GOULBURN-MURRAY WATER

ANNUAL REPORT 2004/05 OUR MISSION

To deliver sustainable water services that meet customer and stakeholder needs and support regional economic growth, whilst balancing social, economic and environmental considerations. OUR VALUES • Human safety, the environment and customer service are our highest priorities

• Sustainability is our commitment to future generations

• Cooperation based on the involvement of people is the key to progress

• Openness builds trust, knowledge and understanding

• Integrity, respect and pride are valued characteristics of our people

• Continual improvement is essential and underpins our future OUR PERFORMANCE AT A GLANCE 6

GOVERNANCE 9

ECONOMIC SUSTAINABILITY 13

SOCIAL SUSTAINABILITY 21

ENVIRONMENTAL SUSTAINABILITY 33

FINANCIAL STATEMENTS 43

APPENDICES 65

1 REPORT FROM THE CHAIRPERSON

As promised, this Board has Russell comes to Goulburn-Murray implemented a review of our pricing Water with a strong background in the policies, which has resulted in the water industry and the Board is excited organisation discontinuing the use to be working with him in tackling the of renewals annuities to fund asset many projects and initiatives refurbishment and replacement, Goulburn-Murray Water is undertaking. and instead adopting a Return on The 2004/05 year was my first as Regulatory Asset Base (RAB) approach. Chairperson and we have achieved a This new approach will deliver more great deal as a Board. I would like to stable and predictable price paths for thank my fellow Directors for their our services over time, which will lessen contributions. I would also like to take the impact of price increase spikes for the opportunity to remember former our customers. Director The Honourable Marie Tehan, Another key development for our future who passed away in October 2004 was the establishment of a new business after a short illness, leaving the Board unit to oversee the management of land with a deep sense of lost opportunity in and water activities on and around being deprived of Marie's considerable Goulburn-Murray Water's major water skills and talents. storages. This separate business unit This has been both a difficult and We enter another year facing continuing will play a major role in meeting our exciting year for Goulburn-Murray changes in our climate and our objective to manage water storage Water, as the Board and management operations, and ever mindful of our activities for local communities, have reviewed the major aspects of our customers’ problems. But we also have while ensuring they are economically operations to ensure we are offering a firm vision and a leadership willing to sustainable and protect water quality the best service at the lowest price adapt our business to these changing and the environment for everyone while maintaining adequate delivery demands. Goulburn-Murray Water is to enjoy. standards. The Board has made continuing its mission to be a world- noticeable and rapid improvements I would like to thank the Water Services class manager of water delivery, mindful in its relationships with customers, Committees for the way in which they of its social and environmental industry partners and government, have worked with the Board and for responsibilities to northern Victoria. and will continue to develop strong their scrutiny and influence in difficult Don Cummins relationships with industry groups, times. I also thank Goulburn-Murray CHAIRPERSON particularly Water Services Committees, Water management and employees for as it implements its strategic direction. their efforts over the past year. When I stay late in the office, I notice many Changes in our industry technology, people working beyond their required combined with the State Government's hours. Some of our people have worked water reform program as outlined in in the industry for thirty, even forty, the Our Water Our Future White Paper, years and they carry an accumulated make this, perhaps, the most exciting knowledge that supports mature era in the water industry for 100 years decisions and work practices. and Goulburn-Murray Water is working to implement many of the White Paper's One of the Board's prime roles is to key projects. I am particularly pleased appoint its Chief Executive. During the to see that the Tungamah Pipeline year, Denis Flett advised the Board that Project will come to fruition and begin he had decided to end his tenure as to deliver water savings, with the Chief Executive of Goulburn-Murray government making a $17 million Water as of 30 June 2005. Denis has contribution. This and other water had a remarkable 31-year career in the savings projects, such as Total Channel water industry and the Board wishes ControlTM, are introducing improved him well in his future appointments. systems and technology to assist our The Board now welcomes Russell communities to remain profitable into Cooper as the new Chief Executive. 2 the future. REPORT FROM THE CHIEF EXECUTIVE

With a high level of community interest Offsetting this, however, was a drain in water, considerable work being done construction grant of $2.1 million, on water reforms in Victoria, and with which helped to return a net profit of drought conditions continuing into an $1.4 million for the year. eighth consecutive year, this is both a ORGANISATIONAL very exciting and challenging time for CAPABILITY AND the water industry. Given this context, PROJECT SUCCESS it is a privilege to be given the opportunity to lead Goulburn-Murray Goulburn-Murray Water’s capability Water from late July 2005. This report is evident in its successes in major covers the period when my predecessor, projects over the past year. The Eildon Denis Flett, was Chief Executive and I dam improvement project has been a am grateful for the manner in which he standout success. This $52.5 million assisted with the transition of the Chief project is now nearing completion Executive role. ahead of schedule, with an excellent safety and environmental enhancement The 2004/05 year has again presented record and having been instrumental in many challenges in water resource developing strong relationships between management. Low water resource THE FUTURE the Eildon Alliance and local availability saw the Goulburn system communities. There are many challenges ahead for experience its seventh consecutive year Goulburn-Murray Water, not the least TM without a sales allocation. The Murray The new Total Channel Control of which is the immediate task of system also received only 100% of technology project in the Central managing water resources responsibly water right and no sales. More Goulburn area also highlights the high and delivering and improving services disturbingly, the Campaspe had another level of skill among our employees, in continued dry conditions – year of very low inflows and reached particularly given that this was a major allocations of less than 100% are only a 39% allocation. project delivered in a very tight again possible on some systems, timeframe. Construction of this Despite these conditions making it a particularly the Campaspe. $18 million project began in May 2005 difficult year for many of our customers, and was completed in August 2005. We are also charged with delivering we maintained a very good relationship very important projects, including the with customers and communities. Low Other major projects undertaken Tungamah pipeline, the Mokoan Return allocations make it even more important include the pricing policy review, to Wetlands project, continuing the for water to be delivered when it is achieving SafetyMAP accreditation dam improvement program and building needed, and Goulburn-Murray Water for occupational health and safety on our asset management capability. has worked hard to ensure that it management, developing risk maintained high service levels and management plans under the Safe As an organisation we will strive for improved efficiency to reduce wastage. Drinking Water Act 2003, and delivering continuous improvement in all fields, Goulburn-Murray Water’s achievements salinity benefits for Victoria and the including commercial performance and over the past year show that we are Murray-Darling Basin Commission organisational capability. I would like well placed for the challenges ahead. through projects such as the Pyramid to thank all employees for their efforts over the last year and I look forward FINANCIAL Creek Salt Interception Scheme. to strengthening our team to meet PERFORMANCE Goulburn-Murray Water employees have also worked very closely with the challenges ahead of us. As Chief Continuing drought conditions have the Department of Sustainability and Executive, I look forward to working again had an impact on our business. Environment and made a significant with the Board, employees and These conditions limited water contribution to the development of members of the community to build allocations on both the Goulburn and detailed proposals for implementing our capability in a time when water Murray systems to water right only, irrigation reforms, as outlined by the issues are so important to our which meant that sales revenue was Our Water Our Future White Paper. regional communities. severely limited. There were also very Russell Cooper low allocations in the Campaspe system. CHIEF EXECUTIVE 3 PROFILE OF GOULBURN-MURRAY WATER

Trading as Goulburn-Murray Water, the Goulburn-Murray Rural Water Authority was constituted by Ministerial Order under the provisions of the Water Act 1989, effective from 1 July 1994, and reports to the Minister for Water, The Hon. John Thwaites, MP. Goulburn-Murray Water’s functions, powers and duties are derived from the Water Act 1989. We are responsible for managing water- related services in a region of 68,000 square kilometres, bordered by the Great Dividing Range in the south and the River Murray in the north, and stretching from Corryong in the east down river to Nyah. Goulburn-Murray Water also operates salinity mitigation works on the Murray downstream of Nyah, manages Mildura Weir, delivers bulk water to supply points outside its region and is the Victorian Constructing Authority for the Murray-Darling Basin Commission.

4 THE FOUR DIVISIONS OF GOULBURN-MURRAY WATER

BULK WATER SERVICES NATURAL RESOURCE Manages the delivery of bulk water SERVICES entitlements and supplies for urban and Provides a range of services, rural water authorities, the environment, purchased mainly by governments private hydro-electricity customers, through programs coordinated by recreation customers and regional catchment management authorities. communities, and controls headworks These include salinity management, assets and associated water storages. surface and sub-surface drainage DIVERSION SERVICES support, water quality and land Provides regulated and unregulated management planning and salt surface water and groundwater diversion interception management. services to customers on over 12,000 The four business divisions are each serviced properties within the responsibility of a separate Goulburn-Murray Water's area. organisational group and are supported DISTRICT SERVICES by other organisational groups that Delivers services to customers on over provide a range of corporate and 14,000 serviced properties within support services. These services include constituted irrigation, water and corporate secretariat; corporate waterway management districts and strategy, planning, coordination and six management areas (Shepparton, communications; business and water Central Goulburn, Rochester-Campaspe, market development; total water Pyramid-Boort, Murray Valley and systems and water resource Torrumbarry). The services provided management; environmental to these customers include gravity and management; water savings; financial pumped water supply, surface and management; information technology; sub-surface drainage and flood water administration; and property, protection. legal and human resources.

5 OUR PERFORMANCE

GOVERNANCE ECONOMIC SUSTAINABILITY Objective The Board aims to continuously We will set prices which reflect the We will effectively operate and improve its governance practices and cost of efficient service provision and manage the assets essential for strive to achieve high levels of ensure long-term business viability. the delivery of service. transparency, trust and stewardship.

Highlights The Board undertook a review of its A major pricing policy review was A project to secure the future of the performance as a group, as well as undertaken with a decision to adopt a Eildon Dam has been an outstanding reviewing the performance of Return on Regulatory Asset Base success, ensuring the safety of a individual Directors, and provided a (RAB) approach. structure essential to the future of report to the Minister for Water. northern Victoria. We achieved a profit of $1.4 million for the year, based on our current Innovative new channel-regulating pricing policy of renewals annuity structures called Total Channel based accounting. Control™ were successfully piloted and will be extended to other parts of our irrigation system. This will reduce water losses from our water distribution network.

Results Performance Results Performance Results Performance Results Indicators Indicators Indicators

Undertake Achieved Operating debt Achieved No unplanned Achieved a Board less than 90% service failures performance of water right greater than evaluation, revenue 24 hours prepare a Board Capability of Achieved at all Performance Operating debt Achieved – storage to hold storages except Improvement eliminated by pricing strategy capacity 99% Mokoan Plan and review 2010/11 has been of time achievements in amended to November, March include debt 100% of Achieved and June repayment by emergency target date management Review individual Achieved plans reviewed Director every 2 years performance Fixed revenue Achieved Asset base Achieved $2.5m in January base is greater replacement value reduction than 85% of reduced by $1m total recurrent Reduce reactive Not achieved cost maintenance (reactive expenditure by maintenance 5% compared increased to to 2003/04 reduce losses and save water)

Challenges for the We will expand Board performance Adopting a Regulatory Asset Base Our project to convert the Tungamah future evaluation to include an externally (RAB) approach to pricing will help us domestic and stock scheme from facilitated Board performance review. to deliver a more stable and open channels and dams to pipelines predictable price path in the future. and tanks will deliver substantial We will develop a whole-of-business water savings and provide improved risk management framework. service to customers on that system.

More on page 9 More on page 13 More on page 17 6 AT A GLANCE

SOCIAL SUSTAINABILITY ENVIRONMENTALENVIRONMENTAL SUSTAINABILITYSUSTAINABILITY We will deliver water related We will ensure a diverse, We will maintain relationships, We will manage water We will enhance the services to agreed standards capable and flexible workforce build partnerships and resources on a total water environment and minimise to customers and communities of healthy, satisfied employees influence policy that will cycle basis to meet the impact our activities in northern Victoria. and provide a safe work improve our water and consumptive and have on it. environment. business management and environmental water support sustainable regional entitlements. development.

A customer complaints system Specific occupational health We invested over $845,000 All systems except the No environmental emergencies was implemented to ensure and safety clauses were in research and development Campaspe system received a were reported this year. customer complaints are inserted into the across our region. final allocation of at least This represents the first year addressed quickly and Goulburn-Murray Water 100%. without emergencies since Over $15,000 was raised for effectively. Enterprise Agreement to 1999. local charities and community We undertook extensive work ensure our ongoing Over 100 meetings were groups through the annual in partnership with Stage one of a $13 million commitment to proving a held with our customer Charity Golf and Bowls Day. government departments and Murray-Darling Basin safe work environment. representative committees catchment management Commission salt interception this year. Goulburn-Murray Water has authorities, aimed at delivering scheme at Pyramid Creek was been recommended for initiatives identified in the completed, delivering salinity We continued to keep SafetyMAP accreditation for Victorian Government’s White benefits to the Murray River. customers and other occupational health and safety Paper on water reform Our stakeholders informed about management. Water Our Future. our response to ongoing drought conditions. Performance Results Performance Results Performance Results Performance Results Performance Results Indicators Indicators Indicators Indicators Indicators

Compliance Achieved At least Achieved Relationship Achieved Losses in Achieved 100% Achieved with agreed 75% of with customers, distribution compliance standards for respondents industry systems with water supply satisfied with partners and compliant with environmental and reactive Goulburn- government bulk management maintenance Murray Water strengthened entitlement targets as an employer allowances Accounts Achieved issued in Personal leave Not achieved Actual river Not Achieved accordance balances flows greater (99.7% in with agreed reduced by 5% than or equal Goulburn billing compared to to specified system; 97.7% schedules with last year minimum flows in Campaspe no more than 100% of the system) 1% error rate time At least 80% Achieved Water use Achieved for of respondents compliant with 2003/04 satisfied with seasonally our services adjusted Murray-Darling Basin cap

We will focus on implementing Increasing our focus on We will continue to work closely We will continue to plan for The redevelopment of our the Government’s White Paper occupational health and safety with stakeholders as we the risk of low allocations due environmental management reforms to unbundle water will help us to ensure fewer implement significant water to low reserves in most system will be a major focus entitlements. injuries and a safe and healthy reforms. systems at the end of the year. and is due to be completed workforce. by 2007. We will identify and respond We will build on our management to future service needs of of recreation and development at customers. water storages through a new Water Storage Amenity business. More on page 21 More on page 26 More on page 29 More on page 33 More on page 39 7 ORGANISATIONAL STRUCTURE

Headworks Murray Board of Directors Stuart Richardson

Headworks Goulburn Darren Nabbs Chief Executive Russell Cooper Headworks Loddon (from 18 July 2005) Ivan Smith

Dam Safety Roger Vreugdenhil Bulk Water Services David Stewart Dam Improvement Shane McGrath

Diversion Operations Diversion Services Barry O’Donnell District Technical Services Colin Gundrill Ross Plunkett Diversion Planning Greg Holland Shepparton Area Phil Hoare District Services Ian Moorhouse Central Goulburn Area Graham Smith Water Systems Health Anne Graesser Rochester-Campaspe Area Jeff Parry Environment & Natural Salinity John Ginnivan Resources Pyramid-Boort Area Pat Feehan David Kent Environmental Management Peter Butcher Murray Valley Area Kevin Preece Economics & Planning Geoff Coburn Torrumbarry Area Lester Haw Corporate Secretary Brian Carr Strategy & Development Garry Smith Project Manager Vacant

Water Storage Amenity Water Administration Paul Thomson Ruth McGrath (from 26 July 2005) Property & Legal Water Systems Planning Tony Natalizio Derek Poulton Organisation Development Water Systems Operations David Roberts Water Systems Geoff Adams Geoff Earl Information Technology Water Systems Improvement Brian Kent Graeme Hannan Financial Reporting Mokoan Program Manager Jeff Huddle David Jeffery Business & Finance Financial Services 8 Trevor Ierino John De Girolamo GOVERNANCE

9 GOVERNANCE

From left: (back) John Brooke OAM, Denis Flett, Don Cummins, Craig Cook and Des Powell (front) John Pettigrew, the late Hon. Marie Tehan, Jean Sutherland and Peter Fitzgerald DON CUMMINS, JOHN PETTIGREW, JOHN BROOKE OAM, Chairperson Deputy Chairperson Director B.Ec, B.Ed, Dip Tchng, P.G.Dip Asian GAICD B.Com, B.Ed, FCPA, CA Studies, GAICD Director of Goulburn-Murray Water Director of Goulburn-Murray Water Chairperson of Goulburn-Murray Water since 1 July 2001. Deputy Chairperson since 1 July 2004. since 1 July 2004. since 1 July 2004. John is an irrigation farmer near Pyramid Don is a member of the Goulburn John is a Director of Paton Smythe Pty Hill. He is also a member of the North Broken Catchment Management Ltd, horticulturalists. He is also a Central Catchment Management Authority and of the MDBC Community member of the Goulburn Broken Authority. John has extensive current Advisory Committee. He is Deputy Catchment Management Authority. experience in local government, water Chair of the Mt Buller-Stirling Resort He is the former Chair of the resource management, business Management Board and a Councillor Shepparton Water Services Committee management and natural resource of Mansfield Shire. Don is former Mayor and a former Director of SPC Ltd. John management. of Delatite and Mansfield Shire Councils has extensive experience as a company and a former teacher. He owns a cattle director and in community participation grazing property at Nillahcootie. in natural resource management planning and implementation.

10 GOVERNANCE

CRAIG COOK, DES POWELL, BOARD COMMITTEES Director Director FULFIL THREE B.Ec Director of Goulburn-Murray Water SPECIFIC ROLES: since 1 July 2004. Director of Goulburn-Murray Water Financial and Management Audit since 1 July 2004. Des has held a range of senior executive Committee Craig is a management consultant to management roles in both the private Established to oversee the internal business and government. He is the and public sectors in Australia and Asia. and external audit program and risk Deputy Chairman of Burson-Marsteller He operates his own consultancy management program, review annual and a Director of Australian Cricket Bat business with clients in a range of financial statements and associated Willow Plantation Management Services industries, including transport, logistics, checklists, and monitor and advise the Limited. He is a Director of the Rural forestry and water. Des is currently a Board on financial, management and Finance Corporation and operates a Commissioner of the National Transport accounting responsibilities. beef cattle property and vineyard at Commission, Deputy Chair of the Port Membership: John Brooke (Committee Tallarook. of Melbourne Corporation and Chairperson), Craig Cook, Des Powell JEAN SUTHERLAND, Chairman of the National Marine Committee Incorporated. Remuneration Committee Director Established to oversee executive Cert Bus.Studs, CPA, GAICD HON. MARIE TEHAN, remuneration policy, monitor executive Director Director of Goulburn-Murray Water remuneration and advise the Board in LL.B. since 1 July 2001. relation to executive remuneration responsibilities, including individual Jean is a member of the North Central Director of Goulburn-Murray Water remuneration packages for senior Catchment Management Authority. from I July 2004 until she passed away executives. She is a graduate of the Loddon Murray on 31 October 2004. 2000 Plus Leadership program and has Marie was a former solicitor who Membership: Jean Sutherland extensive experience in accounting, entered Victorian Parliament in 1987 (Committee Chairperson), particularly for rural business after serving as a senior member of the Don Cummins, Peter Fitzgerald enterprises. Victorian Veteran’s Review Board. Marie Safety and Environment Committee PETER FITZGERALD, served in the Victorian shadow cabinet Established to oversee environmental Director with responsibilities for Conservation and occupational health and safety Forests and Land, Industry and Advanced Dip. Ag. policy development, monitor Technology and the Status of Women. performance and compliance with Director of Goulburn-Murray Water She served as Minister for Health for relevant requirements and advise the since 1 July 2004. four years and Minister for Board in relation to environmental and Peter served on Goulburn-Murray Conservation and Land Management occupational health and safety Water's customer committees for over for three years under the Kennett responsibilities. ten years, with three years as Chairman Government. of the Central Goulburn Water Services Membership: John Pettigrew (Committee Committee. He is a former Councillor DENIS FLETT, Director Chairperson), Peter Fitzgerald, for the United Dairy Farmers of Victoria and Chief Executive Jean Sutherland, Denis Flett and a graduate of the Australian Rural B.Eng (Civil), EWS, CP Eng, FIE Aust, Leadership Program. Peter operates a FAICD dairy and beef operation at Tongala and Kotupna. Chief Executive and Director of Goulburn-Murray Water from 1 July 1994 to 30 June 2005. Denis is a former Deputy Commissioner of the Murray-Darling Basin Commission. He is an experienced water industry civil engineer with expertise in management and organisational leadership.

11 GOVERNANCE

OUR GOVERNANCE The Board sought to review its risk The Chairperson, Don Cummins, PRACTICES management processes and at year-end completed the Australian Institute of significant progress had been made in Company Directors (AICD) course and The Board aims to continuously improve developing a whole-of-business risk arrangements are in place for Director its governance practices and strives to management framework. A key objective attendance at a similar AICD course in achieve high levels of transparency, of this work is to provide an overall 2005/06. Four members of the Board trust and stewardship. context for and linkage between risk now have AICD qualifications. To ensure its effectiveness is management practices within To further develop their knowledge scrutinised, the Board undertook a Goulburn-Murray Water. This work will of the legislation governing review of its performance as a group, as be further developed and implemented Goulburn-Murray Water, Directors and well as the performance of individual during 2005/06. senior management participated in a Directors (which included feedback from The management of capital projects governance seminar conducted by Directors on the performance of the was seen as a governance priority. Professor Sandford Clark, which Chairperson). A report on both reviews The Board addressed a number of highlighted their responsibilities under was provided to the Minister for Water issues in this regard via its Financial the Water Act 1989, the Murray-Darling in June 2005. and Management Audit Committee. Basin Act 1993 and associated In March 2005 the Board approved legislation. Customer involvement is a fundamental a consultancy to prepare model part of Goulburn-Murray Water’s The Public Administration Act 2004 guidelines for the management of decision-making processes. The Board came into effect in December 2004 capital projects. The Board will adopt established two new committees, the and while it does not directly apply revised management procedures for the Tungamah Pipeline Project Reference to Goulburn-Murray Water, the Board control of capital projects in 2005/06. Committee and the Broken System decided to adopt and apply the conflict Reliability Reference Committee, to The Board’s Financial and Management of interest principles contained in this provide customer and community input Audit Committee investigated Act, which provides a high standard of to the Tungamah Pipeline Project and procedures that will safeguard the governance. the Mokoan Return to Wetlands project. integrity of water trading dealings by Directors and employees. A management policy and procedure was developed and adopted.

Board Meetings Financial and Remuneration Safety and Environment Management Audit Committee Meetings Committee Meetings Director Committee Meetings Held Attended Held Attended Held Attended Held Attended Don Cummins 12 12 - - 4 4 - - John Pettigrew 12 12 - - - - 3 3 John Brooke 12 12 5 5 - - - - Craig Cook 12 10 5 5 - - - - Peter Fitzgerald 12 11 - - 4 4 3 2 Des Powell 12 12 5 4 - - - - Jean Sutherland 12 12 - - 4 4 3 2 Marie Tehan* 3 1 - - - - 1 1 Denis Flett 12 12 - - - - 3 1

*Marie Tehan passed away on 31 October 2004

12 ECONOMIC SUSTAINABILITY

WE WILL SET PRICES WHICH REFLECT THE COST OF EFFICIENT SERVICE PROVISION AND ENSURE LONG TERM BUSINESS VIABILITY

13 ECONOMIC SUSTAINABILITY

TRADING RESULT TRADING RESULT AS In the current year there is no corresponding revenue item although Goulburn-Murray Water recorded a PER AUSTRALIAN ACCOUNTING the program expenditure funded from $1.4 million profit for the year, based the grants has commenced. on its current pricing policy of renewals STANDARDS The attached financial statements, annuity based accounting. Our current pricing policy requires the prepared in accordance with Australian Continuing drought conditions, collection and setting aside of adequate Accounting Standards, indicate an including water right-only allocations on funding to maintain the condition of the operating loss of $11.4 million in both the Goulburn and Murray systems, required infrastructure, mainly storages, 2004/05. This was in part affected by and a 39% allocation on the Campaspe channels and drains, using the renewals the need to accelerate the depreciation system, also affected the trading result. annuity approach. of the assets comprising Mokoan Dam Offsetting this is a $2.1 million grant The financial statements are prepared in in recognition of its reduced remaining received from Federal Government funds accordance with Australian Accounting life following the government decision for construction of drains, for which the Standards, which require that asset to decommission the dam. This expenditure is recorded as capital, consumption be measured using increased depreciation expense by rather than a matching expense. conventional depreciation charges $3.4 million. based on replacement costs and Tariff changes were implemented A comparison of trading results for expected asset lives. during 2004/05 to change the last six years, based on financial Goulburn-Murray Water’s reliance on This approach means that in an average statements prepared in accordance consumptive charges and to ensure year Goulburn-Murray Water maintains with Australian Accounting Standards, fixed costs are more directly covered by commercial viability, whilst showing a is shown below. fixed rate charges. Overall water rate loss in the financial statements. and consumptive charges increased by FINANCIAL RESULTS The operating result shown in the approximately 8%, but the emphasis on attached financial statements prepared consumptive charges is reduced. Year Result in accordance with Australian Accounting Standards is reconciled with 2004/05 $11.4m loss the current pricing policy based 2003/04 $2.1m profit renewals profit of $1.4 million in the table below. 2002/03 $21.6m loss The comparison of results from the 2001/02 $7.5m loss previous year highlights the impact of 2000/01 $19.5m loss $10 million in grants received from government in the prior year. 1999/00 $26.3m loss

2004/05 2003/04 $’000 $’000 Footnotes: Profit/(loss) for the year in financial 1. Adjusted for items expensed as per statements, prepared in accordance Australian Accounting Standards but with Australian Accounting Standards (11,410) 2,086 funded from annuities Add back depreciation 30,806 26,991 2. The following key assumptions have 1,2 been used in determining the renewals Deduct renewals annuity (17,959) (19,664 ) annuity charge: Profit/(loss) for the year • annuity period: after renewals annuity 1,437 9,413 Storages - 100 years, Bulk carriers - 100 years, Deduct unearned grant 0 (10,000 ) Distribution assets - 20-50 years Renewals profit/(loss) for the year • interest rate 4.0% (real) after deductions 1,437 (587) • future inflation not required as real interest rate is assumed • assets include storages, bulk carriers and distribution assets 14 ECONOMIC SUSTAINABILITY

PLANNING FOR ENSURING There was significant consultation with FUTURE CAPITAL SUSTAINABLE PRICING stakeholders in developing the review options. WORKS A major review of Goulburn-Murray Water will be required Goulburn-Murray Water’s pricing At its March 2005 meeting, the Board to finance an increasing capital works policies was undertaken this year by accepted the key recommendations of program into the future. Works to independent consultants Frontier the Frontier Economics review and improve major dams in line with modern Economics. The key outcome of the established a committee comprising standards will continue and works to review was to discontinue the use of Goulburn-Murray Water Directors, refurbish channels and structures will renewals annuities to fund asset external experts and officers from increase significantly in the future. refurbishment and replacement, and Goulburn-Murray Water and the This will increase our borrowing adopt a Return on Regulatory Asset Department of Sustainability and requirements, over and above any Base (RAB) approach. Environment to see the review cash shortfall already created by the implemented. The RAB approach is based on drought. Where a service incurs major recovering the cost of asset Proposed changes to pricing policies capital works, the repayment of any infrastructure works after the works were then presented to a number of resultant borrowings are included in have been completed, rather than public forums and were also a key topic prices negotiated with that customer making provision for future works via for discussion and debate at the annual group. a renewals annuity approach. This Water Services Committee Workshop in In 2003/04 Goulburn-Murray Water approach will deliver a more stable and June 2005. arranged for an overdraft and borrowing predictable price path in the long run in This is a major strategic direction by facility with the Victorian Government services with high reliance on the retail the Board and one that provides greater and has taken a $15 million loan over distribution system, and will provide a incentive for efficiency and regulatory 20 years from Treasury Corporation stronger connection between the actual effectiveness, although it is still subject Victoria. level of efficient investment and prices. to acceptance by the Essential Services The review, which was widely publicised, Commission as they become more was monitored by a steering committee involved with pricing in the future. It is headed by Neil Lowe, a former expected that, once accepted, pricing Managing Director of Tatura Milk under the RAB approach will commence Industries and current Chairman of the from 2006/07. Melbourne Market Authority.

Revenue by source $’000

Rates - water and drainage 53.4% 59,201 Other external clients 14.9% 16,412 Consumptive charges 13.2% 14,650 Victorian Government service fee 8.0% 8,836 Sale of bulk water 5.1% 5,646 Other revenue 4.5% 5,004 Interest and sale of fixed assets 0.9% 1,012

Total 100.0% 110,761

15 ECONOMIC SUSTAINABILITY

Total expenditure by resource $’000

Contracts and private plant hire 44.2% 79,793 Labour and related costs 21.3% 38,374 Depreciation 17.1% 30,806 Other 9.8% 17,623 Materials 5.0% 9,098 Electricity and fuel 1.9% 3,502 Finance charges 0.7% 1,191

Total 100.0% 180,387

Capital expenditure by type $’000

Dam improvement works 44.9% 26,132 Asset refurbishment 27.3% 15,903 Total Channel Control 14.1% 8,216 Other capital 6.6% 3,832 New drainage works 5.8% 3,397 New pipelines 1.3% 737

Total 100.0% 58,216

Operating expenditure by activity $’000

Operations 45.7% 55,797 Depreciation of fixed assets 25.2% 30,806 Maintenance 16.4% 19,999 Management and administration 8.3% 10,172 Written down value of disposed assets 3.1% 3,821 Finance charges and payment to consolidated fund 1.3% 1,576

Total 100.0% 122,171

16 ECONOMIC SUSTAINABILITY

DAM IMPROVEMENT IMPROVING AND WORKS AT EILDON SECURING ALL OUR TO SECURE OUR DAMS FOR FUTURE MAJOR ASSET GENERATIONS The water stored by Eildon Dam is the Improving the performance and lifeblood of the Goulburn Valley. reliability of our dams is essential to The dam is now 50 years old and a ensure the ongoing provision of water major project has been undertaken to for our customers. We undertook a significantly improve its safety. The targeted program of essential works were designed and constructed maintenance and minor upgrading works by the ‘Eildon Alliance’ consisting of throughout the year. Goulburn-Murray Water, John Holland, This program included detailed scrutiny Hazell Bros and GHD. and assessment of our dams by our own The Minister for Water, the Hon. John and external specialists in all aspects of Thwaites, announced the second stage dams management, including civil, BULK WATER SERVICES of the $52.5 million project at a electrical and mechanical engineers. EXPENDITURE ceremony on site in February 2005. Our small team of in-house technical resources was supported by a range of The project is now nearing completion engineering consultants, competitively and all indications are that the outcome 14 % bidding for all projects, and over 86% will be an outstanding success. A very Internal of Bulk Water Services’ total program good safety record has been achieved, Labour expenditure for the year was sourced costs are under budget and the work is externally by competitive processes. ahead of the agreed completion date. In addition, a significant feature of the We managed our dam asset program project has been the excellent using a risk reduction strategy in 86% relationships developed between the accordance with national and Other Eildon Alliance and the local international guidelines, where communities. resources are targeted at the highest priority risks to ensure appropriate levels of service and safety are maintained.

WE WILL EFFECTIVELY OPERATE AND MANAGE THE ASSETS ESSENTIAL FOR THE DELIVERY OF SERVICE

17 ECONOMIC SUSTAINABILITY

PROTECTING THE MAXIMISING THE • In order to improve community safety SECURITY OF OUR EFFICIENCY OF OUR and public amenity and to facilitate ASSETS WATER DISTRIBUTION regional development opportunities, ASSETS an agreement was reached to proceed Goulburn-Murray Water’s assets are with the removal of the Murray Valley the foundation of our business and To ensure the continued efficiency of No. 1 Channel from the centre of protecting them is a key focus. This our distribution network of channels, the Cobram township. This project year we completed critical infrastructure pipelines and drains, we undertook a will be jointly funded by the security assessments for our storages, wide range of projects. government, the Moira Shire and and security measures are in place Goulburn-Murray Water and will • The Waranga Western Channel where required. commence in 2005/06. Capacity Upgrade Project, jointly Roger Vreugdenhil, Manager Dam funded by the Victorian Government, • The Normanville domestic and stock Safety, represents Goulburn-Murray Water, the Loddon pipeline scheme, which has now been Goulburn-Murray Water as Deputy Shire and private developers, was operational for over a year, was a Chair of the water sector group of the completed below budget. The project finalist in the 2004 Premier’s Industry Assurance Advisory Group. was delivered at a cost of Business Sustainability Awards. This is a forum where water supply $6.1 million against a budget of • Replacement of the 80-year-old asset owners share information $7.2 million. regarding security threats and control Cohuna Weir commenced this year. • Government support was secured for measures, and develop risk based The project will replace a deteriorated pipelining the Tungamah domestic methodologies for protecting their timber structure, which is critical for and stock scheme. This project will assets. regulating flows in the Torrumbarry save water by converting open System, with a modern automated We conducted two internal dam safety channels and dams to pipelines and structure. The project has received emergency exercises in 2004/05 for tanks. The detailed design was wide community support and will Eildon Dam, Goulburn Weir and completed during the year, with improve amenity access in the centre Waranga Basin. These exercises included construction to commence in of the Cohuna township. scenarios affecting security of these 2005/06. storages, as well as earthquake, • Aquamark is an asset management overtopping and mechanical failure benchmarking framework developed scenarios. by the Water Services Association of Australia. This year we participated Pictured at the Tungamah pipeline for the first time in a program which announcement are (from left): enables our asset management Hon. John Thwaites MP; Don Cummins, practices to be compared with urban Tatura Emergency Coordination Centre G-MW Chairperson; Colin Campbell, and regional water authorities in during a dam safety emergency exercise, Chair of the former Casey’s Weir and Australia, New Zealand, the UK and including simulating security incidents for Major Creek Rural Water Authority; the USA. Our aim is to identify Eildon Dam, Goulburn Weir and Waranga Robert Mitchell MP; and Rod Squires, priority areas for improvement in our Basin, December 2004 Chair of the Tungamah WSC asset management practices.

18 ECONOMIC SUSTAINABILITY

Minister Thwaites launches the Pyramid-Boort Future Management Strategy

TOTAL CHANNEL Two models of the flume gate have been PROMOTING CONTROL tested rigorously at the ‘Know the Flow’ REGIONAL laboratory at Manly Hydraulics DEVELOPMENT The pilot of new channel regulation Laboratory in NSW. These tests ™ technology, Total Channel Control in simulated field conditions with cross Goulburn-Murray Water began the Murchison-Toolamba district flow velocity passing the gates. Results developing a future management concluded this year after a two-year were within +/- 2% of the calibrated strategy for the Pyramid-Boort study. The study findings identified meter being compared. Field testing on irrigation area. This aims to create a benefits in water efficiency, the the Central Goulburn No. 2 Channel sustainable vision for the future of detection of loss from supply channels, (CG2) has produced results that are irrigation in the Pyramid-Boort area service delivery to customers due to within the field test guidelines. and to create confidence and certainty. more constant water levels and The Minister for Water, the Hon. John Based on the overall success of the improved service delivery to customers Thwaites, formally launched the CG2 Pilot, Goulburn-Murray Water, with through decreased notice of strategy at Durham Ox in March 2005. funding from the State Government, is requirement for water deliveries. TM The strategy is being developed by the installing Total Channel Control on all community and will generate local We worked closely with our customers regulating structures across the CG1, solutions for local issues with strong throughout the trial to resolve issues CG3 and CG4 channel systems running links to the government’s White Paper that arose during the process. The most through the Murchison, Toolamba and on water reform, Our Water Our Future. significant issue identified concerned Ardmona districts. This will extend the the accuracy of volumetric measurement knowledge of water control on larger, We also worked closely with the Shire and restricted flow rates to farms. more complex channel networks and of Strathbogie, providing input to the In response to these concerns a identify the water efficiency gains development of water supply options program has commenced which will possible. for the Shire’s exciting new Mangalore upgrade all supply points to customers Special Use Precinct proposal. within the pilot study area.

19 20 SOCIAL SUSTAINABILITY

WE WILL DELIVER WATER RELATED SERVICES TO AGREED STANDARDS TO CUSTOMERS AND COMMUNITIES IN NORTHERN VICTORIA

21 SOCIAL SUSTAINABILITY

CONTINUOUSLY SEEKING FEEDBACK PROVIDING OUR IMPROVING OUR SO WE CAN RESPOND CUSTOMERS WITH SERVICE TO TO CUSTOMER NEEDS FLEXIBLE PAYMENT CUSTOMERS OPTIONS This year we surveyed 20% of our Our business services a wide range of gravity irrigation and diversion This year, in response to customer customers across northern Victoria. customers to gauge how well we were demand, we introduced credit card The diversity of their needs means we serving our customers. Over 80% of payment facilities for customers paying must strive to continuously improve our those surveyed rated our service as very fixed and consumptive accounts, using customer service standards. The table good or good. We will use this data to telephone-based Integrated Voice below details our range of customers. identify areas where we can improve our Recognition. In addition, customers customer service in the future. are now able to pay miscellaneous fees using EFTPoS facilities at our Tatura office. Service Serviced Very Good Good 31% 50% Properties MAKING IT EASIER FOR CUSTOMERS TO Gravity Irrigation CONTACT US and Drainage 13,854 Pumped Irrigation In response to a growing diversity in and Drainage 418 our customer base, we provide a free Domestic and Stock 998 translation service to our customers. Surface Water Diversions 9,769 This service offers translations in over Groundwater Diversions 2,943 100 languages. A three-way Flood Protection 119 conversation is established between the customer, one of our customer Other customers service representatives and a translator. Urban Water Authorities 4 Information about the availability of Very Urban/Rural Water Poor the service, translated into 11 different Authorities 2 1% Poor languages, was mailed to every customer. Rural Water Authorities 1 4% Fair Hydroelectric Companies 3 14 % Lessees and Licensees 852 Houseboat Licensees 708 TOTAL 29,662 MEETING OUR DELIVERY PERFORMANCE TARGETS

100% 95% 95% 95% 95% 93% 90% 90%

80%

70%

60%

50%

% + 1 day from Order Time 40% % – 1 day from Order Time 30% On day ordered Percentace of Deliveries Percentace % +/– 1 day from Order 20%

Time 10% % +/– 1 Day Target from 0% Order Time Shepparton Central Rochester- Pyramid-Boort Murray Valley Torrumbarry Goulburn-Murray Goulburn Campaspe Water Total

22 SOCIAL SUSTAINABILITY

2004/05 Temporary Transfer Water Entitlement IMPROVING OUR 350,000 RESPONSE TO 340,000 CUSTOMER 330,000 COMPLAINTS 310,000 To ensure we respond quickly and 300,000 effectively to customer complaints, 290,000 a central complaint register for 280,000 338,088 337,707

reporting and monitoring complaints ML Volume 270,000 286,418 was developed this year. This allows our customer service officers to record 260,000 2002/03 2003/04 2004/05 official complaints received and manage our response using a work flow system. Over the coming year the complaints 2004/05 Permanent Transfer Water Entitlement system will be further enhanced and 60,000 operated by customer service officers 50,000 right across our region. WATER TRADING 40,000 TRENDS 30,000

Water trading continued to be an ML Volume 20,000 important option, giving customers 51,335 44,302 choice and flexibility to respond to 10,000 19,697 drought and difficult on-farm financial 0 conditions. 2002/03 2003/04 2004/05 FACILITATING WATER TRADE BY Watermove Temporary Trade Volumes DEVELOPING MATURE 120,000 WATER MARKETS 98,283 100,000 89,928

80,000 63,541 Watermove is a water exchange 60,000 operated by Goulburn-Murray Water on Volume ML Volume behalf of the five Victorian rural water 40,000 27.2% 26.5% 29.1% authorities (three are rural and two are Market Share Market Share Market Share a hybrid of rural and regional 20,000 authorities). Watermove facilitates water 0 trading through its unique pool trading 2002/03 2003/04 2004/05 process, and offers a transparent and accessible method of trading water across water trading zones throughout Watermove Permanent Trade Volumes 1,200 south eastern Australia. 996 Over the past year, Watermove has 1,000 continued to provide a vital service in the development of a mature water 800 686 market and has achieved increased volumes and market share in the trade 600

of permanent and temporary water, ML Volume 400 as shown in the graphs to the right. 0.6% 2.2% Market Share Market Share 200 0 0 2002/03 2003/04 2004/05 23 SOCIAL SUSTAINABILITY

WATER SERVICES To ensure we provided maximum pricing policy, reconfiguring assets COMMITTEES opportunity for engagement between and implementing delivery shares. customer committees, Directors and Guest speakers included catchment Customer engagement is a key part of senior management, we held our annual management authority and Department our business. We have 12 peer-elected workshop at Bendigo in June 2005. of Sustainability and Environment water services committees and ten With a theme of Preparing for the representatives, who gave their catchment committees representing Future, over 100 stakeholders attended perspectives on future challenges customers in irrigation areas, surface to discuss issues, including for irrigation. and groundwater diversions, flood protection and water districts. In all, over 100 members represent customers on these committees. This means there is approximately one customer Water Services No. of Meetings Average committee representative for every 250 Committee Members Held Attendance customers. We recognise that customer participation in our business planning Shepparton Area 8 12 76% and decision making is essential if we Central Goulburn 9 12 81% are to meet the changing needs of rural Rochester-Campaspe 10 13 63% and regional communities. Pyramid-Boort 9 11 70% Murray Valley 8 12 90% To ensure customer involvement in Torrumbarry 9 13 70% major business decisions, customer Loddon Waterworks 8 2 75% committees participated in the Tungamah 6 10 88% development of our 2006/07- Loch Garry 5 4 95% 2007/08 Water Plan, developed Regional Groundwater 14 6 49% business plans for each of their Murray System (Diversions) 12 6 67% operational areas, contributed to Goulburn System (Diversions) 8 6 96% our pricing policy review and implementation of key White Paper TOTAL 106 107 71% reforms, and assisted in formulating our response to ongoing drought conditions.

ENGAGING STAKEHOLDERS IS ESSENTIAL TO OUR BUSINESS Paul Mundy and Jim McKeown from the Murray Valley Water Services Committee and G-MW's Kevin Preece discuss issues at the Bendigo Workshop 24 SOCIAL SUSTAINABILITY

BULK WATER AND MANAGING RECREATION COMMUNITY AND CUSTOMERS ENVIRONMENTAL In an effort to engage all stakeholders, INTERESTS AT OUR Goulburn-Murray Water also works LAKES ON THE closely with partners and stakeholders MURRAY of our bulk water business, including On behalf of the Murray-Darling We also commenced a similar process other water authorities, hydroelectric Basin Commission, we manage Lake around Lake Hume, which included power companies, recreational and Mulwala for water supply, working with the local indigenous tourism customers and community environmental, recreational and tourism communities on cultural heritage issues. representatives around our storages. needs. During the year, we completed More than 440 significant sites have In addition to our bulk water customer the Lake Mulwala Land and On-Water been identified in the area and we forum, where information is shared with Management Plan, which provides a continue to work closely with a number customer representatives, we regularly reference point for managing activities of organisations, including Bangerang convened and participated in more than on and around the lake. The plan seeks Cultural Centre Co-operative, 14 stakeholder and community to maximise benefits for community, Mungabareena Aboriginal Corporation, reference groups. These included visitors and the natural environment. the Dhudhuroa Traditional Owners community-based panels at Mansfield, This has provided a foundation for Group, the Albury and District Local Murrindindi Shire, Lake Eildon, Eildon future management at this important Aboriginal Land Council and the Dam Improvement Project, Nagambie, asset and enjoys strong community Wiradjuri Council of Elders. Lake Eppalock, Lake Mulwala and Lake support. Hume. The forums provided valuable opportunities to share ideas and listen to community issues, concerns and expectations so these can be considered and addressed in the way we undertake our activities as part of our broader role in water storage management.

25 SOCIAL SUSTAINABILITY

CREATING A BETTER DEVELOPING A MAKING OUR WORKPLACE SKILLED AND CAPABLE WORKPLACE SAFER At the end of the financial year we had WORKFORCE We are committed to ensuring the 604 full-time equivalent employees. We provide ongoing vocational training safety of our workforce. Our focus on This compared to 583 at the same time to ensure our employees are able to occupational health and safety, which last year. The actual number of meet the needs and expectations of our gained momentum last year, was employees was 624 compared to 601 customers and communities. We also intensified, especially in pursuit of last year. We increased our numbers to play a major role in training advisory SafetyMAP Initial Level accreditation. ensure we could fulfil the requirements bodies, nationally through the Water Following two audits, we achieved a for various government-funded projects Industry Education and Training recommendation for SafetyMAP and filled key positions that had Association of Australia and in Victoria accreditation. SafetyMAP is a remained vacant last year during through the Victorian Water Enterprise recognised occupational health and drought restrictions. Training Advisory Board. safety audit tool provided by the Victorian Work Cover Authority to The results of the People Matter Survey, Training increased to 2,177 individual measure an organisation’s health and conducted by the Office of Public days during the year, compared with safety performance. The Board Employment, showed that a majority of 2,000 in the previous year, partly due reaffirmed its commitment to survey respondents were satisfied with to increased training opportunities and SafetyMAP and maintained a Safety their employment conditions at the emphasis on occupational health and Environment Committee. Goulburn-Murray Water. The survey and safety courses. In addition, many indicated that employees were most operational employees completed A major challenge for the year was the positive about their ability to work on-the-job training. increase in the number of lost time using their own initiative, their injuries and in the severity rate of such relationships with colleagues and injuries. However, the long term trend their assigned work tasks. still indicates that our performance is improving.

Total Employees % men % women 2004/05 624 84 16 WE WILL STRIVE 2003/04 601 86 14 2002/03 603 87 13 FOR A DIVERSE, 2001/02 610 88 12 2000/01 598 90 10 CAPABLE AND 1999/00 592 89 11 FLEXIBLE WORKFORCE Lost Time Injury OF HEALTHY, Average Lost Time Rate Frequency Rate (average number of days (lost time injuries per SATISFIED EMPLOYEES lost per lost time injury) million hours worked) 2004/05 10.8 17.4 AND PROVIDE A 2003/04 10.1 14.5 2002/03 15.9 19.3 SAFE WORK 2001/02 20.2 18.1 2000/01 10.3 26.9 ENVIRONMENT 1999/00 9.3 33.2 26 SOCIAL SUSTAINABILITY

KEY INDICATORS FOR OCCUPATIONAL HEALTH AND SAFETY

2004/05 2003/04 Number of health and safety employee representative committees 14.0 12.0 Number of meetings of occupational health and safety committees held during the year 147.0 71.0 Number of lost time injuries for the year 17.0 14.0 Number of days lost to injuries incurred during the year 182.0 142.0 Lost Time Injury Frequency Rate (lost time injuries per million hours worked) 17.4 14.5 Average Lost Time Rate (average number of days lost per lost time injury) 10.8 10.1

MAJOR We focused on having a more representative training that resulted in OCCUPATIONAL coordinated approach to safety many managers and committee members HEALTH AND SAFETY throughout Goulburn-Murray Water, completing a five-day course. ACHIEVEMENTS and our Occupational Health and Safety Committees were given an increased In addition to improving procedures and This year there was a focus on hazard focus by senior management. The training, a program was implemented to and risk reporting and safe work occupational health and safety forum improve the safety of access on our procedures, through cooperation with meeting structure was reviewed to allow assets. Works included upgraded employees and their unions. Specific for senior management to become more walkways, handrails and gates. Major occupational health and safety clauses involved with key issues. improvements were made at our Loch were agreed with our employees and Our occupational health and safety Garry flood regulation structure and included in the Goulburn-Murray Water procedures were revised, approved and the Wanalta Creek floodway on the Enterprise Agreement, and employees distributed throughout the Waranga Western Channel. These submitted over 400 hazard organisation. Training of employees projects will significantly reduce the identification forms throughout in aspects of safety increased, with safety risks to employees working on the year. emphasis on management and these structures.

HIGHLIGHTING SAFETY DURING WORKSAFE WEEK Providing a safe working environment is a year-round commitment. In October 2004 our Occupational Health and Safety Committee conducted a week- long program of events to coincide with Victorian Work Safe Week and highlight the importance of safety in our workplace. Many of our employees attended seminars on a range of health and safety topics including chemical safety, driver safety, manual handling, fire safety and women's health. Laurie Floyd (left) and Garry Smith (right) with "Safety Man" (Graham Smith) at Safety Week 27 SOCIAL SUSTAINABILITY

Women’s Professional Development Group members

PROMOTING THE ROLE USING TECHNOLOGY • An Information Technology Strategic OF WOMEN IN OUR TO IMPROVE THE Plan for 2005/06 – 2007/08 was ORGANISATION WAY WE WORK approved to ensure the needs of the business are incorporated into future The Women’s Professional Development There was an increased focus this year technology planning. Group continued to promote the on planning in information technology, • Information technology experiences and achievements of our with a number of improvements infrastructure was upgraded at area female employees. The group was implemented to help improve and storage offices to ensure better productivity and comply with internal established in an effort to enhance the performance across all office and external reporting requirements. awareness and value of diversity, and to locations. increase the morale and retention of The following significant outcomes were female employees. achieved: • We added SPAM filtering capability to the anti-virus management system • We converted from dial-up to Three forums were held this year with to minimise the impact of junk emails broadband communications facilities an average attendance of 60 out of on our system. approximately 90 female employees. at many of our remote sites and The forums focused on self esteem, increased the bandwidth of our • There were continued enhancements assertiveness, prevention of bullying corporate internet connection to to the customer care and billing and harassment, presenting a ensure faster access to key system to allow for increased functionality to meet customer professional image, work/life balance information for all employees. needs. and women’s health issues, and included • Business continuity facilities were a combination of internal and external developed to improve our ability to • We implemented a capital project presenters. continue running our business in the reporting system to improve the way event of a disaster. capital expenditure is reported and managed.

28 SOCIAL SUSTAINABILITY

BUILDING • Department of Primary Industries - In addition, we have worked extensively COOPERATIVE DPI and Goulburn-Murray Water with local government, irrigation RELATIONSHIPS employees have pooled their industry groups, recreational groups, expertise in a range of areas, other rural and regional water Our service delivery activities and work including delivery of CMA programs authorities and various government sites are distributed across some and development of Our Water Our agencies to support the development 68,000 square kilometres of northern Future proposals. of regional economies and to deliver Victoria. In order to meet the diverse sustainable water management. needs of our customers and local • Murray-Darling Basin Commission - communities across this area, it is We have a strong relationship with WORKING WITH essential that we work in partnership the MDBC, both in our role as the OUR CATCHMENT with a large number of different Victorian Constructing Authority for PARTNERS organisations. the commission and contributing on TO CONTROL behalf of Victoria to a number of ARROWHEAD Some of the organisations we have MDBC coordination and planning actively worked with over the past year forums. This includes the River Arrowhead is a noxious aquatic weed to develop cooperative partnerships Murray Water Board, the that is spreading through the irrigation include: Commission’s Water Liaison system and poses a threat to natural waterways. In an effort to raise the • Catchment Management Committee, the Water Audit Working profile of Arrowhead issues across Authorities - We work closely with Group and the Interstate Trade the Murray Darling Basin, we hosted the North East, Goulburn Broken, project board. a symposium during the year for North Central and Mallee Catchment • Water Industry Organisations - interested stakeholders along the River Management Authorities (CMAs) We are an active member of a Murray. A plan for further action on to align our water management number of industry organisations, the control of Arrowhead was agreed activities with their respective offering our own knowledge and and will commence next year. Regional Catchment Management expertise, and learning from others. Strategies. In addition, we deliver These organisations include the a number of programs on behalf of Australian National Committee on CMAs, particularly relating to water Irrigation and Drainage (ANCID), quality and salinity management in the Australian National Committee the Goulburn Broken and North on Large Dams (ANCOLD) and the Central areas. peak body for Victorian water • Department of Sustainability and authorities, the Victorian Water Environment - Industry Association (VicWater). Goulburn-Murray Water employees have been heavily involved in a range of major issues flowing from the government’s White Paper on water WE WILL MAINTAIN reform, Our Water Our Future. This has required a strong partnership RELATIONSHIPS, with DSE Water Sector Group. We have also linked with regional BUILD PARTNERSHIPS employees, particularly in relation to the Mokoan Return to Wetlands AND INFLUENCE project. POLICY TO IMPROVE OUR BUSINESS AND SUPPORT SUSTAINABLE REGIONAL DEVELOPMENT 29 SOCIAL SUSTAINABILITY

PROVIDING TECHNICAL LEADERSHIP IN MANAGING DAMS We continued our active support and leadership of technical aspects of dams management through our involvement in a number of organisations, including ANCOLD and the dam safety committee of ICOLD. We also participated in the Victorian Water Industry Dams Working Group, the Institution of Engineers Australia and the Victorian State Critical Infrastructure Review Committee. Through our involvement in these and other technical and professional organisations we have the opportunity to exchange knowledge and experience with other dams owners through technical papers, conference presentations and development of national and international guidelines and standards in dams engineering. Storage operations employees inspecting Eildon Dam Improvement Project as part of the 2004 Annual G-MW Storages Operators' Conference

EDUCATING THE In conjunction with a regional NEXT GENERATION organising committee we organised ABOUT WATER a week-long water festival that CONSERVATION culminated in a Water Olympics, which was attended by over 500 primary This year we participated once again school students. Other activities in sponsoring a Water Festival in the included river and wetland walks, boat Goulburn Valley region to celebrate cruises, pantomime performances, film National Water Week. National Water nights, and poster, photography and Week aims to educate and inform the short story competitions. community about water conservation and the value of water. In particular, This year over 5,300 people it focuses on promoting a water participated in the events, an increase conservation message to school of over 2,000 on last year. Our students. participation in this annual event contributes to our goal to build community partnerships and provide education about the role of water in our region.

Primary school students at the 2004 Water Week Water Olympics learn about water efficiency by attempting to 30 transfer water over land SOCIAL SUSTAINABILITY

SUPPORTING LOCAL PLANNING FOR A WATER MONITORING COMMUNITIES SUSTAINABLE FUTURE PARTNERSHIPS In support of our local community, THROUGH RESEARCH To help provide a single coordinated Goulburn-Murray Water employees AND DEVELOPMENT water monitoring network for the region contributed a considerable amount of This year Goulburn-Murray Water and maintenance of a central database, their own time and effort in organising invested over $845,000 in partnership we participated in a cooperative the annual golf and bowls day to raise programs that focus on research and agreement in both the north-east and money for various charities. This highly development in the irrigation sector. We north-west regions with other successful event, held at Hill Top Golf also contributed over $530,000 to the catchment partners with an interest in and Country Club at Tatura, raised national Cooperative Research Centres monitoring water quantity and quality. over $15,000, which was distributed for Irrigation Futures, Catchment The aim is to provide consistent water to worthy recipients within Hydrology and Freshwater Ecology. measurement methods, improve Goulburn-Murray Water's region. These cooperative research centres accessibility to and use of data and The money is allocated to various allow us to benefit from projects achieve economies of scale through charity and community groups based addressing policy and planning, collective contracting. The new on submissions received. sustainability, technology and practice arrangements commenced on 1 March within the irrigation industry. At the 2005 and our data is now available to local level, we continued to work closely the public on the Victorian Water One of the recipients of this year’s with government departments to ensure Resources Data Warehouse Golf and Bowls Charity Day was the the continued success of the Irrigation (www.vicwaterdata.net). Lockington Primary School. This small Futures of the Goulburn Broken rural school in our Rochester-Campaspe Catchment project, which aims to Irrigation Area relies on fundraising to produce a vision for the future of finance worthy projects at the school. irrigation in our region.

31 32 ENVIRONMENTAL SUSTAINABILITY WE WILL MANAGE WATER RESOURCES ON A TOTAL WATER CYCLE BASIS TO MEET CONSUMPTIVE AND ENVIRONMENTAL WATER ENTITLEMENTS

33 ENVIRONMENTAL SUSTAINABILITY

DELIVERING WATER TO All systems except the Campaspe The absence of a supplement from the WHERE IT’S NEEDED received a final allocation of at least Loddon system resulted in minor 100%. The Campaspe system’s final rationing of supplies in the By the start of 2004/05, storage levels allocation was only 39%, as a result of Pyramid-Boort Irrigation Area at times, in most systems had recovered to some the severe drought in that catchment. despite the relatively low allocation of extent from the low levels at the end of Despite below average inflows, the end only 100% on the Goulburn system. the 2003/04 irrigation season. of 2004/05 saw all systems with more Goulburn-Murray Water worked with However, storage levels on the water in store than at the start of Grampians Wimmera Mallee Water and Campaspe and Loddon systems were 2004/05. In the case of the Campaspe Coliban Water to provide alternative at new record lows. system this was due to a decision to means of supply as a drought alleviation Opening allocations on 1 July 2004 reserve water to help maintain essential measure. were zero on all systems except the supplies in 2005/06 in the event of Murray and Broken. The opening of the continuing dry conditions. Relatively irrigation season was deferred one week low reserves on most systems at the beyond the normal opening date to take end of 2004/05 mean we will enter the advantage of favourable conditions to new season with a greater than normal reduce system water losses. By this risk of very low allocations. time, all systems except the Loddon and The graph below shows water deliveries Campaspe had received an allocation. in 2004/05 compared to the highest The Loddon allocation did not increase and lowest on record, and the 10-year from 0% until early September, and the rolling average from 1995/96. Further Campaspe received its first allocation in details are provided in Appendix B. mid September.

3000

1994/95 Highest on Record

2500

10 Year Rolling Average 200 1995/96 to 2004/05 2004/05 Water Right 1500

2002/03 Lowest on Record

1000 Seasonal Deliveries (GL)

500

0

1-Aug 31-Aug 30-Sept 31-Oct 30-Nov 31-Dec 30-Jan 1-Mar 1-Apr 1-May 1-Jun

Note: 1GL (gigalitre) = 1,000 ML (megalitres)

34 ENVIRONMENTAL SUSTAINABILITY

MEETING THE CLARIFYING AND MANAGING CHALLENGES OF SPECIFYING WATER STREAMFLOWS TO SEVERE DROUGHT ENTITLEMENTS ENSURE The continuation of the drought this In order to equitably share water ENVIRONMENTAL year meant that none of our major resources, the Minister for Water issued SUSTAINABILITY systems achieved a ‘sales’ allocation Goulburn-Murray Water’s bulk Continuing drought conditions meant (the water allocated only after sufficient entitlements for the Ovens and Broken we had to implement rostering, water has been reserved to enable an basins in January 2005. restrictions and bans on many allocation of 100% of water rights in Work on the Loddon Basin bulk unregulated streams. As in past years, the following season). Our Goulburn entitlements continued, with some this was necessary for managing supply and Loddon systems had their seventh proposals being modified in response to to water users equitably and for year in a row without sales, and the the current drought. The consultative providing water for the environment. Murray and Campaspe systems their project group completed the draft bulk third in a row. Conditions generally continued to be entitlement orders in June 2005. very dry in the west of our region, with We continued to keep customers and The Bullarook Creek bulk entitlement a quite serious situation evolving in the other stakeholders informed about our conversion process, environmental flow Campaspe catchment. Many of the response to drought, particularly study and system modelling tributaries in the Upper Loddon and regarding our efforts to maximise water commenced. The consultative project Campaspe/Coliban catchments ceased availability by controlling water losses group was set up to review the flowing for much of the year. Further more tightly and making more frequent environmental flow requirements and east, flows were generally better, except seasonal allocation announcements. determine the bulk entitlements in the for the upper Murray and a number of We increased our communication with latter part of 2005. streams in the north east, and there customers and stakeholders by were fewer restrictions or bans than last A preliminary study conducted as part providing fortnightly newsletters and year. Our experience in managing flows of the Department of Sustainability and allocation outlook charts, and by in recent drought years helped us to Environment’s Bushfire Program found participating in discussions with develop systems to improve our ability there could be some reduction in government agencies and other to respond to the needs of water users streamflows north of the Great Dividing stakeholders about managing water and the environment. Range as a result of forest regrowth systems with low water availability. following recent bushfires. However, the Three streamflow management plans With severely low Campaspe allocations impacts are not expected to be severe, were submitted to the Minister for and continuing dry conditions in other with only small decreases in yield Water for consideration; and the Upper areas, we made further changes in occurring after the year 2010. More Ovens River plan is yet to be system operation, ranging from detailed analysis is underway. progressed as management strategies restrictions on diversion from the lower for the whole year are to be considered. Campaspe River for extended periods of Our continued collaboration with time to re-routing water transfers via catchment partners, including stressed waterways to provide sufficient catchment management authorities and water quantity and quality to protect the Department of Sustainability and aquatic life. Environment, has enabled us to develop and implement improved flow For the first time we reserved water in management of unregulated streams. the Campaspe for the following season prior to the allocation reaching 100%. This was to assist the supply of essential needs in 2005/06 should dry conditions continue.

35 ENVIRONMENTAL SUSTAINABILITY

DELIVERING WATER FOR UNREGULATED Our Water Our Future Actions Goulburn-Murray Water STREAM AND GROUNDWATER Introduce Statewide Management Goulburn-Murray Water employees CUSTOMERS Rules for unregulated streams participated in a working group to develop management rules. Increased operational High demand for water and low recharge funding has been included in 2005/06 this year increased community interest budgets to cover increased compliance in groundwater and led to an increasing and monitoring (Phase 1 of Statewide need for Goulburn-Murray Water to Management Rules). Further funds are carry out rigorous assessments of included in 2006/07-2007/08 Water Plan licence applications and improve for Phase 2 implementation. assessments of groundwater resource. In pursuing improved performance in Regional Sustainable Water Strategy Goulburn-Murray Water is participating in the management of groundwater and development of the Northern Sustainable unregulated diversions services, we Water Strategy, through membership of the participated in statewide policy Northern Water Forum and a working group development for the management of DSE/CMA/Goulburn-Murray Water of unregulated streams to ensure employees established by the forum. consistency. We also made significant progress in developing a new Metering of all significant use for A program and budget has been developed Groundwater Management Plan for the stream and groundwater diversions for metering requirements. Costs are Katunga Water Supply Protection Area included in 2005/06 prices and Water Plan. and in implementing the existing A project team has been established to Katunga, Campaspe Deep Lead and implement the project. Spring Hill Groundwater Management Plans. Decommission Lake Mokoan Lake Mokoan – Return to Wetlands (Water Savings) Goulburn-Murray Water has appointed a We also began developing a Program Director to oversee the complex methodology for managing suite of activities required to enable the groundwater/stream interaction return of Lake Mokoan to a wetland system. in upper catchment areas. A range of technical studies were initiated OUR WATER OUR to develop offset measures and reliability FUTURE targets. A water user committee was also formed to provide input to the development The Victorian Government’s Our Water of reliability package proposals. Our Future, released in June 2004, included a range of important Tungamah Pipeline Project initiatives directly relevant to A project to pipeline the Tungamah system Goulburn-Murray Water. During the was approved. Detailed design was year, we undertook extensive work in substantially completed and planning partnership with the Department of approvals are in progress. Construction is Sustainability and Environment, the planned to commence late in 2005. Department of Primary Industries and catchment management authorities, Total Channel Control ProjectTM This $18 million government-funded project aimed at delivering against these (Water Savings) to automate a major channel system to initiatives. The major areas of activity achieve water savings was initiated during are summarised in the table to the right: the year. Installation works were undertaken during the winter maintenance period, and new automatic regulators will go into service for the 2005/06 irrigation season.

36 ENVIRONMENTAL SUSTAINABILITY

ENVIRONMENT POLICY Our Water Our Future Actions Goulburn-Murray Water The environment is one of our highest Establishment of Statewide We have put in place a project team to priorities and ensuring that environmental Entitlement Register develop processes and prepare data and impacts are minimised is a key objective of systems for implementation of new our environment policy. This year we registers. reviewed and improved this policy. Significantly, the new policy includes: Goulburn-Murray Water provided significant assistance in the development • The use of Regional Catchment of a user specification for the new Strategy Resource Condition Targets statewide register. as the basis for our environmental targets Unbundling of water entitlements Delivery Shares • A commitment to publicly report our Goulburn-Murray Water has led the progress towards implementing development of proposals for the environment policy implementation of delivery shares. These will form the basis for recovering the fixed • A commitment to work with cost of distribution infrastructure and catchment partners to ensure the managing future access to services. practices of customers enhance our Extensive consultation with Water Services environmental performance Committees has been undertaken and exit MONITORING fees proposals have also been developed. ENVIRONMENTAL MANAGEMENT Water Use Licences We have contributed to the development PERFORMANCE of proposals for water use licences. An audit and review of our environmental Proposals for day one conversion management system (EMS) against our standards for gravity irrigation have been adopted standard, ISO 14001, was carried developed in consultation with ourselves out this year. The auditor reported that, and catchment management authorities. while there were some valuable elements and some good environmental Sales package We played a key role in a working group management not captured in the EMS, for developing detailed proposals for there were still challenges we needed to establishing new separate sales address. entitlement. The three-year redevelopment of Reconfiguration of supply systems We provided leadership in developing the EMS commenced in October 2004. proposals to enable reconfiguration of This project will redesign and implement delivery systems. We consulted widely a system that will both meet our needs with our customers on these proposals. and be compliant with ISO14001. A project framework has been endorsed We expect the new system to be by the Board to guide reconfiguration completed by the end of October 2007. effort across Goulburn-Murray Water (and delivery of water savings from works). A reconfiguration plan is currently under development for the Pyramid-Boort Area.

Recreation and water storages A position of Manager Water Storage Amenity has been created to provide an increased focus on recreation use needs around water storages and to develop management plans to deliver sustainable recreation services that meet community needs. 37 ENVIRONMENTAL SUSTAINABILITY

EFFECTIVE IMPROVING OUR MANAGEMENT OF UNDERSTANDING OF ENVIRONMENTAL STORAGE ACTIVITIES INCIDENTS AFFECTING WATER Managing environmental emergencies QUALITY is a vital part of our environmental The Major Storages Water Quality The models provide useful insights into management and an integral part of Study project was further developed water quality drivers and processes our Environmental Management System. this year. The project aims to review operating in large storages. The project For the first time since the inauguration risks to water quality and develop a included installation of a lake diagnostic of our corporate environmental framework for managing activities on system at Lake Eildon, which provides emergency management plan in 1999, and around water storages to control continuous measurement of the water there have been no environmental these risks in the future. Catchment column temperature profile emergencies in the year. models for two case study catchments (stratification) and meteorological (Goulburn upstream of Goulburn Weir parameters. The Corporate Environmental and Tullaroop Reservoir) were Emergency Control Organisation is an completed. These models are based on alternative management structure that the CRC for Catchment Hydrology’s is only activated when an environmental EMSS model. emergency is declared. It is maintained in a ready state by replacing departing In collaboration with the Centre for employees and training new and existing Water Research at the University of members. During 2004/05, six people Western Australia, a model of Lake were replaced and 15 new members Eildon has been developed. A similar nominated to improve geographic model will be running for Tullaroop representation and cater for the Reservoir early in 2005/06. expanded Environmental Duty Officer role under the new EMS.

IT’S A DIRTY JOB, BUT SOMEONE’S GOT TO DO IT A team of dedicated employees joined Although many of the items found were forces with employees from Goulburn to be expected – most of the rubbish Valley Water and the Goulburn Broken found comprised bottles, junk food CMA to get their hands dirty for a good wrappers, plastic bags and the like – the cause –Clean Up Australia Day. They exercise unearthed quite a few unusual donned their hats, sturdy clothes and ‘treasures’ as well. Some found various sunscreen, took as much water as their car parts, including a car door, and one hands could hold and braved the 38o participant could be seen walking the heat to clean up sections of the river bank with a discarded supermarket Goulburn River in Shepparton. trolley. But, the prize arguably went to he who uncovered an old fridge door! In just one afternoon, the group collected about 40 large bags of It was a hot and dusty day for a clean- rubbish from three separate locations. up, but it was also a very rewarding It was an excellent exercise in exercise for everyone involved. demonstrating just how much waste Hopefully, it also served as an example there is in and around our rivers, and for our communities of the importance highlights the need for communities to of protecting our rivers’ health and our be aware of what happens to the water supplies. rubbish they leave behind. 38 ENVIRONMENTAL SUSTAINABILITY

WE WILL ENHANCE THE ENVIRONMENT AND MINIMISE THE IMPACT OF OUR ACTIVITIES

PROTECTING WATER Victorian Greenhouse Strategy assessment to determine an appropriate QUALITY We prepared a draft of a Greenhouse flow regime to protect fish populations Gas Strategy this year. A greenhouse and improve ecological health. Regional Catchment Management gas budget is also being prepared to Protecting the biodiversity of our Strategies guide emission abatement activities and catchments We continued to refine and implement set targets for the organisation. regional catchment strategies with the We are progressively developing, North East, Goulburn Broken and North Safe drinking water risk management implementing and reviewing water Central CMAs. Activities included plans quality and biodiversity management research into sub-surface drainage in In response to Safe Drinking Water Act plans for key storages such as Lake the Shepparton irrigation region and 2003 requirements for supplying water Eildon, Waranga Basin and Lake the implementation of surface drainage to regional urban water authorities, we Eppalock. Based on the prioritised risks, programs and plans for managing drain prepared a series of risk management an action plan has been developed water quality. plans. They identify and assess existing identifying tasks, timelines and activities that pose risks to drinking responsibilities. Foreshore rehabilitation Victorian River Health Strategy water supplies, and identify existing or programs, including fencing and We contributed to the Victorian Water potential measures to manage them. revegetation, erosion control, weeds Quality Monitoring network and Implementing the plans will require and pest animal control projects, are participated with regional stakeholders substantial coordination, most likely currently underway at several storages, in the north-east and north-west region under the umbrella of the CMA regional including Mokoan, Nagambie, Hume and in an effort to protect river health in catchment strategies. All risk Eppalock. our region. We also worked with management plans are due to be in Protecting the passage of native fish catchment management authorities to place from 1 July 2005. construct fishways and deliver projects In order to protect the migration and associated with the Living Murray Lower Broken Creek Waterway breeding habits of Murray Cod in the Program. By monitoring the thermal Management Strategy Broken River and Broken Creek, we pollution impacts of water released from We worked with catchment partners, led installed a fishway on Casey’s Weir and our storages, and improving our by the Goulburn Broken CMA, to review have automated some of the existing understanding of the effects of our the 1998 Broken Creek strategy and to fishways on the Broken Creek Weirs. activities on downstream aquatic health, develop a new strategy to protect The fishways, constructed and operated we hope to improve the environmental environmental and community values for in conjunction with Goulburn Broken health of key wetlands in our region the creek. A key outcome was the CMA, will allow the unrestricted passage into the future. commitment to undertake an of fish along these waterways.

39 ENVIRONMENTAL SUSTAINABILITY

IMPROVING DELIVERING SALINITY Providing drainage for sustainable RECREATIONAL BENEFITS FOR THE irrigation FACILITIES TO CATCHMENT The Surface Water Management Program continued to progress well. PROTECT THE Pyramid Creek Salt Interception ENVIRONMENT This year we completed Muckatah Scheme Drain 3 and Stage 3 of the Muckatah We manage a large network of sewerage Stage one of this $13 million Depression Drain. Overall, we and other works around Lake Eppalock Murray-Darling Basin Commission salt constructed 17 kilometres of drains that to support the local recreation industry. interception scheme was completed and service over 7,900 hectares of land. Many of these assets date back to the commissioned this year. The scheme is Completed primary drainage systems 1960s and we have invested over the first of its kind to incorporate now directly service 19,000 square $600,000 to bring them up to modern commercial salt harvesting in the design kilometres and indirectly service standards to improve service levels and and construction of infrastructure, in 74,000 hectares of the Shepparton protect the environment. addition to delivering River Murray irrigation region. salinity benefits. A private partnership arrangement with Pyramid Salt Pty Ltd We also obtained planning approvals for will see 400 hectares of lined Murray Valley Drain 11 and Mosquito evaporation and crystallisation basins Drain, both of which are expected to completed and up to 30,000 tonnes begin early in 2005/06. of salt harvested each year once fully This year, we also began implementing operational in the coming years. the Memorandum of Understanding for Barr Creek Salt Interception Scheme Irrigation Drainage and Water Quality, During the year we undertook an signed last year. This included the extensive review of this scheme’s development of management plans for performance over the preceding five the Stanhope Depression Drain, and a years on behalf of the Murray-Darling ‘decision support system’ trial at Broken Basin Commission. The review showed Creek based upon ecological risk that the scheme is continuing to deliver assessment principles. This system will significant River Murray salinity benefits be used in 2005/06 to set targets for and that operational efficiency is up by irrigation drainage water quality and 38% from 1999/00 to 2003/04. This management action in the North is despite ongoing drought and reduced Central and Goulburn Broken drainage flows putting pressure on the Catchment Management Authority disposal capacity of the Tutchewop regions. basins.

40 GENERAL INFORMATION

CONSULTANCIES MERIT, EQUITY AND Consultants were engaged by PRIVACY Goulburn-Murray Water during Goulburn-Murray Water is committed 2004/05 to assist with: to the principles of the Public Administration Act 2004. • The provision of expert analysis and advice to facilitate decision-making The recruitment process of position • Specific one-off tasks or sets advertising and employee selection of tasks follows policies based on the State • The provision of skills not currently Government’s merit and equity available within the organisation principles. During the year, 100 internal and 82 external applicants filled 182 Consultants engaged at a total contract positions within the organisation. cost of $100,000 or more: In addition, Goulburn-Murray Water Consultant: RMCG provided employment for five Project: Future management strategy to engineering and science vacation facilitate the restructure of irrigation in students. the Pyramid-Boort area FREEDOM OF All employee grievances and complaints Contract Total: $327,000 INFORMATION were handled internally. Remaining Commitment: $236,000 Goulburn-Murray Water received two A small working group continued to Consultant: Frontier Economics applications under the Freedom of review the Bullying and Harassment Project: Pricing policy review Information Act 1982. The information Prevention guidelines, which will now Contract Total: $227,000 requested in one application was be published and implemented with Remaining Commitment: Nil refused; the other application was training in the first half of next year. received in mid June 2005 and had not Consultants engaged at a contract cost Further steps were taken to improve been finalised at year end. of less than $100,000 numbered eight procedures to ensure that all and were paid $101,236 in total. Applications for access to information transactions and record-keeping under the Freedom of Information Act complies with the Information 1982 must be made in writing and Privacy Act 2000. should addressed to: The Corporate Secretary Goulburn-Murray Water CAPITAL PROJECTS OVER $5 M - TREASURY APPROVAL 40 Casey Street Tatura Vic 3616 Project DTF Project Progress at Evaluation Approved 30 June 2005 Under section 17 of the Freedom of Information Act 1982 a request for Eildon dam safety • • Substantially access to information must be upgrade completed accompanied by an application fee Total Channel Control • • Approximately (which may be waived or reduced if ™ system (CG 1,3,4) 50% complete payment of the fee would cause Tungamah pipeline • • Detailed design hardship to the applicant). As of July nearing completion, 2005 the application fee is $21.00. construction not commenced INDUSTRIAL RELATIONS *Cairn Curran dam improvement upgrade was planned to commence in 2004/05, but was deferred to 2005/06 Enterprise bargaining for the Goulburn-Murray Water Enterprise Agreement concluded in October 2004. Despite some challenges associated with work bans and other industrial action, no time was lost to strikes and the Enterprise Agreement was certified in the Australian Industrial Relations Commission in January 2005. 41 GENERAL INFORMATION

NATIONAL AUDITORS Sector and to provide a framework for the investigation of these matters. COMPETITION POLICY Internal: AFS & Associates Pty Ltd We comply with Victorian Government External: Victorian Auditor-General The protected disclosure coordinator policies and timeframes for National for the Department of Sustainability OMBUDSMAN and Environment (DSE) acts as an Competition Policy, including (VICTORIA) LIMITED competitive neutrality, as requirements agent for Goulburn-Murray Water are developed. We are a member of the Energy and to receive disclosures under the Act, Water Ombudsman (Victoria) Limited and applies DSE procedures in INFORMATION scheme, which provides an independent managing disclosures. AVAILABLE third party conciliation role for Disclosures of improper conduct The accountable officer will, on request, customers of electricity, gas and water by Goulburn-Murray Water or its provide information listed under services in Victoria. employees may be made to the FRD 22 Statement of Availability of In 2004/05 the Ombudsman referred following: Other Information in the Financial 38 enquiries to Goulburn-Murray Water. Management Act 1994. Deidre Egan Of these enquiries, eight were Level 1 Protected Disclosure Coordinator VALUE OF COMMUNITY complaints (previously referred to as Department of Sustainability and SERVICE OBLIGATIONS consultations) and one was a Level 2 Environment complaint (previously referred to as PO Box 500, East Melbourne Vic 3002 During 2004/05 we granted complaints). No Level 3 complaints Telephone: 9637 8575 $52,720.95 in pensioner concessions, (previously referred to as disputes) Facsimile: 9637 8129 compared to $37,171.38 in the previous were referred. Email: [email protected] year. WHISTLEBLOWERS BUILDING ACT PROTECTION ACT The Ombudsman Victoria Level 22, 459 Collins Street, Goulburn-Murray Water observes The Whistleblowers Protection Act 2001 Melbourne Vic 3000 statutory requirements set down came into effect on 1 January 2002. Telephone: 9613 6222 by the Building Act 1993 and the The Act is designed to protect persons Toll free: 1800 806 314 accompanying Building Regulations disclosing information about serious 1994. wrongdoing within the Victorian Public CORPORATE DIRECTORY 40 Casey Street, Tatura Victoria 3616 DIVERSION SERVICES DISTRICT SERVICES PO Box 165 Tatura Victoria 3616 DX: 32951 Shepparton Shepparton Area Telephone: (03) 5833 5500 21 Wheeler Street, Area Manager – Phillip Hoare Facsimile: (03) 5833 5501 Shepparton 3630 21 Wheeler Street, Shepparton 3630 Email: [email protected] Cobram Central Goulburn Area Website: www.g-mwater.com.au Dillon Street, Area Manager – Graham Smith BULK WATER SERVICES Cobram 3644 33 Casey Street, Tatura 3616 Kerang Rochester-Campaspe Area Goulburn Unit Koondrook Road, Area Manager – Jeff Parry Goulburn Headworks Manager – Kerang 3579 49 High Street, Rochester 3561 Darren Nabbs Lake Eildon Newlyn Pyramid-Boort Area High Street, Eildon 3713 Midland Highway, Area Manager – David Kent Newlyn North 3364 4 Barber Street, Pyramid Hill 3575 Murray Unit Murray Headworks Manager – Wangaratta Murray Valley Area Stuart Richardson ‘Tara Court’, Ford Street, Area Manager – Kevin Preece Hume Dam Wangaratta 3677 Dillon Street, Cobram 3644 Private Bag 2, Wodonga 3691 Torrumbarry Area Loddon Unit Area Manager – Lester Haw Loddon Headworks Manager – Koondrook Road, Kerang 3579 Ivan Smith 42 Cairn Curran Reservoir Maldon 3463 FINANCIAL STATEMENTS

43 FINANCIAL STATEMENTS

STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2005

44 FINANCIAL STATEMENTS

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2005

45 FINANCIAL STATEMENTS

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2005

46 FINANCIAL STATEMENTS

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

47 FINANCIAL STATEMENTS

48 FINANCIAL STATEMENTS

49 FINANCIAL STATEMENTS

50 FINANCIAL STATEMENTS

51 FINANCIAL STATEMENTS

52 FINANCIAL STATEMENTS

53 FINANCIAL STATEMENTS

54 FINANCIAL STATEMENTS

55 FINANCIAL STATEMENTS

56 FINANCIAL STATEMENTS

57 FINANCIAL STATEMENTS

58 FINANCIAL STATEMENTS

59 FINANCIAL STATEMENTS

60 FINANCIAL STATEMENTS

61

FINANCIAL STATEMENTS

64 APPENDICES

65 INDEX OF APPENDICES

APPENDIX PAGE

Appendix A1: Bulk Entitlement (Eildon - Goulburn Weir) Reporting 67 Appendix A2: Bulk Entitlement (Eildon - Goulburn Weir) Reporting Diversions by other Authorities with Bulk Entitlements: July 2004 - June 2005 68 Appendix A3: Bulk Entitlement (River Murray - Goulburn-Murray Water) Reporting 69 Appendix A4: Bulk Entitlement (Campaspe System - Goulburn-Murray Water) Reporting 71 Appendix A5: Bulk Entitlement (Axedale, Goornong And Part Rochester) Reporting Diversions by other Authorities with Bulk Entitlements: July 2004 - June 2005 72 Appendix A6: Bulk Entitlement (Broken, Ovens) Reporting 72 Appendix B: Irrigation deliveries for season 2004/05 73 Appendix C1: Table 1 Summary of permanent transfers of water rights and diversion licences processed by the Authority during year ended 30 June 2005. 74 Appendix C2: Table 1.1 Permanent transfers of water rights and diversion licences processed by the authority during year ended 30 June 2005 Transfers from and to districts / areas and waterways within Goulburn-Murray Rural Water Authority 75,76 Appendix C3: TABLE 1.2 Permanent transfers of water rights and diversion licences processed by the Authority during year ended 30 June 2005 Transfers from districts / areas and waterways of other water authorities 77 Appendix C4: TABLE 1.3 Permanent transfers of water rights and diversion licences processed by the Authority during year ended 30 June 2005 Transfers to districts / areas and waterways of other water authorities 78 Appendix C5: TABLE 2 Summary of temporary transfers of water rights and diversion licences processed by the Authority during year ended 30 June 2005 79 Appendix D1: Watermove – Pool Price and ML traded Zone 1A and 1B – Greater Goulburn 80 Appendix D2: Watermove – Pool Price and allocation Zone 1A and 1B – Greater Goulburn 81 Appendix D3: Watermove – Pool Price and ML traded Zone 6 – Hume to Barmah 82 Appendix D4: Watermove – Pool Price and allocation Zone 6 – Hume to Barmah 83 Appendix D5: Watermove – Pool Price and ML traded Zone 7 – Barmah to Nyah 84 Appendix D6: Watermove – Pool Price and allocation – Zone 7 Barmah to Nyah 85 Appendix E: Private diversions from waterways as at 30 June 2005 86 Appendix F: Groundwater Extractions as at 30 June 2005 87

66 APPENDIX A1

BULK ENTITLEMENT (EILDON–GOULBURN WEIR) REPORTING

67 APPENDIX A2

BULK ENTITLEMENT (EILDON-GOULBURN WEIR) REPORTING DIVERSIONS BY OTHER AUTHORITIES WITH BULK ENTITLEMENTS: JULY 2004 - JUNE 2005

68 APPENDIX A3

BULK ENTITLEMENT (RIVER MURRAY–GOULBURN-MURRAY WATER) REPORTING

69 APPENDIX A3

70 APPENDIX A4

BULK ENTITLEMENT (CAMPASPE SYSTEM–GOULBURN-MURRAY WATER) REPORTING

71 APPENDIX A5

BULK ENTITLEMENT (AXEDALE, GOORNONG AND PART ROCHESTER) REPORTING. DIVERSIONS BY OTHER AUTHORITIES WITH BULK ENTITILEMENTS: JULY 2004 - JUNE 2005

APPENDIX A6

BULK ENTITLEMENT (BROKEN, OVENS) REPORTING

72 APPENDIX B

IRRIGATION DELIVERIES FOR SEASON 2004/05

73 APPENDIX C1 TABLE 1

SUMMARY OF PERMANENT TRANSFERS OF WATER RIGHTS AND DIVERSION LICENCES PROCESSED BY THE AUTHORITY DURING YEAR ENDED 30 JUNE 2005

74 APPENDIX C2 TABLE 1.1

PERMANENT TRANSFERS OF WATER RIGHTS AND DIVERSION LICENCES PROCESSED BY THE AUTHORITY DURING YEAR ENDED 30 JUNE 2005 TRANSFERS FROM AND TO DISTRICTS/AREAS AND WATERWAYS WITHIN GOULBURN-MURRAY RURAL WATER AUTHORITY

75 APPENDIX C2 TABLE 1.1(CONT)

PERMANENT TRANSFERS OF WATER RIGHTS AND DIVERSION LICENCES PROCESSED BY THE AUTHORITY DURING YEAR ENDED 30 JUNE 2005 TRANSFERS FROM AND TO DISTRICTS/AREAS AND WATERWAYS WITHIN GOULBURN-MURRAY RURAL WATER AUTHORITY

76 APPENDIX C3 TABLE 1.2

PERMANENT TRANSFERS OF WATER RIGHTS AND DIVERSION LICENCES PROCESSED BY THE AUTHORITY DURING YEAR ENDED 30 JUNE 2005 TRANSFERS FROM DISTRICTS/AREAS AND WATERWAYS OF OTHER WATER AUTHORITIES

77 APPENDIX C4 TABLE 1.3

PERMANENT TRANSFERS OF WATER RIGHTS AND DIVERSION LICENCES PROCESSED BY THE AUTHORITY DURING YEAR ENDED 30 JUNE 2005 TRANSFERS TO DISTRICTS/AREAS AND WATERWAYS OF OTHER WATER AUTHORITIES

78 APPENDIX C5 TABLE 2

SUMMARY OF TEMPORARY TRANSFERS OF WATER RIGHTS AND DIVERSION LICENCES PROCESSED BY THE AUTHORITY DURING YEAR ENDED 30 JUNE 2005

79 APPENDIX D1: WATERMOVE

POOL PRICE AND ML TRADED ZONE 1A AND 1B - GREATER GOULBURN Pool Price 2004/05 Pool Price 2003/04 ML Traded2004/05 ML Traded2003/04

80 APPENDIX D2: WATERMOVE

POOL PRICE ESTABLISHED AND ALLOCATION ZONE 1A AND 1B - GREATER GOULBURN Pool Price 2004/05 Pool Price 2003/04 Allocation 2004/05 Allocation 2003/04

81 APPENDIX D3: WATERMOVE

POOL PRICE ESTABLISHED AND ML TRADED ZONE 6 - HUME TO BARMAH Pool Price 2004/05 Pool Price 2003/04 ML Traded2004/05 ML Traded2003/04

82 APPENDIX D4: WATERMOVE POOL PRICE ESTABLISHED AND ALLOCATION ZONE 6 - HUME TO BARMAH Pool Price 2004/05 Pool Price 2003/04 Allocation 2004/05 Allocation 2003/04

83 APPENDIX D5: WATERMOVE

POOL PRICE ESTABLISHED AND ML TRADED ZONE 7 - BARMAH TO NYAH Pool Price 2004/05 Pool Price 2003/04 ML Traded2004/05 ML Traded2003/04

84 APPENDIX D6: WATERMOVE

POOL PRICE ESTABLISHED AND ALLOCATION ZONE 7 - BARMAH TO NYAH Pool Price 2004/05 Pool Price 2003/04 Allocation 2004/05 Allocation 2003/04

85 APPENDIX E

PRIVATE DIVERSIONS FROM WATERWAYS AS AT JUNE 2005

86 APPENDIX F

GROUNDWATER EXTRACTIONS AS AT JUNE 2005

87 DISCLOSURE INDEX

The 2004/05 Annual Report of the Goulburn-Murray Rural Water Authority is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of the Authority’s compliance with statutory disclosure requirements.

FRD DISCLOSURE PAGE

22 Manner of establishment and the relevant Minister 4 22 Objectives, functions, powers and duties 4,5 22 Nature and range of services provided 5 22 Organisational structure, names and functional areas of responsibility of senior officers 8 22 Names of board members, major committees - objectives and achievements 10-12 22 Statement of workforce data for current and previous financial year 26 22 Merit and equity 41 15 Executive officer disclosures 57 22 5 year summary of the financial results 14 22 Significant changes in financial position during the year 14 22 Objectives and performance against objectives 6-7 22 Major changes or factors affecting performance 2-3, 14-15 22 Subsequent events which will affect operations in future years nil 22 Details of consultancies > $100,000 41 22 Details of consultancies - total No. and cost < $100,000 41 12 Disclosure of major contracts n/a 22 Application and operation of Freedom of Information Act 1982 41 22 Application and operation of the Whistleblowers Protection Act 2001 42 22 Compliance with building and maintenance provisions of Building Act 1993 42 22 Statement on National Competition Policy 42 22 Occupational Health and Safety 26-27 10 Disclosure index 88 22 Statement of availability of other information 42

88

PO Box 165 Tatura Victoria 3616 DX: 32951 Telephone: (03) 5833 5500 Facsimile: (03) 5833 5501 Email: [email protected] Website: www.g-mwater.com.au

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