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Annual Report 2 011 Annual Report 2 011 Murray Irrigation Menindee Lakes Menindee Weir 32 SA Murray Darling Basin NSW Murray Irrigation Sydney Darling River Canberra VIC Melbourne Wentworth Mildura Hay Murrumbidgee River Murray River New South Wales Moulamein Billabong Creek Wagga Wagga Edward River Swan Hill Conargo Wakool River Jerilderie Wakool Deniliquin Barham Finley Berrigan Mathoura Tocumwal Mulwala Albury Moama Echuca Hume Reservoir Shepparton ISBN 978-0-9802998-8-5 Dartmouth Reservoir Copyright 2011 Design Langdonlorraine Brunswick VIC Photography Nick Robinson Photography Deniliquin NSW Murray Irrigation Limited Company secretaries Annual general meeting Murray Irrigation Limited Geoff Cutter Will be held at 10.30am on Tuesday (ABN 23 067 197 933) is a company limited Matthew Watts 29 November 2011, at the Deniliquin RSL Menindee Lakes by shares, incorporated and domiciled in Anthony Couroupis Club, 72 End Street, Deniliquin NSW 2710. Australia. Its registered office and principal place of business is: Menindee Weir 32 Auditor Further information 443 Charlotte Street Johnsons MME For further information about Murray PO Box 528 Deniliquin NSW 2710 520 Swift Street Albury NSW 2640 Irrigation go to the company’s website at Telephone 03 5898 3300 murrayirrigation.com.au Facsimile 03 5898 3301 murrayirrigation.com.au Banker Commonwealth Bank of Australia Board of directors 241 Cressy Street Deniliquin NSW 2710 Darling River Stewart Ellis, Chairman Mark Robertson, Deputy Chairman Engineering consultant Kelvin Baxter Kellogg Brown and Root Michael Hughes 186 Greenhill Road Parkside SA 5063 Michael Humphris Noel Graham Tim McKindlay Solicitor Tony Read Norton Rose Australia Grosvenor Place 225 George Street Sydney NSW 2000 General manager Anthony Couroupis Taxation advisor Ernst & Young 680 George Street Sydney NSW 2000 Wentworth Mildura Hay Murrumbidgee River Murray River New South Wales Moulamein Billabong Creek Wagga Wagga Edward River Swan Hill Conargo Wakool River Jerilderie Wakool Deniliquin Barham Finley Berrigan Mathoura Tocumwal Mulwala Albury Moama Echuca Hume Reservoir Shepparton Dartmouth Reservoir Murray Irrigation Annual Report 2011 The Murray Irrigation Annual Report 2 011 is a summary of operations and performance of the company from 1 July 2010 to 30 June 2 011. Operations and performance for this period have been measured against the company’s key reporting areas as detailed in the Murray Irrigation 2014 Strategic Plan in addition to meeting our statutory financial reporting responsibilities. The Murray Irrigation Annual Report 2 011 provides a concise and comprehensive summary. The objective of this report is to provide information to our shareholders to demonstrate our transparency, accountability and performance. The Murray Irrigation Annual Report 2 011 is distributed on request to all shareholders and is available electronically via our website, as per the requirements of our Constitution. Additional copies of the Murray Irrigation Annual Report 2 011 can be obtained via: • The Murray Irrigation website murrayirrigation.com.au • Visiting the Murray Irrigation offices at Deniliquin, Finley and Wakool. • Writing to Murray Irrigation, PO Box 528, Deniliquin NSW 2710. The objective of this report is to provide information to our shareholders to demonstrate our transparency, accountability and performance. Contents Year in review 02 Chairman’s report 04 General manager’s report 06 At a glance 08 Management structure 08 Company profile 09 Company structure 09 Key financial and service performance reporting 10 Chapters 01 Water availability, usage and efficiency 13 02 Customers 17 03 Infrastructure 21 04 Financial performance 25 05 Ancillary activities 29 06 People and governance 33 Directors’ report and financial statements 2010/11 36 Directors’ report 38 Financial statements 44 Directors’ declaration 70 Auditor’s independence declaration 71 Independent audit report 72 Murray Irrigation Limited Annual Report 2011 1 Year in review 2 010 • Class C general security allocation increases September to 42 percent. • Murray Irrigation calls for a full review of the • Murray Irrigation announces off allocation Water Act 2007 (Cth). water access. • A Commonwealth Parliamentary Inquiry, • High security allocations in the NSW Murray chaired by independent MP Tony Windsor, Valley increase to 97 percent of entitlement, is initiated to research the potentially including stock and domestic and town water devastating social and economic impacts the supply licences. proposed water cuts as outlined in the Guide • Murray Irrigation announces an opening Class to the Proposed Basin Plan would have C general security allocation of eight percent. on local basin communities. • Murray Irrigation announces it will implement • Murray Irrigation’s Board of Directors a revised pricing structure from 1 January announces a six percent water efficiency 2 011. The new pricing structure will not allocation, based on permanent delivery increase revenue collected from customers, entitlements held. rather it will collect the same amount from • Hume Dam starts pre-release of flood water customers in a different manner, with some as the reservoir is expected to exceed its full customers’ fixed fees reducing whilst others supply. have been increased. Features of the new fee July structure include; a landholding fee, outlet fees, a reduced delivery entitlement fee and • NSW Office of Water (NOW) announces a tiered water usage fee. commencing allocations for NSW Murray November water users for the 2 010 /11 water year of • MDBA announces its Guide to the Proposed • Class C general security allocation increases zero percent. Both high security and general Basin Plan will be publicly released on Friday to 60 percent. security licence holders started the water 8 October. season with full access to carryover. Town • Class C general security allocation increases • Hume Dam is at 99 percent, the first time water supply and local water utility licence to 36 percent. since 2000. holders start on 50 percent of entitlement. • Murray Irrigation holds its annual general • Murray Irrigation launches its 2014 meeting on Thursday 17 November at the Strategic Plan. October Deniliquin RSL Club. • MDBA announces a delay in the release • Class C general security allocation increases of the Murray-Darling Basin Plan and state • MDBA releases its Guide to the Proposed to 64 percent. that a ‘plain English guide’ is due for release Murray-Darling Basin Plan which proposes a • Stewart Ellis is re-elected as chairman in early August. reduction in agricultural water use of between of the National Irrigators’ Council (NIC). • Murray Irrigation announces the conclusion 3,000GL and 4,000GL across the Murray- Darling Basin, potentially imposing devastating of its shareholding in AWMA Pty Ltd. impacts on farmers, rural communities, food • Channel filling starts at both Mulwala security and the Australian economy. December and Wakool Canals. • The Guide to the Proposed Murray-Darling • On 21 July, NOW announces a starting Basin Plan proposes an effective reduction • Murray Irrigation reports the funding allocation of 10 percent of entitlement for of up to 50 percent of Murray Irrigation’s agreement with the Australian Government high security licence holders in the NSW historic water use, when combined with water (Department of Sustainability, Environment, Murray Valley. General security remains on already recovered for the environment. Murray Water, Population and Communities) for zero percent. Irrigation fights back and says the dramatic Round 1 of the $300m On-Farm Irrigation cuts proposed to water availability would bring Efficiency Program was signed by both about the demise of irrigation communities, parties. All projects submitted by Murray causing job losses, forcing people from family Irrigation in the Stage 2 application were August farms, and prompting a rapid decline of local approved. The Australian Government communities. investment of $30.8m will be provided to • NOW announces an increase in high security fund and administer 141 individual projects. allocation to 40 percent. • Murray Irrigation encourages all staff and These projects are expected to generate customers to attend one of two community • NOW increases high security allocations 18,380ML in water savings. information sessions conducted by the Murray- to 70 percent of entitlement. Darling Basin Authority in Deniliquin to discuss • Full allocation (100 percent) is announced • Murray Irrigation releases its 2 010/11 the Guide to the Proposed Basin Plan. for Class C general security. Town water Operating Plan. supply and high security allocations also • Both community information sessions were increase to 100 percent. • Murray Irrigation releases its 2 010/11 Pricing attended by over 2,000 people and were met Schedule which will apply from 1 July to 31 with a united opposition to the Guide to the December 2010. Proposed Basin Plan. 2012 Murray Irrigation Limited Annual Report 2011 2 011 April • Murray Irrigation’s Board of Directors increase water efficiency allocations to 16 percent of permanent delivery entitlements held. • Trade in carryover capacity facility is launched for Murray Irrigation customers. May • Major offtakes at both the Mulwala and Wakool Canal close for end of season water supply arrangements. • NOW confirms arrangements for the recommencement of the Murray Lower Darling Water sharing plan from 1 July 2 011. • MDBA CEO Rob Freeman resigns. • NOW announces that the water availability outlook for next
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