Monday, 18th January 2010

Additional Reserve will cost irrigators

Forget climate change, Goulburn System irrigators need to prepare themselves for the DSE Office of Water's Additional Reserve drought of 2010-2011, potentially costing Goulburn system irrigators up to $83 million.

The Additional Reserve policy was developed in the Victorian Government's Northern Region Sustainable Water Strategy.

One of the main aims of the policy is to ensure that the two major pipelines _ the North-South Pipeline and the Bendigo-Ballarat Superpipe _ don't suck air.

The Additional Reserve will eventually see 500 000 Ml quarantined from use or trade by farmers in the Goulburn and Murray systems.

Water that must be paid for, and will be in the storage (Eildon), but not accessible to use or trade by irrigators.

The Additional Reserve means irrigators can't access up to 40 per cent (340 000 Ml) of ``actual'' water in storage and are only able to access 50 per cent of the high reliability water share (495 000 Ml) in the Goulburn system.

When Goulburn irrigators would have had 84 per cent high reliability water share, they will now only have 50 per cent. However, they will be required to pay for the full 100 per cent without assistance or compensation.

The Additional Reserve will distort (corrupt) the temporary water market, costing irrigators in the order of $15 million for water actually in storage, but not accessible to them.

Further, the lost opportunity to use or trade water, costing another $68 million (if water is valued at $200/Ml to use or trade) will have a definite negative impact on the Goulburn system irrigation community.

This year Goulburn irrigators can only access 50 per cent of their high reliability water share, but must pay for 100 per cent with no drought assistance available, effectively doubling the cost of accessible water. This means $20 million will be paid out this year by Goulburn irrigators for water that doesn't exist!

Next year the water will be in the dam, will have to be paid for, but won't be available to Goulburn irrigators.

But don't despair, G-MW says it's good for you. It means you can access carryover on August 15 of the next year.

The only problem with this scenario is that less than 10 per cent of active irrigators hold any carryover.

You can see the problem then: 90 per cent of customers bear significant financial stress for the benefit of 10 per cent of customers.

Of course, the urban authorities (Melbourne Water, Coliban Water and Central Highlands Water) are the chief beneficiaries with their carryover and pipelines.

So 2010-2011 will be remembered as the year of the DSE's Additional Reserve-induced drought.

This should disgust and dismay you, and is another nail in the coffin for irrigated agriculture.

Murray HawPyramid-Boort irrigatorFoodbowl is set to become a dust bowl

The trade exemption proposed by NVIRP in areas of the GMID is the first shot by the Brumby Government to limit the modernisation of the GMID.

They do not have the money to connect every irrigator to the backbone as well as upgrading all channel infrastructure.

Mr Smith's comment that NVIRP consideration in making sure irrigation remains affordable for those who wish to stay in the agricultural industry is a decision which is out of his control.

Irrigators realise that the removal of water from the GMID reduces the overall wealth of the district and will lead to a downturn in not only farming but also business opportunity in the towns.

The government is using the plight of a small proportion of irrigators who are forced to sell their water as a basis for initiating government policy.

Mr Brumby should make a stand _ which is with the state's right _ to disallow the sale of water out of each district, otherwise it will only take a few years to reduce the foodbowl to a desert.

The maintenance and replacement costs of the distribution system as stated by G-MW is to double within five years.

As the water available is sold out of the district, this will lead to the remaining irrigators paying an ever-increasing cost for water.

Bruce M BassedColbinabbin

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