Goulburn Murray Water is “financially unsustainable” and the irrigation district as a whole is at a “tipping point” with a government-ordered report finding “an urgent and significant transformation to GMW’s business” was required.
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The Strategic Advisory Panel’s GMW review was ordered by Victorian Water Minister Lisa Neville who took to twitter on Wednesday to deny the organisation was on the brink of collapse.
“We’re acting now to ensure that GMW operates as efficiently as possible to ensure prices remain affordable for customers for decades to come,” she told The Border Mail.
The panel handed 30 recommendations to the organisation and two to the government, saying GMW was “not currently well placed to respond to the changing environment or financial challenge”.
Ms Neville said Goulburn Murray Irrigation District communities had done a lot of the “heavy lifting” under the Murray Darling Basin Plan with much of Victroia’s 800GL delivered from area.
The report found the obligations 80 per cent of GMW channels delivered less than 500ML in 2017, with 34 delivering less than 50ML.
Ms Neville said if the senate blocked an amendment for 605GL of environmental projects, it “would be disastrous for the region”.
“We know the district is at a tipping point, which is why we’ll continue to argue strongly against the removal of any further productive water from the area,” she said.
Chair of the Victorian Farmers’ Federation water council chair Richard Anderson said the review had been long anticipated and now it was up to the government to ensure it was implemented.
He said reviews into water management had been constantly occurring since the McDonald review of the 1990s, and these recommendations needed to put an end to an era of uncertainty in the industry.
“Being an election year we want the process followed through and completed, no grandstanding, no blaming, just get on with it and get it done,” he said.
“Our communities and irrigators are about worn out, there’s been that many changes since 1994.
“We need absolute certainty going forward; certainty bolsters investment and economic growth which grows the community.”
GMW managing director Pat Lennon welcomed the review and said the company remains viable and was focused on keeping costs low.
“The key finding of the report is consistent with what GMW has been working towards,” he said.
“We know financial savings are needed to ensure GMW can continue to deliver reliable and affordable prices for its customers, irrigators and water users into the future.”
Digital journalists with The Border Mail.
Digital journalists with The Border Mail.
