G-MW Industry Forum confirms approach for season allocations

Friday 9 November, 2007

G-MW Industry Forum confirms approach for season allocations

More than 60 Goulburn-Murray Water (G-MW) customers and industry representatives from across the region met this week and have confirmed their support for G-MW continuing with the water management strategy adopted at the last Industry Forum in August. G-MW also outlined how it will supplement allocations by working with customers to further improve system efficiency.

According to G-MW Chairman Stephen Mills customers and industry representatives emphasised the need for certainty so they can get on with planning for their own operations.

"This is the most challenging season for our region and individuals are making some very difficult business decisions that will impact on their operations this year and in future seasons. Our customers are saying that the last thing they need is further uncertainty that could arise if we changed our approach mid-stream,' said Mr Mills.

As agreed at the last Forum in August, G-MW shortened the irrigation season by 2 months on both the Murray and Goulburn systems. Once allocations for these systems reached 20 percent, further improvements have been directed to extending the season out to its traditional finish date of 15 May and increasing the allocation.

"The Forum confirmed that we will continue with this approach. The Goulburn system has already reached the traditional finish date, so all future system improvements will go to increasing the allocation. The Murray system reached 20 percent last week, and the season has been extended to 15 April. We will continue to direct Murray resources to increasing allocations and extending the season,' said Mr Mills.

All other systems' allocations, including the Broken, Campaspe and Loddon, are below 20 percent and heavily qualified with rostering in place or proposed to take effect from the end of the month. The Bullarook system continues with zero percent allocation, with supplies for essential stock and domestic purposes only.

At the Forum, G-MW proposed returning a proportion of the efficiency gains achieved so far this season to the allocation pool. G-MW has adopted a more aggressive approach to identifying and capturing system losses, by working with customers to adopt more flexible service levels and delivery timeframes which increase system efficiency.

"With predictions of a hot, dry summer we must also make provision for increased evaporation losses, so we can only return a proportion of efficiency gains achieved to date. This approach will boost allocations by only a few percent - but in a season like this every percent matters," said Mr Mills.

Mr Mills also reminded participants of other initiatives in place to maximise the supply of water to customers across the region, along with the review underway to confirm carry-over arrangements for the 2007/08 season, and the efforts of Government to assist irrigators through rebates on fixed charges and by funding the pumping of Waranga Basin.

"Last week's rain had a very modest impact on supplies, and highlights just how much rain we will need to substantially improve allocations.  We are pursuing all possible avenues to maximise the supply of water by modifying trading rules where possible and by ensuring G-MW runs as lean and efficiently as possible. The Government's assistance is further substantial and very welcome support," said Mr Mills

'Dry season' trading arrangements are now in place which modify the water trading rules through the Barmah Choke and also from the Lower to the Upper Goulburn, expanding the trading opportunities for irrigators across these regions. 

The next update of season allocations will be released on Thursday 15 November 2007.

 

 - ENDS -

Media Contact:         Linda Nieuwenhuizen

Position:                    Manager Corporate Communications         

Telephone:                 03 5833 5776  or 0412 183 792