This is not a difficult job — nor should it be expensive, as the magnificent gravity system designed and built by our forefathers is one of the world’s biggest and best.
However, poor decisions by previous MIL management and board, PIIOP, a changing political environment, poor water policy, the Murray-Darling Basin Plan and the impacts of buybacks have all contributed to a 50 per cent loss of water delivered through the footprint over the last decade.
Southen Riverina Irrigators have been democratically elected to represent and advocate for the landholders.
At no point in time were we ever contacted or consulted regarding MIL’s recent announcement to increase fees by 10 per cent and take away the WaterWell product to recoup a $7 million business shortfall, that we know no detail about.
In 2022, MIL returned 205,000 megalitres of water to shareholders through WaterWell products.
Without any consultation or warning, MIL has pivoted to sell this water on the open market to prop up other underperforming areas — subject to findings in a business review due in August which, again, we know nothing about!
Shareholders are angry and frustrated with MIL’s continued dismissal of their concerns and what appears to be a lack of consideration for long-term shareholder viability.
Further consideration must be given to re-structuring the operating costs, depreciation and losses from poor investments.
MIL has lost around six per cent on their current AMRR account reserves and are seeking a $400 million fund to manage, on current financial performance this would equate to a $24 million annual loss.
Why would shareholders want to give them that volume of funds?
Murray Irrigation has made little effort to examine alternate methods of income and instead allow NSW Water to use a third of the existing Mulwala canal capacity and charge them $4/Ml while charging growers about $40/Ml for the same service.
Put simply, if the MIL budget is $40 million annually and government are using 30 per cent of the capacity then they should be paying $12 million. Coincidently, the MIL forecast capex budget for maintenance is about $12 million.
Why are the farmers in this region expected to subsidise government for using facilities which we own and pay to maintain?
As the democratically elected chairman of SRI, let me assure you, the majority of farmers do not support a process of increasing water delivery charges by 22 per cent in the last 14 months and a 205 Gl loss of WaterWell product, which is equivalent to a further 20 per cent increase in fees.
SRI and LHA chairs have tried to consult and advise both MIL management and board. Last week, I sent a letter of demand to meet with the board only to receive an immediate rejection from CEO Ron McCalman.
We have solutions that at least deserve consultation and consideration.
Chris Brooks
Southern Riverina Irrigators chair
