$1 billion irrigation modernisation moves ahead

FROM THE MINISTER FOR WATER - DATE: Wednesday, December 19, 2007

Water Minister Tim Holding today announced the creation of a new state owned entity to implement and manage the $1 billion investment in modernising the Goulburn-Murray Irrigation System.

Mr Holding, speaking at a modern irrigation channel in Shepparton, said the Northern Victoria Infrastructure Renewal Project (NVIRP) would begin work immediately to undertake the biggest upgrade to the system’s infrastructure in its 100-year history.

“The Northern Victoria Infrastructure Renewal Project will now be tasked with managing this once in a lifetime opportunity to modernise irrigation infrastructure in the region,” Mr Holding said.

“A world class irrigation delivery system will be created, helping to reduce losses of around 800 billion litres of water each year through system inefficiencies and ensuring that the region will continue to be prosperous and competitive.”

Mr Holding said the Victorian Government had adopted 50 of the 52 recommendations from the Food Bowl Modernisation Steering Committee’s final report.

“I would like to thank John Corboy, irrigators, council representatives and other key stakeholder groups for their contribution to the Food Bowl Modernisation Steering Committee,” he said.

“Their extensive work and community consultation, including 70 formal and informal information sessions and 140 submissions, has laid the foundation for this vital project.”

Key recommendations adopted include:

· Modernisation of trunks and carriers to be undertaken first;

· Melbourne’s Bulk Entitlement from the savings will be capped at 75GL per year;

· Melbourne Water and the Victorian Government cannot enter the market to purchase water; and

· Water savings will be distributed evenly across the Goulburn Murray Irrigation District and allocated to irrigators as high reliability shares.

The project will provide on average 225 billion litres of water each year to be shared equally by irrigators, stressed rivers and Melbourne by 2012 and is a key part of the Next Stage of the Government’s Water Plan.

Mr Holding said the only recommendation not adopted was that the environment would be required to pay for head works.

“The Government has also made no decision on the distribution of savings in excess of 225 billion litres long-term average and will only do so when the level of savings can be verified as exceeding 225 billion litres from Stage 1,” he said.
The modernisation works are jointly funded with $600 million from the Victorian Government, $300 million from Melbourne Water and $100 million from Goulburn-Murray Water.

The Victorian Government will separately meet around $11 million in administrative costs associated with the establishment of the new body.

Mr Holding said a board had been appointed for NVIRP, consisting initially of six people with a broad spectrum of skills and experience including engineering, horticulture and dairy farming.

“I congratulate the new Chairman Richard Guy and board members on their appointment and wish them well for delivering the required outcomes for the project,” Mr Holding said.

“The Board’s first task will be to find a suitable Chief Executive Officer to mange the historic irrigation infrastructure upgrade.

“NVIRP will work with Goulburn-Murray Water and other relevant agencies on developing the project plan and implementation. Goulburn-Murray Water will continue to be responsible for water management and allocations in the system.”

Mr Holding said NVIRP, which will be based in northern Victoria, would ensure that the future of Australia’s most important food production region was secured.

“Improved irrigation infrastructure will give irrigators the confidence they need to make decisions for the future,” he said.

“The benefits will also go well beyond the farm – a more efficient system will bring confidence to the whole region, attract new investment and contribute millions to the local economy.”

Construction works are expected to start as early as May 2008.

Northern Victoria Infrastructure Renewal Project Board Members

Mr Richard Guy (Chair) is Chairman of Bendigo-based Crystal Industries Group. He is an engineer by training and plays a prominent role in various community and charitable organisations. He chaired the Bendigo Bank through a period of rapid growth including the conversion to Bank status in 1995. He retired from the Bendigo Bank Board in August 2006.

Mr Barry Steggall is the former State Deputy Leader of the National Party and Member for Swan Hill (1983 – 2002). Mr Steggall specialised in water, environment and food industry issues during his Parliamentary career. He is a member of the Victorian Water Trust Advisory Council and Chairman of the Groundwater Reference Committee.

Mr Terry Francis has international and national experience in road and infrastructure engineering, project management and corporate banking. He is a Director of the Emergency Services Telecommunications Authority, Nylex, RMIT International and Boom Logistics. He is also Chairman of the Southern and Eastern Integrated Transport Authority.

Mr Peter McCamish has been a Goulburn Valley horticulturist for 34 years. He is a Director of SD Reid Holdings, a Tasmanian cherry grower and exporter, and a former Director of SPC Ardmona Ltd. He is a member of the Shepparton Irrigation Implementation Committee, the Food Bowl Modernisation Project Steering Committee and a Director of Water for Rivers.

Mr Geoff Akers is a member of the Food Bowl Steering Modernisation Committee, Deputy Chair VFF Water Council and Board member of Dairy Australia. Mr Akers has a Bachelor of Applied Science, Advanced Diploma of Agriculture and is a dairy farmer at Tallygaroopna.

Ms Miranda Douglas-Crane has more than 30 years of private and public sector experience in the transport infrastructure, automotive financial and services industries. Ms Douglas-Crane is currently Executive General Manager Operations with the RACV.

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