G-MW expects applications to double for 2009/10 water trading ballot
With the deadline for applications for inclusion in G-MW's 2009/10 water trading ballot closing today, G-MW has confirmed that applications have increased substantially compared to the past two years. G-MW warns that the higher number of applications will increase the overall time taken to complete all applications.
According to G-MW General Manager Operations Ian Moorhouse, G-MW has conducted a ballot at the start of season for the past two years to ensure all applicants have equitable access to trade opportunities affected by the 4% limit on the volume of water shares traded out of an Irrigation Area and the 10% limit on volume of water in a system that is not associated with land.
"The ballot takes place over one or two days under independent supervision and determines the processing order for applications - every ballot application is given a number in the processing queue. G-MW staff then begin processing applications in the ballot order."
"Last year we took around three weeks to process more than 400 applications, but this year we expect processing will take much longer simply because we expect applications to at least double to more than 800 applications," said Mr Moorhouse.
Individual customers will be advised of the outcome for their application as soon as it is approved, but need to be aware that it may take at least two months to finalise all of the applications. If a ballot application is unsuccessful the application will be returned to the applicant with a refund.
The number of applications received by G-MW has been boosted by applications accepted by the Commonwealth under its Water for the Future buyback program. Under the deal between Victoria and the Commonwealth, Victoria has agreed to exempt from the 4% limit 60,000 ML out of the current batch of applications to sell to the Commonwealth.
The Victorian Government has agreed to these exemptions provided the Commonwealth's purchase of water is coordinated with Victoria's irrigation modernisation program.
"All the applications forwarded to G-MW by the Commonwealth are included in the ballot to decide the processing order of applications," Mr Moorhouse said.
"This is done to ensure the Commonwealth is treated the same as all other applicants."
In anticipation of the ballot on Monday 6 July, G-MW has been working with the Northern Victoria Irrigation Renewal Project (NVIRP) to help finalise criteria for the first round of exemptions that is consistent with NVIRP's modernisation objectives. G-MW will apply the criteria to Commonwealth applications to determine whether an exemption is available.
The Victorian Government has announced its intention to remove the 10% non-water user limit in the next few months. However all applications in the 2009/10 ballot will still need to meet the requirements of the 10% limit.
If the 10% limit is reached on a system in the 2009/10 ballot, applications will be returned with refunded fees and can be resubmitted at a later date.
G-MW, NVIRP and the Department of Sustainability and Environment will soon start work on how exemptions to the 4% limit will apply in future years.
"This is the first round in the newly-agreed approach to coordinate Commonwealth water purchases with
modernisation of the irrigation system," said Mr Moorhouse.
"We will be refining processes and criteria as we move through the different stages, and we will ask participants for their feedback on improvements for the future."
In previous seasons G-MW initiated the ballot as a precaution, not in expectation of reaching the trade limits.
"In past years we didn't reach 4% limits in any Irrigation Areas until well after the ballot processing was completed. The increased interest this year may see the limits reached earlier in the year - but we won't know for certain until processing gets underway," said Mr Moorhouse.
Mr Moorhouse said anecdotal feedback from customers suggested some were looking to sell a portion of their water entitlements, but few were looking to exit irrigation.
"The sale of water shares is an incomplete and often misleading indicator of what is happening on the ground. The real measure of whether farmers are leaving irrigation is whether they are giving up their delivery share - not whether they are selling water shares - and we have seen no significant trends in delivery shares to date," said Mr Moorhouse.
"Until irrigators also give up their delivery share, they retain the right to have water delivered to their property into the future and continue to contribute to the costs of operating and maintaining the irrigation network in their Areas."
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Media Contact: Linda Nieuwenhuizen
Position: Manager Stakeholder Relations
Telephone: 03 5833 5776 or 0412 183 792
