managed schemes in New South Wales and Western Australia are clear examples of how efficiently systems can be managed. These irrigators have a vested interest in making sure the system operates to its maximum productivity.

“I urge the State Minister for Water, the Hon Peter Walsh, to conduct a comprehensive review of rural water supply management in northern Victoria. We simply cannot afford any further waste and mismanagement. We deserve a productive and sustainable food producing irrigation system in the Goulburn and Murray Valleys that will serve us well for many years to come,” Sharman Stone said.