Disclaimer

This report has been generated as part of the Living Murray initiative. Its contents do not represent the position of the Murray-Darling Basin Commission. It is presented as a document which informed discussion for improved management of the Basin’s natural resources in November 2003.

Preparation of the social impact assessment scoping and profiling studies preceded the Living Murray First Step decision and the signing on 25 June 2004 at the Council of Australian Governments meeting of the Intergovernmental Agreement on Addressing Water Overallocation and Achieving Environmental Objectives in the Murray- Darling Basin. The communiqué from this COAG meeting is provided at www.coag.gov.au. These decisions provide the framework under which $500m will be invested by governments over 5 years to begin addressing water overallocation in the Murray-Darling Basin and achieve specific environmental outcomes in the Murray-Darling Basin.

The first priority for this investment will be water recovery for six significant ecological assets first identified by the Murray-Darling Basin Ministerial Council in November 2003: the Barmah-Millewa Forest, Gunbower and Koondrook-Perricoota Forests, Hattah Lakes, Chowilla floodplain, the Lindsay-Wallpolla system, the Murray Mouth, Coorong and Lower Lakes, and the River Murray Channel.

The water will come from a matrix of options with a priority for on-farm initiatives, efficiency gains, infrastructure improvements and rationalisation, and market based approaches, and purchase of water from willing sellers, rather than by way of compulsory acquisition.

Consequently, the assumptions that were made to enable the social impact assessment scoping and profiling studies to be undertaken in mid 2003, while reasonable at the time, have been overtaken by these decisions and the consequential benefits that will flow from them. As such, whilst being an important contribution, this report cannot fully and accurately represent the social issues arising from the Living Murray initiative.

Stage 1 Volume 2

Profiling – Social and Economic Context F Social Impact Assessment of I Possible Increased N Environmental Flow Allocations A to the River Murray System L

Prepared for R

Murray-Darling Basin Commission E Living Murray initiative GPO Box 409 P CANBERRA ACT 2601 O

Prepared by R T

THE UNIVERSITY OF QUEENSLAND PROFESSOR HELEN ROSS In association with MARY MAHER AND ASSOCIATES August 2003 Ref: AU1-196

Volume 2

DISCLAIMER

All description, figures, analyses, forecasts and other details have been prepared in good faith from information furnished to the consultants by other parties. These data are believed to be correct at the date of preparation of this report.

However, it should be noted that predictions, forecasts and calculations are subject to assumptions which may or may not turn out to be correct and Hassall & Associates Pty Ltd expressly disclaim all and any liability to any persons in reliance, in whole or in part, on the report in total or any part of its contents.

It is important to note that little information was available to the consultants on the Environmental Flow Reference Points (EFRP) in terms of the environmental response that would occur, how the water would be recovered for the river system, and the nature of the economic impacts associated with water recovered for the river.

Please cite this report as Hassall & Associates Pty Ltd, Helen Ross and Mary Maher and Associates (2003) Profiling – Social and Economic Context: Social Impact Assessment of Possible Increased Environmental Flow Allocations to the River Murray System, Stage 1, Volume 2. Report prepared for Murray Darling Basin Commission, Hassall & Associates Pty Ltd, Sydney.

1 Stage 1: Social Impact Assessment: Possible Increases in Environmental Flows Allocations to the River Murray System VOLUME 2 Volume 2

Table of Contents

1. INTRODUCTION...... 12 2. DEFINITION OF THE STUDY AREA ...... 13 2.1 STUDY AREA BOUNDARIES...... 13 3. DEVELOPMENT OF DESCRIPTORS ...... 17 3.1 INTRODUCTION ...... 17 3.2 EXPLANATION OF DESCRIPTORS ...... 17 4. STUDY AREA OVERVIEW...... 27 4.1 INTRODUCTION ...... 27 4.2 MURRAY CATCHMENT...... 34 4.3 MURRUMBIDGEE CATCHMENT...... 37 4.4 LOWER MURRAY DARLING CATCHMENT...... 39 4.5 NORTH EAST CATCHMENT...... 41 4.6 GOULBURN-BROKEN CATCHMENT ...... 42 4.7 NORTH CENTRAL CATCHMENT ...... 44 4.8 MALLEE CATCHMENT ...... 47 4.9 SA MDB CATCHMENT ...... 49 5. MURRAY CATCHMENT...... 53 5.1 GENERAL BACKGROUND ...... 53 5.2 PHYSICAL ENVIRONMENT, NATURAL RESOURCES AND THEIR USE ...... 53 5.3 SOCIAL GEOGRAPHY AND DEMOGRAPHY...... 56 5.4 SOCIO-ECONOMIC PROFILES AND ECONOMY ...... 64 5.5 DEPENDENCE ON WATER...... 73 5.6 COMMUNITY WELLBEING AND SERVICES ...... 79 5.7 CULTURAL HERITAGE ...... 81 5.8 CUMULATIVE CHANGE AND COMMUNITY RESPONSE ...... 82 5.9 SUMMARY...... 86 6. MURRUMBIDGEE CATCHMENT ...... 89 6.1 GENERAL BACKGROUND ...... 89 6.2 PHYSICAL ENVIRONMENT, NATURAL RESOURCES AND THEIR USE ...... 89 6.3 SOCIAL GEOGRAPHY AND DEMOGRAPHY...... 92 6.4 SOCIO-ECONOMIC PROFILES AND ECONOMY ...... 100 6.5 DEPENDENCE ON WATER...... 110 6.6 COMMUNITY WELLBEING AND SERVICES ...... 114 6.7 CULTURAL HERITAGE ...... 117 6.8 CUMULATIVE CHANGE AND COMMUNITY RESPONSE ...... 117 6.9 SUMMARY...... 119

2 Stage 1: Social Impact Assessment: Possible Increases in Environmental Flows Allocations to the River Murray System VOLUME 2 Volume 2

7. LOWER MURRAY DARLING CATCHMENT...... 121 7.1 GENERAL BACKGROUND ...... 121 7.2 PHYSICAL ENVIRONMENT, NATURAL RESOURCES AND THEIR USE ...... 121 7.3 SOCIAL GEOGRAPHY AND DEMOGRAPHY...... 124 7.4 SOCIO-ECONOMIC PROFILES AND ECONOMY ...... 128 7.5 DEPENDENCE ON WATER...... 136 7.6 COMMUNITY WELLBEING AND SERVICES ...... 140 7.7 CULTURAL HERITAGE ...... 141 7.8 CUMULATIVE CHANGE AND COMMUNITY RESPONSE ...... 142 7.9 SUMMARY...... 143 8. NORTH EAST CATCHMENT...... 146 8.1 GENERAL BACKGROUND ...... 146 8.2 PHYSICAL ENVIRONMENT, NATURAL RESOURCES AND THEIR USE ...... 146 8.3 SOCIAL GEOGRAPHY AND DEMOGRAPHY...... 149 8.4 SOCIO-ECONOMIC PROFILES AND ECONOMY ...... 155 8.5 DEPENDENCE ON WATER...... 164 8.6 COMMUNITY WELLBEING AND SERVICES ...... 167 8.7 CULTURAL HERITAGE ...... 169 8.8 CUMULATIVE CHANGE AND COMMUNITY RESPONSE ...... 169 8.9 SUMMARY...... 170 9. GOULBURN BROKEN CATCHMENT...... 172 9.1 GENERAL BACKGROUND ...... 172 9.2 PHYSICAL ENVIRONMENT, NATURAL RESOURCES AND THEIR USE ...... 172 9.3 SOCIAL GEOGRAPHY AND DEMOGRAPHY...... 175 9.4 SOCIO-ECONOMIC PROFILES AND ECONOMY ...... 182 9.5 DEPENDENCE ON WATER...... 193 9.6 COMMUNITY WELLBEING AND SERVICES ...... 198 9.7 CULTURAL HERITAGE ...... 199 9.8 CUMULATIVE CHANGE AND COMMUNITY RESPONSE ...... 200 9.9 SUMMARY...... 201 10. NORTH CENTRAL CATCHMENT...... 204 10.1 GENERAL BACKGROUND ...... 204 10.2 PHYSICAL ENVIRONMENT, NATURAL RESOURCES AND THEIR USE ...... 204 10.3 SOCIAL GEOGRAPHY AND DEMOGRAPHY...... 208 10.4 SOCIO-ECONOMIC PROFILES AND ECONOMY ...... 216 10.5 DEPENDENCE ON WATER...... 226 10.6 COMMUNITY WELLBEING AND SERVICES ...... 232 10.7 CULTURAL HERITAGE ...... 234 10.8 CUMULATIVE CHANGE AND COMMUNITY RESPONSE ...... 234 10.9 SUMMARY...... 237

3 Stage 1: Social Impact Assessment: Possible Increases in Environmental Flows Allocations to the River Murray System VOLUME 2 Volume 2

11. MALLEE CATCHMENT...... 240 11.1 GENERAL BACKGROUND ...... 240 11.2 PHYSICAL ENVIRONMENT, NATURAL RESOURCES AND THEIR USE ...... 240 11.3 SOCIAL GEOGRAPHY AND DEMOGRAPHY...... 242 11.4 SOCIO-ECONOMIC PROFILES AND ECONOMY ...... 249 11.5 DEPENDENCE ON WATER...... 258 11.6 COMMUNITY WELLBEING AND SERVICES ...... 263 11.7 CULTURAL HERITAGE ...... 265 11.8 CUMULATIVE CHANGE AND COMMUNITY RESPONSE ...... 266 11.9 SUMMARY...... 268 12. SOUTH AUSTRALIA MDB CATCHMENT ...... 271 12.1 GENERAL BACKGROUND ...... 271 12.2 PHYSICAL ENVIRONMENT, NATURAL RESOURCES AND THEIR USE ...... 271 12.3 SOCIAL GEOGRAPHY AND DEMOGRAPHY...... 276 12.4 SOCIO-ECONOMIC PROFILES AND ECONOMY ...... 283 12.5 DEPENDENCE ON WATER...... 292 12.6 COMMUNITY WELLBEING AND SERVICES ...... 302 12.7 CULTURAL HERITAGE ...... 303 12.8 CUMULATIVE CHANGE AND COMMUNITY RESPONSE ...... 304 12.9 SUMMARY...... 307 13. REFERENCES...... 311

Figures

FIGURE 1 OVERVIEW OF THE STUDY AREA ...... 16 FIGURE 2 CHANGE IN THE PROPORTION OF THE 60+ AND 15-29 YEARS AGE GROUP BETWEEN 1996 AND 2001 ...... 28 FIGURE 3 AREA OF IRRIGATED AGRICULTURE AS A PROPORTION OF THE TOTAL AREA OF AGRICULTURAL HOLDINGS – STUDY AREA (2001)...... 32 FIGURE 4 MURRAY CATCHMENT ...... 54 FIGURE 5 TOTAL POPULATION OF SLAS IN THE MURRAY CATCHMENT (2001) ...... 59 FIGURE 6 CHANGE IN THE TOTAL POPULATION OF SLAS IN THE MURRAY CATCHMENT (1996 TO 2001) ...... 59 FIGURE 7 PROPORTION OF THE AGE GROUP OF THE POPULATION FOR THE MURRAY CATCHMENT FOR 1996 AND 2001...... 61 FIGURE 8 COMPARISON OF THE CHANGE IN THE PROPORTION OF PEOPLE AGED 60 YEARS ABOVE AND THOSE AGED BETWEEN 15 AND 29 YEARS BETWEEN 1996 AND 2001 FOR THE MURRAY CATCHMENT...... 62 FIGURE 9 TOTAL AGE DEPENDENCY RATIO (2001) FOR THE SLAS OF THE MURRAY CATCHMENT...... 63 FIGURE 10 MURRAY CATCHMENT – PROPORTION OF EMPLOYMENT BY PRIMARY, SECONDARY AND TERTIARY INDUSTRY ...... 64 FIGURE 11 PROPORTION OF EMPLOYED PERSONS BY INDUSTRY FOR THE MURRAY CATCHMENT...... 66

4 Stage 1: Social Impact Assessment: Possible Increases in Environmental Flows Allocations to the River Murray System VOLUME 2 Volume 2

FIGURE 12 PERCENTAGE CHANGE IN EMPLOYMENT BY AGE GROUP BETWEEN 1996 AND 2001 FOR THE MURRAY CATCHMENT...... 69 FIGURE 13 CHANGE IN THE NUMBER OF PERSONS EMPLOYED BY INDUSTRY BETWEEN 1996 AND 2001 FOR THE MURRAY CATCHMENT ...... 70 FIGURE 14 UNEMPLOYMENT RATE FOR THE MURRAY CATCHMENT SLAS (2001) ...... 71 FIGURE 15 MEDIAN HOUSEHOLD INCOME FOR SLAS IN THE MURRAY CATCHMENT AND THE PROPORTION OF HOUSEHOLDS EARNING <$299 A WEEK...... 72 FIGURE 16 THE AREA OF IRRIGATED AGRICULTURE AS A PROPORTION OF THE TOTAL AREA OF AGRICULTURAL HOLDINGS FOR THE MURRAY CATCHMENT ...... 76 FIGURE 17 PROPORTION OF JOBS BY INDUSTRY BY SLA IN THE MURRAY CATCHMENT .. 77 FIGURE 18 ARIA SCORE FOR SLAS IN THE MURRAY CATCHMENT ...... 80 FIGURE 19 MURRUMBIDGEE CATCHMENT...... 90 FIGURE 20 TOTAL POPULATION OF SLAS IN THE MURRUMBIDGEE CATCHMENT (2001).. 95 FIGURE 21 CHANGE IN THE TOTAL POPULATION OF SLAS IN THE MURRUMBIDGEE CATCHMENT (1996 TO 2001)...... 96 FIGURE 22 PROPORTION OF THE AGE GROUP OF THE POPULATION FOR THE MURRUMBIDGEE CATCHMENT FOR 1996 AND 2001 ...... 97 FIGURE 23 COMPARISON OF THE CHANGE IN THE PROPORTION OF PEOPLE AGED 60 YEARS ABOVE AND THOSE AGED BETWEEN 15 AND 29 YEARS BETWEEN 1996 AND 2001 98 FIGURE 24 TOTAL AGE DEPENDENCY RATE (2001) FOR THE SLAS OF THE MURRUMBIDGEE CATCHMENT ...... 99 FIGURE 25 MURRUMBIDGEE CATCHMENT – PROPORTION OF EMPLOYMENT BY PRIMARY, SECONDARY AND TERTIARY INDUSTRY ...... 100 FIGURE 26 MURRUMBIDGEE CATCHMENT – PROPORTION OF EMPLOYMENT BY PRIMARY, SECONDARY AND TERTIARY INDUSTRY ...... 102 FIGURE 27 PERCENTAGE CHANGE IN EMPLOYMENT BY AGE GROUP BETWEEN 1996 AND 2001 FOR THE MURRUMBIDGEE CATCHMENT...... 106 FIGURE 28 CHANGE IN THE NUMBER OF PERSONS EMPLOYED BY INDUSTRY BETWEEN 1996 AND 2001 FOR THE MURRUMBIDGEE CATCHMENT ...... 107 FIGURE 29 UNEMPLOYMENT RATE FOR THE MURRUMBIDGEE CATCHMENT SLAS (2001)...... 108 FIGURE 30 MEDIAN HOUSEHOLD INCOME FOR SLAS IN THE MURRUMBIDGEE CATCHMENT AND THE PROPORTION OF HOUSEHOLDS EARNING <$299 A WEEK ...... 109 FIGURE 31 THE AREA OF IRRIGATED AGRICULTURE AS A PROPORTION OF THE TOTAL AREA OF AGRICULTURAL HOLDINGS FOR THE MURRUMBIDGEE CATCHMENT ...... 113 FIGURE 32 PROPORTION OF JOBS BY INDUSTRY BY SLA IN THE MURRUMBIDGEE CATCHMENT ...... 114 FIGURE 33 ARIA SCORE FOR SLAS IN THE MURRUMBIDGEE CATCHMENT...... 115 FIGURE 34 LOWER MURRAY DARLING CATCHMENT ...... 122 FIGURE 35 TOTAL POPULATION OF SLAS IN THE LOWER MURRAY DARLING CATCHMENT (2001)...... 125 FIGURE 36 CHANGE IN THE TOTAL POPULATION OF SLAS IN THE LOWER MURRAY DARLING CATCHMENT (1996 TO 2001)...... 125 FIGURE 37 PROPORTION OF THE AGE GROUP OF THE POPULATION FOR THE LOWER MURRAY DARLING CATCHMENT FOR 1996 AND 2001...... 126 FIGURE 38 TOTAL AGE DEPENDENCY RATE (2001) FOR THE SLAS OF THE LOWER MURRAY DARLING CATCHMENT...... 127

5 Stage 1: Social Impact Assessment: Possible Increases in Environmental Flows Allocations to the River Murray System VOLUME 2 Volume 2

FIGURE 39 LOWER MURRAY DARLING CATCHMENT – PROPORTION OF EMPLOYMENT BY PRIMARY, SECONDARY AND TERTIARY INDUSTRY ...... 129 FIGURE 40 PROPORTION OF EMPLOYED PERSONS BY INDUSTRY FOR THE LOWER MURRAY DARLING CATCHMENT ...... 130 FIGURE 41 PERCENTAGE CHANGE IN EMPLOYMENT BY AGE GROUP BETWEEN 1996 AND 2001 FOR THE LOWER MURRAY DARLING CATCHMENT...... 132 FIGURE 42 CHANGE IN THE NUMBER OF PERSONS EMPLOYED BY INDUSTRY BETWEEN 1996 AND 2001 FOR THE LOWER MURRAY CATCHMENT...... 133 FIGURE 43 UNEMPLOYMENT RATE FOR THE LOWER MURRAY DARLING CATCHMENT SLAS (2001)...... 134 FIGURE 44 MEDIAN HOUSEHOLD INCOME FOR SLAS IN THE LOWER MURRAY DARLING CATCHMENT AND THE PROPORTION OF HOUSEHOLDS EARNING <$299 A WEEK...... 136 FIGURE 45 PROPORTION OF JOBS BY INDUSTRY BY SLA IN THE LOWER MURRAY DARLING CATCHMENT...... 140 FIGURE 46 NORTH EAST CATCHMENT...... 147 FIGURE 47 TOTAL POPULATION OF SLAS IN THE NORTH EAST CATCHMENT (2001)...... 151 FIGURE 48 CHANGE IN THE TOTAL POPULATION OF SLAS IN THE NORTH EAST CATCHMENT (1996 TO 2001)...... 151 FIGURE 49 PROPORTION OF THE AGE GROUP OF THE POPULATION FOR THE NORTH EAST CATCHMENT FOR 1996 AND 2001...... 152 FIGURE 50 COMPARISON OF THE CHANGE IN THE PROPORTION OF PEOPLE AGED 60 YEARS ABOVE AND THOSE AGED BETWEEN 15 AND 29 YEARS BETWEEN 1996 AND 2001 153 FIGURE 51 TOTAL AGE DEPENDENCY RATIO FOR THE SLAS OF THE NORTH EAST CATCHMENT...... 154 FIGURE 52 NORTH EAST CATCHMENT – PROPORTION OF EMPLOYMENT BY PRIMARY, SECONDARY AND TERTIARY INDUSTRY ...... 156 FIGURE 53 PROPORTION OF EMPLOYED PERSONS BY INDUSTRY FOR THE NORTH EAST CATCHMENT...... 157 FIGURE 54 PERCENTAGE CHANGE IN EMPLOYMENT BY AGE GROUP BETWEEN 1996 AND 2001 FOR THE NORTH EAST CATCHMENT...... 160 FIGURE 55 CHANGE IN THE NUMBER OF PERSONS EMPLOYED BY INDUSTRY BETWEEN 1996 AND 2001 FOR THE NORTH EAST CATCHMENT ...... 161 FIGURE 56 UNEMPLOYMENT RATE FOR THE NORTH EAST SLAS (2001) ...... 162 FIGURE 57 MEDIAN HOUSEHOLD INCOME FOR SLAS IN THE NORTH EAST CATCHMENT AND THE PROPORTION OF HOUSEHOLDS EARNING <$299 A WEEK ...... 163 FIGURE 58 PROPORTION OF JOBS BY INDUSTRY BY SLA IN THE NORTH EAST CATCHMENT ...... 166 FIGURE 59 ARIA SCORE FOR SLAS IN THE NORTH EAST CATCHMENT...... 168 FIGURE 60 GOULBURN-BROKEN CATCHMENT ...... 173 FIGURE 61 TOTAL POPULATION OF SLAS IN THE GOULBURN-BROKEN CATCHMENT (2001) ...... 177 FIGURE 62 CHANGE IN THE TOTAL POPULATION OF SLAS IN THE GOULBURN-BROKEN CATCHMENT (1996 TO 2001)...... 178 FIGURE 63 PROPORTION OF THE AGE GROUP OF THE POPULATION FOR THE GOULBURN- BROKEN CATCHMENT FOR 1996 AND 2001 ...... 179

6 Stage 1: Social Impact Assessment: Possible Increases in Environmental Flows Allocations to the River Murray System VOLUME 2 Volume 2

FIGURE 64 COMPARISON OF THE CHANGE IN THE PROPORTION OF PEOPLE AGED 60 YEARS ABOVE AND THOSE AGED BETWEEN 15 AND 29 YEARS BETWEEN 1996 AND 2001 180 FIGURE 65 TOTAL AGE DEPENDENCY RATIOE (2001) FOR THE SLAS OF THE GOULBURN- BROKEN CATCHMENT ...... 181 FIGURE 66 GOULBURN-BROKEN CATCHMENT – PROPORTION OF EMPLOYMENT BY PRIMARY, SECONDARY AND TERTIARY INDUSTRY ...... 183 FIGURE 67 PROPORTION OF EMPLOYED PERSONS BY INDUSTRY FOR THE GOULBURN- BROKEN CATCHMENT ...... 185 FIGURE 68 PERCENTAGE CHANGE IN EMPLOYMENT BY AGE GROUP BETWEEN 1996 AND 2001 FOR THE GOULBURN-BROKEN CATCHMENT ...... 189 FIGURE 69 CHANGE IN THE NUMBER OF PERSONS EMPLOYED BY INDUSTRY BETWEEN 1996 AND 2001 FOR THE GOULBURN-BROKEN CATCHMENT...... 190 FIGURE 70 UNEMPLOYMENT RATE FOR THE GOULBURN-BROKEN CATCHMENT SLAS (2001)...... 191 FIGURE 71 MEDIAN HOUSEHOLD INCOME FOR SLAS IN THE GOULBURN-BROKEN CATCHMENT AND THE PROPORTION OF HOUSEHOLDS EARNING <$299 A WEEK...... 193 FIGURE 72 THE AREA OF IRRIGATED AGRICULTURE AS A PROPORTION OF THE TOTAL AREA OF AGRICULTURAL HOLDINGS FOR THE GOULBURN BROKEN...... 196 FIGURE 73 PROPORTION OF JOBS BY INDUSTRY BY SLA IN THE GOULBURN-BROKEN CATCHMENT...... 197 FIGURE 74 ARIA SCORE FOR SLAS IN THE GOULBURN BROKEN CATCHMENT...... 198 FIGURE 75 NORTH CENTRAL CATCHMENT...... 205 FIGURE 76 TOTAL POPULATION OF SLAS IN THE NORTH CENTRAL CATCHMENT (2001)211 FIGURE 77 CHANGE IN THE TOTAL POPULATION OF SLAS IN THE NORTH CENTRAL CATCHMENT (1996 TO 2001)...... 212 FIGURE 78 PROPORTION OF THE AGE GROUP OF THE POPULATION FOR THE NORTH CENTRAL CATCHMENT FOR 1996 AND 2001...... 213 FIGURE 79 COMPARISON OF THE CHANGE IN THE PROPORTION OF PEOPLE AGED 60 YEARS ABOVE AND THOSE AGED BETWEEN 15 AND 29 YEARS BETWEEN 1996 AND 2001 214 FIGURE 80 TOTAL AGE DEPENDENCY RATIO (2001) FOR THE SLAS OF THE NORTH CENTRAL CATCHMENT ...... 215 FIGURE 81 NORTH CENTRAL CATCHMENT – PROPORTION OF EMPLOYMENT BY PRIMARY, SECONDARY AND TERTIARY INDUSTRY ...... 217 FIGURE 82 PROPORTION OF EMPLOYED PERSONS BY INDUSTRY FOR THE NORTH CENTRAL CATCHMENT...... 219 FIGURE 83 PERCENTAGE CHANGE IN EMPLOYMENT BY AGE GROUP BETWEEN 1996 AND 2001 FOR THE NORTH CENTRAL CATCHMENT ...... 222 FIGURE 84 CHANGE IN THE NUMBER OF PERSONS EMPLOYED BY INDUSTRY BETWEEN 1996 AND 2001 FOR THE NORTH CENTRAL CATCHMENT ...... 223 FIGURE 85 UNEMPLOYMENT RATE FOR THE NORTH CENTRAL SLAS (2001)...... 224 FIGURE 86 MEDIAN HOUSEHOLD INCOME FOR SLAS IN THE NORTH CENTRAL CATCHMENT AND THE PROPORTION OF HOUSEHOLDS EARNING <$299 A WEEK ...... 226 FIGURE 87 THE AREA OF IRRIGATED AGRICULTURE AS A PROPORTION OF THE TOTAL AREA OF AGRICULTURAL HOLDINGS FOR THE NORTH CENTRAL ...... 230

7 Stage 1: Social Impact Assessment: Possible Increases in Environmental Flows Allocations to the River Murray System VOLUME 2 Volume 2

FIGURE 88 PROPORTION OF JOBS BY INDUSTRY BY SLA IN THE NORTH CENTRAL CATCHMENT...... 232 FIGURE 89 ARIA SCORE FOR SLAS IN THE NORTH CENTRAL CATCHMENT ...... 233 FIGURE 90 MALLEE CATCHMENT ...... 241 FIGURE 91 TOTAL POPULATION OF SLAS IN THE MALLEE CATCHMENT (2001) ...... 244 FIGURE 92 CHANGE IN THE TOTAL POPULATION OF SLAS IN THE MALLEE CATCHMENT (1996 TO 2001) ...... 245 FIGURE 93 PROPORTION OF THE AGE GROUP OF THE POPULATION FOR THE MALLEE CATCHMENT FOR 1996 AND 2001...... 246 FIGURE 94 COMPARISON OF THE CHANGE IN THE PROPORTION OF PEOPLE AGED 60 YEARS ABOVE AND THOSE AGED BETWEEN 15 AND 29 YEARS BETWEEN 1996 AND 2001 247 FIGURE 95 TOTAL AGE DEPENDENCY RATE (2001) FOR THE SLAS OF THE MALLEE CATCHMENT...... 248 FIGURE 96 MALLEE CATCHMENT – PROPORTION OF EMPLOYMENT BY PRIMARY, SECONDARY AND TERTIARY INDUSTRY ...... 250 FIGURE 97 PROPORTION OF EMPLOYED PERSONS BY INDUSTRY FOR THE MALLEE CATCHMENT...... 251 FIGURE 98 PERCENTAGE CHANGE IN EMPLOYMENT BY AGE GROUP BETWEEN 1996 AND 2001 FOR THE MALLEE CATCHMENT...... 254 FIGURE 99 CHANGE IN THE NUMBER OF PERSONS EMPLOYED BY INDUSTRY BETWEEN 1996 AND 2001 FOR THE MALLEE CATCHMENT ...... 255 FIGURE 100 U NEMPLOYMENT RATE FOR THE MALLEE CATCHMENT SLAS (2001)...... 256 FIGURE 101 M EDIAN HOUSEHOLD INCOME FOR SLAS IN THE MALLEE CATCHMENT AND THE PROPORTION OF HOUSEHOLDS EARNING <$299 A WEEK...... 258 FIGURE 102 P ROPORTION OF JOBS BY INDUSTRY BY SLA IN THE MALLEE CATCHMENT .. 262 FIGURE 103 ARIA SCORE FOR SLAS IN THE MALLEE CATCHMENT...... 263 FIGURE 104 S OUTH AUSTRALIA MDB CATCHMENT ...... 272 FIGURE 105 T OTAL POPULATION OF SLAS IN THE SA MDB CATCHMENT (2001) ...... 278 FIGURE 106 C HANGE IN THE TOTAL POPULATION OF SLAS IN THE SA MDB CATCHMENT (1996 TO 2001) ...... 279 FIGURE 107 P ROPORTION OF THE AGE GROUP OF THE POPULATION FOR THE SA MDB CATCHMENT FOR 1996 AND 2001...... 280 FIGURE 108 C OMPARISON OF THE CHANGE IN THE PROPORTION OF PEOPLE AGED 60 YEARS ABOVE AND THOSE AGED BETWEEN 15 AND 29 YEARS BETWEEN 1996 AND 2001 281 FIGURE 109 T OTAL AGE DEPENDENCY RATE (2001) FOR THE SLAS OF THE SA MDB CATCHMENT...... 282 FIGURE 110 SA MDB CATCHMENT – PROPORTION OF EMPLOYMENT BY PRIMARY, SECONDARY AND TERTIARY INDUSTRY ...... 284 FIGURE 111 P ROPORTION OF EMPLOYED PERSONS BY INDUSTRY FOR THE RIVERLAND AND MURRAYLANDS SUBGROUP OF THE SA MDB CATCHMENT...... 285 FIGURE 112 P ERCENTAGE CHANGE IN EMPLOYMENT BY AGE GROUP BETWEEN 1996 AND 2001 FOR THE SA MDB CATCHMENT ...... 288 FIGURE 113 C HANGE IN THE NUMBER OF PERSONS EMPLOYED BY INDUSTRY BETWEEN 1996 AND 2001 FOR THE SA MDB CATCHMENT ...... 289 FIGURE 114 U NEMPLOYMENT RATE FOR THE SA MDB CATCHMENT SLAS (2001)...... 290

8 Stage 1: Social Impact Assessment: Possible Increases in Environmental Flows Allocations to the River Murray System VOLUME 2 Volume 2

FIGURE 115 M EDIAN HOUSEHOLD INCOME FOR SLAS IN THE SA MDB CATCHMENT AND THE PROPORTION OF HOUSEHOLDS EARNING <$299 A WEEK...... 292 FIGURE 116 T HE AREA OF IRRIGATED AGRICULTURE AS A PROPORTION OF THE TOTAL AREA OF AGRICULTURAL HOLDINGS FOR THE SA MDB CATCHMENT...... 298 FIGURE 117 P ROPORTION OF JOBS BY INDUSTRY BY SLA IN THE SA MDB, RIVERLAND AND MURRAYLANDS SUBGROUP ...... 300 FIGURE 118 W ATER PIPELINES AND AREAS SERVED BY THEM IN SOUTH AUSTRALIA ...... 301 FIGURE 119 ARIA SCORE FOR SLAS IN THE SA MDB CATCHMENT 1999...... 302

Tables

TABLE 1 IRRIGATION AREAS WITHIN EACH CATCHMENT ...... 15 TABLE 2 GROSS VALUE OF PRODUCTION OF AGRICULTURE AND IRRIGATED AGRICULTURE FOR THE STUDY AREA (2001) ...... 30 TABLE 3 LONG-TERM DIVERSION CAP FOR VALLEYS IN NSW (GL) ...... 31 TABLE 4 LONG-TERM DIVERSION CAP FOR VALLEYS IN VICTORIA (GL) ...... 31 TABLE 5 LONG-TERM DIVERSION CAP FOR VALLEYS IN SOUTH AUSTRALIA (GL)...... 32 TABLE 6 POPULATION SIZE AND CHANGE BY SLA – UPPER CATCHMENT SUBGROUP .. 57 TABLE 7 POPULATION SIZE AND CHANGE SLA – MID CATCHMENT CATCHMENT SUBGROUP ...... 57 TABLE 8 POPULATION SIZE AND CHANGE SLA – LOWER CATCHMENT SUBGROUP ...... 58 TABLE 9 IRRIGATION ENTITLEMENTS AND AVERAGE WATER DELIVERED, FARMS, HECTARES IRRIGATED BY IRRIGATION AREAS IN THE MURRAY CATCHMENT... 74 TABLE 10 GROSS VALUE OF PRODUCTION OF AGRICULTURE AND IRRIGATED AGRICULTURE FOR THE MURRAY CATCHMENT BY SUBGROUP (2001)...... 75 TABLE 11 HERITAGE SITES AND PLACES IN THE MURRAY CATCHMENT ...... 82 TABLE 12 POPULATION BY SLA – BURRUNJUCK TO NARRANDERA SUBGROUP...... 93 TABLE 13 POPULATION BY SLA – MURRUMBIDGEE IRRIGATION SUBGROUP...... 93 TABLE 14 POPULATION BY SLA – COLEAMBALLY IRRIGATION SUBGROUP ...... 93 TABLE 15 POPULATION BY SLA – LOWER MURRUMBIDGEE SUBGROUP...... 94 TABLE 16 IRRIGATION ENTITLEMENTS AND AVERAGE WATER DELIVERED, FARMS, HECTARES IRRIGATED BY IRRIGATION AREAS IN THE MURRUMBIDGEE CATCHMENT ...... 111 TABLE 17 GROSS VALUE OF PRODUCTION OF AGRICULTURE AND IRRIGATED AGRICULTURE FOR THE MURRUMBIDGEE CATCHMENT BY SUBGROUP (2001)...... 112 TABLE 18 HERITAGE SITES AND PLACES IN THE MURRUMBIDGEE CATCHMENT ...... 117 TABLE 19 POPULATION BY SLA – LOWER MURRAY DARLING CATCHMENT...... 124 TABLE 20 IRRIGATION ENTITLEMENTS AND PURPOSE FOR IRRIGATION IN THE LOWER MURRAY DARLING CATCHMENT ...... 137 TABLE 21 HERITAGE SITES AND PLACES IN THE LOWER MURRAY DARLING CATCHMENT...... 141 TABLE 22 POPULATION SIZE AND CHANGE BY SLA – DARTMOUTH TO HUME CATCHMENT SUBGROUP ...... 149 TABLE 23 POPULATION BY SLA – HUME TO YARRAWONGA CATCHMENT SUBGROUP . 150 TABLE 24 GROSS VALUE OF AGRICULTURAL PRODUCTION AND IRRIGATED AGRICULTURE FOR THE NORTH EAST CATCHMENT BY SUBGROUP (2001) ... 165

9 Stage 1: Social Impact Assessment: Possible Increases in Environmental Flows Allocations to the River Murray System VOLUME 2 Volume 2

TABLE 25 HERITAGE SITES AND PLACES IN THE NORTH EAST CATCHMENT ...... 169 TABLE 26 POPULATION BY SLA – UPPER GOULBURN SUBGROUP ...... 176 TABLE 27 POPULATION BY SLA – CENTRAL GOULBURN SUBGROUP...... 176 TABLE 28 POPULATION BY SLA – LOWER GOULBURN SUBGROUP ...... 177 TABLE 29 IRRIGATION ENTITLEMENTS AND AVERAGE WATER DELIVERED, FARMS, HECTARES IRRIGATED BY IRRIGATION AREAS IN THE MURRAY CATCHMENT 194 TABLE 30 GROSS VALUE OF AGRICULTURAL PRODUCTION AND IRRIGATED AGRICULTURE FOR THE GOULBURN BROKEN CATCHMENT BY SUBGROUP (2001)...... 195 TABLE 31 HERITAGE SITES AND PLACES IN THE GOULBURN-BROKEN CATCHMENT ..... 200 TABLE 32 POPULATION BY SLA – LODDON SUBGROUP ...... 209 TABLE 33 POPULATION BY SLA – CAMPASPE SUBGROUP...... 209 TABLE 34 POPULATION BY SLA – BENDIGO SUBGROUP ...... 210 TABLE 35 POPULATION BY SLA – UPPER NORTH CENTRAL SUBGROUP ...... 210 TABLE 36 IRRIGATION ENTITLEMENTS AND AVERAGE WATER DELIVERED, FARMS, HECTARES IRRIGATED BY IRRIGATION AREAS IN THE MURRAY CATCHMENT 227 TABLE 37 GROSS VALUE OF AGRICULTURAL PRODUCTION AND IRRIGATED AGRICULTURE FOR THE GOULBURN BROKEN CATCHMENT BY SUBGROUP (2001)...... 229 TABLE 38 HERITAGE SITES AND PLACES IN THE NORTH CENTRAL CATCHMENT ...... 234 TABLE 39 POPULATION BY SLA – SWAN HILL SUBGROUP...... 243 TABLE 40 POPULATION BY SLA – MILDURA SUBGROUP ...... 244 TABLE 41 IRRIGATION ENTITLEMENTS AND AVERAGE WATER DELIVERED, FARMS, HECTARES IRRIGATED BY IRRIGATION AREAS IN THE MALLEE CATCHMENT 259 TABLE 42 GROSS VALUE OF AGRICULTURAL PRODUCTION AND IRRIGATED AGRICULTURE FOR THE MALLEE CATCHMENT BY SUBGROUP (2001) ...... 261 TABLE 43 HERITAGE SITES AND PLACES IN THE MALLEE CATCHMENT ...... 266 TABLE 44 POPULATION BY SLA – RIVERLAND SUBGROUP ...... 276 TABLE 45 POPULATION BY SLA – MURRAYLANDS SUBGROUP...... 277 TABLE 46 IRRIGATION ENTITLEMENTS AND AVERAGE WATER DELIVERED, FARMS, HECTARES IRRIGATED BY IRRIGATION AREAS IN THE SA MDB CATCHMENT 294 TABLE 47 GROSS VALUE OF AGRICULTURAL PRODUCTION AND IRRIGATED AGRICULTURE FOR THE SA MDB CATCHMENT BY SUBGROUP (2001)...... 296 TABLE 48 HERITAGE SITES AND PLACES IN THE SA MDB CATCHMENT...... 304

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Abbreviations

ABARE Australian Bureau of Agricultural and Resource Economics ABS Australia Bureau of Statistics ADI Australian Defence Industries ARIA The Accessibility/Remoteness Index of Australia ATSA Australian Tourism Satellite Account CARE Centre for Agricultural and Resource Economics COAG Council of Australia Governments CMU Catchment Management Unit CIT Central Irrigation Trust EBC Environment Behaviour Consultants EFRP Environmental Flow Reference Point FMIT First Mildura Irrigation Trust GL Gigalitre G-MW Goulburn-Murray Water Km Kilometre LAP Local Action Planning Group LWMP Land and Water Management Planning MDB Murray-Darling Basin MDBC Murray-Darling Basin Commission MI Murrumbidgee Irrigation MIL Murray Irrigation Limited ML Megalitre MLDRIN Murray Lower Darling Rivers Indigenous Nations NRM Natural Resource Management OECD Organisation for Economic Cooperation and Development RACD Resource Assessment and Conservation Division RIVROC Riverina Region of Councils RWA Rural Water Authority SA MDB South Australia Murray-Darling Basin SERP Social and Economic Reference Panel SIA Social Impact Assessment SLA Statistical Local Area TTF Tourism Task Force

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1. Introduction

The Murray-Darling Basin Commission contracted Hassall & Associates Pty Ltd and Professor Helen Ross, University of Queensland, assisted by Mary Maher and Associates, to conduct a scoping study into the potential social effects of the possible return of water to the River Murray System associated with three Environmental Flow Reference Points (EFRP). This is referred to as ‘Stage 1’ of the Social Impact Assessment (SIA).

Stage 1, the ‘scoping’ stage, consists of two linked parts: • profiling the social and economic context of communities that may be affected and their dependence on the River Murray System and its ecosystems; and • scoping of the possible impacts from changed flow regimes.

This volume, Volume 2, describes the first of these parts, presenting a social and economic profile for each of the catchments in the Study Area against a number of descriptors or variables. It also outlines dependence of the individuals and communities on the water resource and ecosystems of the River Murray System.

Volume 2 has been prepared so that it may be read as a stand-alone report or in conjunction with the scoping study, which is presented in Volume 1 and outlines the results of the second part of Stage 1.

The profiles have drawn on published and unpublished products and data of the Australian Bureau of Statistics (ABS), including the Integrated Regional Data Base (IRDB) Version 2003 and Version 2002, Ag Stats 2003, ABS Census of 1996 and 2001 free web resources and the CDATA 2001. Information obtained through interviews conducted as part of this study in February and March of 2003, relevant literature and expertise of the team also contributed significantly to the profiles presented.

The descriptors presented here assisted the team to form the recommended scope for the SIA, outlined in Chapter 5, Volume 1. The rationale for choosing certain descriptors is explained including how they were calculated or on what basis they are described.

This volume: • describes the social and economic context of areas that may be affected by increases in environmental flows; • describes the social and cultural importance of water resources to stakeholders and communities; and • shows the extent of dependence upon irrigated agriculture, trends within irrigated industries and dependent communities.

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2. Definition of the Study Area

2.1 Study Area Boundaries

Defining a Study Area for scoping and profiling purposes posed considerable challenges. The terms of reference outlined eight reaches for the SIA:

• Mitta Mitta River: Dartmouth Dam to Hume Dam • River Murray: Hume Dam to Yarrawonga Weir • River Murray: Yarrawonga Weir to Wakool junction • River Murray: Wakool junction to Darling junction • River Murray: Darling Junction to Lock 3 • Lower Darling River and the Great Anabranch of the Darling River below Menindee Lakes • River Murray: Lock 3 to Wellington • River Murray: The Lower Lakes and Coorong.

Some confusion was experienced with these descriptions of the Study Area, in that the boundaries of almost all other recognised divisions, including local government and statistical areas are different. As a consequence, the data do not fit comfortably and in one case, the boundary sits in the middle of a major town, further confusing the boundaries for data collection and analysis.

Further, examination of the boundaries of irrigation areas using water from the River Murray System and tributaries showed that the Study Area would need to extend a considerable distance each side of the river, but that a bandwidth either side of the river would not capture these areas efficiently. Further, we knew that towns, some further away from the river still, were economically and socially interdependent with the irrigated areas and the tourism and recreation activities associated with the river. For statistical purposes, the ability to use Statistical Local Areas (SLA), as defined by the ABS, was vital. On balance, it appeared best to use a hydrological unit, the catchment, which clearly encompassed all areas of potential interest and then collect information for SLAs within those catchments, approximating the boundaries.

We were later asked by the Social and Economic Reference Panel (SERP), which is providing advice to the MDBC on studies for the Living Murray initiative, to consider the use of ‘social catchments’. This is a relatively new concept in the literature, tested in few Australian areas. So far as we are aware, the primary research has not been conducted to delineate social catchments within our areas of interest, let alone across the entire River Murray System.

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After consultation with the MDBC and examination of published information, the Study Area for profiling and scoping was defined to include the catchments of the:

• Murrumbidgee, Murray, and Lower Murray-Darling in NSW; • North East, Goulburn Broken, North Central, and Mallee in Victoria; and • South Australian Murray-Darling Basin (SA MDB).

Agriculture, industry and towns within the river zone are the focus for the Study Area however, we have included a level of detail by exploring the socio- economic profiles and demographics of the SLAs within each of the catchments.

Data collected at the SLA level are aggregated to the catchment level where appropriate, without losing meaningful resolution of information and provides an overview of the Study Area. The irrigation areas within the Study Area, are managed by a mix of irrigation companies, government bodies, and trusts. The irrigation areas are highlighted on Map 1 and listed in Table 1.

There are also areas of riparian irrigation with private diverters. Specific groups include Murrumbidgee Private Irrigators near Wagga Wagga, Hay Irrigators Association, irrigators in the Mitta Mitta River valley and those along the Lower Murray Swamp Lands.

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Table 1 Irrigation Areas within each Catchment State Catchment Irrigation Areas

NSW Murrumbidgee Murrumbidgee Irrigation (including Wah Wah and Benerenbah) Coleambally Irrigation Hay Irrigation District

Murray Murray Irrigation Limited (includes Wakool, Deniboota, Denimein and Berriquin Irrigation Districts)

West Corugan Lower Murray Darling Menindee Lakes Tandou Western Murray Irrigation VIC North East NONE Goulburn Broken (Each area operates GMW Central Goulburn under the auspices of Goulburn- GMW Murray Valley Murray Water) GMW Shepparton * North Central GMW Rochester-Campaspe GMW Pyramid-Boort Tresco Irrigation District Nyah Irrigation District Mallee First Mildura Irrigation Trust Sunraysia Irrigation Schemes (including Merbein, Robinvale, and Nyah to the Border) SA Lower Murray Renmark Irrigation Trust Sunlands Irrigation Trust Golden Heights Irrigation Trust Lower Murray Irrigation Central irrigation Trust

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Figure 1 Overview of the Study Area

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3. Development of Descriptors

3.1 Introduction

We have developed a range of descriptors to assist in the social and economic profiling of areas and stakeholders in the Study Area and the cultural and social significance of the water resource and associated ecosystems. The descriptors provide an indication of the dependence of stakeholders and communities on irrigated agriculture and the trends within irrigated industries and dependent communities.

The descriptors have been grouped into the following categories:

• physical environment, natural resources and their use; • social geography and demography; • socio-economic profiles and economy; • dependence on water; • community well-being and services; • cultural heritage; and • cumulative change and community response.

3.2 Explanation of Descriptors

A template for each catchment was prepared and includes the following descriptor areas. Together, they provide a description of the catchments across the Study Area.

The following provides a brief discussion of each of the descriptors and the rationale for their inclusion.

3.2.1 Physical environment, natural resources and their use

As described in Volume 1, Section 3.2.5, environmental qualities is one of the aspects of resilience, or the ability of an area to absorb changes or manage changes successfully. Environmental quality includes such things as land and water in healthy condition, suited to its uses, and whether land capability allows for alternative uses.

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This section provides an overview of the environment, natural resources and a brief introduction to their use according to: • water resources; • natural features; • land use; and • environmental issues.

3.2.2 Social geography and demography

This section provides a detailed outline of the population of the SLAs within each catchment, focusing on the following socio-demographic profiles, mapping the results where possible: • population size and change: Population and population change is an important descriptor as it contributes to an understanding of the availability of workforce (seasonal and permanent), vitality of community, and the level of demand for services (Burdge, 1998). The Estimated Resident Population is generally used however, the 2001 information was not available for this study. Therefore, total population count was used for 1996 and 2001, adjusted for overseas visitors; • age distribution, age dependency and change over time: The age breakdown of the population is also important for providing an understanding of likely changes in generational transfer, skill availability, community vitality, dependency and change in attitude. The total population count was used for 1996 and 2001, adjusted for overseas visitors. The age dependency ratio is also reported. The age dependency ratio is calculated as the percentage of the population below 14 years of age and above 65 years of age to the percentage aged between 15 and 64 years. Scores that exceed 100 indicate more people in the dependency age groups (below 14 and over 65) than people in the non-dependency age group (15-64 years) (RACD, CARE and EBC 2000). • The trend in an aging population has received focus in rural communities with the reported increasing average age of farmers. Further, anecdotes relayed during interviews highlighted an increase in retirees moving to river towns from both rural areas and the metropolitan cities. Barr (2002) indicates a new generation is likely to come into farming within the next 10 years with different approaches, aspirations, and values;

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• family types and marital status: Two profiles are reported including the proportion of one parent families and the number of persons separated or divorced. The first is calculated as the number of one-parent families as a proportion of all families and the second as the number of persons separated or divorced as a proportion of the total number of persons over the age of 15 years. RACD, CARE and EBC (2000) incorporated these two profiles when calculating the community sensitivity indices (see Fenton, 1998a; 1998b; 1998c), for communities affected by changes in forest management; and • non-English speaking: This profile is calculated as the number of persons who do not speak English well or at all as a proportion of the total number of person who were born overseas. This profile was also included in the community sensitivity indices prepared by RACD, CARE and EBC (2000). This descriptor has been included in the profile as interviewees identified that individuals involved in agriculture from non- English speaking backgrounds may be more vulnerable to changes. It was considered important to understand the extent of the population in this situation and their location.

3.2.3 Socio-economic profiles and economy

This section provides an overview of the economies of the catchments in terms of socio-economic profiles and industry profiles. The profiles provide an indication of the area’s versatility. Economic diversity describes a level of resilience to downturns or shocks. For example, in an agricultural region, the more viable economies would in theory be those with several primary products, and includes activity in primary, secondary and tertiary economic tiers (eg local value-adding of product).

The descriptors reported are as follows: • presence of regional centres: Depending on their size, regional centres generate their own growth, offer services comparable to metropolitan areas and suggest a level of strength in a region in terms of employment opportunities. However, the presence of a growing regional centre may hide the decline in surrounding smaller towns as services shift to the main center; • employment in tiers of the economy: This descriptor presents the proportion of persons employed in the primary, secondary and tertiary sectors drawing on ABS Census 2001. It provides an understanding of the breadth of economic activity and diversity of the economy to withstand shocks. The industries included by sector include: o primary (number of persons employed in agriculture/fishing/ forestry, and mining as a percentage of the total number of persons employed);

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o secondary (number of persons employed in manufacturing as a percentage of the total number of persons employed); o tertiary sectors (number of persons employed in construction, wholesale trade, retail trade m accommodation/cafes/restaurants, transport and storage, communication services, finance and insurance, property and business services, government, administration and defence, education, health and community services, cultural and recreational services, personal and other services as a percentage of the total number of persons employed) (SCARM, 1998, p.132). • industry profiles: A brief description is presented of the primary, secondary and tertiary industries present in the catchments (SCARM, 1998); • growth in jobs: The proportion of people employed in different industries and the change over time is important in understanding the diversity of the economy, and whether opportunities exist for movement within an area; • unemployment rate: The level of unemployment is also important and is included in RACD, CARE and EBC (2000) community sensitivity indices. It is important to note however, that a low unemployment rate does not necessarily indicate a healthy economy. Rather it may indicate that unemployed persons looking for work have needed to leave the area to seek employment; • employment by occupation for occupations in agriculture: The number of persons employed for a selected range of occupations was obtained from the ABS Census 1996 and 2001 (unpublished data) to contribute to an understanding of the change in the number of farmers and horticultural workers in the catchments. The information was collected to identify the occupations in agriculture that are the most prevalent, those in which change is taking place over time, and whether there are increases or decreases in occupation opportunities for people involved in agriculture. The occupations related to agriculture and horticulture include Farmers & Farm Managers (includes crop, livestock and general farmers), Farm Hands, Gardeners, Nursery and Garden Labourers, Greenkeepers, Nurserypersons, Animal Trainers, Shearers, Agricultural and Horticultural Labourers, Farm Overseers, Skilled Agricultural Workers, Acquaculture Farmers, and Horticultural Tradespersons. Interviews identified that horticulture had become important in some areas, and in others, the number of farmers were declining. The change in the number of persons employed from 1996 to 2001, is also reported. Limitations of this information is that the occupation classification in the ABS Census provides an indication of the main job only, and people may classify themselves in a different occupation from one Census to the next.

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• household income and proportion of low income earning households: The proportion of households earning less than $299 per week and the median household income is reported. This profile is included in the community sensitivity indices prepared by RACD, CARE and EBC (2000). The descriptor is also included as some interviewees identified a trend in an increasing number of low-income earners and families receiving welfare locating to their area; and proportion of households earning less than $299 per week. • infrastructure: A basic description is provided of the transport infrastructure for the catchments, changes that have taken place and in some instances where there have been issues, the adequacy of utilities (electricity, water, and sewerage). The rationale for including this descriptor is that a good transport and infrastructure network including roads, rail, air, electricity and water, provides for increased mobility, transport of goods and attraction of investment and visitors. Where infrastructure is inadequate it can limit expansion and development.

3.2.4 Dependence on water

Communities, individuals, families and institutions in the Study Area exhibit dependence on the water resource of the River Murray System and its ecosystems through consumptive and non-consumptive use. This section explores: • the dependence of the communities on irrigated agriculture; and • the dependence on the water resource highlighting non-agricultural uses, in particularly the contribution of tourism to the various SLAs throughout the catchments.

Dependence on irrigated agriculture

As per the terms of reference, Stage 1 requires that an analysis of dependence on irrigated agriculture be conducted.

The agricultural sector is a large employer and contributor to the economies of the regions, directly and through secondary and tertiary industries that service the sector.

The descriptors we have calculated are as follows: • irrigation entitlements and usage: The long-term diversions under the Cap and the current level of entitlement for NSW, South Australia and Victoria and the valleys relevant to the Study Area are reported. A description is also provided for each irrigation area in the catchments of

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the number of irrigated holdings, area of irrigated agriculture, level of entitlement and water delivered; • the value of irrigated agricultural production: The gross value of agricultural production by SLA was extracted from the IRDB Version 2002 (ABS 2002) and the Agricultural Census information for 1997 and 2001. The Agricultural Census does not report the value of irrigated agriculture, nor the value of grapes for the fresh or wine processing market. The gross margin for fresh grape production was applied to the area of production for grapes ($5,000 per hectare1) extracted from the IRDB 2002;

In order to estimate the value of irrigated agriculture a number of assumptions were made regarding the proportion that irrigated agriculture contributed to the gross value of agricultural production. For the Murray, Murrumbidgee and Lower Murray Darling catchments, the proportions of production, as outlined in NSW Irrigators Council Factsheets, were applied to the value of agricultural production.

For the Goulburn Broken and North Central catchments, the estimations of the value of irrigated and dryland production as a proportion of the total value of agricultural production generated by Myfora Pty Ltd - Michael Young & Associates (2000) for the Goulburn Broken catchment were used.

For the SA MDB and the North East catchments, the proportion of irrigated agriculture was determined based on our fieldwork and interviews. As part of the profiling, all irrigation companies and the major trusts were contacted to assist in compiling the major products produced through irrigation in their areas and this allowed for selection of statistics for relevant products.

The overlay of SLA boundaries (CDATA 2001) and irrigation areas (supplied by MDBC) were also viewed to understand the location of irrigated activity and whether the production of particular primary products would be irrigated in a particular location. It had been hoped to calculate the value contribution of irrigated agriculture to the overall economy of the catchments however, the gross domestic product data is produced at the state level only, not the SLA level.

The results of the study being conducted by the Centre for Policy Studies involving the MONASH-TERM model, as to the regional economic impact of changes in irrigated agriculture on other sectors of the economy will provide important flow-on effects from irrigation (water dependent) industries throughout the economy; and

1 Tony Thomson, DLWBC, pers comm. 14/2/03.

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• the area of land devoted to irrigated agriculture: The area of land devoted to irrigated agriculture was extracted from Ag Stats 2003. This provides the extent that the landscape is influenced by irrigated agriculture in terms of visual impact and productivity.

Dependence on water (excluding irrigated agriculture)

This section provides a brief discussion as to the dependence on water (excluding irrigated agriculture) for each of the catchments. This includes both consumptive and non-consumptive dependence on the water as a resource, on the aesthetics and environmental health of the river environment and biodiversity.

An area of focus in this section of the profile is on tourism and recreation along the River Murray, which is important to the towns in terms of employment and income. The degree of importance varies throughout the Study Area. Tourism also has a number of other effects such as: • exposing the local community to contact with residents of other areas, and at the same time instilling an ‘identity’ on the local community as residents of a region that others desire to visit; • facilitating the development of other activities, such as education and business meetings and conferences, using facilities primarily installed for tourism and recreation activities; and • encouraging more people to move to the area, because of the recreation attractions, which are perceived as being conducive to an attractive lifestyle (Gibbs, 1988).

Tourism can be defined as short-term leisure and business travel activities away from the normal place of residence and work. It involves particular destinations and both domestic and international travellers. As they bring money into tourist destinations, visitors provide increased job opportunities and tax revenues, thus contributing to the economies of the destinations (Hall, 1991, p.3).

Recreation refers to leisure activities which are undertaken by the residents of an immediate region whose spending patterns will involve a recycling of money within the community, though it should be noted that tourists also often engage in such leisure activities (Hall, 1991, p.3).

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The Tourism Task Force’s analysis of tourism dependent employment is reported for each catchment by SLA. It draws on the Australian Tourism Satellite Account (ATSA) developed by the ABS in 20002 with results reported at the national level. The results do not measure the indirect impact of tourist spending, as further modeling is required. Satellite Accounts allow an expansion of the national accounts for a selected area of interest, while using the relevant concepts and structures of the national accounts (TTF Australia, 2001).

The Federal Government developed the ATSA to provide an official measure of the economic activity generated by tourism. The major funding for this initiative is from the Department of Industry, Science and Resources. ATSA is based on an internationally developed methodology between the United Nations, World Tourism Organization and OECD.

Understanding the proportion of employment generated by the tourism sector provides a descriptor of economic diversity and the level of dependence on the sector. It indicates the potential of some areas to further capitalise on opportunities from an improved River Murray System.

3.2.5 Community wellbeing and services

Community wellbeing incorporates the fundamentals of economic self sufficiency, optimal health, access to education and employment, and happy relationships that contribute to our quality of life (ABS, 2002).

In this section we provide an overview of the social support services and community services.

The following descriptors are reported: • the Accessibility/Remoteness Index of Australia (ARIA) Score (1999): The ARIA Score describes access to goods, services and opportunities for social interaction and was developed by the National Centre for Social Applications of Geographic Information Systems (GISCA) for the (then) Commonwealth Department of Health and Aging and a number of other Commonwealth departments. The approach uses distances to population centres as the basis for quantifying service access and hence remoteness.

2 The model for generating employment numbers, which are a ‘reasonable estimate’, multiplies the number of employed persons in each industry (of the 22 which comprise the economy in this approach) by the tourism share of that industry’s total gross value added.

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• It uses GIS technology to combine road distance to population centres of various sizes, as a measure of service access, to develop a standard measure of remoteness that is suitable for a broad range of applications (Department of Health and Aging, 2001). • The score converts to the following categories:

o Highly Accessible (ARIA score 0 - 1.84) - relatively unrestricted accessibility to a wide range of goods and services and opportunities for social interaction. o Accessible (ARIA score >1.84 - 3.51) - some restrictions to accessibility of some goods, services and opportunities for social interaction. o Moderately Accessible (ARIA score >3.51 - 5.80) - significantly restricted accessibility of goods, services and opportunities for social interaction. o Remote (ARIA score >5.80 - 9.08) - very restricted accessibility of goods, services and opportunities for social interaction. o Very Remote (ARIA score >9.08 - 12) - locationally disadvantaged - very little accessibility of goods, services and opportunities for social interaction. • tertiary services: A brief description is given of the presence of health, social support and educational services. Reporting this information assists our understanding of whether remote areas have localized access to services.

3.2.6 Cultural heritage

It was identified through the Stage 1 Community Engagement Living Murray initiative workshops that all communities had values attached to the environment, flow of river, and river health, irrigators and farmers included (Tim Cummins & Associates, 2002a).

At the scoping stage, sites of Aboriginal, non-Aboriginal and natural heritage (historic, scientific, social, aesthetic, anthropological, cultural, spiritual, archaeological) are listed. Other cultural heritage described in the literature has also been included.

3.2.7 Cumulative change and community response

A summary of the cumulative changes communities and individuals have been faced with over the last 10 years was presented in Volume 1 in a discussion of the dynamic baseline. This section presents the results from the interviews undertaken by the team in February and March 2003,

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regarding changes that have been taking place over the last 10 years and also feedback on how communities, individuals and institutions responded. The various social and economic descriptors provide validation for some of the anecdotes provided in interviews, and in some cases assisted in refining the descriptors presented in this volume.

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4. Study Area Overview

4.1 Introduction

Various trends have been identified through an analysis of social demographic and socio-economic information for the Study Area.

While the regional and smaller urban centres continue to experience varying rates of population growth, for small rural communities the population is declining, as are social services and facilities. However, the total population for the Study Area increased by 3% from 801,762 in 1996 to 824,535 in 2001. The Aboriginal and Torres Strait Islander population increased by 18% from 14,206 to 16,731 in 2001.

The population for the Study Area is also aging. For the majority of SLAs the proportion of the population over 40 years of age increased whilst the proportion of the population below 40 years declined between 1996 and 2001. Of particular concern to many local government representatives interviewed is the decline in people aged 15 to 29 years. The growth rate of the population over 60 years for each of the catchments is also growing faster than that for each of the states within which the catchments are located. Figure 2 presents this picture.

For the majority of the SLAs throughout the Study Area the number of one- parent families as a proportion of the total number of families was the same as the average for the corresponding state and the Study Area. This was similar for the number of persons who were separated or divorced as a percentage of the total number of people over the age of 15 years.

In general the number of persons who did not speak English well or not at all as a proportion of those persons born overseas, was less than the average for the state and the Study Area. However, there were exceptions such as Griffith, Leeton, Shepparton, and Robinvale.

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State and Catchments State and Catchments Change in the proportion of 60+ years age group of the total Change in the proportion of 15-29 years age group of population 1996 and 2001 the total population 1996 and 2001

South Australia South Australia

SA MDB SA MDB

New South Wales NSW

Murray Lower Murray Darling

Lower Murray Darling Murrumbidgee

Murrumbidgee Murray

Victoria VIC

North Central North Central

Goulburn Broken Goulburn Broken

Mallee Mallee

North East North East

0.0% 0.5% 1.0% 1.5% 2.0% -2.5%-2.0%-1.5%-1.0%-0.5%0.0%

Figure 2 Change in the proportion of the 60+ and 15-29 years age group between 1996 and 2001 (Source: ABS CDATA 2001)

The economies of the Study Area are diverse with some catchments extremely reliant on dryland as compared to irrigated agriculture, whilst others are reliant on the tertiary sector or secondary processing. However, the agriculture fishing and forestry sector represents the most important industry throughout the Study Area and prvides the basis for locality and town existence.

The total number of people employed in the Agriculture, Forestry and Fishing industry across the Study Area is 46,432 people or 15% of the total number of persons employed. In the majority of all catchments the number of people employed in the industry increased between 1996 and 2001. In particular those in the occupations of farmer and farm managers, farm hands, nursery persons, gardeners, and aquaculture farmers. Aquaculture is becoming an important industry. The most important species farmed is the rainbow trout, with production of over 320 tonnes per annum valued at $1.6 million. Other species produced include Murray cod, Atlantic salmon, golden perch, brook trout, and catfish (GHD, 1992, p.8-7/8).

In terms of irrigated agriculture, rice is the major irrigated cereal crop and, apart from an extremely small area, is grown entirely in the Murrumbidgee and Murray valleys of southern New South Wales. Macadam, Drinan and Inall (2002) reported in 2002 there were 2,300 rice farm units located within the Study Area. The value of rice production varies with preliminary figures for 2000/01 at $335 million and a forecast for 2001/2002 of $255 million (ABARE, 2001).

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Rice growing has expanded westward along the Murrumbidgee. For example, in the Hay Shire, the area increased from 400 hectares in 1991-92 to some 10,000 hectares in 1994-95. The intensity of rice growing in the Murray valley is much less than in the Murrumbidgee due to the relatively lower availability of water.

In the report completed by Macadam, Drinan and Inall (2002) for the Rural Industries Research and Development Corporation (RIRDC) ‘Building Capacity for Change in the Rice Industry’ it was reported that 24 agencies were found to be involved in the rice extension system. The authors conclusion was that the rice industry is served by an exceptionally well- resourced and developed extension system. One of the strengths of the system was considered the high level of ‘systems redundancy’ involving overlap and agencies operating with varying perspectives and using varying processes.

The Study Area is also a major producer of a large number of horticultural crops, particularly within the irrigation areas (AHC 1996). The primary ones are citrus, grapes, stone fruits, pome fruits and vegetables. These are the commodities most associated with irrigation in the MDB and the intensive irrigation schemes, especially the South Australian Riverland (SA MDB catchment), Sunraysia (Mallee catchment), parts of the Murrumbidgee Irrigation Area (Murrumbidgee catchment), and the Shepparton-Cobram district (Goulburn-Broken catchment). Stone fruits and pears dominate the Shepparton district, vines in Sunraysia, and vines, citrus and stone fruits in the Riverland.

There is a significant regional specialisation. For example, well over half of the production of particular fruits are produced in particular districts, such as apricots in the Riverland (which accounts for some 90% of Australia's dried apricots) and peaches in the Goulburn area.

Grape production for wine makig has also expanded over the last 10 years in the MDB. Grapes for winemaking are produced on approximately 2,350 farms (55.8% of the Basin's farms growing grapes), which accounts for 72% of the Australian total of 3,253 farms. Production is valued at $151 million, 66.2% of the Australian total of $228 million. The major producing areas are the Riverland, Sunraysia, and Murrumbidgee catchments. Planting by the large winemaking companies are primarily responsible for the industry's growth over recent years.

The total area under vegetables is approximately 29,670 ha, 25% of the Australian total of 117,460 ha. There are approximately 1,520 farms growing vegetables, 22% of the Australian total of 6,870 farms. Production is valued at $265 million or 21% of the Australian total of $1,242 million. The largest individual vegetable crop is potatoes with different varieties

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being produced for the table, freezing and other processing markets. The fresh market’s move to washed potatoes has resulted in a shift of production to areas of light sandy soils, where potatoes are grown under irrigation, as in the Murray, Murrumbidgee and SA MDB. The other main growing area is the Central Highlands of Victoria.

Whilst crop production is of critical importance to the Study Areas’ agriculture, it occupies only a relatively small proportion of the area of land in farms. Most of the agricultural land in the MDB is devoted to grazing, supporting very large livestock industries including beef, wool, sheep meat, and lamb. Dairying is also important in certain parts of the Study Area. The main dairying area that focuses on the fresh milk market is the Murraylands, supplying Adelaide. Of much greater importance are the Riverine Plains of northern Victoria and some of the adjoining areas of NSW, where, based on irrigated pastures, milk is produced mainly (though not entirely) for manufacturing. The Basin's dairy industry is the major livestock activity dependent on irrigation.

Table 2 summarises the gross value of agricultural production and the value of irrigated agriculture for all catchments in the Study Area. The method of estimation is described in Section 3.2.4.

Table 2 Gross Value of Production of Agriculture and Irrigated Agriculture for the Study Area (2001) Catchments Total value of Total Value % Irrigated agriculture - Value Irrigated Agriculture ($ millions) Agriculture ($ million) Goulburn Broken 1,243 755 61% North Central 885 471 53% Murrumbidgee 1,281 443 35% SA MDB 1,233 382 31% Murray 1,161 338 29% Mallee 867 223 26% Lower Murray Darling 216 39 18% North East 279 0.5 0% Study Area 7,164 2,651 37% Source data: Base data set drawn from IRDB Version 2002 of the value of agricultural production by SLA. Then the proportion irrigated was applied, being based on estimates from the field trip, other publications, and GIS overlay of irrigated areas with SLA boundaries.

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The Cap on long-term diversions for the valleys in the MDB relevant to the Study Area is presented in Table 3, Table 4, and Table 5. The Cap totals 8,267 GL per annum. Included in each of the tables is the entitlements held by irrigation companies or areas. The entitlement for irrigation equates to approximately 5,978 GL per annum or 72% of the Cap. This figure is based on the summation of the irrigation entitlements for each of the irrigation areas in the Study Area.

This may underestimate the entitlement to irrigated agriculture as a proportion of the Cap as the estimated entitlement for irrigation reported here does not include licenses held by private diverters.

Table 3 Long-Term Diversion CAP for Valleys in NSW (GL) NSW - Valleys Long-Term Diversion Proportion of Cap (GL per year) Total Lower Darling 119 3% Murrumbidgee 2,289 53% NSW Murray 1,877 44% Total NSW 4,285 Total Irrigation Entitlement 3,617a (84% of CAP) Source: MDBC (2002e), The Living Murray; a Summation of irrigation entitlements for each of the irrigation areas in the Study Area drawn from ANCID (2002).

Table 4 Long-Term Diversion CAP for Valleys in Victoria (GL) Victoria - Valleys Long-Term Proportion of Diversion Cap (GL Total per year) Goulburn/Broken/Loddon 2,084 51% Murray/Kiewa/Ovens 1,656 41% Campaspe 122 3% Wimmera/Mallee (contributes little 162 4% or no water to the main stem of the River Murray) Total 4,024 Total Irrigation Entitlements 2,076a (52% of the Cap)

Source: MDBC (2002e), The Living Murray; a Summation of irrigation entitlements for each of the irrigation areas in the Study Area drawn from the Goulburn-Murray Water website, ANCID (2002) and Sunraysia Rural Water Authority website.

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Table 5 Long-Term Diversion CAP for Valleys in South Australia (GL) SA – Users (excluding Long-Term Diversion Proportion of Adelaide) Cap (GL per year) Total Country Towns 50 8.2% Reclaimed Swamps 100 16.5% Other 457 75.3% Total South Australia 607 The entitlement for metropolitan 650 Adelaide is a rolling 5 year total of 650 GL over 5 years. Total Irrigation Entitlement 285 (23% of Cap) Source: MDBC (2002e); a Summation of irrigation entitlements for each of the irrigation areas in the Study Area drawn from ANCID (2002) and websites.

Figure 3 shows that area of land devoted to irrigation as a proportion of the total land area devoted to agriculture. The catchment with the largest proportion devoted to irrigated agriculture is the Goulburn-Broken with 16%.

Study Area Area of irrigated agriculture as a proportion of the total area of agricultural holdings (2001) 40%

35%

30%

25%

20% 16% 15% 15% Proportion 9% 10% 6% 5% 3% 2% 2% 0% 0% l t y e e s g en tra le k n ra ge ro id al Ea b h B Ce Mur M rt rn um SA MDB o u rth rr N o u ulb N o M G Catchment Lower Murray Darlin Figure 3 Area of irrigated agriculture as a proportion of the total area of agricultural holdings – Study Area (2001) (Source: Ag Stats 2003)

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In addition to irrigated agriculture, water is an important focus for recreational and tourism activities, especially the larger water bodies such as the Hume Reservoir and Menindee Lakes. Important tourism, cultural and recreational activities (as we move downstream) include: • Murray catchment: Paddleboats, cultural festivals and events throughout. The water level is an important feature of the water resource. • North East catchment: Water skiing, sailing, power boating, swimming and recreational fishing. The water level of lakes and aesthetics are important features of the water resource. • Goulburn-Broken catchment: River based tourism is not identified as being significant however, recreational fishing is an important activity. • North Central catchment: Paddleboats are prevalent at Echuca. Water level, wetlands and Red Gum forests are important features of the water resource and ecosystems. • Lower Murray Darling catchment: River-based tourism is not significant however, Lake Victoria is an important site of significant cultural heritage and recreation. • Mallee catchment: Wetlands and paddleboats. The water level and wetland quality are important features. • SA MDB catchment: Recreational fishing, swimming, boating (including houseboating) and holiday shacks along the river are important activities. The Coorong and Lakes are particularly important features.

The houseboats and paddle steamers are important industries. The major centres for this activity are Murray Bridge, Mannum, Blanchetown, Morgan Waikerie, Kingston on Murray, Berri, Renmark, Murthi, Wentworth, Mildura, Swan Hill, and Echuca (Murray River Net, 2003).

Recreational fishing is the third most popular outdoor activity in Australia (Ross and Duffy, 1995). In the MDB, it is of far more importance than the commercial fishing industry. It is undertaken in virtually all of the Basin's rivers and reservoirs and forms a major part of the Basin's recreational and tourism activities (Lynch, 1995). No clear data are available on the catch taken by recreational fishing, but the activity has an economic value estimated at over $400 million a year. At least 1.75 million people fish recreationally in New South Wales each year.

The Basin's freshwater fisheries are supported by a number of research stations and hatcheries, operated by state government authorities and private interests. The major function of the hatcheries is to breed young fish or fingerlings for release into the Basin's rivers and reservoirs.

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The research stations play an important role in increasing knowledge of the Basin's fish and ensuring the continued existence of the restricted and endangered species. The major centres are the Inland Fisheries Research Station at Narrandera, Snobs Creek Research Centre at Eildon, and Kaiela Fisheries Research Station at Shepparton.

The River Murray is also important as a transport route. The River Murray was the first inland transport route in the early days of colonisation. Sturt first discovered and named the Murray in 1830, which was over twenty years before the first two steamboats made their way upstream. By 1860 there were seventeen steamboats trading and operating on the river, less than ten years later Echuca was Victoria's second largest port with 240 boats annually trading in all types of goods, particularly wool.

Steamboats pushed up the Darling, Murrumbidgee, Murray and the many small tributaries, opening up just on 4,000 miles of waterway, and making it one of the longest navigable river systems in the world.

The Murray is still navigable for 1,986 kilometres, though its navigation has always been intermittent because of variations in river levels from month to month and year to year (Murray River Net, 2003).

Navigability and river transport is now related to tourism and recreational needs rather than industrial transport requirements. The major transport uses of the River Murray now concentrate in the tourism and holiday sectors. Paddlesteamers, new and restored, houseboats and motor boats operate particularly at Mildura, Echuca and Murray Bridge.

The following sections provide a summary of the profiles developed for each catchment. Each catchment has been divided into subgroups to aid analysis. More information is given about this in the catchment chapters that follow.

4.2 Murray Catchment

The subgroups of the Murray catchment were defined to assist with analysis.The subgroups of the Murray catchment, the Upper, Mid and Lower Catchments, are quite different in their economic structure, range of social services, demographic profiles and dependence on water.

The Upper Catchment is economically diverse, with a range of activities in the primary, secondary and tertiary sectors. There is a diversity of land use including grazing, pasture seed production, forestry, fishing, nature conservation and tourism, with a recent increase in viticulture.

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The Mid Catchment however, has a less diverse economy. The primary sector is significant for employment, followed by the tertiary sector. Manufacturing is not a significant employer and what does take places is largely dependent on irrigated rice production. Horticultural and grain produce is exported out of the area for processing.

The Lower Catchment has a similar profile although with an increasing level of diversity in primary production. The secondary industry is relatively smaller when compared to the Mid Catchment with much of the produce exported to other areas for processing.

The long-term sustainability of irrigable land in the Lower Catchment is dependent upon engineering infrastructure to intercept salty groundwater and manage floods.

In the Upper Catchment the infrastructure network is strong with an airport and major highways connecting it to the major cities of Melbourne and Sydney. The Mid Catchment and Lower Catchment are not as well serviced by transportation and road infrastructure. Deniliquin, the regional centre of the Mid and Lower Catchments has, over time, gradually lost its rail service, regular bus service and serviced airport. The lack of transport reduces the opportunities to attract tourists and business.

Services available to communities in the Murray catchment are centred in Albury. Many of the government services that were present throughout the catchment ten years ago have been relocated to Albury, enhancing the resources of the Upper Catchment whilst reducing those in the Mid and Lower Catchment.

The population for the Murray catchment did not change between 1996 and 2001. This is compared to a growth rate of 3% for the Study Area. The population for all SLAs with a population of less than 5,000 people declined for the same period. The exception to this is for towns on the river, which are either experiencing a growth in population or have not declined, partly due to retirees shifting to these areas.

Between 1996 and 2001 the number of employed persons increased by 4% in the Upper Catchment and 7% in the Lower Catchment however, the number of employed persons did not change in the Mid Catchment.

The nature of dependence on water is different throughout the Murray catchment. The community and economies of the Upper Catchment are reliant on water and the river ecosystems for urban water use, tourism, industry and stock use. The community and economies of the Mid and Lower Catchment are reliant on the water primarily for irrigation and urban water use. Irrigation is also an important aspect of the landscape. Irrigation

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holdings for Murray Irrigation Limited and West Corugan total 2,650 and irrigated area totals approximately 73,800 ha. The value of irrigated agriculture accounts for approximately 29% of the gross value of agricultural production in the Murray catchment, generating $338 million, 52% of which is generated in the Mid Catchment.

Aesthetics and the health of the River Murray, anabranches and tributaries are also important to the communities, particularly in attracting population, providing recreational opportunities and securing the future of the river towns. Tourism for the Murray SLA is important with towns, such as Moama supported by their proximity to the growing town of Echuca. Echuca also provides education for students resident in NSW. However, tourism is unlikely to be a significant industry in the near future for the other towns in the Lower and Mid Catchment, particularly those located away from the river due to the lack of transport options and scarcity of attractions.

The communities in all three subgroups appear to be entrepreneurial and politically active.

The strengths of the Upper Catchment include: • a strong regional centre; • population growth; • lifestyle strengths along the river; • tertiary education; • diverse agricultural base and secondary processing; • investment and employment growth; • tourism hub for the Alpine regions; • strong infrastructure; and • a range of facilities.

The strengths of the Mid and Lower Catchments include: • increasing diversity in the primary sectors; • politically active community that recognises the possibilities for change; • proximity of some towns to the river; and • growth in employment for the Lower Catchment.

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The areas of vulnerability for the Mid and Lower Catchments include: • significant cumulative change, particularly with the drought in the last 18 months; • dependence of the economy and community organisation on the irrigation of rice; • declining populations; • poor infrastructure and declining tertiary services; and • ongoing management of salinity and water tables.

4.3 Murrumbidgee Catchment

The subgroups of the Murrumbidgee catchment were defined to assist with analysis. The subgroups of Burrunjuck to Narrandera, Murrumbidgee Irrigation, Coleambally Irrigation and Lower Murrumbidgee, differ in their economic structure, range of social services, demographic profiles and dependence on water.

The economy of the Burrunjuck to Narrandera subgroup is highly diverse, based on farming, tourism (above Wagga Wagga), government services, secondary processing of agriculture products including abattoirs and wool scouring, and specialist services eg health, secondary and tertiary education. Tourism is not a major economic activity. For the remainder of the Murrumbidgee catchment, agriculture is the most important sector.

Irrigated agriculture is an extremely important economic activity in the catchment. The value of irrigated agriculture accounts for approximately 35% of the gross value of agricultural production or $443 million. The total water entitlement is 2,089 GL of which approximately 1,423 GL were delivered in the 2001/2002 season (68%). A total of 3,142 irrigation holdings are involved, irrigating approximately 284,700 hectares.

Growth was experienced in the number of persons employed in the Murrumbidgee catchment, increasing by 6% between 1996 and 2001. The breakdown throughout the catchment was an increase in the number of persons employed for Burrunjuck to Narrandera subgroup of 4%, 9% for the Murrumbidgee Irrigation subgroup, and 17% for the Coleambally Irrigation subgroup. A decline in persons employed was experienced by the Lower Murrumbidgee of –3%.

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Population growth of 1% was experienced between 1996 and 2001 for the Murrumbidgee catchment, growing to a total of 119,451 people. However, the population declined for the majority of areas. Population declined in the Burrunjuck to Narrandera subgroup by 2%, grew by 8% in the Murrumbidgee Irrigation subgroup, increased by 5% in the Coleambally Irrigation subgroup (although declining by 9% in Jerilderie SLA) and declined by 6% in the Lower Murrumbidgee.

Good quality health, education and recreational services are available, including ambulance services, community health centres and ready access to hospitals. Excellent facilities are provided for aged care, the disabled and early childhood care, including pre-school, playgroups and family day care services. Service provision is unevenly distributed however, with a greater number of services provided in the Burrunjuck to Narrandera and Murrumbidgee Irrigation subgroups.

There is evidence of mechanisms of the farming community to manage change including changing farming practices, retirement of some parts of the farming community, farm amalgamations and increased capital expenditure on equipment and water purchases.

Eastern diverters with their higher rainfall have greater flexibility than western diverters. Rice growing has made private diverters more dependent on water and these farmers have felt the impact of the drought. Many are returning to grazing, with reduced inputs of equipment, fertiliser and labour and reduced returns on investment. Water trading has brought opportunities for some private diverters to sell their permanent water and rely on the temporary market.

The drought impacts have varied. Dryland farmers and rice growers have experienced high losses of production while some rice growers sustained themselves by growing wheat for fodder.

The communities in all three subgroups appear to be entrepreneurial and politically active.

The strengths of the Murrumbidgee catchment include: • strong regional centres; • population growth in some areas; • lifestyle strengths along the river; • employment growth in most areas, age groups and industries; • diverse agricultural base and secondary processing; • strong infrastructure; and • a range of facilities.

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The areas of vulnerability for the Murrumbidgee catchment include: • declining populations; • significant cumulative change, particularly with the drought over the last 18 months; • dependence of the economy and community organisation on the irrigation of rice, although there is more diversity into horticulture than is taking place in the Murray catchment for example; and • ongoing management of salinity and water tables.

4.4 Lower Murray Darling Catchment

The subgroups used for the analysis of the Lower Murray Murray Darling catchment were Wentworth and Balranald.

Primary production forms the basis of the economies and communities of the Lower Murray Darling. Approximately 32% of employed persons are involved in agricultural industries. The gross value of agricultural production in 2001 was $216 million, of which 18% or $39 million was contributed by irrigated agriculture.

There is diversity in agricultural production with a mixture of dryland cropping, dryland wool and meat production, irrigated horticulture and cotton production.

The majority of irrigated agriculture is centred around Menindee at Tandou Farms. The Menindee township is completely dependent upon irrigated agricultural production. The town and employment is essentially dependent upon Tandou Limited. The families and companies along the Great Anabranch and Lower Darling rely on water from the Lower Darling for stock watering and flood plain cropping and to an extent on the influence of the Wentworth Weir. Western Murray Irrigation to the north of the River Murray is also an important irrigation operation. There are also a number of private diverters.

Mining mineral sands is an emerging primary industry for the area and projected to be significant in terms of employment and value-adding over the next 3-8 years. There is little processing of produce in the catchment, with the majority exported to nearby areas for packing and processing. The industry depends on water for some processing activities, drawing water from the Lower Darling and the River Murray.

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The number of persons employed in the catchment remained stagnant, with growth occurring in manufacturing, health services and retail trade. The persons employed in positions related to agriculture declined significantly (16%), suggesting the further decline in farmers and increase in farm amalgamations.

In addition to the decline in employment there has also been a decline in the total population of 4% between 1996 and 2001 as compared to a growth rate of 3% for the defined Study Area. The Aboriginal and Torres Strait Islander population declined significantly over the period. The population is also aging at a similar rate to the rest of the population.

There are a range of environmental issues in the catchment centred on salinisation of the flood plain and decline in water quality affecting wetlands, riverine condition and water for extraction.

Neither Wentworth nor Balranald SLA have a regional centre. The communities in the south of Wentworth tend towards Mildura, whereas the communities in Menindee tend towards Broken Hill. The communities in Balranald rely on Mildura or Swan Hill for major services.

Infrastructure in the catchment is relatively limited once outside the towns and as you move away from the River. Wentworth benefits through proximity to highways and the rail and air service at Mildura. The town of Balranand however, and the towns surrounding, have limited transport infrastructure.

Wentworth is well provided for in terms of tertiary services. Services are limited for Balranald. Wentworth is located near Mildura, which is serviced by the Northern Mallee Primary Health and Community Health Service. Again Wentworth and surrounding towns benefit from the TAFE at Mildura. Balranald does not have a TAFE making it difficult to attract people for further education.

The River Murray System is rich in archaeological heritage, with ancient midden and burial sites, which has intense meaning to Indigenous and non- Indigenous people. The largest cemetery, at Lake Victoria, is estimated to contain 10,000 burials, and its middens show a peak population around 15,000 to 18,000 years ago (This cemetery is disturbed by the conversion of the lake into an irrigation reservoir). While much of what is known of Aboriginal settlement comes from archaeological evidence, it is important to recognise that Indigenous communities have an ongoing and contemporary relationship with the land, the rivers and interest in the environmental, social and spiritual health of the region.

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The strengths of the Lower Murray Darling catchment include: • a diversity of agricultural production, including both dryland and irrigated agriculture; • emerging mineral sands mining industry; • cultural heritage; and • strong infrastructure in the south west of the catchment.

The areas of vulnerability for the catchment include: • declining population; • stagnant employment growth; • isolated with no regional centre in the east of the catchment; • low level of secondary processing; • dependence on irrigated agriculture in the north of the catchment; • limited educational opportunities for young people in Balranald; and • salinisation of the floodplain.

4.5 North East Catchment

The North East catchment has little irrigated agriculture, contributing approximately 0.2% of the gross value of agricultural production in the North East catchment.

In the North East catchment, the economic and social importance of water is related more to non-extractive uses such as tourism, recreation, food processing and manufacture, domestic consumption, and some electricity production.

The North East catchment has substantial natural resources in the Alpine region and a forestry industry. There is also a spread of economic activity through the primary and tertiary sectors. The area is characterised by an agricultural base, services, manufacturing, and a strong tourism and recreation market.

The regional centre of Wodonga is on the Hume Highway, a major highway linking Melbourne and Sydney, and has a serviced airport. Wangaratta to the south is also located on the Hume corridor. The North East catchment is experiencing investment and population growth. The capacity for growth in the Wodonga area, to a future estimated half a million, is driven by its

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strategic location on the Hume Highway (Industry Advice, pers. comm. 13/2/03).

The area does show some sensitivities with 14% of households earning less than $299 per week as compared to a slightly lower proportion for Victoria of 12%.

The key strengths of the area include: • growing regional center; • located between major capitals; • investment growth; • population growth; • many towns are located on an iconic river; • aesthetic and picturesque; • lifestyle strengths; • university campus; • a range of facilities; and • few significant cumulative changes over the last 10 years, except for the recent fires and drought.

4.6 Goulburn-Broken Catchment

The subgroups of the Goulburn-Broken catchment include the Upper Goulburn, Central Goulburn, and Lower Goulburn.

Land use in the Goulburn-Broken catchment includes native vegetation (forested); agriculture (dryland and irrigation); plantations (pines); urban; and water bodies (Victorian Department of Natural Resources and Environment, 1991). Approximately 60% of the catchment area is forested and under management.

The economy of the Upper Goulburn is diverse, relying on farming, processing, manufacturing, government services tourism and recreational particularly around Eildon. The basis of the economy, in particular that of the Central Goulburn, is food production and processing sectors, plus the associated industries including manufacturing, cool storage and transport. The region produces or processes approximately $3 billion of food each year (Department of Natural Resources and Environment, 2001).

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Population, employment, and economic activity have been growing in the Goulburn-Broken catchment. The population in the Goulburn-Broken catchment grew by 5% between 1996 and 2001. The growth varied between the subgroups with 4% growth in the Upper Goulburn, 8% in Central Goulburn, and 3% in the Lower Goulburn.

The number of people employed has also been growing. The overall growth in persons employed in the Goulburn-Broken catchment was 13% between 1996 and 2001. This growth was not reflected in the Upper Goulburn, where the number of persons employed declined by 11%. The growth in employed persons for the Central Goulburn was 16% and 10% for the Lower Goulburn (City of Greater Shepparton 2003).

The Goulburn-Broken catchment is well serviced with infrastructure, including water, electricity and transport and education, with a number of tertiary education institutions present.

Despite the growth, the area does have some aspects of vulnerability with an age dependency ratio of 58% in 2001, as compared to 49.6% for Victoria, and the proportion of families that were one-parent families in 2001 was above the state average for a number of SLAs including Delatite – Benalla, Greater Shepparton – Part A, Campaspe – Echuca and Mitchell – North.

Further, the catchment communities are dependent on water through irrigation in the Central Goulburn and Lower Goulburn. A total of 6,305 irrigated holdings are involved in agricultural production contributing 61% of the gross value of agricultural production or $754 million. The irrigation community has also experienced significant economic and social stress as a result of the drought. In the Upper Goulburn, the dependence on water is for tourism and recreation activities. Tourism accounts for between 15% and 20% of the employment in the Upper Goulburn areas.

The key strengths of the area include: • a strong regional centre; • tertiary education • diverse agricultural base; • investment and employment growth; • population growth; • lifestyle strengths along the river and in the Upper Goulburn; • heritage; and • a range of facilities.

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The areas of vulnerability to change include: • significant cumulative change in the last 18 months with the recent drought; and • dependence of the economy through the primary, secondary and tertiary sector on irrigation.

In summary, the Upper Goulburn is characterised by diverse land use opportunities and an increasing influence from Melbourne in terms of population and lifestyle farming. Dependence on water is low for primary and secondary industries, but is important for tourism. The individuals and communities of the Central Goulburn have shown the capability to diversify, grow and adopt advanced irrigation and production techniques. Community infrastructure is also well established. The area is strongly dependent on water for production, processing and employment. The Lower Goulburn also relies on dairying and there is a lack of dryland agricultural alternatives because of the soil type and rainfall. The population continues to decline in small towns, although is increasing in river towns.

4.7 North Central Catchment

The subgroups of the North Central catchment include the Upper North Central, Bendigo, Campaspe and Loddon Catchment.

Land use in the North Central catchment includes public land, with much of this reserved and managed for specific purposes including state and regional parks, flora reserves, reference areas and agriculture. The catchment is agriculturally diverse and has both irrigated and dryland agricultural systems.

The economy of the Upper North Central is concentrated in the tertiary sector, with a significant secondary sector and a small primary sector. The Campaspe subgroup has a larger primary sector, accounting for approximately 20% of employment activity, a sizeable secondary sector and a large tertiary sector. The Bendigo subgroup reflects a similar profile of employment activity as the Upper North Central however, with a smaller proportion employed within secondary industry. For the Loddon subgroup, a significant proportion of employment activity is based in the primary sector, followed by the tertiary sector. There is limited processing in the catchment with most of the product being exported.

The economy of the Upper North Central and Bendigo is diverse, relying on agriculture, manufacturing, urban development, government services, tourism and recreational activities. Land close to the major centres is increasingly developed for horticulture, with new and emerging agricultural commodities such as viticulture and olives, and for ‘lifestyle’ farming.

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The basis of the economies of the Loddon and Campaspe is food production. Food processing is also important in the Campaspe. The major irrigated agricultural industries are dairying and mixed farming. This is followed by horticulture.

The North Central catchment has been growing in terms of population, employment and economic activity. The population in the North Central catchment grew by 4% between 1996 and 2001. The growth varied between the subgroups with 6% growth in the Upper Goulburn, 6% in Bendigo, 6% in the Campaspe, however declining by 4% in the Loddon.

The overall growth in persons employed for the North Central catchment was 21% between 1996 and 2001. Between 1996 and 2001 there was an increase in the number of jobs for the Upper North Central of 21%, 28% for Bendigo, 14% for the Campaspe and 5% for the Loddon subgroup. With expansion in irrigation and light industry there is now a reported shortage of metal- working skills. A large increase in employed persons was experienced in the 15-24 years age bracket and the 40-64 years age bracket in the majority of catchment subgroups.

The North Central catchment is well serviced with infrastructure, including a major highway to Melbourne and connecting roads throughout Victoria. Education provision is strong also, with a number of tertiary institutions present. There are two major infrastructure development proposals, which include the faster rail for Bendigo and duplication of the Calder highway for completion by 2010.

Despite the growth, the area does show some vulnerability to change. Whilst, the North Central is experiencing an increase in employed persons and population it is also experiencing high unemployment. The unemployment rate for 2001 was above the average for the state in eleven of the 20 SLAs. Further, the Loddon is experiencing an increase in the number of people reliant on government support.

Further, the age dependency ratio for North Central is 58%, which is higher than that for Victoria (49.6%). There were also some SLAs with a large proportion of the families being one-parent families such as Campaspe - South recording 31% of families as one-parent families, and Greater Bendigo – Central and Greater Bendigo - Eaglehawk recording 24% of the population as one-parent families.

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Also, the Campaspe, Loddon and Bendigo economies and communities are dependent on water through irrigation in the Campaspe and Loddon subgroups. A total of 5,820 irrigated holdings are involved in agricultural production contributing 53% of the gross value of agricultural production or $471 million. The irrigation community has also experienced significant economic and social stress as a result of the drought.

Further, the irrigation areas of the Loddon subgroup have been net exporters of water, with salinity and rising water tables having essentially sterilised a number of areas for production. Drainage systems are one of the reasons why some areas continue to be productive.

The communities of the Campaspe do benefit from the growth in the tourist town of Echuca, which is dependent on the River Murray for tourism. The Loddon subgroup also features the Kerang Lakes wetlands, which provide for nature conservation, recreation, saline water disposal for irrigation, and irrigation water storage and transport. The Lakes also provide facilities for sightseeing, camping, swimming, sailing, waterskiing, fishing, hunting and environmental studies. Waterbirds, including migratory species listed under the Japan-Australia and the China-Australia Migratory Bird Agreements also depend on the Lakes for habitat.

The key strengths of the area include: • strong regional centres; • tertiary education; • diversity of natural resources; • investment and employment growth; • population growth; • lifestyle strengths along the river; • natural features; • heritage; • a range of facilities; • proximity to Melbourne; and • active community working in partnership with government on their long term survival.

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The areas of vulnerability to change include: • significant cumulative change in the last 18 months with the recent drought; • ongoing management of salinity and high water tables; • little value-adding in the Loddon subgroup; and • dependence of the economy through the primary, secondary and tertiary sector on irrigation in the Campaspe and Loddon subgroups.

4.8 Mallee Catchment

The subgroups of the Mallee catchment include Swan Hill and Sunraysia.

Land use in the Mallee region is diverse, with agriculture the principal activity, utilising 62% of the land. The Mallee is a specialist grain growing areas diversifying from livestock production in the 1980s. The Sunraysia region has irrigated horticulture as its base. Swan Hill is a diversified economy with both dryland and irrigated agricultural products.

Secondary industry plays an important role in the economies of the Mallee catchment and is anticipated to expand. The tertiary sector is also significant.

Mildura, Robinvale and Swan Hill are serviced with a range of educational, health and research services. Mildura and satellite towns are also supported with a highway system connected to Melbourne, Sydney and Adelaide, a freight rail service, inland port (rail) and an airport. There are a number of proposals to improve transport infrastructure including an intermodal port and a rail link to the intercontinental rail.

The Mallee catchment has been growing in terms of population, employment and economic activity. The population in the Mallee catchment grew by 5% between 1996 and 2001. However, the growth was centred in the urban areas of Swan Hill and Mildura with the surrounding areas declining by 12% in Mildura and 4% in Swan Hill.

The growth in population has led to growth in service and tertiary sectors. This may have led to a further decline in smaller towns with people choosing to move to Swan Hill or Robinvale. The towns along the river are consolidating as residential enclaves.

The number of persons employed in the Mallee catchment grew by 12% between 1996 and 2001 as compared to a population growth rate of 5% for the Mallee catchment.

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Despite the growth, the area does show some vulnerability to change with an age dependency ratio of 60% in 2001, as compared to 49.6% for Victoria. Further, there is a high proportion of people who don’t speak English well or at all in the Mallee (9%) as compared to 4% in the Study Area. The highest recording was 16% for the SLA of Swan Hill – Robinvale.

Further, the catchment communities are dependent on water through irrigation, although to a lesser extent than the Riverland for example. A total of 3,740 irrigated holdings are involved in agricultural production contributing 26% of the gross value of agricultural production or $223 million. The communities of the Mallee are also dependent on water for tourism and recreation, stock watering, industry and domestic consumption.

There are many natural features present in the catchment including the Bookmark Biosphere area, which includes important cultural sites. There are also wetlands, national parks, and lakes.

The key strengths of the area include: • a strong regional centre; • tertiary education; • diverse agricultural base, in particular dryland and irrigated production; • investment and employment growth, although focussed in the centres; • population growth, again focussed in the centres; • lifestyle strengths along the river at Mildura and Swan Hill; • high security water entitlements; • emerging industry of mineral sands; • heritage; and • a range of facilities.

The areas of vulnerability to change include: • dependence of the economy on irrigated agriculture; • aging population and high age dependency ratio; • population decline in the rural areas; and • proportion of people who do not speak English well or not at all.

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4.9 SA MDB Catchment

The communities and industry in South Australia are dependent on the water resource for consumption. The Murray is an absolutely essential source of water for the Iron Triangle and a major source for Adelaide and much of the rest of South Australia. Approximately one million people and $16 billion worth of industry and commerce around the Adelaide region rely on water from the River Murray.

Land use in the SA MDB, which includes the Riverland and Murraylands, varies across the catchment and includes grazing, cropping, irrigated horticulture and viticulture, irrigated pastures, dairying, conservation areas, national parks, and urban areas.

Berri is the administrative centre of the Riverland. The regional centre of the Murraylands is Murray Bridge. Goolwa, on the shores of Lake Alexandrina, is also an important centre for commercial fishing, tourism and residential development. The catchment is serviced by several major road transport routes.

The communities of the Riverland, more so than those of the Murraylands, are becoming increasingly dependent on expanding irrigated agricultural industries, in particular the wine industry, for employment and as a driver of population growth. Berri, Barmera, Loxton, Kingston, Waikerie and Cadell are surrounded by irrigated land producing vines, citrus, stone fruits, vegetables and other crops. These form the basis for numerous wineries and food processing industries. The total number of irrigated holdings is 2,650 irrigating approximately 22,540 hectares. The concern for growers at present is that there is a danger of gluts in the supply of grapes with production exceeding demand.

Irrigation areas are concentrated in the Lock system from the NSW / South Australian border through to Morgan. Irrigated dairy and horticulture also takes place through the Lower Murray Swamps and around the Lakes.

In addition to agriculture, a range of tourism and recreational activities are dependent on the River Murray and environs. The houseboat industry is also an important component of the economic strength of many of the river towns. The weir pools and the Lock system contribute to the functioning of the industry however, the industry is currently finding a reduced riverine and wetland environment is leading to economic losses. Commercial fishers are dependent on the quality and level of water moving through the Lakes and Coorong. Many of the Riverland’s natural features are also dependent upon the River Murray and flooding events, including the Chowilla Floodplain.

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Much of the Riverland is dependent on subsurface drainage as water tables and salinity are high. Without the drainage schemes in place, areas of the Riverland would be under water. The Murraylands is also affected by salinity and is managing the risk via planning irrigation development zones and a range of NRM strategies.

The number of employed persons grew by 5% between 1996 and 2001. The number of farmers and farm managers increased by 7% and farm hands increased by 14%.

This growth compares to a population growth rate of 4% for the SA MDB catchment. The SLAs for which populations declined were The Coorong and Loxton – Waikerie West. The growth rate was 4% between 1996 and 2001 however, only 1% for the Riverland and 6% for the Murraylands. Factors resulting in the significant increase in population in the Murraylands include: • completion of the highway from Adelaide bringing the towns from Murray Bridge to Wellington to within commuting distance to Adelaide; • cheaper housing prices as compared to Adelaide and the Adelaide Hills; and • relocation and expansion of industry in areas with cheaper land and less pressure from urban encroachment.

The growth in population is generating a diversity and growth of intensive production, processing and transport industries; employment growth in skilled and unskilled work; population growth; increase in regional shopping and medical facilities; increasing education services; and expansion in manufacturing activities that support irrigated agriculture.

Despite the growth, the communities of the SA MDB show some vulnerability to change. The unemployment rate in 2001 for the majority of SLAs was below the average for South Australia of 7.6%, however was high for Unincorporated Riverland (12.1%), followed by Murray Bridge (9.8%), and then the Mid Murray (8.6%). The Mid-Murray SLA and Unincorporated Riverland, have a high proportion of households earning less than $299 per week.

The changes that have taken place over the last 5-10 years in the Riverland have revolved around the expansion of irrigated agriculture, leading to population, employment and services expansion. The drought may have an impact in the coming season, but has not taken affect yet. The communities in the Murraylands have been affected by the drought as a result of the low level of flows and declining water quality. The Lower Murray Irrigators however, are being confronted with significant decisions in terms of required rehabilitation of the irrigation infrastructure.

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The key strengths of the Riverland include: • natural features; • tertiary education; • range of services in close proximity to all towns; • presence of three tiers of economic activity; • investment and employment growth; • diverse agricultural base (for some SLAs where dryland and irrigated agriculture are important); • growth in employment; • population growth; and • long history of settlement.

The key areas of vulnerability of the Riverland include: • dependence on the wine industry, for both primary and secondary sectors; • a proportion of irrigators where water use and water entitlement are equal; • high water tables and salinity risk resulting in reliance of irrigated agriculture on drainage systems; • risks of further deterioration of water quality for both irrigation and domestic consumption; and • a number of communities with a high proportion of people who do not speak English well.

The key strengths of the Murraylands include: • a strong regional centre; • diverse agricultural base; • investment and employment growth; • population growth; • natural features; • presence of three tiers of economic activity; • long history of settlement; • infrastructure and proximity to Adelaide • lifestyle strengths in the Alexandrina SLAs;

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• cultural heritage; and • a range of facilities.

The key areas of vulnerability of the Murraylands include: • further deterioration of water quality for irrigation, domestic consumption and maintenance of conservation values; • increasing reliance on irrigation and wine development for economic activity (dairy industry also); and • areas of low household income and high unemployment.

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5. Murray Catchment

5.1 General background

The Murray catchment covers an area of 3.7 million hectares. It includes the SLAs of Wakool, Windouran, Murray, Urana, Conargo, Jerilderie, Berrigan, Deniliquin, Corowa, Holbrook, Hume, Albury, Culcairn, Tumbarumba and Lockhart. In some cases the SLA boundaries do not conform to those of the catchment, however, approximate the catchment boundary. Figure 4 shows the Murray catchment.

The Murray catchment has been divided into three sections, the Upper Catchment (Tumbarumba, Holbrook, Hume, Culcairn, Lockhart, Corowa), Mid Catchment (Urana, Jerilderie, Berigan, Conargo, Deniliquin) and Lower Catchment (Murray, Windouran, Wakool) to aid analysis.

5.2 Physical environment, natural resources and their use

5.2.1 Water resources

The River Murray, Edward River and Wakool River provides all towns with a point for recreation, education, and economic opportunities including water for extraction.

The economies of Mulwala / Yarrawonga are also dependent on the tourist activities and servicing industries supported by a full Lake Mulwala which has a capacity of 118 GL.

5.2.2 Natural features

The Upper Catchment with an area of approximately 4,500 sq km, includes part of Kosciuszko National Park and riparian zones.

The major wetland areas include Millewa/Gulpa River Red Gum Forest (368 sq km) and Moira Wetlands; Koondrook – Perricoota Forests; Barmah- Millewa Forest; Yarrawonga Weir; Hume Reservoir; and Wiesners Swamp Nature Reserve (103 ha). There is a proposal to make the Barmah-Millewa Forest a National Park (Pastoral Times, 2003).

Albury is closely associated with Wodonga and the site of the Gateway Island development and National River Discovery Centre.

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Figure 4 Murray catchment

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5.2.3 Land use

Agriculture is the main activity within the Murray catchment and includes grazing, cropping, irrigation, forestry and horticulture. Irrigated agriculture is a significant activity.

The Murray Catchment Management Board (2001) describes the land use of the Murray catchment according to five subregions. The subregions are based on natural resource parameters such as topography, climate and soil. The regions are as follows:

• Upper Murray: an area of approximately 4,500 sq km, which includes part of Kosciuszko National Park and Riparian subregion. Land uses include grazing, pasture seed production, forestry, fishing, nature conservation and tourism, with an increase in viticulture. • The South West Slopes Zone: approximately 11,400 sq km in area. Land uses include cattle, wool/sheep, cereals, crops, softwood forestry, manufacturing, trade, education, and tourism. • Irrigation Zone: approximately 16,200 sq km in area, the major land uses include irrigated cropping (rice and cereals), irrigated pasture, wool/sheep, dairy, cattle, summer crops, fruit and vegetables. • The Pastoral and Rangelands Zone: the area covers approximately 5,100 sq km, and includes riparian areas. Land uses include irrigation (rice), wool/sheep, other cereals, dairy, other crops and cattle. • Riparian and Aquatic Zone: includes all areas immediately influenced by streams and rivers in the catchment. This includes the flora and fauna and adjoining watercourses. Major wetland areas are described in Section 5.2.2 above. Land uses include tourism, recreation, and fishing.

5.2.4 Environmental issues

In the Upper Catchment, environmental threats include salinity at Corowa with areas in the eastern and western side of Shire threatened by dryland salinity with concerns for the quality of ground water. At Hume Dam, high blue-green algae levels have been recorded in the reservoir behind Hume weir (Jones, 2003).

In the Mid and Lower Catchment irrigators have, over time, been improving their irrigation practices. The catalyst for much of the change was the Land and Water Management Planning (LWMP) process that took place in the 1990s and is continuing. Plans developed in the Murray Irrigation area included:

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• Denimen; • Wakool; and • Berriquin.

The plans were developed in consultation with the community and government agencies and are reported as part of company reports and license conditions of the private irrigation company. A fifteen-year implementation phase commenced in 1995. So far the Murray community has invested $153 million, supplemented by $28 million in government support (MI website, 2003). Sources advice that approximately 80% of landholders are involved in the plans.

The Wakool irrigation area is particularly affected by the risk of salinity and high water tables. These issues are currently managed by measures arising from the Wakool LWMP. The degradation issues were a catalyst for communities to be involved in LWMP. The productivity of the area is reliant on subsurface drainage. Prior to the implementation of the subsurface drainage schemes, some land became unproductive and there were walk offs. Subsequent to the scheme, some land that was not productive is now productive.

5.3 Social geography and demography

This section provides a detailed outline of the population of each SLA, focusing on the socio-demographic profiles, described in Chapter 3, and mapping the results where possible.

5.3.1 Population size and change

In 2001, the total population in the Murray catchment was 105,664 with 0% growth between 1996 and 2001. This growth rate compares to 5% for NSW and 3% for the defined Study Area (ABS Census, 2001 and 1996).

The population is concentrated in the Albury SLA (40%) followed by Corowa and Deniliquin. For all SLAs with a population of less than 5,000 people, the population declined, except in Carathool.

The population living in SLAs located in the Upper Catchment subgroup increased by 1% between 1996 and 2001. Table 6 presents the total population of the SLAs within the Upper Catchment.

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Table 6 Population Size and Change by SLA – Upper Catchment Subgroup Upper Catchment Total Population Aboriginal and Torres Strait Islander Population 1996 2001 % 1996 2001 % SLAs Total Total Change Total Total Change Corowa (A) 8,215 8,257 1 53 57 8 Culcairn (A) 4,106 3,818 -7 31 55 77 Holbrook (A) 2,529 2,343 -7 WH WH WH Tumbarumba (A) 3,613 3,551 -2 38 66 74 Hume (A) 6,835 7,364 8 69 82 19 Albury (C) 41,795 42,458 2 692 782 13 Carrathool (A) 3,164 3,320 5 126 167 33 Lockhart (A) 3,487 3,397 -3 53 89 68 Total 73,744 74,508 1 1,083 1,315 21 Source: ABS Census 2001, 1996, published data; WH = Withheld for privacy reasons - small numbers reported for these SLAs.

Table 7 presents the total population of the SLAs within the Mid Catchment subgroup. The population declined by 5% between 1996 and 2001. Table 23 presents the total population of the SLAs within the Mid Catchment subgroup.

Apart from Deniliquin, which is located on Edward River, all of the small towns away from the river are in chronic decline. The declining terms of trade experienced in dryland agriculture and to an extent in irrigated agriculture, and the ongoing amalgamation of farms is leading to continued declines in population resulting in flow-on impacts throughout the economy. Table 7 Population Size and Change SLA – Mid Catchment Catchment Subgroup Mid Murray Total Population Aboriginal and Torres Strait Catchment Islander Population 1996 2001 % 1996 2001 % SLAs Total Total Change Total Total Change Jerilderie (A) 1,960 1,790 -9 32 26 -19 Berrigan (A) 8,161 7,709 -6 88 55 -38 Conargo (A) 1,561 1,417 -9 WH WH WH Deniliquin (A) 7,816 7,786 0 198 205 4 Urana (A) 1,497 1,332 -11 20 32 60 Total 20,995 20,034 -5 338 318 -6 Source: ABS Census 2001, 1996, published data; WH = Withheld for privacy reasons - small numbers reported for these SLAs.

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Table 8 presents the total population of the SLAs within the Lower Catchment subgroup. The total population declined by 4% between 1996 and 2001. This increase was driven by growth in the Murray SLA, with the population for both the Wakool and Windouran SLAs declining by 3% each for the same period.

Table 8 Population Size and Change SLA – Lower Catchment Subgroup Lower Total Population Aboriginal and Torres Strait Catchment Islander Population 1996 2001 % 1996 2001 % SLAs Total Total Change Total Total Change Murray (A) 5,319 5,907 11 197 188 -5 Wakool (A) 4,941 4,806 -3 70 84 20 Windouran (A) 422 409 -3 10 9 -10 Total 10,682 11,122 4 277 281 1 Source: ABS Census 2001, 1996, published data.

Figure 5 shows the population of the SLAs in the Murray catchment. Albury is the most populated SLA in the area, followed by SLAs located along the River Murray.

Figure 6 shows the change in the populations of the SLAs in the Murray catchment from 1996 to 2001. Highlighting major population growth centres of Albury SLA and Murray SLA, and centres of population decline such as Urana SLA.

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Figure 5 Total Population of SLAs in the Murray catchment (2001)

Figure 6 Change in the Total Population of SLAs in the Murray catchment (1996 to 2001)

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5.3.2 Age distribution

Figure 7 provides the proportion of each age group of the total population for the Murray catchment. The proportion for all age groups between 40 and 75 years increased between 1996 and 2001, whereas the proportion for the majority of the age groups between 20 and 40 years declined.

Interviewees reported that Deniliquin is experiencing retiree growth related to lifestyle attractions, lower relative house prices, and accessibility to Melbourne. This has been considered important in maintaining the population levels and providing economic stimulus to housing and services sectors.

Meanwhile, the area has experienced the loss of young people between 20 and 40 years of age. This trend has been stemmed somewhat with an increase in the number of young families choosing to live in the area to access cheap housing (Industry Advice, pers. comm. 13/02/03).

Further, it has been reported that towns in the Mid Catchment, in close proximity to river towns, are also being used as dormitory towns, given access to cheaper housing than in the towns where industry is located. People live in Tocumwal, for example, and work in Cobram or Echuca. Further, people live in Deniliquin however, send their children to Echuca for school.

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Murray CMU Proportion of Age Groupings of the Total Population 1996 and 2001

75+ 70-74 65-69 60-65 55-59 50-54 45-49 40-44 35-39

Age Grouping 30-34 25-29 20-24 15-19 10-14 5-9 0-4

0% 2% 4% 6% 8% 10%

Proportion 1996 2001

Figure 7 Proportion of the Age Group of the Population for the Murray catchment for 1996 and 2001 (Source: ABS CDATA 2001)

Figure 8 presents the change in the proportion of the population for two age groupings, greater than 60 years plus and those aged between 15 and 29 years.

The proportion of the population between the age of 15 and 29 years has declined for all SLAs in the Murray catchment (total of 1%). This result is reflected in the results for Victoria (-1.4%), South Australia (-4.2%), and New South Wales (-0.4%).

The proportion of the population in the over 60 years age grouping has increased in all SLAs in the Murray catchment, excepting Urana and Culcairn. This result is reflected in the results for Victoria (1%), South Australia (1%), and New South Wales (1%).

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Murray CMU Murray CMU Change in the proportion of people aged 60 yrs + of the total Change in the proporation of people aged 15-29 yrs of the total population (1996 to 2001) population (1996 to 2001)

Windouran (A) Windouran (A)

Wakool (A) Wakool (A)

Urana (A) Urana (A)

Tumbarumba (A) Tumbarumba (A)

Murray (A) Murray (A)

Jerilderie (A) Jerilderie (A)

Hume (A) Hume (A)

Holbrook (A) Holbrook (A)

Deniliquin (A) Deniliquin (A)

Culcairn (A) Culcairn (A) Corowa (A) Corowa (A) Conargo (A) Conargo (A) Berrigan (A) Berrigan (A) Albury (C) Albury (C) -2% -1% 0% 1% 2% 3% 4% 5% -6% -5% -4% -3% -2% -1% 0%

Figure 8 Comparison of the change in the proportion of people aged 60 years above and those aged between 15 and 29 years between 1996 and 2001 for the Murray catchment (Source: ABS Census 2001, CDATA 2001)

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5.3.3 Age dependency ratio

The age dependency ratio for the Murray was 59%, above that for NSW (51%). Figure 9 shows the age dependeny ratio for all SLAs.

Figure 9 Total Age Dependency Ratio (2001) for the SLAs of the Murray catchment

5.3.4 Family types

In 2001, one-parent families accounted for 14% of the total number of families in the Murray catchment, and 15% of families in the Study Area and 15% of families in NSW.

The proportion of persons divorced or separated in the Murray catchment, the Study Area and NSW, of the total number of persons over 15 years in 2001, was 8% in each area (ABS CDATA 2001).

5.3.5 Non English speaking

In 2001, the proportion of persons who do not speak English well or not at all of the total number of persons born overseas was 2% for the Murray catchment, 4% for the Study Area and 10% for Victoria (ABS CDATA 2001).

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5.4 Socio-economic profiles and economy

5.4.1 Presence of regional centres

Albury, a significant population and service centre is located in the Upper Catchment. Deniliquin is the regional centre in the Mid Catchment subgroup and is situated some 3 hours (280 km) from Melbourne. It is the largest town in the south-west Riverina with a population of approximately 8,000 people. Other towns include Finley and Moulamein. In the Lower Catchment there are no large regional centres, however, the towns of Swan Hill, Kerang, and Echuca, all in Victoria are utilised by the communities of the Lower Catchment.

5.4.2 Employment by tiers of the economy

Figure 10 depicts the proportion of employment in each of primary, secondary and tertiary sectors for the subgroups of the Murray catchment.

Murray Catchment - Proportion of Employment by Primary, Secondary and Tertiary Sector (2001)

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Upper Mid Catchment Lower Catchment Catchment

Catchment Subgroup

Primary Secondary Tertiary Not Stated

Figure 10 Murray catchment – Proportion of Employment by Primary, Secondary and Tertiary Industry (Source: ABS Census 2001, published data)

Figure 10 shows that employment activity in the Upper Catchment is concentrated in the tertiary services sector. Albury, the main regional centre, accounts for the majority of employment.

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There is a diversity of land use including grazing, pasture seed production, forestry, fishing, nature conservation and tourism, with a recent increase in viticulture.

Opportunities for further development and diversification arise from: • servicing a large population base, surrounding dryland and irrigated agricultural activity, and as a hub for regional tourism with proximity to the Hume Reservoir where water sport and recreational fishing takes place; and • intensive agricultural industries locating to rural locations away from expanding residential areas.

Figure 10 shows that for the Mid Catchment, the primary sector accounts for a greater proportion of employment activity than the Upper Catchment. Secondary industries however, do not represent a large proportion of the employment for the area. Based on interviews much of the processing in the area is dependent on rice production, with horticultural and grain produce exported out of the area for processing.

Figure 10 shows that employment activity in the Lower Catchment is concentrated in the primary sector, with the presence of a tertiary sector and a small proportion of secondary industry employment activity.

5.4.3 Industry profiles

Figure 11 presents the proportion of people employed by industry within the Murray catchment based on ABS Census statistics for 2001. The top three industries for employment are Agriculture, Forestry, and Fishing, Retail Trade, and Manufacturing.

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Murray Catchment - Proportion of Persons Employed by Industry (2001)

Agriculture, Forestry and Fishing

Mining

Manufacturing

Electricity, Gas and Water Supply

Construction

Wholesale Trade

Retail Trade

Accommodation, Cafes and Restaurants

Transport and Storage

Communication Services

Finance and Insurance

Property and Business Services

Government Administration and Defence Industry of Employment Industry Education

Health and Community Services

Cultural and Recreational Services

Personal and Other Services

Non-classifiable economic units

Not s tated

0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

Figure 11 Proportion of Employed Persons by Industry for the Murray catchment (Source: ABS Census 2001, published data)

Primary Industry

Figure 11 shows that the Agriculture, Forestry and Fishing sector of the economy accounts for a large proportion of employment activities. The importance of this sector for employment increases the further west one progresses from Albury through to Wakool and Wondouran.

Rice is the major irrigated agricultural crop in the Mid Catchment subgroup. Around 2,500 farming families grow rice, with the majority of these in the irrigated areas of NSW, leading to the direct employment of around 8,000 people in rice production, processing and marketing. Standen and McLeod (2002) report that most of the water (>75%) in MIL is used by businesses growing rice with the balance used by mixed (no rice) and dairy businesses.

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Concern was raised by some interviewees that bi-product industries developing around rice will result in a larger crash of the economy, should rice production decline.

Diversification of agricultural production is possible however, rice is one of the most profitable and easy crops for the area. An established supply chain also encourages stability in growing rice. Soils are suitable for cereals, grains and some horticultural crops. There is not however, a culture of growing horticultural crops and the supply chain for horticultural products is not present. Research is being conducted into growing rice with significantly less water reducing the input cost to the product and saving water (Industry Advice, pers. comm. 12/02/03).

Grapes and vegetables also represent an important irrigated horticultural crop in the Murray catchment. There is some new livestock production as an ancillary to cropping, with landholders encouraged to farm pigs.

In the Lower Catchment there is an increasing level of diversity in primary production in the area with the majority of income earned from rice, followed by wheat, milk production, barley and then fruit production. Wakool Shire Council is exploring opportunities to attract processing industries including fruit preserving and exploring ecotourism opportunities with Indigenous Communities. Tulakool is also experimenting with saltwater fish. Lucerne is also being considered.

Secondary Industry

Secondary industry (manufacturing) plays an important role in the economies of the Upper Catchment. Albury-Wodonga, Australia's fourth largest inland urban centre, has experienced significant population growth, particularly between 1971 and 1991, much of which has been attributed to the expansion of manufacturing industry, which accounted for 16% of the total employment number in 2001 (MDBC 2002c; ABS Census 2001).

Much of the manufacturing industry throughout the Murray catchment is related to the region's agricultural activities including the following concerns: • Albury, Macquarie Textiles exports apparel and furnishing textiles to Asia particularly Japan. It has 400 employees and its export sales are worth about $6 million each year; • Corowa, QAF (Bungi) which is an intensive pork processor employing between 600 and 700 people and outsourcing the growing of pigs to local producers. • Deniliquin, Sunrice is the largest rice mill in the Southern Hemisphere.

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However, much of the produce from the Lower Catchment subgroup (eg Wakool and Tullakool irrigation areas) is exported from the area for processing. Oranges are sent to packers at Gannawarra, rice is sent to Deliniquin or Echuca, and stonefruit goes to Melbourne’s fresh market and Malaysia, through Ivanhoe, and Darwin (Industry Advice, pers. comm.. 13/02/03).

Tertiary Industry

The economies of the Upper Catchment are heavily supported by the tertiary sector with services contributing a major component to both employment and income generation.

Whilst tourism may be considered an opportunity for rural towns in the Mid to Lower catchment, the transport difficulties of the area and scarcity of attractions away from the river mean tourism is unlikely to support the towns in the Mid Catchment in the face of significant changes to irrigated agriculture. However, tourism in Murray Shire is important with towns supported by their proximity to the growing town of Echuca.

5.4.4 Growth in jobs

Between 1996 and 2001 there was an increase in the number of jobs for the Upper Catchment of 4%, Mid Catchment of 0%, and 7% for the Lower Catchment Subgroups. The growth in jobs was 4% as compared to a population growth rate of 0% for the Murray catchment.

The growth in employment is unevenly distributed across the age groups and industries as shown in Figure 12 and Figure 13.

The age groups which experienced a decline in population were 20-40 years which correlates to the age group for which the number of persons employed also declined.

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Murray Catchment % Change in employment by age group - 1996 to 2001 60%

50%

40%

30%

20%

10%

0% 15 - 19 20 - 24 25 - 29 30 - 34 35 - 39 40 - 44 45 - 49 50 - 54 55 - 59 60 - 64 65 - 69 70 + -10%

-20% Age Group -30%

Upper Catchment Mid Catchment Lower Catchment

Figure 12 Percentage change in employment by age group between 1996 and 2001 for the Murray catchment (Source: ABS Census 2001 and 1996, unpublished data)

Figure 13 shows that the number of persons employed in Agriculture, Forestry and Fishing, Electricity, Gas and Water Supply, Transport and Storage, Finance and Insurance, Government, Administration and Defence declined between 1996 and 2001 whilst all other industries experienced an increase in the number of persons employed, in particular manufacturing and retail trade.

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Murray Catchment Change in the no. of persons employed by industry - 1996 to 2001

Agriculture, Forestry and Fishing

Mining

Manuf ac tur ing

Electricity, Gas and Water Supply

Construction

Wholesale Trade

Retail Trade

Transport and Storage

Finance and Insurance

Property and Business Services

Government Administration and Defence

Health and Community Services

Cultural and Recreational Services

Personal and Other Services

Not stated&Non-classified

-400 -200 - 200 400 600 800 Change in Persons Employed

Figure 13 Change in the number of persons employed by industry between 1996 and 2001 for the Murray catchment (Source: ABS Census 2001 and 1996, unpublished data)

5.4.5 Unemployment rate

In 2001, the unemployment rate was highest in the SLA of Albury at 8%, above the average for NSW (7.2%), and lowest in the SLA of Windouran (1.4%), which also experienced a decline in population of 3%. Figure 14 shows the unemployment rate across the catchment.

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Figure 14 Unemployment rate for the Murray Catchment SLAs (2001)

5.4.6 Employment by occupation

For the selected occupations described in Chapter 3 the number of persons employed declined by 2% or 161 employed persons. This compares to an increase in employed persons for these categories in the Study Area of 1% or 666 employed persons.

The occupation ‘Farmers and Farm Managers’ experienced a decline of 6% in employed persons between 1996 and 2001 from 5,293 to 5,001 and ‘Farm Overseers’ as a category declined from 56 to 29 persons employed (-30%). The number of employed farm hands increased slightly from 1,000 to 1,013, and the number of agricultural and horticultural workers increased by 27% from 55 to 70.

5.4.7 Infrastructure

Importantly for maintenance of growth and attractiveness to young professionals, Albury is serviced by an airport and the Hume Highway, which connects it to the major cities of Melbourne and Sydney.

The Mid and Lower Catchment is not as well serviced. The transport network servicing the regional centre of Deniliquin and surrounding areas

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has declined significantly over the last 20 years. The passenger rail service finished in the early 1980s, and the passenger air service no longer operates. Country Link now operations a service every second day. There is a bus service operating to Melbourne. The reduced transport infrastructure is considered to reduce the opportunities for tourists and business taking place in Deniliquin (Industry Advice, pers.comm. 12/02/03).

5.4.8 Household income

Figure 15 shows the median household income for SLAs in the Murray catchment for 2001 and the proportion of households earning less than $299 per week.

For the Murray catchment as a total the proportion of households earning less than $299 per week is 15% as compared to 14% for the Study Area.

Figure 15 shows that for the median income for the majority of SLAs was $600-699 per household per week in 2001. The median household income for Culcairn and Holbrook was $500-599, $700-799 for Conargo and $800-$899 in the Hume SLA.

Figure 15 Median Household income for SLAs in the Murray catchment and the Proportion of Households earning <$299 a week (Source: ABS Census 2001, published data)

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5.5 Dependence on water

This section explores firstly the dependence of the communities on irrigated agriculture and secondly the dependence on the water resource highlighting non-agricultural uses. The information presented includes quantitative and qualitative descriptors.

5.5.1 Dependence on irrigated agriculture

This section provides an overview of the: • quantity of water irrigated agriculture consumes; • the value contribution of irrigated agriculture; and • the area of land devoted to irrigated agriculture.

Irrigated water entitlements and usage

The Cap on long-term diversions for the valleys in the NSW MDB valleys in the Study Area total 4,285 GL per annum. The entitlements held by irrigation companies or areas in the NSW Murray equates to approximately 3,617 GL per annum or 84% of the Cap (ANCID, 2002). This figure is based on the summation of the irrigation entitlements for each of the irrigation areas in the Study Area. This figure may underestimate the entitlement to irrigated agriculture as a proportion of the Cap as the estimated entitlement for irrigation does not include private diverters.

Table 9 provides a summary of the water entitlements for irrigation in the irrigation areas in the Murray catchment. It includes the districts managed by Murray Irrigation Limited and for the area managed by West Corugan Irrigation Trust. Some assumptions have been made in preparing the data for this table, which are summarized in the footnotes to the table. The total entitlement is 1,528 GL of which approximately 1,397 GL were delivered in the 2001/2002 season (91%). A total of 2,650 irrigation holdings are involved, irrigating approximately 738,00 hectares.

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Table 9 Irrigation entitlements and average water delivered, farms, hectares irrigated by irrigation areas in the Murray catchment Irrigation No. of Ha Ha Entitlement Average Proportion Areas irrigated Total Irrigated (ML) Water Delivered holdings delivered % (ML) Murray 2,400a 716,000b 716,000 c 1,450,000d 1,331,148d 92% Irrigation Limited West 250d 212,000d 22,000d 78,000d 65,896e 84% Corugan Murray 2,650 928,000 738,000 1,528,000 1,397,044 91% Total a The 2400 farms are owned by 1,800 family farm businesses in southern NSW ANCID (2002); b MIL web site (2002); c no irrigated area available therefore total area used; d 2000/2001 irrigation season ANCID (2002); e 2001/2002 irrigation season ANCID (2002).

Murray Irrigation's area of operation stretches from Mulwala in the east, to Moulamein in the west (MIL, 2002). It includes the irrigation areas of Wakool, Deniboota, Denimein and Berriquin. The Wakool irrigation district, within the MIL, has 330 farmers of which 147 farms grow rice and 182 farms grow sorghum. Approximately 45-50% of the shire is under irrigation. The area, prior to the drought, was a net importer of water. Enterprises of both Murray Irrigation and West Corugan Irrigation Trust include rice, summer cropping, mixed farming, pastures and dairying.

Economic contribution of irrigated agriculture

Irrigated agriculture plays a significant role in the economy of the Murray catchment from Deniliquin to the junction of the Murrumbidgee River. It also contributes to the economies of the Goulburn-Broken catchment to the south. Other areas which process produce from the Lower Catchment, include Echuca (Sunrice, Simplot), Melbourne (Stone fruit fresh market) and Gannawarra (orange packing).

Based on the method described in Chapter 3, Volume 2, an estimate of the value of irrigated agriculture was generated. Table 10 summarises the total value of irrigated agriculture as a proportion of the gross value of production for agriculture in the sub groups of the Murray catchment for 2001.

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Table 10 Gross Value of Production of Agriculture and Irrigated Agriculture for the Murray catchment by Subgroup (2001) Total Value of Total Value Proportion Murray Agriculture ($) Irrigated Irrigated Sub Groups Agriculture ($) Agriculture Lower Catchment 301 105 35% Mid Catchment 426 178 42% Upper Catchment 434 55 13% Murray Total 1,161 338 29% Source: IRDB Version 2002; proportions for irrigated agriculture by agricultural activity were based on estimates of irrigated agriculture as a proportion of the gross value of production of agriculture as outlined in NSW Irrigators Council Factsheets (undated). The above table provides an aggregation of calculations prepared at an agricultural enterprise level by SLA.

Agricultural suppliers, transporters and processors, although not utilising significant amounts of water directly, are often completely dependent on irrigated agriculture and crops. For example, it has been estimated that 75% of income of secondary industries in the Deniliquin area is related to irrigation. Wakool Shire report that 65% of Wakool’s GDP is generated from agriculture with 40% dryland, and 60% irrigated, the opposite of what existed 20 years ago (Industry Advice, pers. comm. 13/02/03).

Area of irrigated agriculture

Figure 16 shows that the area devoted to irrigated agriculture in the Murray catchment is approximately 9% of the agricultural land area with a higher proportion in the Mid Catchment. The area of land to irrigfation grew by 22% between the 1997 and 2001 Agricultural Census (AgStats 2003). The area devoted to agriculture in general grew by only 6%. Irrigated agriculture is not significant in the Upper Catchment.

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Murray Catchment Area of irrigated agriculture as a proportion of the total area of agricultural holdings (2001) 40%

35% 30%

25%

20%

15% Proportion 10%

5% 0% Low er Catchment Mid Catchment Upper Catchment Subgroup

Figure 16 The area of irrigated agriculture as a proportion of the total area of agricultural holdings for the Murray catchment (Source: AgStats 2003)

5.5.2 Dependence on water (excluding irrigated agriculture)

In addition to irrigated agriculture, the communities of the Murray catchment are dependent on the water resource and ecosystems as a result of non- consumptive uses as well as extractive uses for domestic consumption and industry.

In terms of non-consumptive uses, tourism is often considered an important element to many economies along the River Murray. This does not seem to be the case for the Murray catchment. Figure 17 presents the results of the Australian Tourism Satellite Account, which aims to identify the level of employment in tourism, and subsequently manufacturing, agriculture/fishing/forestry and mining. The description of the Satellite Account is provided in Chapter 3.

The results show that for all SLAs in the Murray catchment employment dependent upon tourism accounts for less than 5% of total employed persons. Tourism employment is highest in the Murray, Corowa and Albury SLAs, which are along the River and benefit from proximity to water features and tourist towns.

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Enterprises dependent on the River Murray in terms of non-consumptive use include: • Hume Weir Trout Farm; • Murray River Boat Cruises (paddlesteamer Cumberoona, MV Firefly); • Rapid Descents White Water Rafting; and • Wonga Wetlands, which are upstream on the floodplain and are being re- established through Albury’s wastewater after treatment at Waterveiw (Albury City Council, 2003).

Events related to the water source are also important for community life. In the Mulwala / Yarrawonga area events include: • the ski spectacular in January, • the fishing classic which draws 1,500 visitors; and • the yacht club open air concert involving Julie Andrews and Don Burrows, drawing 1,200 people and is an annual event (3 years booked).

Murray Catchment Proportion(%) of Jobs by Industry by SLA Murr ay Tumbarumba (A) Holbrook (A) Hume (A ) Albury(C)

Culcairn (A) Corow a (A) Lockart (A) Urana (A) Berrigan (A) Jerilderie (A)

Conargo (A) Deniliquin (A) Murray (A) Windouran Wakool (A)

0 102030405060708090 Proportion (%) Tourism Agriculture/Fishing/Forestry Mining Manufacturing

Figure 17 Proportion of Jobs by Industry by SLA in the Murray Catchment (Source: TTF Australia, 2001)

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The economies of Mulwala / Yarrawonga are also dependent on the tourist activities and servicing industries supported by a full Lake Mulwala. Lake Mulwala, in the Upper Catchment, is surrounded by residences and clubs which have been built at the waters edge due to the Lake being at a steady level. In Easter and summer the population increases, resulting in full occupancy of accommodation for tourist providers. Estimates made by interviewees suggest that the 100% of accommodation providers and 60-70% of retailers are reliant on tourism, which is principally driven by the Lake (Industry Advice, pers. comm. 12/02/03).

The aesthetics and health of the River Murray, anabranches and tributaries are considered important to river towns in attracting population, providing recreational opportunities and securing the future of the river towns. For example, interviewees in the Deniliquin area see that the health of the Edward River is important for Deniliquin in attracting recreational fishers, campers and retirees3. Interviewees in towns near the river including Barham and Moama report that retirees are attracted to these areas. Barham is considered to have the cosmetic attraction of the river, lack of stress, great climatic conditions, services and fishing opportunities. Moama in the Murray SLA benefits from proximity to Echuca, another river town.

Tim Cummins & Associates (2002b) in their report, interpreting the workshop discussion of the participants present at the ‘Living Murray’ workshop held at Albury-Wodonga on 16 September 2003, reported that participants saw that the river was important in creating jobs and in providing beauty and serenity.

Due to the nature of water use in the Upper Catchment there is conflict with irrigation areas because of fluctuations in water management structures and the river. The Hume Reservoir can change from full to 50% in three months. Flows in winter are extremely low. Interviewees advised that it was difficult, therefore, to develop infrastructure at Hume Reservoir.

This is in contrast to Lake Mulwala, in the Hume to Yarrawonga stretch of the river. The Lake is maintained at a steady level, partly to maintain pressure for the two main irrigation channels, Mulwala Canal and Yarrawonga Main Channel. Residences and clubs are built at the waters edge due to the Lake being at a steady level.

Tim Cummins & Associates (2002b) reported this conflict in their report. The participants saw that one of the main trade-offs of increasing environmental flows in the River Murray would be between security and seasonality. They saw flow variability as being particularly important and

3 The recreational fishing industry is considered by interviewees to be growing in Deniliquin area. There are five fishing retail suppliers and the fishing classic is attracting increasing numbers of entrants.

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wanted to see lower flows in summer and higher flows in winter. This is in direct contrast to the pattern of flows for irrigation, where summer demand far outweighs demand for winter irrigation. The participants thought that high value river-based tourism in their region deserved more recognition in the debate.

5.6 Community wellbeing and services

In this section we provide an overview of the social support services and community infrastructure present in the catchment.

5.6.1 Access to goods, services and opportunities for social interaction (ARIA Score)

The ARIA Score – Remoteness and Accessibility - for the SLAs in the Upper Catchment subgroup identified them as highly accessible (relatively unrestricted accessibility to a wide range of goods and services and opportunities for social interaction) to accessible where there are some restrictions to accessibility of some goods, services and opportunities for social interaction.

The SLAs in the Mid Catchment subgroup have scores from 2.3 to 3.4 identifying them as accessible. The SLAs in the Lower Catchment subgroup have scores of 2.5 for the Murray SLA, accessible, and 3.8 for Wakool Shire, identifying it as being moderately accessible, where the communities have significantly restricted accessibility of goods, services and opportunities for social interaction. Figure 18 shows the ARIA Score for all SLAs in the catchment.

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Murray Catchment ARIA Score by SLA (1999) (Remoteness)

Tumbarumba Hume (A) Holbrook (A) Albury (C) Corowa (A) Culcairn (A) Urana (A) Jerilderie (A) Berrigan (A) Conargo (A) Deniliquin (A) Murray (A) Wakool (A)

- 1.0 2.0 3.0 4.0 5.0 ARIA Score

Figure 18 ARIA Score for SLAs in the Murray catchment (Source: Department of Health and Aging, 2001)

5.6.2 Tertiary services

The Murray catchment has significant social and cultural resources, including a major regional centre and associated facilities, transport infrastructure, environmental resources, and has a culturally diverse population and heritage. The cities of Albury and Deniliquin are the major centres of the region and provide a range of services.

However, the services available to communities in the Murray catchment are centred in the regional centre of Albury. Many of the government services that were present throughout the catchment have been shifted to Albury. This has been an ongoing trend over the last 5-10 years with services in Deniliquin, Berriquin, Corowa and Mulwala moving to Albury enhancing the resources of the Upper Catchment whilst reducing those in the Mid and Lower Catchment.

The following provides a brief summary of the tertiary services available in the major centres of Albury and Deniliquin.

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Albury

Albury has facilities for palliative care, HIV/AIDs, drugs and alcohol treatment, parents and babies, early childhood, aged assessment, and health promotion. Albury also has a major hospital.

In terms of higher education, Albury has a campus of the Charles Sturt University.

Deniliquin

Deniliquin’s health services include the Darlington Point Early Childhood Health Centre, the Deniliquin Community Health Centre and Deniliquin Hospital.

In terms of education, there is a TAFE at Deniliquin and the education Directorate is located there supporting the areas of Urana to Hay and across to Barham.

There is no rail service, air service, or major bus service to Deniliquin.

5.7 Cultural heritage

Albury is a major centre for the eastern part of the Murray Catchment area and maintains many natural and cultural heritage values associated with the river and its settlement history. This is true of many towns throughout the Study Area.

Table 11 provides a summary of heritage sites categorised into Indigenous sites, spiritual places, constructed features (eg bridges, memorials etc), public and private buildings, natural features, heritage attractions (such as gold mining sites) and other. The information presented was obtained from the Register of the National Estate, the NSW Heritage Office, the SA Heritage Register and the Victorian Heritage Register.

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Table 11 Heritage Sites and Places in the Murray Catchment

SLA Indigenous Spiritual Constructed Public Private Natural Heritage Other Site Places (eg Features (eg Buildings Buildings Features Attraction (eg gold Church) Bridges) fields, etc)

Wakool (A) 4 6 1 2 Windouran 2 1 Jerilderie (A) 1 1 2 Deniliquin (A) 1 3 4 2 Conargo (A) Berrigan (A) 1 5 1 Murray (A) 3 1 3 1 1 1 Urana (A) 1 1 1 1 Corowa (A) 1 5 4 2 Culcairn (A) 3 Albury(C) 1 3 9 14 Hume (A) 1 6 14 11 15 6 Holbrook (A) 2 2 Tumbarumba (A) 1 1 4 4 Total 8 9 29 40 49 23 1 1 Source: Register of the National Estate; NSW Heritage Office; SA Heritage Register and Victorian Heritage Register though http://www.heritage.gov.au/ahpi/index.html (accessed 23/06/03).

Table 11 underestimates the number and significance of Indigenous sites in the Murray, with sites protected in national parks and state forest not listed.

In addition to places of cultural heritage, certain events also draw on cultural heritage. Deniliquin hosts two major events each year called the Play on the Plains Festival in October, and the Deniliquin Stampede in March. These celebrate pastoral heritage, station life, and the Australian Outback.

5.8 Cumulative change and community response

The major changes that have taken place over the last 10 years in the Murray catchment are described for the Upper, Mid and Lower Catchment subgroups.

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Upper Catchment

Emptying of Lake Mulwala between April and August 2002: Whilst the towns of Mulwala and Yarrawonga depend on the Lake for tourism, the tourism industry, Council and the Tourism Board turned it around with positive advertising inviting people to visit. Estimates of thousands of visitors were reported.

Expansion of Secondary Industry surrounding Corowa: Corowa has benefited from secondary processing developments with QAF (Bungi), intensive pork processors, locating to Corowa resulting in significant direct employment and outsourcing the growing of pigs to local producers.

Relaxation of gambling laws in Victoria: Following the relaxation of gambling laws and allowing poker machines in Victoria, tourism businesses in NSW towns experienced a significant decline in business, whilst Victorian towns flourished including Echuca. Yarrawonga and Mulwala are cushioned somewhat due to the presence of Lake Mulwala – a water feature.

Collapse of the reserve price scheme: When the reserve for the wool price was removed, the market price plummeted. There was a significant stock- pile of wool. The result was a change in land use to fat lambs, cattle, and pigs rather than farmers leaving agriculture. The change in land use took between 2-3 years. Farmers also diversified into other crops particularly canola, legumes and cereal growing. Now a third of agriculture in Corowa is dryland canola.

Successful fight to retain the Australian Defence Industries factory: 18 months ago, the closure of the ADI factory (employs 250 people) was proposed. The factory workers, Council (Corowa, Yarrawonga and Moira), and the Progress Association, however fought the closure by marching on the factory.

Drought impacts not severe at this stage: The impact of the drought on towns in the Upper Murray have not been severe yet. Advice is that they are the last to go into drought and the first to come out. Primary producers have been affected, however there is ground water supply.

Mid Catchment

Water trading: Water trading initially created uncertainty, however the market is maturing with the majority of irrigation businesses involved in trading. The MIL area has been a net importer of water. Trade out of the area is being limited. Availability of water during the recent drought however has declined significantly and the water price has risen

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dramatically. Horticultural irrigators and dairy farmers making the decision to purchase water have done so at high prices.

Although a range of changes has taken place in the area, Standen & McLeod (2002) report that the number of farm businesses has not changed that significantly in the last five years. The most common farm business is approximately 460 ha in size and uses, on average, 710 ML per annum.

Privatisation of MIL: The head office was relocated and the number of employees declined. The effect has been an increased awareness of water and an organisation supportive of irrigators, which has helped farmers to manage change.

Relaxation of gambling laws in Victoria: as above

Drought: Drought has contributed to a 9% allocation of water in the NSW irrigation areas. In terms of income flows in the Mid Catchment, towns began to be affected 6 months ago with retail, agricultural servicing, rice hauling, machinery, water authorities experiencing declines in employment and turnover. Irrigation farmers are yet to be significantly affected by a decline in income with final payments on the bumper rice crop finishing in March. The processing industries will be affected with relatively no rice being produced in this season. Jobs have been lost with the mill at Echuca closing and a 50% reduction in employment at the rice mill at Deniliquin. MIL also reduced its working week to 4 days. The drought for farmers will take great effect in 2003/2004 when there will be essentially no rice payments. Should a rice crop be planted this year, no income will be received for approximately 24 months.

Farmers themselves have had to draw down on wealth to buy water, feed for stock, reducing their financial capacity for future change.

This year the average price for a ML of water bought through the Murray Irrigation Water Exchange was $210. Last year the amount was $40 and a decade ago irrigators were paying between $2 and $3 a megalitre. Reports have been received of some farmers sinking hundreds of thousands of dollars into their businesses to maintain breeding stock and water perennial plantings. Farmers have also turned to other crops (Higgins, 2003).

Relocation of departments and services: There has been a decline in the population as a result of relocation of government departments and services to larger regional centres. As a result, there has been a decline in skilled labour and opportunities for young professionals. Over the last 10 years, Deniliquin as a regional centre has experienced the loss of banks, health staff, the airline service, CSIRO, Greater Murray Health, Department of Agriculture (now in Albury), RTA and Water Resources, and the downsizing

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of Telstra and the electricity service providers that were present in Hay, Balranald and Hume (which have now reduced to one location).

Sources advise that it is now difficult to attract qualified staff, with employment opportunities significantly reduced. Some community groups are stepping in to fill gaps and the local government is stepping in and providing services not traditionally required to provide. For example, Deniliquin has in place an incentive scheme to attract doctors.

LWMPs: The process was well received due to the focus on community ownership and has raised the community’s support and ability to change. In 1993 a total of 122,000 ha had water tables within 2 metres of the surface, seriously threatening agricultural productivity and natural environment of the region. Since implementation of the plans began in 1995 this has fallen to almost 70% or 36,988 ha in 2002 (Pastoral Times, 2003).

Establishment of annual events: A new event was established in 1999 – the Ute Muster, which has in the last four years developed into an icon event attracting 30,000 people for 3 nights resulting in economic benefits and increasing community activity. It has encouraged other towns to pool resources and coincide other events – eg Jerilderie run a Bachelor and Spinster Ball the weekend before the Ute Muster.

Lower Catchment

Water trading: Water trading has resulted in an expansion of irrigation into the area with an estimated $67 million in investment over 5-7 years in stone fruit and horticulture. North of the Edward River, rice is expanding.

Drought: The economic impact to rice in the area is estimated at approximately $32 million. The total impact to agriculture has been estimated at a decline in income of $72 million. The flow-on impacts are estimated at $18 million, 336 jobs or 16% of employment. Sources advise that a number of families are being carefully monitored to reduce the risk of suicide. Recovery is expected to be slow with skills possibly leaving the area and the financial capacity of the community to diversify and handle further change decreased.

Movement of retirees to river towns: The increasing number of retirees have cushioned the decline in young people from the area and declining populations in dryland farming communities. The change in population demographics is expected to result in real estate price rises and a down-grade of the police presence. There is a proposal from an outside investor to develop a retirement village.

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LWMP addressed salinity and water table issues: Prior to the LWMP productive land had become unproductive and was not actively farmed. Following the implementation of actions of the LWMPs, the productivity of these lands improved to a point where they are once again farmed.

5.9 Summary

The subgroups of the Murray catchment were defined to assist with analysis.The subgroups of the Murray catchment, the Upper, Mid and Lower Catchments, are quite different in their economic structure, range of social services, demographic profiles and dependence on water.

The Upper Catchment is economically diverse, with a range of activities in the primary, secondary and tertiary sectors. There is a diversity of land use including grazing, pasture seed production, forestry, fishing, nature conservation and tourism, with a recent increase in viticulture.

The Mid Catchment however, has a less diverse economy. The primary sector is significant for employment, followed by the tertiary sector. Manufacturing is not a significant employer and what does take places is largely dependent on irrigated rice production. Horticultural and grain produce is exported out of the area for processing.

The Lower Catchment has a similar profile although with an increasing level of diversity in primary production. The secondary industry is relatively smaller when compared to the Mid Catchment with much of the produce exported to other areas for processing.

The long-term sustainability of irrigable land in the Lower Catchment is dependent upon engineering infrastructure to intercept salty groundwater and manage floods.

In the Upper Catchment the infrastructure network is strong with an airport and major highways connecting it to the major cities of Melbourne and Sydney. The Mid Catchment and Lower Catchment are not as well serviced by transportation and road infrastructure. Deniliquin, the regional centre of the Mid and Lower Catchments has, over time, gradually lost its rail service, regular bus service and serviced airport. The lack of transport reduces the opportunities to attract tourists and business.

Services available to communities in the Murray catchment are centred in Albury. Many of the government services that were present throughout the catchment ten years ago have been relocated to Albury, enhancing the resources of the Upper Catchment whilst reducing those in the Mid and Lower Catchment.

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The population for the Murray catchment did not change between 1996 and 2001. This is compared to a growth rate of 3% for the Study Area. The population for all SLAs with a population of less than 5,000 people declined for the same period. The exception to this is for towns on the river, which are either experiencing a growth in population or have not declined, partly due to retirees shifting to these areas.

Between 1996 and 2001 the number of employed persons increased by 4% in the Upper Catchment and 7% in the Lower Catchment however, the number of employed persons did not change in the Mid Catchment.

The nature of dependence on water is different throughout the Murray catchment. The community and economies of the Upper Catchment are reliant on water and the river ecosystems for urban water use, tourism, industry and stock use. The community and economies of the Mid and Lower Catchment are reliant on the water primarily for irrigation and urban water use. Irrigation is also an important aspect of the landscape. Irrigation holdings for Murray Irrigation Limited and West Corugan total 2,650 and irrigated area totals approximately 73,800 ha. The value of irrigated agriculture accounts for approximately 29% of the gross value of agricultural production in the Murray catchment, generating $338 million, 52% of which is generated in the Mid Catchment.

Aesthetics and the health of the River Murray, anabranches and tributaries are also important to the communities, particularly in attracting population, providing recreational opportunities and securing the future of the river towns. Tourism for the Murray SLA is important with towns, such as Moama supported by their proximity to the growing town of Echuca. Echuca also provides education for students resident in NSW. However, tourism is unlikely to be a significant industry in the near future for the other towns in the Lower and Mid Catchment, particularly those located away from the river due to the lack of transport options and scarcity of attractions.

The communities in all three subgroups appear to be entrepreneurial and politically active.

The strengths of the Upper Catchment include: • a strong regional centre; • population growth; • lifestyle strengths along the river; • tertiary education; • diverse agricultural base and secondary processing; • investment and employment growth;

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• tourism hub for the Alpine regions; • strong infrastructure; and • a range of facilities.

The strengths of the Mid and Lower Catchments include: • increasing diversity in the primary sectors; • politically active community that recognises the possibilities for change; • proximity of some towns to the river; and • growth in employment for the Lower Catchment.

The areas of vulnerability for the Mid and Lower Catchments include: • significant cumulative change, particularly with the drought in the last 18 months; • dependence of the economy and community organisation on the irrigation of rice; • declining populations; • poor infrastructure and declining tertiary services; and • ongoing management of salinity and water tables.

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6. Murrumbidgee Catchment

6.1 General background

The Local Government Areas in the Murrumbidgee catchment include Murrumbidgee, Griffith, Leeton, Hay, Narrandera, Cootamundra, Coolamon, Junee and Wagga Wagga. It also includes part of Jerilderie and Windouran, the statistics for which have been included in the Murray catchment information.

Two distinct regions categorize the Murrumbidgee catchment area: • the dominant irrigated agricultural area in the west, and • the highlands and dryland agriculture in the east.

The catchment has been grouped according to the Burrunjuck to Narrandera subgroup (Narrandera, Coolamon, Junee, Wagga Wagga and Gundagai SLAs), Murrumbidgee Irrigation subgroup (Griffith, Leeton and Carathool SLAs), Coleambally Irrigation subgroup (Murrumbidgee, and Jerilderie for illustration) and Lower Murrumbidgee (Hay) subgroup. Figure 19 shows the Murrumbidgee catchment.

6.2 Physical environment, natural resources and their use

6.2.1 Water resources

The Murrumbidgee River is regulated with two major water storages, Burrinjuck Dam (1,026 GL) and Blowering Dam (1,628 GL) on the Tumut River. Weirs have been built at Berembed, Yanco, Gogeldrie, Hay, Maude, Redbank and Balranald.

Today almost half of the Murrumbidgee's average annual flow past Wagga Wagga of 4,470 GL is diverted for irrigation, towns and industry, with irrigation accounting for 98% of the water drawn from the river. The Coleambally and Murrumbidgee Irrigation Areas account for three-quarters of the irrigation water (Murrumbidgee Catchment Management Board, 2003).

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Figure 19 Murrumbidgee Catchment

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6.2.2 Natural features

The region is bordered by the Hume Highway in the west, Kosciusko National Park in the east, the Murrumbidgee River to the north and the Murray River to the south.

These borders provide many natural features in the region, including the Monaro plains and Australian Alps. With the highest mountains in Australia, Kosciusko National Park contains six wilderness areas, and its alpine and sub-alpine areas contain plant species found nowhere else in the world. The region’s national park’s are home to the rare mountain pygmy possum, powerful owl and corroboree frog. This area also contains the limestone Yarrangobilly Caves formed about 440 million years ago from the shells and skeletons of sea animals. Cocoparra National Park is located 25km north- east of Griffith and is one of the few remaining examples of Riverina forest.

The Murrumbidgee River supports a range of aquatic systems of ecological significance. These include Fivebough, Tuckerbil and Tarcutta Swamps and the Lowbidgee Wetlands, which provide habitat for threatened species. The region contains Australia's largest freshwater lake, Lake George, as well as two major water storages, Burrinjuck Dam and Blowering Dam on the Tumut River (Murrumbidgee Catchment Management Board 2003; NSW National Parks and Wildlife Service, 2003).

6.2.3 Land use

In the irrigated areas in the west, less than 10% of the original grasslands remain, with only 3% of riparian vegetation remaining and only 9% of the yellow box and Blakely's red gum communities. In contrast, vegetation in the upper catchment, which is steeper and less agriculturally attractive, is often virtually the same as in pre-European times. For instance, almost all the alpine ash and manna gum communities remain, which also reflects the large areas of national parks.

The eastern region is characterised by a range of land uses including agriculture, horticulture, viticulture, forestry and tourism and contains a diverse range of natural systems. The more traditional agricultural enterprises that occur throughout the region include a range of predominantly grazing and dry-land cropping enterprises.

There is a shift with the landscape of the Narrandera district showing an increasing amount of irrigation in its predominantly dryland farming character. This intensification process has slowed in response to water reform and drought.

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6.2.4 Environmental issues

It is estimated that shallow watertables affect up to 80% of Murray Irrigation, with up to 5% of the area having gone out of production because of waterlogging and salinity (Industry Advice, pers. comm. 25/03/03).

Wagga Wagga Council is actively involved in urban salinity management. They have obtained funds from the National Action Plan for Salinity and Water Quality program to support four programs aimed at managing its urban salinity problem, working with the city's Urban Landcare Group. Representation in the larger regional natural resource management processes is more limited. The Murrumbidgee Catchment Management Board is limited to three representatives for 20 Councils.

The Environment Protection Authority in NSW requires the upgrade of wastewater treatment for the 13ML/day from Wagga Wagga. Council is seeking an ability to trade this higher quality water, however it is not a water supplier.

6.3 Social geography and demography

This section provides a detailed outline of the population of each SLA, focusing on the socio-demographic profiles, described in Chapter 3, and mapping the results where possible.

6.3.1 Population size and change

The population for the SLAs in the Murrumbidgee catchment grew by 1% between 1996 and 2001 to a total of 119,451 people. This growth rate compares to 5% for NSW and 3% for the defined Study Area. The population is concentrated in the SLAs of Wagga Wagga, Griffith and Leeton.

Table 12 presents the total population of the SLA within the Burrunjuck to Narrandera Subgroup. The population living in SLAs located from Burrunjuck to Narrandera declined by 2% between 1996 and 2001, with Coolamon the only SLA to experience an increase in population.

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Table 12 Population by SLA – Burrunjuck to Narrandera Subgroup Burrunjuck to Total Population Aboriginal and Torres Strait Narrandera Islander Population 1996 2001 % 1996 2001 % SLAs Total Total Change Total Total Change Narrandera (A) 7,141 6,486 -9 514 501 -3 Coolamon (A) 3,849 3,911 2 52 57 10 Junee (A) 5,755 5,585 -3 143 214 50 Gundagai (A) 3,726 3,726 0 53 65 23 Wagga Wagga (C)a 55,519 55,056 -1 1,425 1,765 19 Total 75,990 74,764 -2 2,187 2,602 19 a SLA data unavailable for 1996 and 2001, so LGA reported Source: ABS Census 2001, 1996, published data.

Table 13 presents the total population of the SLAs within the Murrumbidgee Irrigation subgroup. The population increased by 8% driven by growth in the Griffith SLA.

Table 13 Population by SLA – Murrumbidgee Irrigation Subgroup Murrumbidgee Aboriginal and Torres Total Population Irrigation Strait Islander Population SLA 2001 % 1996 2001 1996 Total % Change Total Change Total Total Griffith (C) 21,594 23,805 10 733 874 19 Leeton (A) 11,031 11,469 4 320 346 8 Carrathool (A) 3,164 3,320 5 126 167 33 Total 35,789 38,594 8 1,179 1,387 18 Source: ABS Census 2001, 1996, published data.

Table 14 presents the total population of the SLA within the Coleambally Irrigation subgroup. The Jerilderie SLA has been included here for illustration purposes given part of the Coleambally Irrigation Company’s operations fall in the Jerilderie SLA. The population increased by in the Murrumbidgee SLA, however declined by 9% in the Jerilderie Shire.

Table 14 Population by SLA – Coleambally Irrigation Subgroup Coleambally Total Population Aboriginal and Torres Strait Irrigation Islander Population SLA 1996 2001 % 1996 2001 % Total Total Change Total Total Change Murrumbidgee (A) 2,389 2,519 5 172 179 4 Total 2,389 2,519 5 172 179 4 Jerilderie (A) 1,960 1,790 -9 32 26 -19 Source: ABS Census 2001, 1996, published data.

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Table 15 presents the total population of the SLA within the Lower Murrumbidgee subgroup. Balranald SLA, which borders Hay is presented in the chapter for the Lower Murray Darling Catchment. The population for Hay declined by 6% between 1996 and 2001.

Table 15 Population by SLA – Lower Murrumbidgee Subgroup Lower Aboriginal and Torres Total Population Murrumbidgee Strait Islander Population 2001 1996 2001 % 1996 Total % Change SLA Total Total Total Change Hay (A) 3,822 3,574 -6% 99 125 26% Source: ABS Census 2001, 1996, published data.

The farm population is declining in the Wah Wah area. Social and economic effects are seen in a loss of service industries and clubs, loss of farm worker population and closure of a juicing factory. Income from the caravan park has been lost despite a $750 000 upgrade, and Council's rate base is declining.

Figure 20 shows the population of the SLAs in the Murrumbidgee catchment. Griffith and Wagga Wagga Pt A are the most populated SLAs in the area, both being large urban centres. Figure 21 shows the change in population for the SLAs in the Murrumbidgee catchment with the largest growth in population taking place in the regional centres. Interesting to note is that the population for Wagga Wagga – Part A (the city area) declined however, the population in the surrounding areas increased. The SLAs of Carathool, Leeton and Murrumbidgee Shires, which surround Griffith were in the next highest bracket of population growth.

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Figure 20 Total Population of SLAs in the Murrumbidgee catchment (2001)

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Figure 21 Change in the Total Population of SLAs in the Murrumbidgee catchment (1996 to 2001)

6.3.2 Age distribution

Figure 22 provides the proportion of each age group of the total population for the Murrumbidgee catchment.

The proportion of all age groups above 40 years has increased since 1996, whereas the proportion for the majority of the age groups below 40 years declined, except for the 15-19 years age bracket.

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M urrumbidgee CM U Proportion of Age Groupings of the Total Population 1996 and 2001

75+

70-74

65-69

60-65

55-59

50-54

45-49

40-44

35-39

Age Grouping 30-34

25-29

20-24

15-19

10-14

5-9

0-4

0% 2% 4% 6% 8% 10% Proportion 1996 2001

Figure 22 Proportion of the Age Group of the Population for the Murrumbidgee catchment for 1996 and 2001 (Source: ABS CDATA 2001)

Figure 23 presents the change in the proportion of the population for two age groupings, greater than 60 years and those aged between 15 and 29 years.

The proportion of the population between the age of 15 and 29 years has declined for all SLAs in the Murrumbidgee catchment, except Murrumbidgee, Gundagai and Carathool. This change in the proportion for this age group is reflected in the results for New South Wales (-0.4%).

The proportion of the population aged 60 years and above increased in all SLAs, except for Coolamon. This result is reflected in the results for New South Wales (1%).

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Murrumbidgee CMU Murrumbidgee CMU Change in the proporation of people aged 15-29 yrs of the total population Change in the proportion of people aged 60 yrs + of the total population (1996 to 2001) (1996 to 2001)

Wagga Wagga (C) - Pt B Wagga Wagga (C) - Pt B

Wagga Wagga (C) - Pt A Wagga Wagga (C) - Pt A

Narrandera (A) Narrandera (A)

Murrumbidgee (A) Murrumbidgee (A)

Leeton (A) Leeton (A)

Junee (A) Junee (A)

Hay (A) Hay (A)

Gundagai (A) Gundagai (A)

Griffith (C) Griffith (C)

Coolamon (A) Coolamon (A)

Carrathool (A) Carrathool (A)

-1.0% -0.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% -4.0% -3.5% -3.0% -2.5% -2.0% -1.5% -1.0% -0.5% 0.0% 0.5% 1.0%

Figure 23 Comparison of the change in the proportion of people aged 60 years above and those aged between 15 and 29 years between 1996 and 2001 (Source: ABS Census 2001, CDATA 2001)

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6.3.3 Age dependency ratio

The age dependency ratio for the Murrumbidgee catchment was 55% as compared to 51% for NSW. Figure 24 shows the ratio for the SLAs of the Murrumbidgee catchment.

Figure 24 Total Age Dependency Rate (2001) for the SLAs of the Murrumbidgee catchment

6.3.4 Family types

In 2001, one-parent families accounted for 15% of the total number of families in each of the Murrumbidgee catchment, in the Study Area and in NSW. The proportion of one-parent families was highest for Wagga Wagga – Part A (18%), followed by Junee (16%). The lowest recorded was for Wagga Wagga – Part B (8%) and Carathool (9%).

In 2001, the proportion of persons divorced or separated in the Murrumbigee catchment was 7%, as compared to 8% for the Study Area and NSW (ABS CDATA 2001).

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6.3.5 Non English speaking

In 2001, the proportion of persons who do not speak English well or at all, was 7% for the Murrumbidgee, 4% for the Study Area and 10% for NSW (ABS CDATA 2001). The highest proportion of individuals falling in this category was recorded for Griffith (16%).

6.4 Socio-economic profiles and economy

6.4.1 Presence of regional centres

The Murrumbidgee catchment area has a number of regional centres that provide health, education and social and government services to the region. These include Griffith, Wagga Wagga, Leeton and Balranald. Hay is also important, serving a large semi-arid grazing area in south-western NSW (MDBC, 2002b).

6.4.2 Employment by tiers of the economy

Figure 25 shows the proportion of employment in each of primary, secondary and tertiary sectors for the Murrumbidgee catchment.

Murrumbidgee Catchment - Proportion of Employment by Primary, Secondary and Tertiary Sector (2001)

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Lower Coleambally Murrumbidgee Burrunjuck to Murrumbidgee Irrigation Irrigation Narrandera

Catchment Subgroup

Primary Secondary Tertiary Not Stated

Figure 25 Murrumbidgee catchment – Proportion of Employment by Primary, Secondary and Tertiary Industry (Source: ABS Census 2001, published data)

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Figure 25 shows that employment activity in the Burrunjuck to Narrandera subgroup is characterised by a large tertiary industry, a significant primary sector and a secondary sector. The economy of the Burrunjuck to Narrandera subgroup is highly diverse, based on farming, tourism (above Wagga Wagga), government services, secondary processing of agriculture products including abattoirs and wool scouring, and specialist services eg health, secondary and tertiary education. Tourism is not a major economic activity. The economy of Narrandera is diversifying into a range of industrial activities as well as tourism from its highway location.

The Murrumbidgee Irrigation subgroup has a smaller proportion of employment activity in the primary sector and an increased proportion in the secondary industry as compared to that upstream. The Coleambally Irrigation subgroup is characterised by a significant primary sector. The Lower Murrumbidgee section has a similar representation of employment activity in the three tiers of sectors of activity as Burrunjuck to Narrandera however, with a smaller secondary sector.

6.4.3 Industry profiles

Figure 26 presents the proportion of people employed by industry within the Murrumbidgee catchment based on ABS Census statistics for 2001. The top three industries for employment are Agriculture, Forestry and Fishing, Retail Trade, and Manufacturing.

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Murrumbidgee Catchment - Proportion of Persons Employed by Industry (2001)

Agriculture, Forestry and Fishing

Mining

Manufacturing

Electricity, Gas and Water Supply

Construction

Retail Trade

Accommodation, Cafes and Restaurants

Transport and Storage

Property and Business Services

Government Administration and Defence Industry of Employment Education

Health and Community Services

Cultural and Recreational Services

Personal and Other Services

Not stated

0% 5% 10% 15% 20% 25% 30%

Figure 26 Murrumbidgee catchment – Proportion of Employment by Primary, Secondary and Tertiary Industry (Source: ABS 2001 Census, published data)

Primary Industry

Higher rainfall in the Burrunjuck to Narrandera subgroup supports diverse dryland farming. Irrigation is a relatively small part of the agricultural system (some dairy and no cropping above Wagga Wagga).

Agriculture and horticultural industries are the largest industries within the Western Riverina (includes the Murrumbidgee and Coleambally Irrigation subgroups). This is largely attributed to the availability and quality of water through the Murrumbidgee Irrigation Area Scheme.

Rice is the major crop in the irrigation areas. Approximately 95% of Australia's rice is produced in the Western Riverina (which includes the Murray). The bulk of it is exported to Asia. The Ricegrower's Co-operative is one of the single largest employers within the region responsible for processing as well as marketing its product domestically and internationally.

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Citrus fruit are grown year round for fresh fruit and processed products, for export and domestic consumption. The area is one of the largest citrus growing regions in Australia. The citrus industry is vitally important to the region's economy. Valencia oranges are produced in the summer, and navels in the winter. Grapefruit, lemons and mandarins are also produced. The region's 450 growers and 50 pack houses supply both domestic and export customers. South East Asia is the Riverina's biggest customer, with major quantities of fruit being directed to Japan and the USA. The fruit is sold fresh and as juice products. The vineyards around Griffith produce 70% of NSW wine. Several individual wineries crush more each year than the Hunter Valley vineyards combined (Griffith City Council, 2003).

The Murrumbidgee Irrigation subgroup has a diverse agricultural base comprised of rice, cereal, horticulture, pasture, and vegetables and a range of value-adding and tertiary industries. It includes the growing towns of Griffith and Leeton. Griffith has a strong multicultural base and a strong push to market its wines, fruits, juices and cereals in the global marketplace. Leeton's primary production is more rice- and horticulture-dependent with sizable secondary industries based on processing off farm products, and research industries with a product or processing focus. The area dedicated to grape production is increasing, grown in combination with rice. The latest shift is from rice to oranges or a combination of the two. Vegetable production continues to grow.

Coleambally, like the Murrumbidgee Irrigation area, supports a large seasonal workforce for contract harvesting of cereals and to a lesser extent for vegetables and viticulture. Coleambally is the centre of an intensive irrigation area built in the last 40 years on the basis of relatively cheap water. Drought and water reform have taken their toll on intensive rice production, which is reduced to less than half its normal production. Vulnerable farmers are retiring and crops are changing from reliance on rice to citrus, maize and wheat.

In the Wah Wah irrigation area, rice has been the mainstay for the last 25 years, but now the area is diversifying into corn for feedlots, olives and sweet corn. Four farms have retired out of 70, with their water and land purchased by neighbouring farms. Limited funding is available for high technology solutions. Some have returned to mixed farming from rice.

East of Wah Wah, the Carathool Shire area water is supplied to stock and for domestic use by a channel system. This supports extensive grazing and some cropping on 150 farms and a piggery in otherwise unpopulated areas.

Private diverters are located mainly in the areas of Wagga Wagga and Hay. The private diverters group is relatively stable and consists of 680 farmers across 40,000 ha, with just 20% under irrigation.

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The move from wool to rice, vegetables, horticulture and feedlot fodder was a relatively easy transition over ten years aided by availability of water from sleepers and dozers in the district and purchases from upstream. Future reforms however, involve a larger scale of change and the population is older.

Murrumbidgee Private Irrigators is a strong lobby group operating an active association through a farmer levy.

Other examples of successful innovative companies and industries based in the Murrumbidgee catchment include: • poultry: Australia's largest producer of eggs and third largest producer of poultry meat products Barter Enterprises, and Parle Foods who supply gherkins for McDonald's and Hungry Jack's (Griffith City Council, 2003); • beef: Major beef cattle lots are located at Tabbita, Maude and Narrandera; • seed production: In Griffith, South Pacific Seeds grows seeds for export to markets in East Asia, Europe, America, Middle East and India. Its major markets are Japan, Korea and Thailand. The company's office in Griffith employs 35 staff. Export sales from its Australia-wide operations are worth $12 million annually. The majority of seeds are produced via irrigation (Industry Advice, pers. comm. 07/07/03).

Secondary Industry

Although manufacturing output is low (9% compared with the State average of 15%), 86% of this is based on food, timber and paper products (Regional Institute Ltd, 2003).

Secondary processing of agriculture products is an important economic activity in the Murrumbidgee. Processing activities include abattoirs, wool scouring operations, wineries, fruit juicing and canning, rice processing, and poultry processing.

Food processing groups established in the Murrumbidgee catchment are concentrated in Griffith and include: Nugan Group; South Pacific Seeds; Summertime Fruit Juice; Sunrice; Ag Reserves Australia Limited; Riverina Citrus; Parle Foods Griffith; Excello Co operative Limited; Bartter Enterprises; Flavourtech; Riverina Grove Gourmet Foods; etc.

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Wineries in the Murrumbidgee catchment include: DeBortoli Wines; The Cranswick Estate Wines; Casella Wines; Riverina Estate; McWilliams Wines; Orlando Wines; Miranda Wines; Rossetto Wines; Westend Wines; Piromit Wines; Zappacosta Estate Wines; Terra Nova Estate and Southcorp Wines.

In addition to food processing, there are a number of companies such as A & G Industries that manufacture most of the equipment required for the food processing and agricultural industries for Australian and overseas firms. The firm is recognised as a world leader in manufacturer and installation of stainless steel wine making equipment.

The Coleambally and Murrumbidgee Shire under their 'Sustain Coleambally' project are endeavouring to attract value-adding industries based on processing - prunes and fresh juice and milk products, with the potential for ethanol production from a winter wheat crop under investigation. Water use efficiency improvements together with energy options are part of the project, together with farm business planning and property management planning.

The pre-requisites for attracting value-adding industries are local community support and understanding, together with adequate seed funding and adjustment arrangements for on-farm change.

Tertiary Sector

In addition to the irrigation companies, various government agencies, health and education services, trucking and fuel distribution represents an important industry, as does machinery sales and maintenance and agricultural product supply.

There is a strong development board presence with service provision to local government and business. Support is also provided through local government representation on the Regional Development Board and through the Eastern and Western Riverina Region Of Councils (RIVROC). The Board’s programs are aimed at retaining young people (Your Career on a Plate), attracting skilled production professionals, facilitating telecommunications for export promotions, and partnerships.

Leeton Council plays a strong intervention and advocacy role, promoting industrial development and government support schemes.

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6.4.4 Growth in jobs

The number of persons employed in the Murrumbidgee catchment increased by 6% between 1996 and 2001 as compared to a population growth rate of 1% for the Murrumbidgee catchment.

Between 1996 and 2001 there was an increase in the number of persons employed for Burrunjuck to Narrandera of 4%, 9% for the Murrumbidgee Irrigation subgroup, and 17% for the Coleambally Irrigation subgroup. There was a decline in the number of persons employed in the Lower Murrumbidgee of –3%.

The growth in employment is unevenly distributed across the age groups and industries as shown in Figure 27 and Figure 28. Figure 27 shows that employment increased for most subgroups for persons aged 40 years and over.

Murrumbidgee Catchment % Change in employment by age group - 1996 to 2001 120%

100%

80%

60%

40%

20%

0% 15 - 19 20 - 24 25 - 29 30 - 34 35 - 39 40 - 44 45 - 49 50 - 54 55 - 59 60 - 64 65 - 69 70 + -20%

-40%

Age Group -60%

Burrunjuck to Naranderra Coleambally Irrigation Lower Murrumbidgee Murrumbidgee Irrigation

Figure 27 Percentage change in employment by age group between 1996 and 2001 for the Murrumbidgee catchment (Source: ABS Census 2001 and 1996, CDATA 2001)

Figure 28 shows that the number of persons employed in electricity, gas and water supply, finance and insurance, and government, administration and defence declined between 1996 and 2001 whilst all other industries experienced an increase in the number of persons employed.

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Murrumbidgee Catchment Change in the no. of persons employed by industry - 1996 to 2001

Agriculture, Forestry and Fishing

Mining

Manufacturing

Electricity, Gas and Water Supply

Construction

Wholesale Trade

Retail Trade

Transport and Storage

Finance and Insurance

Property and Business Services

Government Administration and Defence

Health and Community Services

Cultural and Recreational Services

Personal and Other Services

Not stated&NonClassifiable

-600 -400 -200 0 200 400 600 800 1000 1200 1400 1600

Figure 28 Change in the number of persons employed by industry between 1996 and 2001 for the Murrumbidgee catchment (Source: ABS Census 2001 and 1996, unpublished data)

6.4.5 Unemployment rate

In 2001, the unemployment rate was highest in the SLA of Junee (7.8%), followed by the centre of Wagga Wagga (7.6%), both above the average for NSW (7.2%). The unemployment rate was lowest for Carrathool (3.1%). Figure 29 shows the unemployment rate for the SLAs in the catchment.

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Figure 29 Unemployment rate for the Murrumbidgee catchment SLAs (2001)

6.4.6 Employment by occupation

For the selected occupations described in Chapter 3 the number of persons employed grew by 7% or 198 jobs. This compares to an increase in employed persons for these categories in the Study Area of 1% or 666 employed persons.

‘Farmers and Farm Managers’, experienced a 5% increase between 1996 and 2001, from 2,006 to 2,103. ‘Farm Hands’ as a category also increased, by 16% from 700 to 812. There was a decline in agriculture and horticultural labourers of 46%. Other categories experiencing an increase include shearers (20%), nursery and garden labourers (32%) and green keepers (50%).

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6.4.7 Infrastructure

Most major highway and rail corridors cross the region. Commercial airlines provide regular services to Sydney and Melbourne from Griffith and Wagga Wagga. Hay, on the banks of the Murrumbidgee River, is at the junction of the Sturt and Cobb Highways, and has always been an important transport centre.

6.4.8 Household income

Figure 30 shows the median household income for SLAs in the Murrumbidgee catchment for 2001 and the proportion of households earning less than $299 per week.

For the Murrumbidgee catchment the proportion of households earning less than $299 per week was 13%. The average for the Study Area was 14%.

Figure 30 shows that for the majority of SLAs the median income in 2001 for households was $600-699 per household per week.

Figure 30 Median Household income for SLAs in the Murrumbidgee catchment and the Proportion of Households earning <$299 a week (Source: ABS Census 2001, published data)

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6.5 Dependence on water

This section explores firstly the dependence of the communities on irrigated agriculture and secondly the dependence on the water resource highlighting non-agricultural uses. The information presented includes quantitative and qualitative descriptors.

6.5.1 Dependence on irrigated agriculture

This section provides an overview of the: • quantity of water irrigated agriculture consumed; • the value contribution of irrigated agriculture; and • the area of land devoted to irrigated agriculture.

Irrigated water entitlements and usage

The Cap on long-term diversions for the valleys in the NSW MDB relevant to the Study Area total 4,285 GL per annum. The long-term diversion Cap for the Murrumbidgee is 2,289 GL.

The entitlements held by irrigation companies or areas in the NSW Murray equates to approximately 3,617 GL per annum or 84% of the Cap (ANCID, 2002). This figure is based on the summation of the irrigation entitlements for each of the irrigation areas in the Study Area. This figure may underestimate the entitlement to irrigated agriculture as a proportion of the Cap as the estimated entitlement for irrigation does not include private diverters.

Table 16 provides a summary of the water entitlements for irrigation in the irrigation areas in the Murrumbidgee catchment; that is for the districts managed by Murrumbidgee Irrigation Limited and Coleambally Irrigation Company Limited.

The major irrigation areas in the Murrumbidgee catchment include Murrumbidgee Irrigation (including Benerenbah and Wah Wah) and Coleambally Irrigation. Private Diverters are also significant water users in the area and are located mainly in the area of Wagga Wagga and Hay. Griffith is the headquarters of Murrumbidgee Irrigation as well as for offices of key government departments and research bodies. It has strong connections with national economic and agricultural research organisations as well as a number of educational institutions.

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Some assumptions have been made in preparing the data for this table, which are summarized in the footnotes to the table.

The total water entitlement is 2,089 GL of which approximately 1,423 GL were delivered in the 2001/2002 season (68%). A total of 3,142 irrigation holdings are involved, irrigating approximately 284,700 hectares.

Table 16 Irrigation entitlements and average water delivered, farms, hectares irrigated by Irrigation Areas in the Murrumbidgee Catchment Irrigation Areas No. of Ha Total Ha Entitle-ment Water Proportion irrigated Irrigated (ML) delivered Delivered holdings (ML) Murrumbidgee 2,733a 480,214a 173,447a 1,456,000b 916,611b 63% Irrigation

Coleambally 345c 510,000 110,000 632,000b 505,000b 80% Irrigation

Hay Private 64a 2,460a 1,230a 900d 900a 100% Irrigation District

Murrumbidgee 3,142 992,674 284,677 2,088,900 1,422,511 68% Total a NSW Agriculture (2002); b ANCID (2002); c CICL unpublished; d No entitlement data available, therefore usage figures used.

In addition to those areas described in Table 16, Wah Wah irrigated farmland consists of 275,000 ha on 70 farms with a 1,640 ML allocation.

Economic contribution of irrigated agriculture

Irrigated agriculture plays a significant role in the economy of the Murrumbidgee Catchment.

Based on the method described in Chapter 3, Volume 2, an estimate of the value of irrigated agriculture was generated. Table 17 summarises the total value of irrigated agriculture as a proportion of the gross value of production for agriculture in the sub groups of the Murrumbidgee catchment. The value of irrigated agriculture accounts for approximately 35% of the gross value of agricultural production in the Murrumbidgee catchment or $443 million. The gross value of agricultural production increased by 32% between 1997 and 2001 (Ag Stats 2003).

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Table 17 Gross Value of Production of Agriculture and Irrigated Agriculture for the Murrumbidgee catchment by Subgroup (2001) Total Value of Total Value Proportion Murrumbidgee Agriculture ($ Irrigated Irrigated Subgroups million) Agriculture Agriculture ($ million)

Lower Murrumbidgee 79 41 52%

Coleambally Irrigation 76 44 58%

Murrumbidgee Irrigation 700 280 40%

Burrunjuck to Narrandera 426 78 18%

Murrumbidgee Total 1,281 441 35% Source: IRDB Version 2002; the proportion of irrigated agriculture for the Murrumbidgee Catchment was based on estimates of irrigated agriculture as a proportion as outlined in NSW Irrigators Council Factsheets - Irrigated - The Murray - Lower Darling Valley.

Area of irrigated agriculture

Figure 31 shows that the area devoted to irrigated agriculture in the Murrumbidgee catchment is approximately 6% of the land area with a higher proportion in the SLAs of the Coleambally Irrigation subgroup and Murrumbidgee Irrigation subgroup. Irrigated agriculture is not significant in the Burrunjuck to Narrandera subgroup and the Lower Murrumbidgee. Private diverters are present outside the irrigation areas in both the lower and upper sections of the river. The area devoted to irrigated agriculture grew by 12% between 1997 and 2001. This is compared to a growth in the area devoted to agriculture of 4% over the same period.

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Murrumbidgee Area of irrigated agriculture as a proportion of the total area of agricultural holdings (2001) 40% 35% 30% 25% 20% 15% Proportion 10% 5% 0% Low er Coleambally Murrumbidgee Burrunjuck to Murrumbidgee Irrigation (SLAs) Irrigation (SLAs) Narrandera Subgroup

Figure 31 The area of irrigated agriculture as a proportion of the total area of agricultural holdings for the Murrumbidgee catchment (Source: AgStats 2003)

6.5.2 Dependence on water (excluding irrigated agriculture)

In addition to irrigated agriculture, the communities of the Murrumbidgee catchment are dependent on the water resource and ecosystems as a result of non-consumptive uses as well as extractive uses for domestic consumption and industry.

In terms of non-consumptive uses, tourism is often considered an important element to many economies along the River Murray. This does not seem to be the case for the Murrumbidgee catchment. Figure 32 presents the results of the Australian Tourism Satellite Account. The description of the Satellite Account is provided in Chapter 3.

The results show that for all SLAs in the Murrumbidgee catchment employment dependent upon tourism accounts for less than 5% of total employed persons. Tourism employment is highest in the Gundagai, Hay and Wagga Wagga SLAs, each being located along the river and tend also to have historical attractions. There are also Food and Wine Festivals which draw on the produce of the region.

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Murrumbidgee Catchment Proportion(%) of Jobs by Industry by SLA

Mur r umbidgee

Gundagai (A)

Hay (A )

Wagga Wagga (C)

Narrandera (A)

Griffith C

Junee (A)

Leeton (A)

Murrumbidgee (A)

Coolamon (A)

Carrathool (A)

0 10203040506070

Proportion (%) Tourism Agriculture/Fishing/Forestry Mining Manuf ac tur ing

Figure 32 Proportion of Jobs by Industry by SLA in the Murrumbidgee Catchment (Source: TTF Australia, 2001)

The use of water for urban consumption is also important. Riverina Water has a pump allocation of 15,000 ML and a groundwater allocation of 8,000 ML. The current use is substantially less than the allocations. The major use is from groundwater. Groundwater levels have declined steadily since 1974 with increased extractions. The reliance on river water is increasing with the current restrictions on ground water. The reliance on river water will increase with population increases.

Variations in river height and flow have little impact on water diversions. Very low flows may create some suction problems, but these are usually short term.

6.6 Community wellbeing and services

In this section we provide an overview of the social support services and community infrastructure present in the document.

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6.6.1 Access to goods, services and opportunities for social interaction (ARIA Score)

The ARIA Score – Remoteness and Accessibility - for the SLAs in the Murrumbidgee catchment in the Burrunjuck to Narrandera subgroup have ARIA Scores of 1.7 to 2.8. This identifies them as highly accessible to accessible, where there are some restrictions to accessibility of some goods, services and opportunities for social interaction.

The SLAs of the Murrumbidgee Irrigation subgroup are accessible, identifying them as having some restrictions in access. Carrathool is remote. The Coleambally Irrigation SLAs have an ARIA Score of 4 and Lower Murrumbidgee has a score of 5.6 both of which are moderately accessible, where the communities have significantly restricted accessibility of goods, services and opportunities for social interaction. Figure 33 shows the ARIA Score for the SLAs of the catchment.

Murrumbidgee Catchment ARIA Score by SLA (1999) (Remoteness)

Carrathool (A)

Hay (A)

Murrumbidgee (A)

Griffith (C)

Leeton (A)

Narrandera (A)

Coolamon (A)

Lockhart (A)

Junee (A)

Gundagai (A)

Wagga Wagga (C)

- 1.0 2.0 3.0 4.0 5.0 6.0 7.0 ARIA Score

Figure 33 ARIA Score for SLAs in the Murrumbidgee Catchment (Source: Department of Health & Aging, 2003)

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6.6.2 Tertiary services

Throughout the catchment, local governments play a critical role as advocates and service providers for their communities particularly under circumstances of community stress and cost-cutting. The demand for this expanded role appears to be increasing as Councils fill gaps resulting from government service cuts or as Councils respond to growing demands for social services in their area.

Good quality health services are available, including ambulance services, community health centres and ready access to hospitals. Excellent facilities are provided for aged care, the disabled and early childhood care, including pre-school, playgroups and family day care services.

There is a focus on education. For example, Griffith City Council's social and community plan (1999-2000) has clearly identified the issue of lower 'higher education' qualifications of the community and inadequate labour force education and training in the area. The plan suggests a strategy to link vocational demand to educational developments and accordingly work towards establishing a tertiary campus or international school within the Griffith area (see Griffith City Council's social and community plan, 1999- 2000).

Educational facilities range from kindergarten to Year 12, with numerous vocational training and TAFE opportunities available for further education. There is also a campus of Charles Sturt University at Wagga Wagga. (Murrumbidgee Shire Council, 2002; Wagga Wagga City Council, 2002; Griffith City Council, 2003; Leeton Shire Council, 2002). The following are some examples: • Wagga Wagga; Riverina Institute of TAFE; • NSW Agriculture - Murrumbidgee College of Agriculture; • NSW Agriculture - Wagga Wagga Agricultural Institute -Yanco Agricultural Research Centre; and • Inland Fisheries Centre

Sporting, social and recreational facilities are diverse and well established.

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6.7 Cultural heritage

Table 18 provides a summary of heritage sites categorised into Indigenous sites, spiritual places, constructed features (eg bridges, memorials etc), public and private buildings, natural features, heritage attractions (such as gold mining sites) and other. The information was captured from the Register of the National Estate; NSW Heritage Office; SA Heritage Register and Victorian Heritage Register.

Table 18 underestimates the number and significance of Indigenous sites in the Murrumbidgee, with sites protected in national parks and State Forest not listed.

Table 18 Heritage Sites and Places in the Murrumbidgee Catchment LGA Indigenous Spiritual Constructed Public Private Natural Heritage Other Site Places (eg Features (eg Build- Build- Features Attraction (eg gold Church) Bridges) ings ings fields, etc) Wagga Wagga 4 3 6 4 1 Narrandera (A) 1 3 4 4 2 1 Murrumbidgee (A) 2 1 1 2 1 Lockhart (A) 1 1 1 Leeton (A) 1 2 1 2 Junee (A) 1 3 7 Hay (A) 3 1 6 3 2 Gundagai (A) 1 3 2 4 2 2 Griffith C 1 1 Coolamon (A) 1 Carrathool (A) 1 1 1 3 6 Total 6 9 14 24 29 15 4 0 Source: Register of the National Estate; NSW Heritage Office; SA Heritage Register and Victorian Heritage Register though http://www.heritage.gov.au/ahpi/index.html (accessed 23/06/03).

6.8 Cumulative change and community response

The following provides an overview of the changes that have been taking place in the Murrumbidgee catchment over the last 5-10 years.

Water reform: The demand for water increased in the early1990’s, when water became tradeable and private diverters could grow rice to supplement wool incomes. Some farmers shifted to opportunity irrigation where supply is uncertain.

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Reductions in supply have a big impact on the area particularly in employment. Reduced employment has a flow on effect through the community.

Allocations have been reduced under water sharing plans. The recent approach of progressively reducing allocations is causing considerable stress and uncertainty both at the production level and within the community. It leads to mistrust and creates uncertainty within the community.

There has also been a reduction in off allocation water. This has reduced the amount of water available particularly early in the season.

The introduction of the Cap had the effect of driving efficiencies in water use.

Water Trading: Prior to the introduction of water trading, there was no growth in diversions and licensing restricted entry to rice growing. With water reform, the collapse of wool prices, and lifting of rice industry restrictions, western region diverters around Hay have generally moved to rice production while eastern region members remained in mixed farming.

Privatisation of the Murrumbidgee and Coleambally Irrigation Areas: Privatisation in the late 1990s saw the areas change from government control to private control.

Loss of Letona fruit processing: In the mid-1990s the loss of Letona at Leeton impacted heavily on the town's population, property values, employment and service levels.

Drought: The drought has impacted on farm purchasing and retail spending. At the time of interviewing there had been no recorded falls in payments of property rates. New housing rates remained steady though the impact of no rice sales for 2002/2003 season would not be felt until 2004/2005 with approximately 12 growers harvesting crops from a potential 1,600 growers.

Others interviewed identified that the drought had been severe. The area of summer crop has been reduced. Some growers have not been able to grow summer crops to fulfill long term contracts. Young farmers with high debt are vulnerable in a drought or as a result of reduced water allocations.

Since October, trading has fallen off as the cash drought emerges.

Reduction in access to water at Wah Wah: The cumulative effects of water sharing plans and the drought have contributed to a 30% decrease in production at Wah Wah.

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6.9 Summary

The subgroups of the Murrumbidgee catchment were defined to assist with analysis. The subgroups of Burrunjuck to Narrandera, Murrumbidgee Irrigation, Coleambally Irrigation and Lower Murrumbidgee, differ in their economic structure, range of social services, demographic profiles and dependence on water.

The economy of the Burrunjuck to Narrandera subgroup is highly diverse, based on farming, tourism (above Wagga Wagga), government services, secondary processing of agriculture products including abattoirs and wool scouring, and specialist services eg health, secondary and tertiary education. Tourism is not a major economic activity. For the remainder of the Murrumbidgee catchment, agriculture is the most important sector.

Irrigated agriculture is an extremely important economic activity in the catchment. The value of irrigated agriculture accounts for approximately 35% of the gross value of agricultural production or $443 million. The total water entitlement is 2,089 GL of which approximately 1,423 GL were delivered in the 2001/2002 season (68%). A total of 3,142 irrigation holdings are involved, irrigating approximately 284,700 hectares.

Growth was experienced in the number of persons employed in the Murrumbidgee catchment, increasing by 6% between 1996 and 2001. The breakdown throughout the catchment was an increase in the number of persons employed for Burrunjuck to Narrandera subgroup of 4%, 9% for the Murrumbidgee Irrigation subgroup, and 17% for the Coleambally Irrigation subgroup. A decline in persons employed was experienced by the Lower Murrumbidgee of –3%.

Population growth of 1% was experienced between 1996 and 2001 for the Murrumbidgee catchment, growing to a total of 119,451 people. However, the population declined for the majority of areas. Population declined in the Burrunjuck to Narrandera subgroup by 2%, grew by 8% in the Murrumbidgee Irrigation subgroup, increased by 5% in the Coleambally Irrigation subgroup (although declining by 9% in Jerilderie SLA) and declined by 6% in the Lower Murrumbidgee.

Good quality health, education and recreational services are available, including ambulance services, community health centres and ready access to hospitals. Excellent facilities are provided for aged care, the disabled and early childhood care, including pre-school, playgroups and family day care services. Service provision is unevenly distributed however, with a greater number of services provided in the Burrunjuck to Narrandera and Murrumbidgee Irrigation subgroups.

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There is evidence of mechanisms of the farming community to manage change including changing farming practices, retirement of some parts of the farming community, farm amalgamations and increased capital expenditure on equipment and water purchases.

Eastern diverters with their higher rainfall have greater flexibility than western diverters. Rice growing has made private diverters more dependent on water and these farmers have felt the impact of the drought. Many are returning to grazing, with reduced inputs of equipment, fertiliser and labour and reduced returns on investment. Water trading has brought opportunities for some private diverters to sell their permanent water and rely on the temporary market.

The drought impacts have varied. Dryland farmers and rice growers have experienced high losses of production while some rice growers sustained themselves by growing wheat for fodder.

The communities in all three subgroups appear to be entrepreneurial and politically active.

The strengths of the Murrumbidgee catchment include: • strong regional centres; • population growth in some areas; • lifestyle strengths along the river; • employment growth in most areas, age groups and industries; • diverse agricultural base and secondary processing; • strong infrastructure; and • a range of facilities.

The areas of vulnerability for the Murrumbidgee catchment include: • declining populations; • significant cumulative change, particularly with the drought over the last 18 months; • dependence of the economy and community organisation on the irrigation of rice, although there is more diversity into horticulture than is taking place in the Murray catchment for example; and • ongoing management of salinity and water tables.

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7. Lower Murray Darling Catchment

7.1 General background

The Lower Murray Darling catchment covers an area of approximately 6 million hectares. The catchment borders the townships of Broken Hill, Menindee, Ivanhoe, Pooncarie, Buronga, Gol Gol, Wentworth, Euston and Balranald (Lower Murray Catchment Management Board, 2003).

The catchment incorporates the entire local government areas of Wentworth and the majority of the Balranald Shire Council area, a small area administered by the Central Darling Shire Council and the southern portion of the Unincorporated Area administered by the Department of Infrastructure Planning and Natural Resources (previously administered by the Department of Land and Water Conservation). The information provided in this chapter has focussed on the Wentworth SLA and Balranald SLA, with reference to Menindee Lakes. Figure 34 shows the Lower Murray Darling catchment.

7.2 Physical environment, natural resources and their use

7.2.1 Water resources

Water is regulated through the Menindee Lakes system (1,680 GL nominal capacity), the Lower Darling River and Lake Victoria (680 GL capacity) systems, which is a major natural feature of the catchment.

Water storage and release is managed through these systems in conjunction with Hume and Dartmouth Dams to achieve water supply requirements to South Australia under the Murray Darling Basin Interstate Water Sharing Agreement. The system is operated such that fresh water is stored during winter in Lake Victoria and added to dilute the water running through to Adelaide in the high irrigation season in summer, in order to reduce salinity levels and supplement supply.

7.2.2 Natural features

Over 90% of the catchment is an altered landscape of native vegetation which is predominantly Mallee, Belah, saltbush, Red Gum and pine communities (Lower Murray Darling Catchment Management Board, 2003).

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Figure 34 Lower Murray Darling catchment

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The region contains the recently established Australian Inland Botanical Gardens, displaying both Australian and exotic species. The Mungo National Park, famous for its Walls of China dunescape, forms the focus of the Willandra Lakes World Heritage Area, where the dry lake shores provide records of Aboriginal life stretching back 40,000 years and offers both unique scenery and native wildlife (Tourism NSW, 2003). There are also important wetlands including Lake Cawndilla.

7.2.3 Land use

Land uses include (Lower Murray Darling Catchment Management Board, 2003) • dryland wheat cropping; • horticulture; • irrigated lakebed cropping; • receding floodwater lakebed cropping; • wool and meat production; • water storage; • mining; • tourism (the majority of visitors to Menindee Lakes in terms of tourism come from Broken Hill); • fishing; • nature conservation; and • the emerging industry of mineral sand mining.

7.2.4 Environmental issues

The main pressures that are impacting on the quality of water, health of the catchment and river is river regulation (reduced variability and flow), water storage and irrigiation. The results include: • extensive salinisation of the flood plain; • creation of barriers to fish passage; • damage to riverine environments. Lake Cawndilla, an important wetland, and the Darling Anabranch are reported to be acting as salt sinks; • damage to native vegetation with changed grazing pressures; and • reduced quality of water for drinking, irrigation and industry. (Lower Murray Darling Catchment Board, 2003)

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7.3 Social geography and demography

This section provides a detailed outline of the population of each SLA, focusing on the socio-demographic profiles, described in Chapter 3, and mapping the results where possible.

7.3.1 Population size and change

Between 1996 and 2001, the total population in the Lower Murray Darling catchment (including information only for the SLAs of Wentworth and Balranald) declined by 4% to 10,205 people. Table 19 presents the population figures for 1996 and 2001 Census. This growth rate compares to 5% for NSW and 3% for the defined Study Area. The Aboriginal and Torres Strait Islander population declined over the period.

Table 19 Population by SLA – Lower Murray Darling catchment Aboriginal and Torres Strait Lower Murray Total Population Darling Islander Population 1996 2001 % SLAs 1996 Total 2001 Total % Change Total Total Change Wentworth (A) 7,245 6,984 -4 819 542 -34 Balranald (A) 2,960 2,763 -7 171 171 0 Total 10,205 9,747 -4 990 713 -28 Source: ABS Census 2001, 1996, published data.

Figure 35 shows the population of the SLAs in the Lower Murray Darling catchment. Figure 36 shows the change in population between the 1996 and 2001 Census.

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Figure 35 Total Population of SLAs in the Lower Murray Darling catchment (2001)

Figure 36 Change in the Total Population of SLAs in the Lower Murray Darling catchment (1996 to 2001)

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7.3.2 Age distribution

Figure 37 provides the proportion of each age group of the total population for the Lower Murray Darling catchment. The proportion of all age groups above 40 years increased between 1996 and 2001, whereas the proportion for the majority of the age groups below 40 years declined.

Lower Murray Darling Catchment Proportion of Age Groupings of the Total Population 1996 and 2001

75+

70-74

65-69

60-65

55-59

50-54

45-49

40-44

35-39

Age Grouping 30-34

25-29

20-24

15-19

10-14

5-9

0-4

0% 2% 4% 6% 8% 10%

Proportion 1996 2001

Figure 37 Proportion of the Age Group of the Population for the Lower Murray Darling catchment for 1996 and 2001 (Source: ABS CDATA 2001)

The proportion of the population aged 60 years and above increased by 1% for Balranald and by approximately 2% for Wentworth between 1996 and 2001. This result is reflected in the results for New South Wales (1%).

The proportion of the population between the age of 15 and 29 years declined by 3% for Balranald SLA and 1% for the Wentworth SLA. This result is above the average for NSW (-0.4).

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7.3.3 Age dependency ratio

The age dependency ratio for the Lower Murray Darling catchment was 53% and 51% for NSW. Figure 38 shows the ratio for the SLAs in the catchment.

Figure 38 Total Age Dependency Rate (2001) for the SLAs of the Lower Murray Darling catchment

7.3.4 Family types

In 2001, one-parent families accounted for 13% of the total number of families in the Lower Murray Darling catchment, and 15% of families in the Study Area and 15% of families in NSW.

The proportion of persons divorced or separated was 8% in each of the Lower Murray Darling catchment, the Study Area and for NSW (ABS CDATA 2001).

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7.3.5 Non English speaking

In 2001, the proportion of persons who do not speak English well or not at all of the total number of persons born overseas was 5% for the Lower Murray Darling catchment, as compared to 4% for the Study Area and 10% for NSW (ABS CDATA 2001).

7.4 Socio-economic profiles and economy

7.4.1 Presence of regional centres

The town of Broken Hill is an important centre. It provides a hub for tourists visiting sites in the Wentworth SLA and the Menindee system. Wentworth on the River Murray is a smaller centre. Mildura in Victoria is a major regional centre, which supports the communities in the Lower Murray Darling catchment. Other localities in the catchment include Pooncarie and Menindee, which serve agricultural and mining communities. Balranald is quite isolated. Euston on the River Murray has a base of irrigated agriculture and the communities are likely to travel to either Swan Hill or Mildura for services.

7.4.2 Employment by tiers of the economy

Figure 39 depicts the proportion of employment in each of primary, secondary and tertiary sectors for the subgroups of the Lower Murray Darling catchment.

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Lower Murray Darling Catchment Proportion of Employment by Primary, Secondary and Tertiary Industry (2001)

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Wentworth Balranald (S) Catchment Subgroup

Primary Secondary Tertiary Not Stated

Figure 39 Lower Murray Darling catchment – Proportion of Employment by Primary, Secondary and Tertiary Industry (Source: ABS Census 2001, published data)

Figure 39 shows that for both Wentworth and Balranald the primary sector and tertiary sector account for the majority of employment with a very small secondary sector contributing to employment activities.

7.4.3 Industry profiles

Figure 40 presents the proportion of people employed by industry within the Lower Murray Darling catchment based on ABS Census statistics for 2001. The top three industries for employment are Agriculture, Forestry and Fishing, Retail Trade, and Manufacturing, the former accounting for approximately 32% of employed persons.

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Lower Murray Darling Proportion of Persons Employed by Industry (2001)

Agriculture, Forestry and Fishing

Mining

Manufacturing

Electricity, Gas and Water Supply

Construction

Wholesale Trade

Retail Trade

Accommodation, Cafes and Restaurants

Transport and Storage

Communication Services

Finance and Insurance

Property and Business Services Industry ofIndustry Employment Government Administration and Defence

Educ ation

Health and Community Services

Cultural and Recreational Services

Personal and Other Services

Non-classifiable economic units

Not stated

0% 5% 10% 15% 20% 25% 30% 35%

Figure 40 Proportion of Employed Persons by Industry for the Lower Murray Darling catchment (Source: ABS Census 2001, published data)

Primary Sector

In the Wentworth SLA, agricultural production includes dryland wheat cropping, cotton production, horticulture, irrigated lakebed cropping, receding floodwater lakebed cropping, and wool and meat production.

Irrigated agricultural production is focussed at Menindee with the production of cotton, wine grapes and other fruit production, including stone fruits and apples. Along the Great Anabranch water is extracted for stock watering. Irrigated agriculture is considered to be the major industry in the Wentworth Area.

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Tandou Farm, located on the Darling River south east of Broken Hill, is engaged in intensive irrigated agriculture supported by the Menindee Lakes system. There are approximately 100 employees. It is Australia's largest producer of Pima cotton, which is mainly exported to such countries as Italy, Switzerland, Japan and Taiwan for spinning into fine yarns. Tandou Farm also produces wine grapes with approximately 1,000 ha at Tandou and expanding into other fruit production, including stone fruits and apples (Tandou Ltd, 2003).

In the Balranald SLA, grain growing, sheep and cattle production, horticulture, viticulture and timber cutting are the main industries. There is currently a major dairy feedlot of 5,000 head being developed approximately 20km north of Balranald. However, irrigated agriculture draws on water from the Murrumbidgee River rather than the Murray River.

Mineral sands mining is a significant emerging industry. Water is required for some mining processes, sourced mainly from ground water or recycled sources. Current projects include BeMax (Gangko), Pooncarrie, and Ginko Project. There is potential for 10 sites with the next one planned for Hamilton. Broken Hill uses recycled water from Menindee Lakes for flotation and dredging tin, lead, and zinc production. The industry is considered to present another opportunity for young people and to develop infrastructure. Currently, mineral sands are being transported for processing and export by truck. It is estimated that within the next 3-4 years at least 1,000 new jobs, which represents 25% of the total persons employed currently) will be created. Within the next 8 years it is estimated that 4,000 new jobs will be created in the mining operations. This represents a doubling of the persons employed or a 40% increase in the population (Industry Advice, pers. comm. 25/02/03).

Although mining is not a significant industry in the Balranald area, Balranald has the largest natural gypsum mine in NSW. Gypsum is a significant agricultural input for soil conditioning.

Secondary Sector

Figure 39 shows that there is little secondary industry. Much of the agricultural produce is exported from the area for processing. Wineries are the most significant processors.

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Tertiary Sector

Figure 39 shows that the communities of the Lower Murray Darling catchment are supported by the tertiary sector with services contributing a major component to both employment and income generation. As the mining industry develops, the tertiary sector, in terms of transport and industry services, would be expected to expand. The growth predicted by industry in the employed workforce will have significant impacts on the towns of the area and pressure on services.

7.4.4 Growth in jobs

The growth in the number of persons employed in the Lower Murray Darling catchment was stagnant between 1996 and 2001 as compared to a population growth rate of -4%.

The growth in employment is unevenly distributed across the age groups and industries as shown in Figure 41 and Figure 42.

Lower Murray Darling Catchment % Change in employment by age group - 1996 to 2001 70%

60%

50%

40%

30%

20%

10%

0% 15 - 19 20 - 24 25 - 29 30 - 34 35 - 39 40 - 44 45 - 49 50 - 54 55 - 59 60 - 64 65 - 69 70 + -10%

-20%

-30%

-40% Age Group

Balranald Wentworth

Figure 41 Percentage change in employment by age group between 1996 and 2001 for the Lower Murray Darling catchment (Source: ABS Census 2001 and 1996, unpublished data)

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Figure 42 shows that the number of persons employed in agriculture, fishing and forestry, electricity, gas and water supply, wholesale trade, finance and insurance, government, administration and defence, personal and other services declined between 1996 and 2001 whilst all other industries experienced an increase in the number of persons employed. This is the only catchment where employment in agriculture, fishing and forestry has declined over the period.

Lower Murray Darling Catchment Change in the no. of persons employed by industry - 1996 to 2001

Agriculture, Forestry and Fishing

Mining

Manufacturing

Electricity, Gas and Water Supply

Construction

Wholesale Trade

Retail Trade

Transport and Storage

Finance and Insurance

Property and Business Services

Government Administration and Defence

Health and Community Services

Cultural and Recreational Services

Personal and Other Services

Not stated&NonClassifiable

-250 -200 -150 -100 -50 0 50 100 150

Figure 42 Change in the number of persons employed by industry between 1996 and 2001 for the Lower Murray catchment (Source: ABS Census 2001 and 1996, unpublished data)

7.4.5 Unemployment rate

In 2001, the unemployment rate was 3.8% in the SLA of Balranald and 5.3% in the SLA of Wentworth, both below the average for NSW (7.2%). Figure 43 shows the unemployment rate for the SLAs in the catchment.

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Figure 43 Unemployment rate for the Lower Murray Darling catchment SLAs (2001)

7.4.6 Employment by occupation

For the selected occupations described in Chapter 3 the number of persons employed declined by 16% or 224 employed persons. This compares to an increase in employed persons for these categories in the Study Area of 1% or 666 employed persons.

‘Farmers and Farm Managers’, experienced a 8% decline from 943 to 870 persons and ‘Farm Hands’ declined by 16% or 74 jobs over the period. Categories experiencing growth included gardeners and horticultural tradespersons (ABS Census 2001 and 1996, unpublished data).

7.4.7 Infrastructure

Although isolated, Wentworth is linked to capital cities, ports and regional centres via strong infrastructure. Wentworth is a beneficiary of its proximity to Mildura located to the east, which is serviced by air and rail. Mildura is a major freight gate for Freight Victoria, linking the Sunraysia and Mallee production areas to the Ports of Melbourne, Geelong and Portland. Further,

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major highways link Wentworth to regional centres in Victoria, NSW and South Australia, including Broken Hill following the Darling Anabranch. Also, the natural gas pipeline to the Sunraysia Mallee region is complete reducing the cost of energy to the manufacturing sector (SMEDB, 2002).

The towns of Pooncarie and Menindee however, are serviced by unsealed roads from Wentworth, and a sealed road from Broken Hill.

The town of Balranand is remote and located on the Sturt Highway. Minor and unsealed roads service the remainder of the SLA. However, a major highway and major roads link Balranald to the larger nearby centres of Mildura and Swan Hill.

7.4.8 Household income

Figure 44 shows the median household income for SLAs in the Lower Murray Darling catchment for 2001 and the proportion of households earning less than $299 per week.

In 2001, for the Lower Murray Darling catchment, the proportion of households earning less than $299 per week was 13%. The average for the Study Area was 14% and 12% for NSW. Figure 44 shows that for the median income in 2001 for households was $600-699 per household per week.

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Figure 44 Median Household income for SLAs in the Lower Murray Darling catchment and the Proportion of Households earning <$299 a week (Source: ABS Census 2001, published data and CDATA 2001)

7.5 Dependence on water

This section explores firstly the dependence of the communities on irrigated agriculture and secondly the dependence on the water resource highlighting non-agricultural uses. The information presented includes quantitative and qualitative descriptors.

7.5.1 Dependence on irrigated agriculture

This section provides an overview of the: • quantity of water irrigated agriculture consumed; • the value contribution of irrigated agriculture; and • the area of land devoted to irrigated agriculture.

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Irrigated water entitlements and usage

There are a number of areas where irrigation takes place in the catchment, the majority being private schemes.

Table 20 provides a summary of the water entitlements for irrigation in the Lower Murray Darling catchment. A total of 70 GL is utilised for irrigated agriculture, stock and domestic.

Table 20 Irrigation entitlements and purpose for irrigation in the Lower Murray Darling Catchment

Darling River River Darling River Menindee Lakes (Menindee Lakes to (Wentworth Weir System Wentworth Weir pool) (ML) (ML) pool) (ML) Irrigation (Low Security) 19,818 11,916 11,317 High Security Citrus Plantings 2,038 8,658 140 Domestic 280 268 32 Grape Vines 2,079 11,000 0 Horticulture 1,319 4,966 1,555 Stock 256 387 21 Total High Security 5,972 25,279 1,748 Total Entitlements 25,790 31,195 13,065 Source: Lindsay White, facsimile, Murray Darling Basin Commission, 28/02/03.

There are large grazing holdings surrounding the settled areas. These form part of the Western Division and are regulated strictly by a division of the Department of Infrastructure, Planning and Natural Resources (previously Department of Land & Water Conservation), headquartered at Dubbo.

Western Murray

In addition to the entitlements outlined in Table 20, Western Murray Irrigation has an entitlement of 61 GL, of which 35 GL is delivered on average. There are 350 irrigation holdings. The area has 4,000 ha of permanent plantings (ANCID, 2002).

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Great Anabranch

There are approximately 40 irrigators in this area producing mainly fodder for stock and grazing. Agriculture in the area is primarily grazing. The area is supplied by channels and there is a project which has begun to pipe water to the properties involved.

Lower Darling

At Pooncarie there are areas of irrigated stone fruit. There is security of supply given the weir backs water up to the Darling River (Industry Advice, pers. comm. 24/02/03).

Menindee

Tandou Farm, located on the Darling River, is engaged in intensive irrigated agriculture. The company also has farms in Victoria at Lake Cullulleraine.

Tandou has three licences with licensed entitlements of approximately: • 10,000 ML from Redbank Creek to Tandou Farm (south west of Menindee); • 960 ML from the Darling River that invariably is transferred to Tandou farm; and • 6,000 ML from the Darling River transferred to Tandou Fruits (north west of Menindee).

Tandou is a significant user of off-allocation water (surplus flows) and diverts large quantities to on-farm storages during floods and when the volumes in Menindee Lakes are surcharged. In any one-year they have diverted over 200,000ML.

There are likely to be efficiencies available to the Tandou system for example they are experimenting growing rice under drip irrigation.

Economic contribution of irrigated agriculture

As discussed, irrigated agricultural production is focussed at Menindee with the production of cotton, wine grapes and other fruit production, including stone fruits and apples. Along the Great Anabranch, water is extracted for stock watering. Irrigated agriculture is considered to be the major industry in the Wentworth Area.

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Based on the method described in Chapter 3, Volume 2, an estimate of the value of irrigated agriculture was generated. The value of irrigated agriculture for 2001 is approximately $39 million or 18% of the gross value of agricultural production ($216 million).

Area of irrigated agriculture

The Ag Stats 2003 record that there is a small area irrigated in the Lower Murray Darling. Industry advice suggests there are irrigators that draw water from the weir pool and those that draw water for stock along the Great Anabranch. The Menindee area also supports a significant area of irrigated agriculture. Between 1997 and 2001 the agrea to agriculture declined by 3% however, increased by 76% for irrigated agriculture (Ag Stats 2003).

7.5.2 Dependence on water (excluding irrigated agriculture)

In addition to irrigated agriculture, the mineral sands mining industry also draws water from the Lower Darling and the River Murray to contribute to processing. The river and water bodies are also points for recreation with boating and fishing both important activities. The wetlands are also important for ecotourism and conservation.

In terms of tourism, much of the tourism is outback and not necessarily related to water. However, there is a riverboat industry, with paddlesteamers and operators conducting river cruises. Restaurants are also located near the river. Lock 10 and weir are also attractions for the area.

The results for employment dependent upon tourism are presented in Figure 45. The results show that for all SLAs in the Lower Murray Darling catchment employment dependent upon tourism accounts for less than 5% of total employed persons. Tourism employment is highest in the Wentworth SLA, accounting for 5.8% of employment. Wentworth benefits to an extent from proximity to water features and Mildura.

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Lower Murray Darling Catchment Proportion(%) of Jobs by Industry by SLA

Low er Murray Darling

Balranald (A)

Wentw orth (S)

0 102030405060 Proportion (%) Tourism Agriculture/Fishing/Forestry Mining Manuf ac tur ing

Figure 45 Proportion of Jobs by Industry by SLA in the Lower Murray Darling catchment (Source: TTF Australia, 2001)

7.6 Community wellbeing and services

In this section we provide an overview of the social support services and community infrastructure present.

7.6.1 Access to goods, services and opportunities for social interaction (ARIA Score)

The ARIA Score – Remoteness and Accessibility - for the SLAs in the Lower Murray Darling catchment have an ARIA Score between 4.4 and 4.6 identifying them as moderately accessible, where the communities have significantly restricted accessibility of goods, services and opportunities for social interaction.

7.6.2 Tertiary services

Educational opportunities are high in the lower part of the catchment. Wentworth for example is close to the Sunraysia Institute of TAFE in Mildura.

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Balranald does not have TAFE education however, provides education from kindergarten to Year 12, together with a Catholic Primary School and a Pre School (Balranald Shire Council, 2003).

The Northern Mallee Primary Health and Community Health Service provides services to communities along the river near Mildura. Health services are fewer in Balranald SLA as compared to Wentworth SLA. Balranald has a 21 bed public hospital, doctor and dentist. For more specialised services, individuals need to travel to larger centres. Health services include: Balranald Community Health Centre; Balranald District Hospital and aged care hostel; Balranald Early Childhood Health Centre; and Kyalite Early Childhood Health Centre.

There is a range of recreational facilities in both Wentworth SLA and Balranald SLA. However, as the SLAs are more sparsely populated these facilities are located in towns primarily along the River Murray, Murrumbidgee River or Lower Darling River.

Community services, government and utilities are all represented.

7.7 Cultural heritage

Table 21 provides a summary of heritage sites categorised into Indigenous sites, spiritual places, constructed features (eg bridges, memorials etc), public and private buildings, natural features, heritage attractions (such as gold mining sites) and other. The information was captured from the Register of the National Estate; NSW Heritage Office; SA Heritage Register and Victorian Heritage Register.

Table 21 Heritage Sites and Places in the Lower Murray Darling catchment Other Spiritual Constructed Indigenous Public Private Natural Heritage (eg gold SLA Places (eg Features (eg Site Buildings Buildings Features Attraction fields, Church) Bridges) etc) Wentworth 4 1 5 3 5 2 Balranald 1 3 1 2 Total 5 1 5 6 1 7 0 2 Source: Register of the National Estate; NSW Heritage Office; SA Heritage Register and Victorian Heritage Register though http://www.heritage.gov.au/ahpi/index.html (accessed 23/06/03).

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Table 21 underestimates the number and significance of Indigenous sites in the Lower Murray Darling catchment, with sites protected in national parks and state forests not listed. The area is significant in terms of cultural heritage, with the areas of Australia’s oldest proven Indigenous habitation in the north of the catchment, in the Willandra and Menindee Lakes (Lourandos, 1997; Mulvaney and Kamminga, 1999).

The River Murray System is rich in archaeological heritage, with ancient midden and burial sites, which has intense meaning to Indigenous and non- Indigenous people. The largest cemetery, at Lake Victoria, is estimated to contain 10,000 burials, and its middens show a peak population around 15,000 to 18,000 years ago (This cemetery is disturbed by the conversion of the lake into an irrigation reservoir). While much of what is known of Aboriginal settlement comes from archaeological evidence, it is important to recognise that Indigenous communities have an ongoing and contemporary relationship with the land, the rivers and interest in the environmental, social and spiritual health of the region.

7.8 Cumulative change and community response

The major changes that have taken place over the last 10 years in the catchment were advised during interviews carried out in the catchment.

Water trading: In the Wentworth and Euston areas irrigation has expanded as a result of water trading. The growing importance of the wine industry is shown by the development of and extensions to wineries within the Wentworth SLA.

Drought: Although the drought has resulted in poor returns this year, the dryland areas have experienced a number of very good years.

Change to volumetric allocation: Allocations are now metered and channels were converted to pressurised pipe supply. The change has resulted in increases in efficiency in irrigation and opportunities for further expansion.

Mining to tourism: Broken Hill, on the outskirts of the catchment, is undergoing significant change from mining to tourism.

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7.9 Summary

The subgroups used for the analysis of the Lower Murray Murray Darling catchment were Wentworth and Balranald.

Primary production forms the basis of the economies and communities of the Lower Murray Darling. Approximately 32% of employed persons are involved in agricultural industries. The gross value of agricultural production in 2001 was $216 million, of which 18% or $39 million was contributed by irrigated agriculture.

There is diversity in agricultural production with a mixture of dryland cropping, dryland wool and meat production, irrigated horticulture and cotton production.

The majority of irrigated agriculture is centred around Menindee at Tandou Farms. The Menindee township is completely dependent upon irrigated agricultural production. The town and employment is essentially dependent upon Tandou Limited. The families and companies along the Great Anabranch and Lower Darling rely on water from the Lower Darling for stock watering and flood plain cropping and to an extent on the influence of the Wentworth Weir. Western Murray Irrigation to the north of the River Murray is also an important irrigation operation. There are also a number of private diverters.

Mining mineral sands is an emerging primary industry for the area and projected to be significant in terms of employment and value-adding over the next 3-8 years. There is little processing of produce in the catchment, with the majority exported to nearby areas for packing and processing. The industry depends on water for some processing activities, drawing water from the Lower Darling and the River Murray.

The number of persons employed in the catchment remained stagnant, with growth occurring in manufacturing, health services and retail trade. The persons employed in positions related to agriculture declined significantly (16%), suggesting the further decline in farmers and increase in farm amalgamations.

In addition to the decline in employment there has also been a decline in the total population of 4% between 1996 and 2001 as compared to a growth rate of 3% for the defined Study Area. The Aboriginal and Torres Strait Islander population declined significantly over the period. The population is also aging at a similar rate to the rest of the population.

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There are a range of environmental issues in the catchment centred on salinisation of the flood plain and decline in water quality affecting wetlands, riverine condition and water for extraction.

Neither Wentworth nor Balranald SLA has a regional centre. The communities in the south of Wentworth tend towards Mildura, whereas the communities in Menindee tend towards Broken Hill. The communities in Balranald rely on Mildura or Swan Hill for major services.

Infrastructure in the catchment is relatively limited once outside the towns and as you move away from the River. Wentworth benefits through proximity to highways and the rail and air service at Mildura. The town of Balranand however, and the towns surrounding, have limited transport infrastructure.

Wentworth is well provided for in terms of tertiary services. Services are limited for Balranald. Wentworth is located near Mildura, which is serviced by the Northern Mallee Primary Health and Community Health Service. Again Wentworth and surrounding towns benefit from the TAFE at Mildura. Balranald does not have a TAFE making it difficult to attract people for further education.

The River Murray System is rich in archaeological heritage, with ancient midden and burial sites, which has intense meaning to Indigenous and non- Indigenous people. The largest cemetery, at Lake Victoria, is estimated to contain 10,000 burials, and its middens show a peak population around 15,000 to 18,000 years ago (this cemetery is disturbed by the conversion of the lake into an irrigation reservoir). While much of what is known of Aboriginal settlement comes from archaeological evidence, it is important to recognise that Indigenous communities have an ongoing and contemporary relationship with the land, the rivers and interest in the environmental, social and spiritual health of the region.

The strengths of the Lower Murray Darling catchment include: • a diversity of agricultural production, including both dryland and irrigated agriculture; • emerging mineral sands mining industry; • cultural heritage; and • strong infrastructure in the south west of the catchment.

The areas of vulnerability for the catchment include: • declining population; • stagnant employment growth;

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• isolated with no regional centre in the east of the catchment; • low level of secondary processing; • dependence on irrigated agriculture in the north of the catchment; • limited educational opportunities for young people in Balranald; and • salinisation of the floodplain.

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8. North East Catchment

8.1 General background

The North East catchment includes the SLAs of Towong, Wodonga, Alpine, Wangaratta, and Indigo. The region encompasses an area of 1.96 million ha. Figure 46 presents the North East catchment.

The area is experiencing investment growth. The focus prior to the fires of 2003 and drought (2002/2003) had been on value adding to agricultural produce for export.

The area is characterised by an agricultural base, services, manufacturing, and a strong tourist/recreation market.

The North East catchment has been divided into two subgroups, Dartmouth to Hume (Towong and Alpine East SLAs) and Hume to Yarrawonga subgroup (Wodonga, Indigo, Wangaratta and Alpine West SLA). The distinction is based on the two subgroups representing two distinct reaches of the river, land use, economic activity, and community organization.

8.2 Physical environment, natural resources and their use

8.2.1 Water resources

The major catchments in the region include the Mitta Mitta River, Ovens, Kiewa, and Upper Murray Basins. The water storages in the catchment were originally built to serve the irrigation needs of neighbouring downstream regions.

Dartmouth Reservoir, which has a capacity of 3,906 GL, releases water to the Mitta Mitta River, which flows into the Hume Reservoir, with a capacity of 3,038 GL (MDBC, undated).

Dartmouth Reservoir is used for fishing, swimming and sailing, but as it is more isolated from services, it has fewer facilities. It generally has a lower water temperature than Hume. Its use for recreational purposes is lower than the Hume Reservoir (Pak-Poy and Kneebone, 1990). The Hume Reservoir is a major summer recreation attraction for north-eastern Victoria and southern NSW. Water skiing, sailing and power boating are catered for.

There are no commercial irrigation areas in the North East catchment, with the region providing vital water storage for Victoria and 38% of the total water to the Murray-Darling Basin System.

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Figure 46 North East Catchment

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8.2.2 Natural features

The North East catchment has many natural features, which attract tourists and residents. Some of the natural attractions include Warby Range State Park, the Killawarra State Forest, and the Wabonga Plateau (part of the Alpine National Park), where features include waterfalls, such as Paradise Falls; Lake William Hovell, Mount Cobbler and Lake Cobbler, rock formations, flora and fauna (Rural City of Wangaratta, 2003).

The river system itself is an attraction, which includes the Ovens and King Rivers, which wind through the townships that dot the valleys and plains, meeting at Wangaratta (Rural City of Wangaratta, 2003).

8.2.3 Land Use

Land use (including the head waters of the Kiewa River) is predominantly dryland agriculture, urban activity, national park and state forest acting as water catchment and minimal flood plain irrigation along the Mitta Mitta Valley.

8.2.4 Environmental issues

Willow management, fencing, bank stabilization and revegetation is taking place in partnership with the local community to improve river health. Local floodplain management plans developed using information gathered through flood studies undertaken throughout the region have commenced and have been adopted in several areas.

Other strategies to address the key priority ‘Water’ include: • construction of two wetlands to improve water quality, developed through a partnership with Wodonga Council and Indigo Council; • grants to landholders for fencing and revegetation activities for farm nutrient management and erosion control; and • development of stormwater management plans.

The focus for land management is in relation to salinity management. In terms of vegetation management, with remnant management on private land of importance (North East Catchment Management Authority, 2003)

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8.3 Social geography and demography

This section provides a detailed outline of the population of each SLA, focusing on the socio-demographic profiles, described in Chapter 3, and mapping the results where possible.

8.3.1 Population size and change

The population for the SLAs in the North East catchment grew by 2% between 1996 and 2001 to a total of 94,378 people. This growth rate compares to 6% for Victoria and 3% for the defined Study Area. The Aboriginal and Torres Strait Islander population increased over the period.

The population living in SLAs located away from Dartmouth to Hume of the North East catchment declined by 1% between 1996 and 2001. Table 22 presents the total population of the SLAs within the Dartmouth to Hume catchment subgroup.

Table 22 Population Size and Change by SLA – Dartmouth to Hume Catchment Subgroup Dartmouth to Total Population Aboriginal and Torres Hume Strait Islander Population 1996 2001 % 1996 2001 % SLAs Total Total Change Total Total Change Alpine (S) – East 13,627 13,498 -1 23 54 135 Towong (S) - Pt B 3,830 3,719 -3 WH WH WH Towong (S) - Pt A 2,292 2,253 -2 WH WH WH Total 19,749 19,470 -1% 44 92 109 Source: ABS Census 2001, 1996, published data; WH = Withheld for privacy reasons - small numbers reported for these SLAs.

Table 23 presents the total population of the SLAs within the Hume to Yarrawonga catchment subgroup.

The population of the North East catchment is concentrated in the SLAs of Wodonga, Wangaratta and Alpine (79% of the total population). From Hume to Yarrawonga all SLAs experienced growth except for Wangaratta - South and Alpine West. These two areas are not located on the Hume Corridor, which links the capital cities of Sydney through to Melbourne. Wangaratta - North however, is directly in its path showing an 11% growth in population. It is anticipated by local government that that population in the area will continue to rise.

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Table 23 Population by SLA – Hume to Yarrawonga Catchment Subgroup Hume to Total Population Aboriginal and Torres Strait Yarrawonga Islander Population 1996 2001 % 1996 2001 % SLAs Total Total Change Total Total Change

Wodonga (RC) 29,188 31,010 6 215 303 41

Indigo (S) - Pt A 10,289 10,539 2 45 47 4

Indigo (S) – Pt B 3,390 3,389 0 WH WH 50

Wangaratta (RC) - South 5,645 5,511 -2 25 18 -28

Wangaratta (RC) – Central 15,527 15,876 2 89 113 27

Wangaratta (RC) North 3,863 4,280 11 WH WH 7

Alpine (S) – West 4,530 4,308 -5 21 26 24

Total 72,432 74,913 3 416 532 28 Source: ABS Census 2001, 1996, published data; WH = Withheld for privacy reasons - small numbers reported for these SLAs.

Wodonga, in a similar manner to Albury in NSW, is a large urban centre and is drawing population from surrounding areas and generating its own growth. Interviewees advised that the area is a beneficiary of the ongoing encouragement of the Victorian government for growth in regional centres. The capacity for future growth in the area has been estimated to be half a million and is driven by its strategic location on the Hume Highway (Industry Advice, pers. comm. 13/2/03).

Figure 47 shows the population of the SLAs in the North East catchment. Wodonga is the most populated SLA in the area. Figure 48 shows the change in population from 1996 to 2001.

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Figure 47 Total Population of SLAs in the North East catchment (2001)

Figure 48 Change in the Total Population of SLAs in the North East catchment (1996 to 2001)

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8.3.2 Age distribution

Figure 49 provides the proportion of each age group of the total population for the North East catchment. The proportion of all age groups above 40 years has increased since 1996 (except 65-69 years), whereas the proportion for the majority of the age groups below 40 years declined (except for 15-19 years). This is similar to the profile for the state of Victoria.

North East CMU Proportion of Age Groupings of the Total Population 1996 and 2001 75+

70-74

65-69

60-65

55-59

50-54

45-49

40-44

35-39

Age Grouping 30-34

25-29

20-24

15-19

10-14

5-9

0-4

0% 2% 4% 6% 8% 10% 1996 2001 Proportion

Figure 49 Proportion of the Age Group of the Population for the North East catchment for 1996 and 2001 (Source: ABS CDATA 2001)

Figure 50 shows the change in the proportion of the population for two age groupings, greater than 60 years and those aged between 15 and 29 years. The proportion of the population between the age of 15 and 29 years has declined for all SLAs in the North East catchment. This result is reflected in the results for Victoria (-1.4%). The proportion of the population in the over 60 years grouping has increased in all SLAs in the North East catchment. This result is reflected in the results for Victoria (1%).

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Nor t h Eas t CM U Nor th Eas t CM U Change in the proportion of people aged 60 yrs + of the total Change in the proporation of people aged 15-29 yrs of the population (1996 to 2001) total population (1996 to 2001)

Wodonga (RC) Wodonga (RC) Wangaratta (RC) - South Wangaratta (RC) - South Wangaratta (RC) - North Wangaratta (RC) - North Wangaratta (RC) - Central Wangaratta (RC) - Central Tow ong (S) - Pt B Tow ong (S) - Pt B Towong (S) - Pt A Tow ong (S) - Pt A Indigo (S) - Pt B Indigo (S) - Pt B Indigo (S) - Pt A Indigo (S) - Pt A Alpine (S) - West Alpine (S) - West Alpine (S) - East Alpine (S) - East

0% 1% 2% 3% 4% 5% 6% -6% -5% -4% -3% -2% -1% 0%

Figure 50 Comparison of the change in the proportion of people aged 60 years above and those aged between 15 and 29 years between 1996 and 2001 (Source: ABS Census 2001)

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8.3.3 Age dependency ratio

The age dependency ratio for the North East is 55% and 49.6% for Victoria. Figure 51 shows the ratios for each SLA in the catchment.

Figure 51 Total Age Dependency Ratio for the SLAs of the North East catchment (Source: ABS Census 2001, CDATA 2001)

8.3.4 Family types

In 2001, one-parent families accounted for 15% of the total number of families in each of the North East catchment, in the Study Area and in Victoria. The proportion of persons divorced or separated in the North East catchment, the Study Area and Victoria was 8% of the total number of persons over 15 years in 2001 (ABS Census 2001, CDATA 2001).

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8.3.5 Non English speaking

In 2001, the proportion of persons who did not speak English well or at all, was 3% for the North East, 4% for the Study Area and 11% for Victoria (ABS CDATA, 2001).

8.4 Socio-economic profiles and economy

8.4.1 Presence of regional centres

The Hume to Yarrawonga section of the North East catchment includes a number of significant population and service centres including Wodonga, Wangaratta, and the tourist area of Yarrawonga. There are no major regional centres in the Dartmouth to Hume subgroup of the catchment.

8.4.2 Employment by tiers of the economy

Figure 52 shows the proportion of employment in each of the primary, secondary and tertiary sectors for the North East catchment. This has been grouped according to the Dartmouth to Hume and Hume to Yarrawonga subgroup.

Figure 52 shows that employment activity in the Dartmouth to Hume subgroup is concentrated in a large tertiary sector with the primary sector making a smaller contribution. The exception to this is Towong where the primary sector represents 39% of employment activity. Hume to Yarrawonga is characterised by a smaller proportion for primary sector employment and a larger proportion for secondary employment. Section 8.4.3 provides more detail about the industry profiles for each subgroup.

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North East Catchment - Proportion of Employment by Primary, Secondary and Tertiary Sector (2001)

100%

80%

60%

40%

20%

0% Dartmouth to Hume Hume to Yarrawonga Catchment Subgroup

Primary Secondary Tertiary Not Stated

Figure 52 North East catchment – Proportion of Employment by Primary, Secondary and Tertiary Industry (Source: ABS Census 2001, published data)

8.4.3 Industry profiles

Figure 53 presents the proportion of people employed by industry within the North East catchment based on ABS Census statistics for 2001. The top three industries for employment are manufacturing, retail trade, and health and community services.

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North East Catchment - Proportion of Persons Employed by Industry 2001

Agriculture, Forestry and Fishing

Mining

Manufacturing

Electricity, Gas and Water Supply

Construction

Wholesale Trade

Retail Trade

Accommodation, Cafes and Restaurants

Transport and Storage

Communication Services

Finance and Insurance

Property and Business Services

Government Administration and Defence

Education

Health and Community Services

Cultural and Recreational Services

Personal and Other Services

Not stated

Not Known

0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

Figure 53 Proportion of Employed Persons by Industry for the North East catchment (Source: ABS Census 2001, published data)

Primary Sector

Agricultural and forestry enterprises are the main contributors to the economy of the region. Dryland beef cattle and some sheep production dominate the primary sector.

Secondary Sector

Secondary industry, including food processing, represents an important sector of the economy, particularly for localities in the Hume to Yarrawonga section of the River Murray. The secondary processing sector is also dominated by produce from dryland farming and processing of product from surrounding areas. The largest cattle/beef yards in Australia are located in the catchment and the abattoir rendering plant at Wodonga employs over 450 people (Industry Advice, pers. comm. 14/2/03).

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Albury-Wodonga, Australia's fourth largest inland urban centre, has experienced significant population growth, particularly between 1971 and 1991, much of which has been attributed to the expansion of manufacturing industry (MDBC, 2002c). The manufacturing industry accounts for 18% of employment in the Hume to Yarrawonga section of the river.

As described, much of the manufacturing industry is related to the region's agricultural activities including the following concerns: • Located in Merrigum, Corboy Fresh Fruit exports around 50% of its apple and pear production annually to markets in the US, Canada, Asia and Europe. The family run business employs up to 300 people during the harvest. • Uncle Bens Australia manufactures pet food at its Asia Pacific headquarters in Wodonga. Nearly 30% of production is exported, including to Japan, Taiwan and New Zealand. Its policy of locating in regional areas has provided around 800 jobs, making it the second largest employer in the region. • Uncle Toby's (breakfast cereals and confectionery) manufactures out of Wangaratta. • Australian Country Spinners (ACS), in Wangaratta, is Australia's largest producer of hand knitting and industrial yarn. It exports 25% of its product to Japan, Korea, the USA, New Zealand, Hong Kong, Singapore and Canada. ACS makes pure wool, wool blends and synthetic knitting yarns under the Patons, Cleckheaton and Panda brands. The company's acquisition of Patons has provided another 50 jobs in the region, employing nearly 400 people.

In addition to food and fibre manufacturing, the catchment hosts forest product operations including Australian Newsprint Mills, commissioned in 1981. The mill is based on local Pinus radiata plantations with some 80,000 ha in NSW and 60,000 ha in Victoria. A major expansion program, completed in two stages in 1993 and 1995, involved a $100 million recycling/de-inking plant which uses 160,000 tonnes of newspapers and other waste paper to produce 130,000 tonnes of de-inked pulp per year, 45,000 tonnes of which is sent to ANM's plant at Boyer in southern Tasmania. This has lifted Australia's recycling of newspapers rate from 28 to over 40% (MDBC, 2002c).

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Wangaratta, another important small urban centre in the North East, has over 16% of its total employment in manufacturing. This is a result of the presence of a small number of large nationally recognised companies. These include: • Bruck Textiles: Australia's largest fabric manufacturer, producing dyed woven fabric for such companies as Sheraton and Actil; • Wangaratta Woollen Mills: is a major spinner of wool and some synthetic fibre; and • Bluegum Technology (formerly the IBM computer plant): produces computer hardware and software for IBM and other companies (such as Macintosh), with total production in 1993 valued at over $400 million.

Tertiary Sector

The economies of Hume to Yarrawonga are heavily supported by the tertiary sector with services contributing a major component to both employment and income generation.

Tourism is important, as presented in Figure 58, and is strengthening as a result of major wineries located at Millewa/King Valley and Rutherglen and the presence of Gourmet Trail tourist route (Millewa Cheese, Millewa Mustards etc).

8.4.4 Growth in jobs

Between 1996 and 2001 there was an increase in the number of jobs for Darmouth to Hume of 1% and for Hume to Yarrawonga of 8%. The growth in jobs for the North East was 8% as compared to a population growth rate of 2% for the North East catchment.

The growth in employment is unevenly distributed across the age groups and industries as shown in Figure 54 and Figure 55.

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North East Catchment % Change in employment by age group - 1996 to 2001 80%

60%

40%

20%

0% 15 - 19 20 - 24 25 - 29 30 - 34 35 - 39 40 - 44 45 - 49 50 - 54 55 - 59 60 - 64 65 - 69 70 + -20%

-40%

-60%

Age Group Hume to Yarrawonga Dartmouth to Hume

Figure 54 Percentage change in employment by age group between 1996 and 2001 for the North East catchment (Source: ABS Census 2001 and 1996, unpublished data)

Figure 55 shows that the number of persons employed in mining, electricity, gas and water supply, finance and insurance, government, administration and defence declined between 1996 and 2001 whilst all other industries experienced an increase in the number of persons employed.

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North East Catchment Change in the no. of persons employed by industry - 1996 to 2001

Agriculture, Forestry and Fishing

Mining Manufacturing

Electricity, Gas and Water Supply Construction Wholesale Trade

Retail Trade

Transport and Storage Finance and Insurance

Property and Business Services

Government Administration and Defence Health and Community Services Cultural and Recreational Services

Personal and Other Services

Not stated&NonClassifiable

-800 -600 -400 -200 0 200 400 600 800 1000

Change in Persons Employed

Figure 55 Change in the number of persons employed by industry between 1996 and 2001 for the North East Catchment (Source: ABS Census 2001 and 1996, unpublished data)

8.4.5 Unemployment rate

In 2001, the unemployment rate was highest in the SLA of Wodonga at 7.8%, above the average for Victoria (6.8%). The unemployment rate was lowest in the SLA of Alpine (S) East (3.8%). Figure 56 shows the unemployment rates for the SLAs in the catchment.

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Figure 56 Unemployment rate for the North East SLAs (2001) (Source: ABS Census 2001, published data)

8.4.6 Employment by occupation in agriculture and horticulture

An analysis was conducted of the total number of people employed in occupations related to agriculture and horticulture. For the occupations outlined in chapter 3, the number of persons employed grew by 14% or 300 jobs.

The change in the number of employed persons between 1996 and 2001 for the top three most prevalent occupation categories was: • Farmers and Farm Managers: increase of 6% in persons employed from 1,533 to 1,632 between1996 and 2001. • Farm Hands: increase of 39% in persons employed from 362 to 502 persons employed. • Agricultural and Horticultural Workers: increase of 27% in persons employed from 55 to 70. • The number of employed persons in the occupation categories of Agricultural and Horticultural Labourers and Farm Overseers declined for the same period.

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8.4.7 Infrastructure

The North East catchment is serviced by several major road transport routes, including the Hume Highway and is relatively close to the major metropolitan centre of Melbourne. Importantly for maintenance of growth and attractiveness to young professionals, Albury-Wodonga is serviced by an airport and the Hume Highway connecting it to the major cities of Melbourne and Victoria.

8.4.8 Household income

Figure 57 shows the median household income for SLAs in the North East catchment for 2001 and the proportion of households earning less than $299 per week. For the North East catchment, the proportion of households earning less than $299 per week was 14% as compared to a slightly lower proportion for Victoria of 12%.

Figure 57 Median Household income for SLAs in the North East catchment and the Proportion of Households earning <$299 a week (Source: ABS Census 2001 published data)

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8.5 Dependence on water

This section explores firstly the dependence of the communities on irrigated agriculture and secondly the dependence on the water resource highlighting non-agricultural uses. The information presented includes quantitative and qualitative descriptors.

8.5.1 Dependence on irrigated agriculture

This section provides an overview of the: • quantity of water irrigated agriculture consumed; • the value contribution of irrigated agriculture; and • the area of land devoted to irrigated agriculture.

Irrigated water entitlements and usage

The Cap on long-term diversions for the valleys in the Victorian Murray- Darling Basin (MDB) relevant to the Study Area total 4,024 GL per annum. The entitlements held by irrigation companies or areas in the Study Area in Victoria equate to 2,076 GL per annum or 52% of the Cap. This figure is based on the summation of the irrigation entitlements for each of the irrigation areas in the Study Area. The sources of this information included the Goulburn-Murray Water website, ANCID (2002) and Sunraysia Rural Water Authority website. This figure may underestimate the entitlement to irrigated agriculture as a proportion of the Cap as the estimated entitlement for irrigation does not include private diverters.

Economic contribution of irrigated agriculture

Based on the method described in Chapter 3, Volume 2, an estimate of the value of irrigated agriculture was generated. Table 24 summarises the total value of irrigated agriculture as a proportion of the gross value of production for agriculture in the sub groups of the North East catchment.

The value of irrigated agriculture accounts for approximately 0.2% of the gross value of agricultural production in the North East catchment, and hence is not a significant industry. The gross value of production for agriculture grew by 34% between 1997 and 2001 (Ag Stats 2003).

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Table 24 Gross Value of Agricultural Production and Irrigated Agriculture for the North East Catchment by Subgroup (2001) North East Total Value of Total Value Proportion Subgroups Agriculture ($ mill) Irrigated Irrigated Agriculture ($ mill) Agriculture Hume to Yarrawonga 111 0.5 0.4 Dartmouth to Hume 167 0 0 North East Total 279 0.5 0.2 Source: IRDB Version 2002; the proportions for irrigated agriculture for the North East catchment were based on fieldwork and field work.

Area of irrigated agriculture

As outlined in Table 24, irrigated agriculture is not a significant industry in the North East catchment. Irrigated agriculture accounts for 2% of the land area devoted to agricultural production in both the Darmouth to Hume subgroup and the Hume to Yarrawonga subgroup. The area devoted to irrigated agriculture increased by 21% between 1997 and 2001, with the grow in area to all agriculture growing by 3% (Ag Stats 2003).

Private diverters in the Mitta Mitta River (of which there are approximately 40), may be impacted by changes to environmental flows in terms of variability and potentially flooding and not necessarily in terms of volume. The area has high rainfall and irrigators are also involved in dryland production, with irrigation not their sole source of income.

The Hume to Yarrawonga subgroup has little irrigation development and few water storages. As a result, tobacco growers and vineyards, which take water direct from the Ovens River were impacted by Stage 4 restrictions during the drought, possibly resulting in inability to finish off their crops (Industry Advice, pers. comm. 14/2/03).

8.5.2 Dependence on water (excluding irrigated agriculture)

In the North East catchment, the economic and social importance of water is related more to non-extractive uses such as tourism, recreation and some electricity production, and extractive uses for food processing and manufacture and domestic consumption. However, there are some aquaculture enterprises, including the trout fishery in the Mitta Mitta Valley, which relies on water from the Mitta Mitta River.

In terms of tourism, the industry may be directly dependent on the River Murray and associated ecosystems in some areas however in others not so.

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Tourist events in the North East catchment do not necessarily rely on the water, such as the four day Wangaratta Jazz Festival, which is a major tourist attraction. The Gourmet Trail involving the winery regions of Millewa/King Valley and Rutherglen and cheese producing areas, which are generally rain fed have strengthened the region's profile. There are a number of events, tourism operators and accommodation providers however, that do rely on Lake Mulwala.

Figure 58 presents the results of the Australian Tourism Satellite Account. The description of the Satellite Account is provided in Chapter 3.

The results show that for all SLAs in the North East catchment employment dependent upon tourism accounts for less than 10 of total employed persons. Employment dependent on tourism is highest for the Alpine East SLA followed by Indigo Part B and Wodonga.

North East Catchment Proportion(%) of Jobs by Industry by SLA

North Eas t

Alpine (S) - East

Alpine (S) - West

Indigo (S) - Pt A

Indigo (S) - Pt B Tow ong (S) - Pt A

Tow ong (S) - Pt B

Wangaratta (RC) - Central

Wangaratta (RC) - North

Wangaratta (RC) - South

Wodonga (RC)

0 102030405060

Proportion (%) Tourism Agriculture/Fishing/Forestry Mining Manuf ac turing

Figure 58 Proportion of Jobs by Industry by SLA in the North East Catchment (Source: TTF Australia, 2001)

Due to the nature of use in the upper areas of the Study Area, there is conflict with irrigation areas because of fluctuations in water management structures and the river. The Hume Reservoir can change from full to 50 in three months. Flows in winter are extremely low. It is has been advised that it is difficult therefore to develop infrastructure at Hume Reservoir.

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This is in contrast to Lake Mulwala, in the Hume to Yarrawonga stretch of the river. The Lake is maintained at a steady level, partly to maintain pressure for the two main irrigation channels, Mulwala Canal and Yarrawonga Main Channel. Residences and clubs are built at the waters edge due to the Lake being at a steady level.

Tim Cummins & Associates (2002b) in their report of Living Murray imitative workshop held at Albury-Wodonga on 16 September 2003, confirmed this conflict. The participants saw that one of the main trade-offs of increasing environmental flows in the River Murray would be between security and seasonality. They saw flow variability as being particularly important and wanted to see lower flows in summer and higher flows in winter. This is in direct contrast to the pattern of flows for irrigation, where summer demand far outweighs demand for winter irrigation. The participants thought that high value river-based tourism in their region deserved more recognition in the debate.

8.6 Community wellbeing and services

In this section we provide an overview of the social support services and community infrastructure present.

8.6.1 Access to goods, services and opportunities for social interaction (ARIA Score)

The ARIA Score – Remoteness and Accessibility - index for the SLAs in the North East catchment are provided in this section. For Dartmouth to Hume the ARIA Score for the SLAs are between 1.84 and 3.51 (including Wangaratta South) identifying them as accessible, that is there are some restrictions to accessibility of some goods, services and opportunities for social interaction.

The SLAs in the Hume to Yarrawonga subgroup have scores from 0 to 1.84 identifying them as highly accessible, that is there is relatively unrestricted accessibility to a wide range of goods and services and opportunities for social interaction.

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North East Catchment ARIA Score by SLA (Remoteness)

Towong (S)

Alpine (S) - East

Alpine (S) - West

Wangaratta (RC) - South

Wangaratta (RC) - North

Indigo (S) - Pt A

Indigo (S) - Pt B

Wangaratta (RC) - Central

Wodonga (RC)

- 0.5 1.0 1.5 2.0 2.5 3.0 3.5

ARIA Score

Figure 59 ARIA Score for SLAs in the North East Catchment (Source: Department of Health and Aging, 2001)

8.6.2 Tertiary services

Wodonga has excellent educational facilities ranging from childcare through to tertiary status. Primary and Secondary schools are offered by both the public and private sector. Tertiary education services covering a broad range of degree, diploma and certificate courses are offered through TAFE and University as well as a centre for continuing education.

The region has excellent health services, comparable to many metropolitan areas, including regional health services, aged and disability care, and modern hospital and specialist facilities (Wodonga City Council, 2003; Rural City of Wangaratta, 2003).

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8.7 Cultural heritage

Table 25 provides a summary of heritage sites categorised into Indigenous sites, spiritual places, constructed features (eg bridges, memorials etc), public and private buildings, natural features, heritage attractions (such as gold mining sites) and other. The information was gathered from the Register of the National Estate; NSW Heritage Office; SA Heritage Register and Victorian Heritage Register.

Table 25 Heritage Sites and Places in the North East Catchment LGA Indigenous Spiritual Constructed Public Private Natural Heritage Other Sites Places Features Buildings Buildings Features Attraction

Wodonga (RC) 1 3 1 2 Wangaratta 7 2 5 12 7 2 Towong (S) 2 4 3 1 11 19 1 10 Indigo (S) 2 15 4 25 30 15 1 8 Alpine (S) 1 3 3 3 14 25 1 7 Total North East 5 29 12 35 70 67 3 29 Source: Register of the National Estate; NSW Heritage Office; SA Heritage Register and Victorian Heritage Register though http://www.heritage.gov.au/ahpi/index.html (accessed 23/06/03).

Table 25 underestimates the number and significance of Indigenous sites in the North East, with sites protected in national parks and state forests not listed. Further, according to the Native Title Tribunal Register as at 23 June 2003, there are currently two Native Title claims active in the North East, covering parts of the SLAs of Wodonga, Wangaratta, Indigo, and Alpine.

8.8 Cumulative change and community response

The major changes that have taken place over the last 10 years in the catchment are:

Drought: The drought has had some impact on dryland agriculture, however the area is typically the last into drought and the first out due to high rainfall. The dairy industry has suffered however, with higher feed costs.

Fires: In January/February 2002, extensive fires decimated the forests in the Ovens catchment. The fires in the North East were exacerbated by the drought conditions. They have had a devastating effect on the forests and have potentially far reaching effects on run off in terms of reduced water

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quality, and quantity in future years, with forest regrowth using significant quantities of water.

As a result of the drought, evaporation and the need for water supplies, tobacco and grape producers, who take water direct from the Ovens River, were impacted by Stage 4 restrictions. The town of Bright has proved (as result of fires and driving away visitors) that the whole economy is tourism based. The activities of swimming, fishing, walking, and water sports, which attract tourists during the summer season, declined dramatically and ceased in some areas. The economies of towns in the Alpine, Indigo and Towong areas also had reduced tourist visitors (Industry Advice, pers. comm. 14/2/03).

Environmental Flow Releases from Hume Dam in 1996

Regulation allowing poker machines in Victorian Clubs: Approximately 9 years ago poker machines were permitted in Victorian clubs. In the North East this resulted in declines in visitation to clubs along the border, in both NSW and Victoria, with Melbourne residents able to gamble locally. Echuca flourished and Yarrawonga and Mulwala were cushioned somewhat due to water features.

8.9 Summary

The North East catchment has little irrigated agriculture, contributing approximately 0.2% of the gross value of agricultural production in the North East catchment.

In the North East catchment, the economic and social importance of water is related more to non-extractive uses such as tourism, recreation, food processing and manufacture, domestic consumption, and some electricity production.

The North East catchment has substantial natural resources in the Alpine region and a forestry industry. There is also a spread of economic activity through the primary and tertiary sectors. The area is characterised by an agricultural base, services, manufacturing, and a strong tourism and recreation market.

The regional centre of Wodonga is on the Hume Highway, a major highway linking Melbourne and Sydney, and has a serviced airport. Wangaratta to the south is also located on the Hume corridor. The North East catchment is experiencing investment and population growth. The capacity for growth in the Wodonga area, to a future estimated half a million, is driven by its

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strategic location on the Hume Highway (Industry Advice, pers. comm. 13/2/03).

The area does show some sensitivities with 14% of households earning less than $299 per week as compared to a slightly lower proportion for Victoria of 12%.

The key strengths of the area include: • growing regional center; • located between major capitals; • investment growth; • population growth; • many towns are located on an iconic river; • aesthetic and picturesque; • lifestyle strengths; • university campus; • a range of facilities; and • few significant cumulative changes over the last 10 years, except for the recent fires and drought.

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9. Goulburn Broken Catchment

9.1 General background

The Goulburn-Broken Catchment Area is 2.5 million ha in size which is almost 10.5% of the state of Victoria. It encompasses seven municipalities including Moira, Campaspe, City of Greater Shepparton, Mitchell, Delatite, Murrundindi and Strathbogie. Figure 60 presents the Goulburn-Broken catchment.

The major part of the Shepparton Irrigation Area falls within the Goulburn- Broken catchment, with a small area within the North Central catchment.

The Catchment has been divided into three sections, Upper Goulburn (Delatite SLAs, Mitchell SLAs, and Murrindindi SLAs), Central Goulburn (Shepparton SLAs) and Lower Goulburn (Campaspe – Kyabram, Moira – West and East).

The Upper Goulburn comprises the northern and western slopes of the Great Dividing Range. The Central Goulburn is centred around the Greater Shepparton region, but extends to the west to include towns such as Tatura, Tongala and Echuca.

9.2 Physical environment, natural resources and their use

9.2.1 Water resources

The Goulburn Broken catchment accounts for approximately 8% of the water to the Murray Darling system. Lake Eildon, with a capacity of around 3,390 GL is the major water storage in the area.

9.2.2 Natural features

Rainfall distributions, vegetation cover and the topography vary greatly from the ski fields at Mt Buller in the Victorian Alps to the foothills and flood plains of the Goulburn River near Nagambie.

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Figure 60 Goulburn-Broken Catchment

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9.2.3 Land Use

Land uses in the Goulburn-Broken catchment include native vegetation (forested); agriculture (dryland and irrigation); plantations (pines); urban; and water bodies (Department of Natural Resources and Environment, 1991).

Approximately 60% of the catchment area, mainly in the Upper Goulburn, remains under public ownership and are managed as hardwood forests. Of increasing importance are viticulture, horticulture, recreation and tourism in addition to more traditional land uses of beef / sheep grazing and dryland cropping. The principal rural industries in the Goulburn-Broken dryland areas are grazing for beef, sheep meat and wool production on native and improved pastures, rain-fed cropping, and timber production from native hardwoods as well as hardwood and softwood plantations. There is a rapidly growing winegrape industry (Myfora Pty Ltd - Young and Associates, 2002).

In the Lower Goulburn, the soils tend to be heavier with some of the area flood prone. The major land uses in this region are irrigated pastures for dairying and dryland farming.

9.2.4 Environmental issues

The key environmental issues in the Goulburn-Broken catchment include water use efficiency in irrigation, soil salinity, waterlogging, and biodiversity4. The Goulburn-Broken Catchment Management Authority is active in the promotion of sustainable land and water management practices and it has been advised that rising water tables, soil salinity and land degradation have been positively addressed.

This has involved rural landholders in the catchment investing between $30- 40 million annually in farm infrastructure to support their share of the implementation of the Goulburn-Broken Regional Catchment Strategy. This investment provides protection against land and water degradation through improved water use efficiency, improved drainage, reduced soil salinity and waterlogging, improved water quality, more stable soils and enhanced biodiversity (Industry Advice, pers. comm. 02/04/03).

On farm flood irrigation systems have been upgraded including whole farm planning, laser grading, drainage and reuse. This has improved the efficiency of water use on farms and reduced discharge.

4 There is approximately 3% of the area of pre-European vegetation in the Shepparton area (Industry Advice, pers. comm. 17/02/03).

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9.3 Social geography and demography

This section provides a detailed outline of the population of each SLA, focusing on the socio-demographic profiles, described in Chapter 3, and mapping the results where possible.

9.3.1 Population size and change

In 2001, the total population in the Goulburn-Broken catchment was 164,320 growing by 5% between 1996 and 2001. This growth rate compares to 6% for Victoria and 3% for the defined Study Area.

The population is concentrated in Greater Shepparton, Moira and Mitchell SLAs. The population for all SLAs grew except for Delatite, which experienced a decline in population for the same period. The Aboriginal and Torres Strait Islander population grew by 23% from 1996 to 2001.

Table 26 presents the total population of the SLAs within the Upper Goulburn subgroup. The population living in SLAs located in the Upper Goulburn subgroup increased by 4% between 1996 and 2001. These are the areas closest to Melbourne, where lifestyle farming is becoming increasingly common and daily commuting to Melbourne for work is becoming more frequent. The population is growing with the migration of people from Melbourne and the conversion of grazing properties into more intensive pursuits, such as vineyards and other horticultural activities. In the Delatite Shire, where the majority of land use is mixed farming, the population is stable to declining (Industry Advice, pers. comm. 17/02/03).

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Table 26 Population by SLA – Upper Goulburn Subgroup Aboriginal and Torres Strait Goulburn Broken Total Population Islander Population 1996 2001 % 1996 2001 % SLAs Total Total Change Total Total Change Strathbogie (S) 8,794 9,169 4 65 61 -6 Delatite (S) – Benalla 8,582 8,614 0 81 110 36 Delatite (S) – South 9,162 8,515 -7 49 74 51 Delatite (S) – North 4,749 4,705 -1 15 17 13 Mitchell (S) – South 13,942 16,338 17 96 91 -5 Mitchell (S) – North 10,991 11,204 2 91 172 89 Murrindindi(S) – West 6,389 6,892 8 35 41 17 Murrindindi (S) - East 6,062 6,217 3 29 34 17 68,671 71,654 4 461 600 23

Source: ABS Census 1996 and 2001, published data.

Table 27 presents the total population of the SLAs within the Central Goulburn subgroup. The population increased by 6% between 1996 and 2001 with growth in the city of Shepparton increasing by 8% in the same period. The population in the Central Goulburn has been steadily increasing, partly due to employment created by the food processing sectors.

Table 27 Population by SLA – Central Goulburn Subgroup Aboriginal and Torres Goulburn Broken Total Population Strait Islander Population 1996 2001 % 1996 2001 % SLAs Total Total Change Total Total Change Greater Shepparton (C) – Pt A 39,694 42,749 8 1,136 1,365 20 Greater Shepparton (C) – Pt B East 3,832 3,846 0 15 19 27 Greater Shepparton (C) – Pt B West 8,376 8,615 3 63 75 19 Total 51,902 55,210 6 1,214 1,459 17

Source: ABS Census 1996 and 2001, published data.

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Table 28 presents the total population of the SLAs within the Lower Goulburn Subgroup. The population increased by 3% between 1996 and 2001. The population growth of the Lower Goulburn is occurring within the major towns. Population in the smaller towns continues to decline.

Table 28 Population by SLA – Lower Goulburn Subgroup Aboriginal and Torres Goulburn Broken Total Population Strait Islander Population 1996 2001 % 1996 2001 % SLAs Total Total Change Total Total Change Campaspe (S) – Kyabram 11,750 11,981 2 116 144 24 Moira (S) – West 17,339 17,605 2 140 166 19 Moira (S) – East 7,374 7,870 7 38 40 5 Total 36,463 37,456 3 294 350 16

Source: ABS Census 1996 and 2001, published data.

Figure 61 shows the population of the SLAs in the Goulburn-Broken catchment. The population is concentrated in the SLAs of Greater Shepparton – Pt A and Moira – West.

Figure 61 Total Population of SLAs in the Goulburn-Broken catchment (2001)

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Figure 62 shows the population change for the SLAs in the Goulburn Broken catchment, showing the population of the SLA of Mitchell – South grew by more than 14% between 1996 and 2001.

Figure 62 Change in the Total Population of SLAs in the Goulburn- Broken catchment (1996 to 2001)

9.3.2 Age distribution

Figure 63 provides the proportion of each age group of the total population for the Goulburn-Broken catchment. The proportion of all age groups above 40 years has increased since 1996, whereas the proportion for the majority of the age groups below 40 years declined. This is similar to the profile for the state of Victoria.

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Goulburn Broken CMU Proportion of Age Groupings of the Total Population 1996 and 2001

75+

70-74

65-69

60-65

55-59

50-54

45-49

40-44

35-39

30-34 Age Grouping

25-29

20-24

15-19

10-14

5-9

0-4

0% 2% 4% 6% 8% 10%

Proportion 1996 2001

Figure 63 Proportion of the Age Group of the Population for the Goulburn-Broken catchment for 1996 and 2001 (Source: ABS CDATA 2001)

Figure 64 presents the change in the proportion of the population for two age groupings, greater than 60 years and those aged between 15 and 29 years.

The proportion of the population between the age of 15 and 29 years has declined for all SLAs in the Goulburn-Broken catchment, except Murrindindi – East and Delatite - Benalla. This change in the proportion for this age group is reflected in the results for Victoria (-1.4%).

The proportion of the population aged 60 years and above increased in all SLAs. This result is reflected in the results for Victoria (1%).

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Goulburn Broken CMU Goulburn Broken CMU Change in the proportion of people aged 60 yrs + of the total population Change in the proporation of people aged 15-29 yrs of the total (1996 to 2001) population (1996 to 2001)

Strathbogie (S) Strathbogie (S)

Murrindindi (S) - West Murrindindi (S) - West

Murrindindi (S) - East Murrindindi (S) - East

Moira (S) - West Moira (S) - West

Moira (S) - East Moira (S) - East

Mitchell (S) - South Mitchell (S) - South

Mitchell (S) - North Mitchell (S) - North

Gr. Shepparton (C) - Pt B West Gr. Shepparton (C) - Pt B West

Gr. Shepparton (C) - Pt B East Gr. Shepparton (C) - Pt B East

Gr. Shepparton (C) - Pt A Gr. Shepparton (C) - Pt A

Delatite (S) - South Delatite (S) - South

Delatite (S) - North Delatite (S) - North

Delatite (S) - Benalla Delatite (S) - Benalla

Campaspe (S) - Kyabram Campaspe (S) - Kyabram

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% -2.5% -2.0% -1.5% -1.0% -0.5% 0.0% 0.5% 1.0%

Figure 64 Comparison of the change in the proportion of people aged 60 years above and those aged between 15 and 29 years between 1996 and 2001 (Source: ABS Census 2001, CDATA 2001)

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9.3.3 Age dependency ratio

The age dependency ratio for the Goulburn-Broken was 58% as compared to 49.6% for Victoria. The ratio is highest in Moira-East, which experienced a 3% increase in the proportion of 60 years and over age group and a slight increase in the 15-19 year age bracket and an overall 7% increase in the population. Figure 65 shows the ratio for each of the SLAs in the catchment.

Figure 65 Total Age Dependency Ratioe (2001) for the SLAs of the Goulburn-Broken catchment

9.3.4 Family types

In 2001, one-parent families accounted for 14% of the total number of families in the Goulburn-Broken catchment, compared to 15% of families in the Study Area and 15% for Victoria. Delatite – Benalla recorded 20% of the families as being one-parent families, followed by Greater Shepparton – Part A, Campaspe – Echuca and Mitchell – North with 17%.

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The proportion of persons divorced or separated in the Goulburn-Broken catchment as a proportion of the total number of persons over 15 years in 2001 was 8%, which is the same as for Victoria and the Study Area (ABS CDATA, 2001).

9.3.5 Non English speaking

In 2001, the proportion of persons who did not speak English well or at all was 5% for the Goulburn-Broken catchment, 4% for the Study Area and 11% for Victoria (ABS Census 2001, CDATA 2001).

The Greater Shepparton’s population is culturally diverse with 10% of the residents being born overseas in the category defined. A high number of residents have origins in Italy, Turkey, Macedonia, Greece, Albania, The Netherlands, United Kingdom, Germany, India, New Zealand and the Philippines. More recently, there have been large numbers of people from Middle Eastern background (principally Iraq) settling in Greater Shepparton (Industry Advice, pers. comm. 17/2/03).

9.4 Socio-economic profiles and economy

9.4.1 Presence of regional centres

The major population and service centre in the catchment is Shepparton. Echuca, located on the River Murray and the border with the North Central catchment, is also a regional centre of the Goulburn-Broken catchment. The southern part of the catchment extends to the Yarra Ranges and is in close proximity to the outskirts of Melbourne.

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9.4.2 Employment by tiers of the economy

Figure 66 shows the proportion of employment in each of primary, secondary and tertiary sectors for the Goulburn-Broken catchment. This has been grouped according to the Lower Goulburn, Central Goulburn and the Upper Goulburn.

Goulburn Broken Catchment - Proportion of Employment by Primary, Secondary and Tertiary Sector (2001)

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Lower Goulburn Central Goulburn Upper Goulburn Catchment Subgroup

Primary Secondary Tertiary Not Stated

Figure 66 Goulburn-Broken catchment – Proportion of Employment by Primary, Secondary and Tertiary Industry (Source: ABS Census 2001, published data)

Figure 66 shows that as you move south from the River Murray towards the Upper Goulburn the primary sector accounts for a smaller proportion of employment than the tertiary sector. The secondary sector industries contribute a similar proportion to employment throughout the Goulburn- Broken catchment.

The economy of the Upper Goulburn is diverse, relying on farming, processing, manufacturing, government services, tourism and recreation particularly around Eildon. The region has a strong timber industry.

The basis of the economy in the Central Goulburn is the food production and processing sectors, plus the associated industries including manufacturing, cool storage and transport. Shepparton has become a transport hub for the region.

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The Lower Goulburn is characterised by a mixture of irrigated activity, services and secondary processing of irrigated agricultural products.

9.4.3 Industry profiles

Local government in the Goulburn Broken Catchment sees future economic growth coming from development such as: • improvement of farm productivity, particularly in the dairy and horticultural industries; growth in irrigated and dryland cropping; • development of new horticultural operations (orchard, olives, winegrapes); • identification of Prime Development Zones for new irrigation development; • value-adding of existing and new products through processing and packaging dairy, horticulture, citrus, sun-dried tomatoes, timber, wine, olive processing; meat processing to meet market needs; and soybeans for human consumption; • investment in transport and storage sector; • food and winery tourism; • river-based recreation and tourism – river boats, power boat sports, major events, fishing, swimming; eco-tourism; • Shepparton developing as a business and training centre; • softwood plantations and value adding of timber products; • thoroughbred horse breeding industry and supporting services; • new pig and poultry production facilities; • investments in aquaculture; • waste minimization; • put-and-take fisheries for recreational anglers; and • promotion of attractiveness of rural lifestyle and potential for semi-urban developments within commuting distance from Melbourne. (Myfora Pty Ltd - Michael Young and Associates, 2001).

Figure 67 presents the proportion of people employed by industry within the Goulburn-Broken catchment based on ABS Census statistics for 2001. The top three industries for employment are Manufacturing, Agriculture Forestry & Fishing and Retail Trade.

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Goulburn Broken Catchment - Proportion of Persons Employed by Industry (2001)

Agriculture, Forestry and Fishing

Mining

Manufacturing

Electricity, Gas and Water Supply

Construction

Wholesale Trade

Industry of Employment of Industry Retail Trade

Accommodation, Cafes and Restaurants

Transport and Storage

Communication Services

Finance and Insurance

Property and Business Services

Government Administration and Defence

Education

Health and Community Services

Cultural and Recreational Services

Personal and Other Services

Non-classifiable economic units

Not stated

0% 2% 4% 6% 8% 10% 12% 14% 16%

Figure 67 Proportion of Employed Persons by Industry for the Goulburn-Broken catchment (Source: ABS Census 2001, published data)

Primary Sector

There is a wide range of primary industries that occur throughout the region, as described including irrigated and dryland cropping, pasture, dairy, horticulture, viticulture, agro-forestry, wool, beef and tomato farming. There are 275,040 ha of pastures, 14,640 ha of cropping, 10,936 ha of orchards, 3,230 ha of vegetables and a rapidly growing area of grapes (556 ha grapes). Timber plantations are also present with 328 ha woodlots (Department of Natural Resources and Environment, 2001).

The dairy industry is the largest industry across the region, growing at approximately 10% per annum for the last ten years (City of Greater Shepparton, 2003).

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There has been a shift to the production of higher valued crops including tomatoes, vines and irrigated crops (City of Greater Shepparton, 2003). The area has become increasingly reliant on irrigated production (Industry advice, pers. comm. 01/04/03).

The region has a high demand for seasonal labour. This is concentrated predominantly in autumn, with the harvesting and processing of fruit, vegetables and grapes. There is often a shortfall of suitable labour in autumn for seasonal work.

Secondary Sector

Secondary industry plays an important role in the economies of the Goulburn-Broken catchment. The region is one of the most important food production areas in Australia, with strong economic development leading to around $3 billion being produced and/or processed each year (Department of Natural Resources and Environment, 2001). Extensive food processing industries in the region produce some 25% of Victoria’s rural economic output (Feehan, 2003).

Major processing factories are located in Shepparton, Tatura, Tongala, Stanhope, Girgarre, Rochester and Echuca (Industry Advice, pers. comm. 02/04/03). The Shepparton Irrigation Region is renowned for its concentration of dairy and horticultural food processing manufacturing plants. It also processes meat and grains. SPC Ardmona, Tatura Milk Industries, Unifoods-Rosella, Snowbrand, and Campbell’s Soups are operating in Shepparton.

The dairy, horticulture, meat processing, timber and winemaking value- adding industries have all invested heavily in manufacturing infrastructure over the last 10 years, with an estimated $1 billion of new investment, $600 million of which was invested in the last five years. The major companies have estimated that, over the next five years, they will invest up to $440 million in increased production capacity and efficiency, transportation and storage, information technology and quality management to meet future market expectations (Myfora Pty Ltd - Michael Young and Associates, 2001).

Directly and indirectly, Shepparton’s manufacturing industry is almost entirely based on the region's agricultural production. It also processes a large quantity of fruit from the Sunraysia region. Of which the following are some of the more well-known operations. • The Shepparton Preserving Company (SPC) is Australia's largest producer and exporter of canned deciduous fruit; it also produces vegetable products (e.g. tomatoes, baked beans and spaghetti) in order to extend the use of its canning lines. It has some 400 permanent

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employees, with numbers rising to 1,100 during the main processing season. At nearby Mooroopna is Ardmona Fruit Products (having merged with SPC). Using the "Ardmona" and "Goulburn Valley" brand names, it processes over 90,000 tonnes of fruit per year. The company was the first to successfully pack fruit in natural juices and to produce diced fruit in longlife plastic tubs. • A Campbell's Soups factory produces soups, fruit and vegetable juices, and diet portion meals. • There are a number of dairy products factories, including Kraft (at Strathmerton), Nestlé (at Tongala, employing 350 in a good year), Murray Goulburn (at Rochester and Lechfield), Bonlac Foods, Tatura Milk Products, and Midland Milk. Tatura Milk Products manufactures butter, milk powder and cream cheese products, which it exports throughout the world. Asia is its largest market. Exports in 1999/2000 were estimated at around $80 million. The company employs around 350 people.

There is a stockfeed mill at Mooroopna, some dozen wineries in the district, an abattoir located at Tongala that employs approximately 200 people. The clothing and textiles sector includes the Jockey Australia factory at Kyabram, the Panda-Cleckheaton wools factory, and Yakka Australia (Industry Advice, pers. comm. 01/04/03).

A number of engineering and metal fabrication companies provide services to the food, beverage and dairy industries, as well as to agriculture and other activities. Southcorp and Associated Packaging produce cans and other packaging materials for the food and other industries. Others are more specialised, such as: • Furphy's Foundry (famous for the Furphy Water Cart), which produces cast iron combustion stoves, indoor and outdoor iron furniture and street furniture; • Carmody Specialist Engineering, which makes machinery for non-woven textiles industry (a subsidiary makes disposable caps for hospitality and food industries and hospitals); • Environmental Products Amalgamated, Australia's biggest manufacturer of refrigerant recycling equipment; • Digital Signal Processing Systems, a wholly owned subsidiary of Ardmona Fruit Products (starting from computerised controls for a peach sorting machine and a peach pitting system, it now designs and makes production and control and monitoring systems); and • Bunnings Warehouse (City of Greater Shepparton, 2003).

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Out of total employment in Shepparton of over 21,200, some 3,200 or 14% are employed in manufacturing. There are over 110 manufacturing businesses with a turnover of some $600 million (MDBC, 2002c).

Tertiary Industry

The service sector in the Goulburn-Broken catchment is large given the number of processing businesses. For example, Fairless Cold Storage provides services to the primary produce and processed food industry. Around 50% of stored product is bound for export markets.

Shepparton itself is a transport hub and is Victoria’s largest truck sales and service centre, supporting both the irrigation and dryland agricultural activities in the catchment. The transport sector is reported to generate $500 million per annum and contributes 1,050 direct jobs (City of Greater Shepparton, 2003).

The building activity is strong, reporting a high number of permits issued consistently over the last five years (City of Greater Shepparton, 2003).

The Echuca economy continues to expand based on the processing sector, manufacturing and the tourist demand impacting positively on surrounding towns in the Murray catchment.

9.4.4 Growth in jobs

The overall growth in persons employed for the Goulburn-Broken catchment was 13% as compared to a population growth rate of 5% between 1996 and 2001.

Between 1996 and 2001 there was a decline in the number of persons employed in the Upper Goulburn of 11%, with the number of persons employed in the 40 to 64 year, 70 + years and 15 to 19 year old age groups experiencing a decline. This is shown in Figure 68.

There was an increase in employed persons in the Central Goulburn of 16% and in the Lower Goulburn of 10%. Employment demand is strong with the Greater Shepparton employment advertisements index consistently greater than the state index (City of Greater Shepparton, 2003).

However, the growth in employment is unevenly distributed across the age groups and industries as shown in Figure 68 and Figure 69.

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Figure 69 shows that the number of persons employed in mining, electricity, gas and water supply, finance and insurance, government, administration and defence declined between 1996 and 2001 whilst all other industries experienced an increase in the number of persons employed with the largest growth in retail trade. Goulburn Broken Catchment % Change in employment by age group - 1996 to 2001

200%

150%

100%

50%

0% 15 - 19 20 - 24 25 - 29 30 - 34 35 - 39 40 - 44 45 - 49 50 - 54 55 - 59 60 - 64 65 - 69 70 +

-50%

-100%

-150% Age Group

Lower Goulburn Central Goulburn Upper Goulburn

Figure 68 Percentage change in employment by age group between 1996 and 2001 for the Goulburn-Broken catchment (Source: ABS Census 2001 and 1996, unpublished data)

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Goulburn Broken Catchment Change in the no. of persons employed by industry - 1996 to 2001

Agriculture, Forestry and Fishing

Mining

Manufacturing

Electricity, Gas and Water Supply

Construction

Wholesale Trade

Retail Trade

Transport and Storage

Finance and Insurance

Property and Business Services

Government Administration and Defence

Health and Community Services

Cultural and Recreational Services

Personal and Other Services

Not stated&NonClassifiable

-1000 -500 0 500 1000 1500 2000 2500 3000 Figure 69 Change in the number of persons employed by industry between 1996 and 2001 for the Goulburn-Broken catchment (Source: ABS Census 2001 and 1996, unpublished data)

9.4.5 Unemployment Rate

In 2001, the unemployment rate for the catchment was highest in the SLA of Delatite – Benalla (8.9%) followed by Greater Shepparton – Part A (8.1%) , above the average for the state of Victoria (6.8%). The unemployment rate was lowest for Greater Shepparton – Part B East (3.7%). Generally, the unemployment rate was highest in 2001 in the Upper Goulburn subgroup, which are those areas experiencing population growth. Figure 70 shows the unemployment rate for the SLAs in the catchment.

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Figure 70 Unemployment rate for the Goulburn-Broken catchment SLAs (2001)

9.4.6 Employment by occupation

The most prevalent occupation within the selected categories, ‘Farmers and Farm Managers’, experienced a 6% decline between 1996 and 2001, from 7,654 to 7,226. ‘Farm Hands’ as a category increased by 26%.

Categories experiencing strong growth included shearers, aquaculture farmers and horticultural tradespersons.

9.4.7 Infrastructure

The Goulburn-Broken catchment is well serviced with infrastructure, including an extensive electricity grid, water supply and telecommunication coverage. Piped natural gas is also available in some of the more populated areas.

An extensive road network covers the region, with many major highways and freeways (including the Hume Freeway, Goulburn Valley, Murray Valley, Maroondah and Midland Highways) ensuring direct links with outside

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population centres. Rail transport is available from some major towns (Department of Natural Resources and Environment, 2001). The Hume Highway, which is the main Melbourne to Sydney route, passes through the Upper Goulburn resulting in increased economic activity.

There is a proposal to build what is known as the Dookie Pipeline, to grow olives/wine grapes, converting land currently devoted to grazing and dairying (Industry Advice, pers. comm. 17/02/03).

9.4.8 Household income

Figure 71 shows the median household income for SLAs in the Goulburn- Broken catchment for 2001 and the proportion of households earning less than $299 per week.

For the Goulburn Broken catchment the proportion of households earning less than $299 per week was 14% in 2001. The average for the Study Area is 14% and 12% for Victoria. The SLAs with the highest proportions are Delatite – Benalla and Strathbogie with 18% of the households earning less than $299.

Figure 71 shows that for the majority of SLAs the median income in 2001 was greater than $599.

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Figure 71 Median Household income for SLAs in the Goulburn- Broken catchment and the Proportion of Households earning <$299 a week (Source: ABS Census 2001, published data)

9.5 Dependence on water

This section explores firstly the dependence of the communities on irrigated agriculture and secondly the dependence on the water resource highlighting non-agricultural uses. The information presented includes quantitative and qualitative descriptors.

9.5.1 Dependence on Irrigated Agriculture

This section provides an overview of the: • quantity of water irrigated agriculture consumed; • the value contribution of irrigated agriculture; and • the area of land devoted to irrigated agriculture.

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Irrigated water entitlements and usage

The Cap on long-term diversions for the valleys in the Victorian MDB relevant to the Study Area total 4,024 GL per annum. The entitlements held by irrigation companies or areas in the Study Area in Victoria equate to 2,076 GL per annum or 52% of the Cap. This figure is based on the summation of the irrigation entitlements for each of the irrigation areas in the Study Area. The sources of this information included the Goulburn-Murray Water website, ANCID (2002) and Sunraysia Rural Water Authority website. This figure may underestimate the entitlement to irrigated agriculture as a proportion of the Cap as the estimated entitlement for irrigation does not include private diverters.

Table 29 provides a summary of the water entitlements for irrigation in the irrigation areas for the districts managed by Goulburn-Murray Water.

Some assumptions have been made in preparing the data for this table, which are summarized in the footnotes to the table.

The total entitlement is 888 GL, of which approximately 1,039 GL were delivered in the 2001/2002 season (117%). A total of 6,305 irrigated holdings are involved, irrigating approximately 253,000 hectares.

Table 29 Irrigation entitlements and average water delivered, farms, hectares irrigated by Irrigation Areas in the Murray Catchment Irrigation Areas No. of Ha Total Ha Entitle- Water Proportion Irrigated Irrigated ment (ML) delivered Delivered Holdings (ML) GMW Central Goulburn 2,800 173,053 113,106 410,000 473,000 115% GMW Murray Valley 1,807 128,372 88,969 257,625 346,828 135% GMW Shepparton 1,500 81,750 51,000 220,000a 220,000 100% Goulburn Broken Total 6,305 383,175 253,075 887,625 1,039,828 117% Source: GM-W website (2003) with the exception of: a No entitlement data available, so water delivered figure used.

The introduction of water trading has seen a significant shift in the water resource. Horticulture has become more efficient in water use with the introduction of drip systems. Water has been transferred from mixed farms into dairying and intensive farming including, vineyards and horticulture. The catchment has been a net importer of water.

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Economic contribution of irrigated agriculture

Based on the method described in Chapter 3, Volume 2, an estimate of the value of irrigated agriculture was generated. Table 30 summarises the total value of irrigated agriculture as a proportion of the gross value of production for agriculture in the sub groups of the Goulburn-Broken catchment.

The value of irrigated agriculture accounts for approximately 61% of the gross value of agricultural production in the Goulburn-Broken catchment, and hence is a significant industry. At $754 million irrigated agriculture generates more than the transport industry, which contributes $500 million.

The gross value of agricultural production increased by 31% between 1997 and 2001 (Ag Stats 2003).

Table 30 Gross Value of Agricultural Production and Irrigated Agriculture for the Goulburn Broken Catchment by Subgroup (2001) Goulburn Broken Total Value of Total Value Proportion Subgroups Agriculture ($ Irrigated Irrigated mill) Agriculture ($ mill) Agriculture Lower Goulburn 572 423 74 Central Goulburn 412 331 80 Upper Goulburn 259 0 0 Goulburn Broken 1,243 755 61 Source: IRDB Version 2002; proportions for irrigated agriculture for the Goulburn Broken based on Myfora Pty Ltd - Michael Young & Associates (2001) and GIS overlays of irrigation areas and SLAs.

The economy has a high dependency on water. The major growth in production from the region has come from irrigated agriculture both directly and indirectly. Shepparton’s manufacturing industry is almost entirely based on the region's agricultural production. The region exports $3 billion of products each year largely derived from irrigated agriculture.

There has been a steady expansion in horticulture and dairying with the adoption of improved farming practices and techniques and the transfer of the water resource into these sectors. The region has invested heavily in production and processing of irrigated products. Approximately $760 million has been invested in processing in the last six years (Industry Advice, pers. comm. 01/04/03).

The Shepparton Irrigation Region, the majority of which is located in the Central Goulburn subgroup, is an intensively irrigated farming region where the principal rural industries are dairying, horticulture (stone and pome fruit

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and tomatoes) with some mixed grazing (sheep and beef) on irrigated and rain-fed pastures as well as some irrigated and rain-fed cropping.

Area of irrigated agriculture

Figure 72 shows that the area devoted to irrigated agriculture in the Goulburn Broken catchment is significant, with approximately 35% of the agricultural land area under irrigation in both the Lower Goulburn and Central Goulburn subgroups. Irrigated agriculture is not significant in the Upper Goulburn. The area devoted to irrigated agriculture increased by 21% between 1997 and 2001. The total area devoted to all agricultural production was 3% over the same period.

Goulburn Broken Catchment Area of irrigated agriculture as a proportion of the total area of agricultural holdings (2001) 40%

35% 30%

25% 20%

15% Proportion 10% 5%

0% Low er Goulburn Central Goulburn Upper Goulburn Subgroup

Figure 72 The area of irrigated agriculture as a proportion of the total area of agricultural holdings for the Goulburn Broken (Source: AgStats, 2003)

9.5.2 Dependence on water (excluding irrigated agriculture)

In the Goulburn-Broken catchment, the economic and social importance of water is also related to non-extractive uses such as tourism, recreation, and aesthetics. It is also related to other extractive uses such as for manufacturing and domestic consumption.

However, tourism and recreation are not significant industries, and recreation itself is limited in the majority of the catchment. Tourism is, however, important near the main reservoir of Lake Eildon and on the River Murray.

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Figure 73 presents the results of the Australian Tourism Satellite Account. The description of the Satellite Account is provided in Chapter 3.

The results show that for all SLAs in the Goulburn-Broken catchment employment dependent upon tourism accounts for approximately 6% of total employed persons. Employment dependent on tourism is highest for Delatite – South (18%) followed by Murrindindi East (16%). Both of these SLAs include Lake Eildon and uplands. Moira East also shows a relatively high percentage of tourism employment (8%) and is located on the River Murray.

Goulburn-Broken Catchment Proportion(%) of Jobs by Industry by SLA

Goulburn Broken

Delatite (S) - Benalla

Delatite (S) - North

Delatite (S) - South

Campaspe (S) - Kyabram

Gr Shepparton C - Pt A

Gr Shepparton C - Pt B East

Gr Shepparton C - Pt B West

Moira (S) - East

Moira (S) - West

Murrindindi (S) - West

Murrindindi (S) - East

Strathbogie (S)

- 102030405060

Proportion (%) Tourism Agriculture/Fishing/Forestry Mining Manufacturing

Figure 73 Proportion of Jobs by Industry by SLA in the Goulburn- Broken catchment (Source: TTF Australia, 2001)

However, in terms of the Central to Lower Goulburn the recreational value of the area is considered limited due to poor access to the watercourses and frequency of inundation. Most of the recreational access is for fishing, and with some boating. It is anticipated that through the Lower Goulburn Rehabilitation Project should 5,000 hectares of land be returned to floodplain it would improve the habitat for native species and improve the quality of run-off. The economic benefit from the increased recreation was considered to be significant (Earth Tech Engineering Ltd, 2002).

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9.6 Community wellbeing and services

In this section we provide an overview of the social support services and community infrastructure present.

9.6.1 Access to goods, services and opportunities for social interaction (ARIA Score)

The ARIA Score – Remoteness and Accessibility - for the majority of the SLAs in the Goulburn-Broken Catchment have an ARIA Score between 1.1 and 1.7 identifying them as highly accessible; that is there is relatively unrestricted accessibility to a wide range of goods and services and opportunities for social interaction. The SLAs of Moira- East through to Delatite – South are accessible, that is there are some restrictions to accessibility of some goods, services and opportunities for social interaction. Figure 74 presents the results.

Goulburn Broken Catchment ARIA Score by SLA (1999) (Remoteness) Delatite (S) - South

Murrindindi (S) - East

Moira (S) - West

Moira (S) - East

Delatite (S) - North

Strathbogie (S)

Murrindindi (S) - West

Gr. Shepparton (C) - Pt B East

Campaspe (S) - Kyabram

Delatite (S) - Benalla

Gr. Shepparton (C) - Pt B West

Gr. Shepparton (C) - Pt A

- 0.5 1.0 1.5 2.0 2.5 3.0 3.5 ARIA Score

Figure 74 ARIA Score for SLAs in the Goulburn Broken Catchment (Source: Department of Health and Aging, 2001)

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9.6.2 Tertiary services

There has been considerable expansion of services within the region with the increasing population and growing economy. The area includes a number of golf courses, plus other recreation facilities. The larger towns such as Shepparton provide a comprehensive range of community services, including tertiary education.

The area has high quality education and training facilities including: • Melbourne University’s Dookie College Campus - Institution of Land and Food Resources which has developed relationships with the area’s food manufacturing industry, farming sector and TAFE; • Melbourne University has also established the Rural Medicine Program at the Shepparton Campus of Goulburn Valley Health; • LaTrobe University Campus at Shepparton focussing on Business Management; and • TAFE (Goulburn Ovens TAFE) providing a valuable service to the diary industry as it grows and restructures to larger commercial farming operations by providing courses for stainless steel fabricators, and refridgeration skills. (Myfora Pty Ltd – Michael Young & Associates, 2001).

Retirement villages are present in the catchment and a range of health services. The pattern described through interviews was that at Kyabram/Tongala both local residents and non-locals were attracted. However the villages at Tatura and Murcheson, and Shepparton attracted local residents (Industry Advice, pers. comm. 17/2/03).

9.7 Cultural heritage

Table 31 provides a summary of heritage sites categorised into Indigenous sites, spiritual places, constructed features (eg bridges, memorials etc), public and private buildings, natural features, heritage attractions (such as gold mining sites) and other. The information was captured from the Register of the National Estate; NSW Heritage Office; SA Heritage Register and Victorian Heritage Register.

Table 31 underestimates the number and significance of Indigenous sites in the Goulburn-Broken catchment, with sites protected in national parks and state forests not listed.

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Table 31 Heritage Sites and Places in the Goulburn-Broken catchment LGA Indigenous Spiritual Constructed Public Private Natural Heritage Other Site Places (eg Features (eg Buildings Build- Features Attraction (eg gold Church) Bridges) ings fields, etc) Murrurundi (A) 2 1 2 2 1 Strathbogie (S) 1 1 5 4 9 3 2 1 Moira (S) 4 5 5 Gr Shepparton 1 1 3 4 1 1 Campaspe 1 4 8 18 18 5 3 1 Delatite 2 5 4 19 26 13 8 3 Total 5 13 18 50 64 28 14 5 Source: Register of the National Estate; NSW Heritage Office; SA Heritage Register and Victorian Heritage Register though http://www.heritage.gov.au/ahpi/index.html (accessed 23/06/03).

9.8 Cumulative change and community response

The following provides an overview of the major changes that have taken place in the catchment over the last 5-10 years as described through interviews.

Drought: The drought is having a major impact on the region. Water allocations this year are 57% of water entitlement. This is the first time this situation has been encountered by irrigators in the Goulburn-Broken. The low water allocations this year has resulted in some major restructuring. This is likely to continue (Industry Advice, pers. comm. 02/04/03). The average delivery of water to irrigation areas is approximately 117%, significantly higher than this seasons allocation.

On mixed farms, production and employment opportunities have declined. In some cases, mixed farmers have ceased to irrigate and sold their water permanently or on the temporary exchange.

On orchards, the reduced allocation has accelerated the adoption of drip systems, the reliance on transfer water has increased and in some cases trees have been removed.

On dairy farms, the situation is more severe. A drop of 28% in milk price has compounded the drought impacts. Milk production from the region is down dramatically, affecting both farmers and the regional economy. Some farmers have retained their cows at home by purchasing water and feed. These farmers have incurred substantial costs. Other farmers have “agisted” their cows in the Gippsland and the Western District and dried off their pastures. Other farmers have ceased production.

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Approximately 86,000 cows have left the district this year due to the drought. This is equivalent to 430 herds each of 200 cows. Based on one job per 100 cows, this equates to 860 job losses temporarily. On average, most dairy farmers will have a cash loss between $500 and $1,000 per cow this year. For most farmers it will take 5 to 10 years to recover from the drought. The drought has had a positive effect on feed producers and suppliers where prices have increased (Industry Advice, pers. comm. 01/04/03).

It is reported that the landscape of the area has changed dramatically as a result of the drought, with areas that were previously irrigated now dryland. The extent to which this land will return to irrigation in the future is uncertain. The concern in the region is that much of this land will not come back into production.

Such a decline is having a major impact on individual farmers, the processing sector and the rural communities. The demand for counselling services has increased. The number of people on welfare has increased. Employment opportunities have declined both on farm and within the broader community, particularly in the smaller towns. Associated with this is a decline in the skill base. The recovery period for most dairy farms will be five to ten years (Industry Advice, pers. comm. 01/04/03).

Land and Water Management Planning (LWMP): The community has embraced environmental issues through land and water management planning and the Goulburn-Broken Catchment Management Authority.

Water Trading: Since the introduction of water trading, water has moved from the lower valued industries to the higher valued industries. It has also moved from the least productive to the more productive soils. Consequently, it has moved from mixed farming into dairying and horticulture. Water trading has provided a mechanism by which some mixed farmers could exit the industry. The drought and reduced water allocations of 2002 will accelerate this adjustment (Industry Advice, pers. comm. 02/04/03).

9.9 Summary

The subgroups of the Goulburn-Broken catchment include the Upper Goulburn, Central Goulburn, and Lower Goulburn.

Land use in the Goulburn-Broken catchment includes native vegetation (forested); agriculture (dryland and irrigation); plantations (pines); urban; and water bodies (Victorian Department of Natural Resources and Environment, 1991). Approximately 60% of the catchment area is forested and under management.

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The economy of the Upper Goulburn is diverse, relying on farming, processing, manufacturing, government services tourism and recreational particularly around Eildon. The basis of the economy, in particular that of the Central Goulburn, is food production and processing sectors, plus the associated industries including manufacturing, cool storage and transport. The region produces or processes approximately $3 billion of food each year (Department of Natural Resources and Environment, 2001).

Population, employment, and economic activity have been growing in the Goulburn-Broken catchment. The population in the Goulburn-Broken catchment grew by 5% between 1996 and 2001. The growth varied between the subgroups with 4% growth in the Upper Goulburn, 8% in Central Goulburn, and 3% in the Lower Goulburn.

The number of people employed has also been growing. The overall growth in persons employed in the Goulburn-Broken catchment was 13% between 1996 and 2001. This growth was not reflected in the Upper Goulburn, where the number of persons employed declined by 11%. The growth in employed persons for the Central Goulburn was 16% and 10% for the Lower Goulburn (City of Greater Shepparton 2003).

The Goulburn-Broken catchment is well serviced with infrastructure, including water, electricity and transport and education, with a number of tertiary education institutions present.

Despite the growth, the area does have some aspects of vulnerability with an age dependency ratio of 58% in 2001, as compared to 49.6% for Victoria, and the proportion of families that were one-parent families in 2001 was above the state average for a number of SLAs including Delatite – Benalla, Greater Shepparton – Part A, Campaspe – Echuca and Mitchell – North.

Further, the catchment communities are dependent on water through irrigation in the Central Goulburn and Lower Goulburn. A total of 6,305 irrigated holdings are involved in agricultural production contributing 61% of the gross value of agricultural production or $754 million. The irrigation community has also experienced significant economic and social stress as a result of the drought. In the Upper Goulburn, the dependence on water is for tourism and recreation activities. Tourism accounts for between 15% and 20% of the employment in the Upper Goulburn areas.

The key strengths of the area include: • a strong regional centre; • tertiary education • diverse agricultural base;

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• investment and employment growth; • population growth; • lifestyle strengths along the river and in the Upper Goulburn; • heritage; and • a range of facilities.

The areas of vulnerability to change include: • significant cumulative change in the last 18 months with the recent drought; and • dependence of the economy through the primary, secondary and tertiary sector on irrigation.

In summary, the Upper Goulburn is characterised by diverse land use opportunities and an increasing influence from Melbourne in terms of population and lifestyle farming. Dependence on water is low for primary and secondary industries, but is important for tourism. The individuals and communities of the Central Goulburn have shown the capability to diversify, grow and adopt advanced irrigation and production techniques. Community infrastructure is also well established. The area is strongly dependent on water for production, processing and employment. The Lower Goulburn also relies on dairying and there is a lack of dryland agricultural alternatives because of the soil type and rainfall. The population continues to decline in small towns, although is increasing in river towns.

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10. North Central Catchment

10.1 General background

The North Central catchment includes the SLAs of Gannawarra, Loddon, Campaspe, Greater Bendigo, Macedon Ranges, Central Goldfields and Mount Alexander. The region encompasses an area of 1.9 million ha.

The North Central catchment is agriculturally diverse. Irrigation areas cover much of the lower Loddon and Campapse riverine plans where horticulture and dairying are the main land uses. Dryland agricultural areas are characterised by broadacre land uses, such as cropping and grazing.

The catchment has been divided into four sections to aid analysis: Upper North Central (Macedon Ranges, Central Goldfields, Mount Alexander SLAs), Loddon Catchment (Loddon and Gannawarra SLAs), Bendigo SLAs and the Campaspe (Campaspe – Echuca, Rochester and South SLAs). Figure 75 shows the North Central catchment.

10.2 Physical environment, natural resources and their use

10.2.1 Water resources

There are two main reservoirs in the upper areas of the Campaspe catchment including Laanecoorie Reservoir and Cairn Curran Reservoir. The Loddon River also has its source here. It is not clear whether the towns in the Upper Central are dependent upon these reservoirs for economic activity however, they are likely to provide recreational and tourism opportunities. Lake Eppalock and Heathcote are located to the south of Bendigo. They were principally established for recreation, irrigation, and townwater.

Lake Eildon represents a major water source for the Loddon Catchment irrigation areas with water diverting from the Goulburn River near Nagambie into the Waranga Western Channel, which supplies the Pyramid Hill irrigation district east of the Loddon River. The Boort irrigation district is supplied via the Loddon River, with additional supplies regulated through the Waranga Western Channel to the Loddon Weir at Fernihurst. This water supplements the limited capacity of the Loddon storages and improves water quality. Pumped supplies are also drawn from the Loddon River and Serpentine Creek.

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Figure 75 North Central catchment

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10.2.2 Natural features

There are important water bodies in the catchment with many having significant environmental and cultural values. The Kerang Lakes wetlands are some of the most important wetlands in Australia, containing more than 100 lakes covering 29,000 ha. Sixteen of the Lakes are Ramsar-listed. Middle Reedy Lake is home to the world's largest ibis rookery. Each spring 200,000 straw-necked, white and glossy ibis return to breed. Many of the lakes and wetlands are contained in international environmental agreements such as Ramsar and Japan-Australia Migratory Bird Agreement and/or the China-Australia Migratory Bird Agreement.

Kow Swamp has important Aboriginal burial sites around its shores.

Little Lake Boort is an important water feature at Boort and supports the local economy.

There is also a national park around Bendigo that may present an opportunity for tourism which has yet to be tapped.

The region was once Australia's premier gold-mining region. Several gold- mining ventures are currently active in the region however, mostly in the Bendigo area to the northwest. Fossicking is widespread throughout the Box-Ironbark forests of the goldfields (Rural City of Wangaratta, 2003).

10.2.3 Land use

Approximately 13% of the region is public land, with much of this reserved and managed for specific purposes including state and regional parks, flora reserves and reference areas.

The remainder of the North Central catchment is dominated by agriculture. The catchment is agriculturally diverse and has both irrigated and dryland agricultural systems.

Irrigation areas cover much of the lower Loddon and Campaspe riverine plains where horticulture and dairying are the main land uses. Improved irrigation technology and tradable water entitlements have encouraged the rapid expansion of horticulture outside traditional irrigation areas.

Dryland agricultural areas are characterised by broadacre land uses, such as cropping and grazing. Land close to the major centres is increasingly developed for horticulture, new and emerging agricultural commodities including viticulture and olives, and for ‘lifestyle’ farming.

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Intensive animal production industries are also represented in the region.

In the south of the catchment, forestry operations are dominated by softwood plantations, while in the north, a range of products, including firewood, posts and poles, furniture timbers, honey and Eucalyptus oil, are obtained from forests and woodlands.

10.2.4 Environmental issues

Salinity and water logging in the north-western side of the Loddon subgroup means there are fewer opportunities to develop in the area of Tragowell Plains/Pyramid Hill. During the 1970s the area around Pyramid Hill was saturated and has become saline as a result of irrigation and clearing in the upper catchment recharge zones. Salinity rendered much of land in Gannawarra Shire unusable 15 years ago. Many farmers sold out at a cheaper price. A lot of permanent water was sold from Kerang to Swan Hill accumulating to a loss of 25-35% of water right (Industry Advice, pers. comm. 19/02/03).

In response to salinity and high water tables, Tragowell Plains and Pyramid Hill irrigation areas and communities developed land and water management plans (LWMP). Subsurface drainage schemes have featured in the plans. As a result of over 20 years of addressing severe natural resource management issues the attitudes of farmer have changed with increasing tree planting, reuse systems and draining systems. In the last 2-3 years some farmers have responded by changing land use to hay and feed production based on lucerne. Water is now being bought back on the temporary market (Industry Advice, pers. comm. 19/02/03).

A further development from LWMPs has been the Kerang-Swan Hill Future Landuse Pilot Project managed by a committee and overseen by the North Central Catchment Management Authority (CMA). The pilot involves 159 farms, 230 households, 3 salt harvesting enterprises, 4 caravan parks with 20,000 visitor nights per annum at Lake Charm, 40 GL annual water use and greater than $10 million in production. Dryland production accounts for 5% of the value of production in the area.

The key issues to be addressed include (extracted from North Central CMA, 2002): • water trading out of the area at 3% per year; • inadequate maintenance of flood levee banks; • high groundwater levels impact on the salinity of the River Murray; • stranded irrigation infrastructure;

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• opportunities for higher value irrigation on suitable soils; • opportunities for improving recreation and environmental values; • lack of adequate flood management programs; • drainage water re-use; • inadequate drainage management plans; and • identifying opportunities for water savings for environmental purposes.

The CMA reviewed the landuse on the floodplain and developed alternatives for farmers to relocate off the flood plain to other areas. Prime development zones have been identified and now the plan is to create an environment where local people (those living in the shire) can buy local water (from the shire) in order to reduce the water leaving the area as the loss is seen as a threat to the long term viability of the area.

The depressed attitude in the community given the unlikely long term viability of agriculture in the area has been replaced to some extent by a positive attitude towards the future with the presentation of viable options (Industry Advice, pers. comm. 19/02/03).

The approach is being driven by Goulburn-Murray Water and provides a planned approach to asset management to avoid or minimise issues associated with stranded irrigation assets.

10.3 Social geography and demography

This section provides a detailed outline of the population of each SLA, focusing on the socio-demographic profiles, described in Chapter 3, and mapping the results where possible.

10.3.1 Population size and change

The population for the SLAs in the North Central catchment grew by 4% to 195,879, between 1996 and 2001. This growth rate compares to 6% for Victoria and 3% for the defined Study Area. The Aboriginal and Torres Strait Islander population increased in each of the three subgroups.

The population living in SLAs located in the Loddon Subgroup declined by 4% between 1996 and 2001. Table 32 presents the total population of the SLAs within the Loddon subgroup.

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Table 32 Population by SLA – Loddon Subgroup Loddon Total Population Aboriginal and Torres Strait Islander Population 1996 2001 % 1996 2001 % SLA Total Total Change Total Total Change Gannawarra (S) 11,922 11,394 -4 132 127 -4 Loddon (S) – South 4,948 4,782 -3 WH 29 21 Loddon (S) – North 3,638 3,415 -6 WH 29 93 Total 20,508 19,591 -4 171 185 8 Source: ABS Census 1996 and 2001, published data; WH = Withheld for privacy reasons - small numbers reported for these SLAs.

The population living in SLAs located in the Campaspe Subgroup increased by 5% between 1996 and 2001. Table 33 presents the total population of the SLAs within the Campaspe subgroup. The population remained unchanged in the Campaspe-South SLA.

Table 33 Population by SLA – Campaspe Subgroup Total Population Aboriginal and Torres Campaspe Strait Islander Population 1996 2001 % 1996 2001 % SLA Total Total Change Total Total Change Campaspe (S) – Echuca 10,014 10,717 7 273 317 16 Campaspe (S) - South 3,691 3,685 0 WH 28 87 Campaspe (S) – Rochester 7,865 8,228 5 49 74 51 Total 21,570 22,630 5 WH 419 24 Source: ABS Census 1996 and 2001, published data; WH = Withheld for privacy reasons - small numbers reported for these SLAs.

Table 34 presents the total population of the SLAs within the Bendigo subgroup. The population increased 6% between 1996 and 2001. The population declined in the greater Bendigo – Central area only.

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Table 34 Population by SLA – Bendigo Subgroup Bendigo Total Population Aboriginal and Torres Strait Islander Population 1996 2001 % 1996 2001 % SLA Total Total Change Total Total Change Gr. Bendigo (C) – Inner East 20,375 22,006 8 102 119 17 Gr. Bendigo (C) – Central 18,919 18,472 -2 172 249 45 Gr. Bendigo (C) – Inner West 12,490 13,811 11 85 119 40 Gr. Bendigo (C) PtB 9,909 10,229 3 63 101 60 Gr. Bendigo (C) – Eaglehawk 8,054 8,387 4 96 130 35 Gr. Bendigo (C) – Inner North 7,471 8,247 10 53 101 91 Gr. Bendigo (C) – S’saye 4,120 4,916 19 WH WH 69 Total 81,338 86,068 6 WH WH 44 Source: ABS Census 1996 and 2001, published data; WH = Withheld for privacy reasons - small numbers reported for these SLAs.

Table 35 presents the total population of the SLAs within the Upper North Central subgroup. The population increased 6% between 1996 and 2001, declining only in the Central Goldfields-Marlborough SLA.

Table 35 Population by SLA – Upper North Central Subgroup Aboriginal and Torres Upper North Central Total Population Strait Islander Population 1996 2001 % 1996 2001 % SLA Total Total Change Total Total Change Macedon Ranges (S) – Kyneton 7,384 7,856 6 29 27 -7 Central Goldfields (S) – Marlborough 7,381 7,163 -3 39 63 62 Mount Alexander (S) – C’maine 6,690 6,750 1 52 46 -12 Central Goldfields (S) – Bal 4,941 5,097 3 WH WH 24 Macedon Ranges (S) – Bal 16,204 17,972 11 50 64 28 Macedon Ranges (S) – Romsey 8,779 9,839 12 WH WH 33 Mount Alexander (S) – Bal 9,240 9,423 2 77 51 -34 Total 60,619 64,100 6 282296 5 Source: ABS Census 1996 and 2001, published data; WH = Withheld for privacy reasons - small numbers reported for these SLAs.

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Figure 76 shows the population of the SLAs in the North Central catchment. The population of the North Central catchment is concentrated in the SLAs of Gannawarra, Campaspe – Echuca, Greater Bendigo, and the Macedon Ranges. Bendigo has been identified as a satellite centre to Melbourne for future growth (Industry Advice, pers. comm. 19/02/03).

Figure 76 Total Population of SLAs in the North Central catchment (2001)

Figure 77 shows that the greatest growth in population is taking place in the Upper North Central and through the Campaspe. The highway from Melbourne strikes a path through Bendigo and meets the River Murray at Echuca.

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Figure 77 Change in the Total Population of SLAs in the North Central catchment (1996 to 2001)

10.3.2 Age distribution

Figure 78 provides the proportion of each age group of the total population for the North Central catchment. The proportion of all age groups above 40 years increased since 1996, except for the 65-69 years age group. The proportion for the age groups below 40 years declined, except for the 15-19 years age group.

Figure 79 presents the change in the proportion of the population for two age groupings, greater than 60 years and those aged between 15 and 29 years.

The proportion of the population between the age of 15 and 29 years has declined for all SLAs in the North Central catchment, except Greater Bendigo S’saye, where the population grew by 19% between 1996 and 2001. This change in the proportion for this age group is reflected in the results for Victoria (-1.4%).

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North Central CMU Proportion of Age Groupings of the Total Population 1996 and 2001

75+ 70-74 65-69 60-65 55-59 50-54 45-49 40-44 35-39

Age Grouping 30-34 25-29 20-24 15-19 10-14 5-9 0-4

0% 2% 4% 6% 8% 10%

Proportion 1996 2001

Figure 78 Proportion of the Age Group of the Population for the North Central catchment for 1996 and 2001 (Source: ABS CDATA 2001)

Although the statistics suggest a decline in young people, local government perceives that the region is attracting people from farms and Melbourne. Bendigo is seen as a stepping-stone for careers with the opportunity to gain a more senior position with large government employers such as health and education than in a major capital city. Further, rural finance corporations are relocating from Melbourne to Bendigo providing opportunities for young people.

The proportion of the population aged 60 years and above increased in all SLAs, except for a slight decline in Greater Bendigo - Central. This result is reflected in the results for Victoria (1%). The increase in the proportion representation of this age group was highest in the Loddon subgroup with a greater than 3% increase.

It is anticipated that the over 60s age group will double in 20 years time with a corresponding increase in the demand for services (Industry Advice, pers. comm. 19/2/03).

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North Central CMU North Central CMU Change in the proportion of people aged 60 yrs + of the total population Change in the proporation of people aged 15-29 yrs of the total (1996 to 2001) population (1996 to 2001)

Mount Alexander (S) Bal Mount Alexander (S) Bal Mount Alexander (S) - C'maine Mount Alexander (S) - C'maine Macedon Ranges (S) Bal Macedon Ranges (S) Bal Macedon Ranges (S) - Romsey Macedon Ranges (S) - Romsey Macedon Ranges (S) - Kyneton Macedon Ranges (S) - Kyneton Loddon (S) - South Loddon (S) - South Loddon (S) - North Loddon (S) - North Gr. Bendigo (C) - S'saye Gr. Bendigo (C) - S'saye Gr. Bendigo (C) - Pt B Gr. Bendigo (C) - Pt B Gr. Bendigo (C) - Inner West Gr. Bendigo (C) - Inner West Gr. Bendigo (C) - Inner North Gr. Bendigo (C) - Inner North Gr. Bendigo (C) - Inner East Gr. Bendigo (C) - Inner East Gr. Bendigo (C) - Eaglehawk Gr. Bendigo (C) - Eaglehawk Gr. Bendigo (C) - Central Gr. Bendigo (C) - Central Gannawarra (S) Gannawarra (S) Campaspe (S) - South Campaspe (S) - South Campaspe (S) - Rochester Campaspe (S) - Rochester Campaspe (S) - Echuca Campaspe (S) - Echuca C. Goldfields (S) Bal C. Goldfields (S) Bal C. Goldfields (S) - M'borough C. Goldfields (S) - M'borough -0.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% -3.0% -2.5% -2.0% -1.5% -1.0% -0.5% 0.0% 0.5% 1.0%

Figure 79 Comparison of the change in the proportion of people aged 60 years above and those aged between 15 and 29 years between 1996 and 2001 (Source: ABS Census 2001)

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10.3.3 Age dependency ratio

The age dependency ratio for North Central is 58% which is much higher than that for Victoria (49.6%). The ratio is highest for Loddon North, Loddon South and Greater Bendigo Pt B. Figure 80 shows the ratio for each SLA in the catchment.

Figure 80 Total Age Dependency Ratio (2001) for the SLAs of the North Central catchment

10.3.4 Family types

In 2001, one-parent families accounted for 16% of the total number of families in the North Central catchment, and 15% of families in the Study Area and 15% in Victoria. There were some large variations with Campaspe - South recording 31% of families as one-parent families, and Greater Bendigo – Central and Greater Bendigo - Eaglehawk recording 24% of the population as one-parent families. The lowest proportion of one-parent families was recorded for Greater Bendigo – S’saye (8%), which was the SLA recording the greatest growth in population for the catchment.

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In 2001, the proportion of persons divorced or separated was 8% for the North Central catchment, the Study area and Victoria (ABS CDATA, 2001).

10.3.5 Non English speaking

In 2001, the proportion of persons who did not speak English well or at all was 1% for the North Central, below the average of 4% for the Study Area and 11% for Victoria (ABS CDATA, 2001).

10.4 Socio-economic profiles and economy

10.4.1 Presence of regional centres

The major centres in the North Central catchment are Bendigo and Echuca. Other towns include Wedderburn, Cohuna, Kerang, and Rochester.

The Upper North Central does not specifically contain a regional centre however, it is approximately one hour’s drive from Melbourne and neighbours Ballarat. Bendigo is also close. There is no regional centre in the Loddon subgroup, however the southern end is close to Bendigo and the northern end is close to Swan Hill. Some of the smaller towns are close enough to fulfil the role of dormitory suburbs to Bendigo.

Echuca, an important town in the catchment and also for satellite towns, has a range of industries, which extend to non-consumptive uses of the river, in particular house boating. Echuca is the closest river town to Melbourne and attracts significant numbers.

Bendigo’s economy is structured as a regional centre.

10.4.2 Employment by tiers of the economy

Figure 81 depicts the proportion of employment in each of primary, secondary and tertiary sectors for the North Central catchment by subgroup.

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North Central Catchment - Proportion of Employment by Primary, Secondary and Tertiary Sector (2001)

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Loddon Bendigo Campaspe Upper North Central Catchment Subgroup

Primary Secondary Tertiary Not Stated

Figure 81 North Central catchment – Proportion of Employment by Primary, Secondary and Tertiary Industry (Source: ABS 2001 Census, published data)

Figure 81 shows that employment activity in the Upper North Central is concentrated in the tertiary sector, with a significant secondary sector and a small primary sector. The Campaspe subgroup has a larger primary sector, accounting for approximately 20% of employment activity, a sizeable secondary sector and a large tertiary sector. The Bendigo subgroup reflects a similar profile of employment activity as the Upper North Central, however, with a smaller proportion employed within the secondary industry. Based on interviews in other catchments and SLAs, Bendigo’s secondary processing draws irrigated produce from other regions.

For the Loddon subgroup, a significant proportion of employment activity is based in the primary sector, followed by the tertiary sector. There is limited processing in the catchment with most of the product being exported (Industry Advice, pers. comm. 19/02/03). Both the Loddon and the Campaspe Subgroup have a number of organised irrigation areas, whereas the Bendigo and Upper North Central subgroups do not.

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10.4.3 Industry profiles

Figure 82 presents the proportion of people employed by industry within the North Central catchment by subgroup based on ABS Census statistics for 2001. The top three industries in the Loddon and the Campaspe subgroups are agriculture, forestry and fishing, followed by manufacturing and retail trade. For the Upper North Central subgroup the main industry for employment is manufacturing and for Bendigo, the main industry is retail trade. Health and community services is also an important industry for employment in both these subgroups.

Primary Sector

There is a mixture of primary production activities in the North Central catchment, with irrigation in the Loddon and Campaspe subgroup the dominant system as compared to dryland in the Bendigo and Upper Central subgroup.

The major irrigated agricultural industries are dairying and mixed farming. This is followed by horticulture.

The Pyramid Hill district is essentially a wool and fat lamb producing area based on the use of annual pastures. The areas around Yarrawalla, Calivil and Dingee, are renowned for dairy farming and hay production with some summer and winter cropping.

The Boort district has a large area of annual pastures, lucerne production and has increased substantially the area to vegetable growing (primarily tomatoes). There are more options to diversify in the Boort irrigation area due to the soil type.

In the Torrumbarry Irrigation Area dairy farms dominate around Cohuna while mixed farming is more common around Kerang where fat lambs and beef cattle are raised extensively and cereal, fodder, lucerne and oil seed crops are also widely produced.

Land close to the major centres is increasingly developed for horticulture, with new and emerging agricultural commodities such as viticulture and olives, and for ‘lifestyle’ farming. Grape and olive production with value adding is being boosted in a recently launched endeavour by three municipalities (Greater Bendigo, Gannawarra and Loddon) in the Boort area.

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North Central (Loddon) Proportion of Persons Employed North Central (Campaspe) Proportion of Persons by Industry (2001) Employed by Industry (2001)

Agriculture, Forestry and Fishing Agriculture, Forestry and Fishing

Mining Mining

Manufacturing Manufacturing

Electricity, Gas and Water Supply Electricity, Gas and Water Supply

Construction Construction

Wholesale Trade Wholesale Trade Industry of Employment of Industry Industry of Employment of Industry Retail Trade Retail Trade

Accommodation, Cafes and Restaurants Accommodation, Cafes and Restaurants

Transport and Storage Transport and Storage

Communication Services Communication Services

Finance and Insurance Finance and Insurance

Property and Business Services Property and Business Services

Government Administration and Defence Government Administration and Defence

Education Education

Health and Community Services Health and Community Services

Cultural and Recreational Services Cultural and Recreational Services

Personal and Other Services Personal and Other Services

Non-classifiable economic units Non-classifiable economic units

Not stated Not stated

0% 10% 20% 30% 40% 0% 5% 10% 15% 20% 25%

North Central (Bendigo) Proportion of Persons Employed North Central (Upper North Central) Proportion of Persons by Industry (2001) Employed by Industry (2001)

Agriculture, Forestry and Fishing Agriculture, Forestry and Fishing

Mining Mining

Manufacturing Manuf ac tur ing

Electricity, Gas and Water Supply Electricity, Gas and Water Supply

Construction Construction

Wholesale Trade Wholesale Trade Industry of Employment Industry Industry of Employment Industry Retail Trade Retail Trade

Accommodation, Cafes and Restaurants Accommodation, Cafes and Restaurants

Transport and Storage Transport and Storage

Communication Services Communication Services

Finance and Insurance Finance and Insurance

Property and Business Services Property and Business Services

Government Administration and Defence Government Administration and Defence

Education Education

Health and Community Services Health and Community Services

Cultural and Recreational Services Cultural and Recreational Services

Personal and Other Services Personal and Other Services

Non-classifiable economic units Non-classifiable economic units

Not stated Not stated

0% 5% 10% 15% 20% 0% 5% 10% 15% 20%

Figure 82 Proportion of Employed Persons by Industry for the North Central catchment (Source: ABS Census 2001, published data)

Intensive animal production industries are also represented in the catchment.

Gold mining is still a relatively important industry in the Catchment, centred around Bendigo, where a new vein has recently been discovered.

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A fear of local farm developers is the reduced ability to harvest, process, market and sell horticultural products (Industry Advice, pers. comm. 19/02/03).

There are opportunities for diversification. There is interest in bringing water into Bendigo for winery development.

Secondary Industry

Manufacturing in the area includes food processing, steel fabrication, rubber manufacturing and engineering, along with many smaller operations throughout the region.

The region has invested heavily in production and processing of irrigated products with $760 million invested in processing in the last six years. The processing activity does not occur evenly throughout the catchment, but in pockets including the Campaspe and Bendigo area and some parts of Upper North Central.

The following are two examples of companies, both located in the Campaspe subgroup, which draw on local product and bi products from irrigation: • Murray-Goulburn Co-operative (dairy processing) employs 200 people in its Rochester operation, which exports 60% of its product all over the world. Its largest overseas markets are in Asia. Export growth has enabled the co-operative to significantly expand production. Murray- Goulburn estimates that it provides over $600 million per year to regional Victoria through income payments to farmers and wages; • Cedenco Australia at Echuca processes tomatoes and apples, producing bulk tomato and apple based products. Cedenco employs up to 200 staff during the peak season and contracts about 14 tomato growers in the region to supply raw fruit. It exports 7-8% of total output to markets in the UK, the US, Fiji and Taiwan.

There is limited processing in the Loddon subgroup with most of the product being exported to other areas. The following provides a summary of where product is sent following production in Loddon (Industry Advice, pers. comm. 19/02/03): • Milk: Stanhope, Rochester and Tongala; • Tomatoes: Shepparton (SPC Ardmona) or Echuca (Simplot); • Bulk grain: Railed out to Melbourne; • Sheep and cattle: some to Ingelwood Abattoir, but also exported at Bendigo and trucked elsewhere; and

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• Hazeltinne chickens: Lockwood – Woodstock.

Opportunities in the area of value-adding are being reviewed and are considered important for retaining young people in the area. It is considered that olive production and processing is likely to become a significant industry over the next few years in the Loddon subgroup. There are efforts also to value-add grain products locally, which are the strengths in dryland areas, to maintain economic viability and social resources.

In addition to intensive animal production, value adding does take place within the Loddon subgroup, although there have been financial difficulties. The abattoir at Pyramid Hill, which processes goats and other animals employs 30-40 employees. The petfood factory at Pyramid Hill sources its product from the abattoir.

In addition to processing of agricultural products, there are a number of other manufacturing industries, such as Pyramid Salt, which employs 10 people. The company takes water from Box Creek and evaporates to make salt.

The Bendigo subgroup and the Upper North Central are home to a range of manufacturing activities. Bendigo is home to a world class company that designs rubber sealing elements, a new veterinary company with 97 associated companies producing pig vaccines, and ADI.

Further opportunities are seen to exist in expanding abattoirs, exporting hay to Japan and expanding local and export food processing.

Tertiary sector

The hospital at Bendigo is a significant employer and the sewering of Inglewood, Pyramid Hill and Boort over last few years has increased the opportunities for development.

Bendigo and the Upper North Central have significant tertiary sectors. Bendigo for example is home to Telstra hubs and call centre and the AAPT call centre.

Echuca is an important town for tourism and is located on the River Murray. The town is home to the largest paddlesteamer fleet in Australia, and also has an authentic working port. Paddlesteamers tour to nearby wetlands and redgum forests.

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10.4.4 Growth in jobs

The number of persons employed in the North Central catchment increased by 21% between 1996 and 2001 as compared to a population growth rate of 4% for the North Central catchment.

Between 1996 and 2001 there was an increase in the number of jobs for the Upper North Central of 21%, 28% for Bendigo, 14% for the Campaspe and 5% for the Loddon subgroup.

There are skill shortages in Bendigo particularly in the metal trades. For example when the railway workshops closed two years ago approximately 400-500 people became unemployed and moved to other locations where their skills were marketable. With expansion in irrigation and light industry there is now a shortage of these skills.

The growth in employment is unevenly distributed across the age groups and industries as shown in Figure 83 and Figure 84. A large increase in employed persons was experienced in the 15-24 years age bracket and the 40-64 years age bracket in the majority of catchment subgroups.

North Central Catchment % Change in employment by age group - 1996 to 2001

200%

150%

100%

50%

0% 15 - 19 20 - 24 25 - 29 30 - 34 35 - 39 40 - 44 45 - 49 50 - 54 55 - 59 60 - 64 65 - 69 70 +

Age Group -50%

Campaspe Greater Bendigo Upper North Central Loddon

Figure 83 Percentage change in employment by age group between 1996 and 2001 for the North Central catchment (Source: ABS Census 2001 and 1996, unpublished data)

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Figure 84 shows that in the North Central catchment essentially all industries experienced an increase in the number of persons employed. For the period 1996 to 2001, retail trade showing an increase of 4,000 persons employed.

North Central Catchment Change in the no. of persons employed by industry - 1996 to 2001

Agriculture, Forestry and Fishing

Mining

Manufacturing

Electricity, Gas and Water Supply

Construction

Wholesale Trade

Retail Trade

Transport and Storage

Finance and Insurance

Property and Business Services

Government Administration and Defence

Health and Community Services

Cultural and Recreational Services

Personal and Other Services

Not stated&NonClassifiable

-500 0 500 1000 1500 2000 2500 3000 3500 4000 4500

Figure 84 Change in the number of persons employed by industry between 1996 and 2001 for the North Central catchment (Source: ABS Census 2001 and 1996, unpublished data)

10.4.5 Unemployment rate

At the same time that the North Central catchment is experiencing an increase in employed persons and population, it is also experiencing high unemployment. In 2001, the unemployment rate was highest in the Central Goldfields-Bal (11.8%) followed by Greater Bendigo-Eaglehawk (11.5%), Greater Bendigo-Central (11.4%), Mount Alexander (S) - C'maine (10.9%), Central Goldfields Maryborough (10.2%) and Loddon-South 10%). Of the 20 SLAs, 11 were above the average of 6.8% for Victoria.

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The SLAs with the lowest unemployment rates were those along the River - Loddon-North (3.8%), Gannawarra (4.2%) and Campaspe-Rochester (4.3%), Campaspe-South (6.1%), Campaspe Echuca (6.3%) and some SLAs in the Upper North Central. Figure 85 shows the unemployment rate for SLAs in the catchment.

Figure 85 Unemployment rate for the North Central SLAs (2001)

10.4.6 Employment by occupation

For the selected occupations described in Chapter 3 the number of persons employed grew by 1% or 107 persons employed.

‘Farmers and Farm Managers’, experienced a 5% decline in employed persons between 1996 and 2001, from 5,773 to 5,508. ‘Farm Hands’ as a category increased, by 37% from 879 to 1,200. Other categories experiencing an increase included (in decreasing order of numbers of employed persons) gardeners (18%), nursery and garden labourers (51%), shearers (31%), animal trainers (7%), green keepers (17%), wool, hid & skin classers (26%) and a tripling of aquaculture farmers. There was a decline in agriculture and horticultural labourers of 73%.

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10.4.7 Infrastructure

Transport infrastructure includes a major highway to Melbourne and connecting roads throughout Victoria.

The transport network for agricultural products exists with a container loading facility in Boort (hay industry) and is privately owned. The facility links to Bendigo and Melbourne.

Although it does not have an airport, Echuca is on the major highway to Melbourne and is 2.5 hours drive. Bendigo is 1.5 hours from Melbourne.

Future transport proposals include the faster rail for Bendigo (January 2005) and duplication of the Calder highway for completion by 2010.

Some of the areas have recently been sewered (Inglewood, Pyramid Hill and Boort) increasing amenity of towns and providing greater opportunities for growth and development.

10.4.8 Household income

Figure 86 shows the median household income for SLAs in the North Central catchment for 2001 and the proportion of households earning less than $299 per week.

For the North Central catchment the proportion of households earning less than $299 per week is 13%. The average for the Study Area is 14%.

Figure 86 shows that for six SLAs the median income in 2001 for households was $700-799 per household per week, followed by five SLAs with $600- 699 SLAs. SLAs close to Melbourne, Macedon Ranges-Romesey and Macedon Ranges-Bal, had median household incomes of greater than $800 per week.

The Loddon subgroup is experiencing an increase in the number of people reliant on government support. This has taken place with the decline in population flowing through to a decline in retail and house prices, attracting families on lower incomes.

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Figure 86 Median Household income for SLAs in the North Central catchment and the Proportion of Households earning <$299 a week (Source: ABS Census 2001, published data)

10.5 Dependence on water

This section explores firstly the dependence of the communities on irrigated agriculture and secondly the dependence on the water resource highlighting non-agricultural uses. The information presented includes quantitative and qualitative descriptors.

10.5.1 Dependence on irrigated agriculture

This section provides an overview of the: • quantity of water irrigated agriculture consumed; • the value contribution of irrigated agriculture; and • the area of land devoted to irrigated agriculture.

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Irrigated water entitlements and usage

Both the Loddon and the Campaspe Subgroup have a number of organised irrigation areas, whereas the Bendigo and Upper North Central subgroups do not.

The Cap on long-term diversions for the valleys in the Victorian MDB relevant to the Study Area total 4,024 GL per annum. The entitlements held by irrigation companies or areas in the catchments in valleys of the Study Area including Goulburn/Broken/Loddon, Murray/Kiewa/Ovens, Campaspe and Wimmera/Mallee (contributes little or no water to the main stem of the River Murray) equates to approximately 2,076 GL per annum or 52% of the Cap (ANCID,2002). This figure is based on the summation of the irrigation entitlements for each of the irrigation areas in the Study Area. This figure may underestimate the entitlement to irrigated agriculture as a proportion of the Cap as the estimated entitlement for irrigation does not include private diverters.

Table 36 provides a summary of the water entitlements for irrigation in the irrigation areas in the North Central catchment. Some assumptions have been made in preparing the data for this table, which are summarized in the footnotes to the table. The total entitlement is 790 GL, of which approximately 1,235 GL were delivered in the 2001/2002 season (162%). A total of 5,820 irrigated holdings are involved, irrigating approximately 343,100 ha. These numbers underestimate the number of holdings and hectares as figures for Tresco and Nyah I.D were not available.

Table 36 Irrigation entitlements and average water delivered, farms, hectares irrigated by Irrigation Areas in the Murray Catchment Irrigation Areas No. of Ha Total Ha Entitle- Water Proportion Irrigated Irrigated ment (ML) delivered Delivered Holdings (ML) GMW Rochester - 1,290 66,700 66,700a 207,598 341,000 164% Campaspe GMW Pyramid-Boort 1,250 166,215 126,400 234,729 320,000 136% Torrumbarry 2,650 167,000 150,000 347,577 b 563,435 162% Tresco/Nyah ID 11,019 North Central Total 5,820 399,915 343,100 789,904 1,235,454 156% Source: GM-W website (2003) with the exception of: a No entitlement data available, so water delivered figure used; b ANCID (2002).

Irrigation areas in the North Central catchment include G-MW Rochester – Campaspe, G-MW Pyramid Hill, Torrumbarry, Tresco and Nyah Irrigation districts.

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The two main irrigation areas in the Loddon subgroup are the Pyramid-Boort and Torrumbarry Irrigation Areas.

G-MW Pyramid - Boort

The Loddon River flows through the Pyramid-Boort area extending from the Waranga Western Channel in the south, to the Macorna Channel in the north. Townships within the Area include: Tandarra, Dingee, Calivil, Bears Lagoon, Durham Ox, Boort, Pyramid Hill and Macorna. Some 1,250 properties or 846 irrigation customers are serviced in this area, via a network of natural waterways (150 km) and man-made distribution channels (1,391 km). Water right in the area totals 234,729 ML.

Water trade in the Pyramid-Boort area (126,400 ha suitable for irrigation) has resulted in a loss of water through the permanent TWE market. This year there was a loss of 2% in the Pyramid North area. Pyramid South and Boort irrigation zones have experienced an increase in water right over a 10 year period and during the current drought. Pyramid North and Pyramid Mid have experienced a net loss.

Zone Net Change ML % of Water Right % Loss 2002/03 1991/92-2002/03 1991/92 – 2002/03 only Pyramid North -21,560 -27.7 -2.0 Pyramid Mid -7,063 -15.9 0.04 Pyramid South 2,588 5.3 0.01 Boort 9,016 14.2 1.05 Total -17,018 -7.2 -0.04 Source Goulburn-Murray Water (2003)

Torrumbarry Irrigation Area

The Torrumbarry Irrigation Area is in Northern Victoria. The Area extends along the River Murray from Gunbower in the east to Nyah in the west and southwards to include the towns of Cohuna, Kerang and Swan Hill.

In addition to the 2,650 irrigation customers, GM-W delivers to a further 600 domestic and stock customers.

Torrumbarry Irrigation Area in the Gannawarra Shire is a net exporter of water. The farmers in the marginal areas are often older farmers and they are the ones mostly selling water rights which are easy to sell. They are then selling their land at a cheaper price.

There are opportunities for irrigation based on groundwater supplies to expand in the south-eastern part of Loddon. In 2002, 7,000ML of groundwater was auctioned.

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Economic contribution of irrigated agriculture

Based on the method described in Chapter 3, Volume 2, an estimate of the value of irrigated agriculture was generated.

Table 37 summarises the total value of irrigated agriculture as a proportion of the gross value of production for agriculture in the sub groups of the North Central catchment. The value of irrigated agriculture accounts for an estimated $471 million or approximately 53% of the gross value of agricultural production in the North Central catchment. The gross value of production for agriculture increased by 32% between 1997 and 2001.

Table 37 Gross Value of Agricultural Production and Irrigated Agriculture for the Goulburn Broken Catchment by Subgroup (2001) Total Value of Total Value Irrigated Proportion North Central Agriculture ($ Agriculture ($ million) Irrigated Subgroups million) Agriculture Loddon 456 285 62% Campaspe 247 163 66% Bendigo 96 23 24% Upper North Central 86 0 0% North Central Total 885 471 53% Source: IRDB Version 2002; proportions for irrigated agriculture for the North Central catchment are based on Myfora Pty Ltd - Michael Young & Associates, An Economic Profile of the Goulburn Broken Catchment (including the Shepparton Irrigation Region) 2000, for the Goulburn Broken Catchment Management Authority, GIS overlays of irrigation areas and SLAs.

The economy in general has a high dependency on water. For example, although there is no irrigation area in the Greater Bendigo sub group secondary industry relies on agriculture and irrigated agricultural produce is processed in Bendigo.

Area of irrigated agriculture

Figure 87 shows that the area devoted to irrigated agriculture in the North Central catchment is significant with approximately 20% of the Loddon subgroup and 25% of the Campaspe land area under irrigation. Irrigated agriculture is not significant in the Bendigo and Upper North Central subgroups.

The area of land devoted to irrigated agriculture increased by 9% between 1997 and 2001 as compared to an increase of 4% for all agriculture (AgStats, 2003).

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North Central Catchment Area of irrigated agriculture as a proportion of the total area of agricultural holdings (2001) 40% 35% 30% 25% 20% 15% Proportion 10% 5% 0% Loddon Campaspe Bendigo Upper North Central Subgroup

Figure 87 The area of irrigated agriculture as a proportion of the total area of agricultural holdings for the North Central (Source: AgStats 2003)

10.5.2 Dependence on water (excluding irrigated agriculture)

In addition to irrigated agriculture, the communities of the North Central catchment are dependent on the water resource and ecosystems as a result of non-consumptive uses as well as extractive uses for domestic consumption and industry.

The Kerang Lakes wetlands provide a range of uses including nature conservation, recreation, saline water disposal for irrigation, and irrigation water storage and transport. The Lakes also provide for sightseeing, camping, swimming, sailing, waterskiing, fishing, hunting and environmental studies. Waterbirds, including migratory species listed under the Japan- Australia and the China-Australia Migratory Bird Agreements also dependent on the Lakes for habitat. As described in Section 10.2.2, the Kerang Lakes is the world’s most populous ibis rookery (North Central CMA, 2002)

Little Lake Boort in the Loddon subgroup is an important water feature, underpinning the local economy by providing a resource for boating, recreation and surrounding camp grounds and accommodation providers.

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In a similar manner Lake Eppalock and Heathcote are located to the south of Bendigo. The local economies are driven by activities at the Lake with an estimated income of $20 million. There are approximately 1,600 caravans in the area. Water quality of the lakes is apparently a concern. At the moment the Lake is at 14% capacity. Industry Advice suggests that 50% is needed to have a good tourism season for the area (Industry Advice, pers. comm. 19/02/03).

Lifestyle and aesthetic/river attractions, including an expansion of the houseboat industry, have resulted in an increase in visitors from Melbourne residents, attracted lifestyle landholders, and resulted in increased population through employment and retirees.

Tourism is often considered an important element to many economies along the River Murray and its tributaries. This seems to be the case for some areas in the catchment and for the areas along the River, associated water features could be considered important factors. Figure 88 presents the results of the Australian Tourism Satellite Account. The description of the Satellite Account is provided in Chapter 3.

The results show that for all SLAs in the North Central catchment employment dependent upon tourism accounts for less than 5% of total employed persons. Tourism employment is highest in the Campaspe-Echuca catchment where it reaches 11%. Given Echuca was reported by the majority of interviewees as a town dependent upon tourism, this could possibly be seen as a benchmark of importance for a community.

Tourism also appears important in the Upper North Central. Proximity to Melbourne is a driving factor attracting people to reside in the Upper North Central and Bendigo (Industry Advice, pers. comm. 19/02/03).

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North Central Catchment Proportion(%) of Jobs by Industry by SLA

North Central Campaspe (S) - South Campaspe (S) - Echuca

Campaspe (S) - Rochester Gr Bendigo (C) - Central

Gr Bendigo (C) - Eaglehaw k Gr Bendigo C - Inner East Gr Bendigo C - Inner North

Gr Bendigo C - Inner West Gr Bendigo C - Pt B Gr Bendigo C - S'saye

Loddon (S) - North Loddon (S) - South Gannaw arra (S) Mount Alexander (S) - Balance Mount Alexander (S) - C'maine

C. Goldfields (S) - Balance C. Goldfields (S) - Marlborough

Macedon Ranges (S) - Balance Macedon Ranges (S) - Kyneton Macedon Ranges (S) - Romsey

0 10203040506070

Proportion (%) Tourism Agriculture/Fishing/Forestry Mining Manufacturing

Figure 88 Proportion of Jobs by Industry by SLA in the North Central catchment (Source: TTF Australia, 2001)

10.6 Community wellbeing and services

In this section we provide an overview of the social support services and community infrastructure present.

10.6.1 Access to goods, services and opportunities for social interaction (ARIA Score)

The ARIA Score – Remoteness and Accessibility - for the majority of the SLAs in the North Central catchment are all highly accessible except for Loddon and Gannawarra which are both accessible, where there are some restrictions to accessibility of some goods, services and opportunities for social interaction. Figure 89 shows the ARIA score by SLA.

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North Central Catchment ARIA Score by SLA (1999) (Remoteness) Loddon (S) - South Campaspe (S) - Rochester Campaspe (S) - South Macedon Ranges (S) - Kyneton Campaspe (S) - Echuca C. Goldfields (S) Bal

Macedon Ranges (S) - Romsey C. Goldfields (S) - M'borough Macedon Ranges (S) Bal Gr. Bendigo (C) - Pt B Mount Alexander (S) Bal Mount Alexander (S) - C'maine Gr. Bendigo (C) - Inner West Gr. Bendigo (C) - Inner North Gr. Bendigo (C) - S'saye Gr. Bendigo (C) - Inner East Gr. Bendigo (C) - Eaglehaw k Gr. Bendigo (C) - Central

- 0.5 1.0 1.5 2.0 ARIA Score

Figure 89 ARIA Score for SLAs in the North Central catchment (Source: Department of Health and Aging, 2001)

10.6.2 Tertiary services

There has been considerable expansion of services within the region with the increasing population and growing economy.

There is a TAFE in Echuca and a proposal for a university campus in process. Bendigo has a campus of La Trobe university.

Facilities for schooling vary across the catchment. School enrolments in primary and high schools in the Loddon are gradually declining. School enrolments over the last two years have fallen in the areas of Dingee, Serpentine, Rawood, Mitiana, and Calivil. Some schools are changing from K12 to K10.

Health facilities are located throughout the catchment however, specialist services are centred in Bendigo. For example, there is a hospital in Boort, in the north of Loddon, and managed community health centres in Ingelwood to the south. However, the communities in the Loddon rely on Bendigo for specialist services such as drug and alcohol specialists and youth services.

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10.7 Cultural heritage

Table 38 provides a summary of heritage sites categorised into Indigenous sites, spiritual places, constructed features (eg bridges, memorials etc), public and private buildings, natural features, heritage attractions (such as gold mining sites) and other. The information was captured from the Register of the National Estate; NSW Heritage Office; SA Heritage Register and Victorian Heritage Register.

Table 38 Heritage Sites and Places in the North Central Catchment LGA Indigenous Spiritual Constructed Public Private Natural Heritage Other (eg Site Places (eg Features (eg Build- Build- Features Attraction gold Church) Bridges) ings ings fields, etc)

Macedon Ranges 4 6 9 18 32 10 Central Goldfields 1 3 4 14 8 3 8 1 Mount Alexander 15 8 36 68 6 14 16 Gannawarra (S) 3 2 1 2 7 Loddon (S) 1 5 3 5 6 10 1 5 Greater Bendigo 14 13 40 41 13 5 15 Total 9 43 39 114 157 49 28 37 Source: Register of the National Estate; NSW Heritage Office; SA Heritage Register and Victorian Heritage Register though http://www.heritage.gov.au/ahpi/index.html (accessed 23/06/03). Note: Where there were no sites identified for SLAs they were not included in the above table -

Table 38 underestimates the number and significance of Indigenous sites in the North Central, with sites protected in national parks and state forests not listed.

10.8 Cumulative change and community response

The following provides an overview of the changes that have been taking place in the North Central catchment over the last 5-10 years.

Upper North Central

The major changes taking place in the Upper North Central subgroup are related to growth spurred on by proximity to Melbourne.

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Bendigo

Population and employment growth has been significant. There has been a significant increase in the number of retirees moving to the area (Industry Advice, pers. comm. 19/02/03). Retirees are attracted from Melbourne due to the lower relative house prices and accessibility to Melbourne. The result is population growth, stability, changing demographics, residential growth, and economic stimulus.

Loddon

Declining Terms of Trade: The area is affected by the declining terms of trade in agriculture with farm amalgamations taking place subsequently reducing the population. Further, it has become increasingly difficult to attract new people to the area with fewer new families moving in and retirees moving to Bendigo, where the housing is relatively cheap and a larger range of services are provided.

Drought: Whilst investment confidence has increased, the drought has resulted in a curbing of investor confidence with allocations of 53% of water to Victorian irrigation areas such as Boort. Torrumbarry Irrigation Area has received only 12.9% of its allocation. The area has developed to beyond 100% allocation having become reliant on large sales allocations.

As a result dairy production has declined, dairy farmers are selling their herds and permanent water right. Some farmers are looking to retire early and others have been forced off farm to find work. Community events are being held to bring people together and a community development officer is being employed. The Lodden Council has also begun a vision and planning process with the community.

Water trading: As a result of water trading, horticulture has expanded in the Boort area. A feasibility study commissioned by Ganawarra, Loddon and Bendigo Councils was undertaken in the region and as a result a new olive development is taking place with a planned 3,500 ha of olive trees. The Regional Infrastructure Development Board approved 24 GL/annum with the development to use 14 GL/annum. The corporation bought farms off locals and reemployed them.

The enterprise is a corporate investment (Olive Corp) and is targeting export markets. A processing plant is being built on site. Water is being delivered from the Waranga Western Channel. It is a significant regional project with the potential production estimated at 50,000 tonnes of olives and 10,000 tonnes of oil.

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Vineyards are also under development further west with a capacity to develop to 540 ha.

There are other projects in the pipeline for vineyards, stone fruit and walnuts (1,000 acres plus processing).

The effect of the expansion has been: • employment opportunities for a large area; • investor interest in building a hotel/backpacker (60 bed) establishment has submitted an investment application for $15 million; and • a slowing of the net loss of water from the region.

LWMPs: The LWMPs have been the major vehicle for change in the area. Some of oldest plans are for the Boort/Tragowell Plains. The planning process provided landholders with an opportunity to examine their practices and why they were doing what they were. It provided a dispassionate forum to assist in identifying what changes needed to be made. The next stages of LWMPs are in process, including the Loddon Murray 2000 + process which focuses on personal assets and what options are available. The Tragowell Plains communities have recently celebrated their achievements, which include the lowering of water tables, increased productivity, and a reduction of 28,000 ML in drainage to Barr Creek. Loddon Murray landholders are increasingly diversifying into other activities. The process and its outcomes has raised confidence in investment.

Campaspe

Drought: The rice mill in Echuca has recently closed resulting in 100 people being put out of work. This may also be connected with the completion of processing of the bumper 2001 crop. In the dairy industry there has been the sale of dairy herds from the area, the sale of water, early retirement of farmers, corporate change to GM-W (reduced customer base, loss of revenue), a reduction in spending, and processing factory layoff (Industry Advice, pers. comm. 25/02/03).

Water trading: The expansion of the dairy, wine and horticultural industries has been assisted by water trading with the movement of water into the higher value crops on the better soils. The less productive areas of the Shire have reverted to dryland. The pressure to reduce water use and losses given the high water prices has led to interest in retiring low productivity areas (eg 22% of water has moved out of Pyramid north), where infrastructure is aged and there is a reduced ability to maintain.

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Upgrade of irrigation systems: The upgrade of whole farm planning, laser grading, drainage and reuse has been undertaken. This has improved the efficiency of water use on farms with a reduced discharge. Vines and tomatoes are most commonly irrigated with drip irrigation. This has resulted in improved water use efficiency, reduced runoff and increased productivity.

10.9 Summary

The subgroups of the North Central catchment include the Upper North Central, Bendigo, Campaspe and Loddon Catchment.

Land use in the North Central catchment includes public land, with much of this reserved and managed for specific purposes including state and regional parks, flora reserves, reference areas and agriculture. The catchment is agriculturally diverse and has both irrigated and dryland agricultural systems.

The economy of the Upper North Central is concentrated in the tertiary sector, with a significant secondary sector and a small primary sector. The Campaspe subgroup has a larger primary sector, accounting for approximately 20% of employment activity, a sizeable secondary sector and a large tertiary sector. The Bendigo subgroup reflects a similar profile of employment activity as the Upper North Central however, with a smaller proportion employed within secondary industry. For the Loddon subgroup, a significant proportion of employment activity is based in the primary sector, followed by the tertiary sector. There is limited processing in the catchment with most of the product being exported.

The economy of the Upper North Central and Bendigo is diverse, relying on agriculture, manufacturing, urban development, government services, tourism and recreational activities. Land close to the major centres is increasingly developed for horticulture, with new and emerging agricultural commodities such as viticulture and olives, and for ‘lifestyle’ farming. The basis of the economies of the Loddon and Campaspe is food production. Food processing is also important in the Campaspe. The major irrigated agricultural industries are dairying and mixed farming. This is followed by horticulture.

The North Central catchment has been growing in terms of population, employment and economic activity. The population in the North Central catchment grew by 4% between 1996 and 2001. The growth varied between the subgroups with 6% growth in the Upper Goulburn, 6% in Bendigo, 6% in the Campaspe, however declining by 4% in the Loddon.

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The overall growth in persons employed for the North Central catchment was 21% between 1996 and 2001. Between 1996 and 2001 there was an increase in the number of jobs for the Upper North Central of 21%, 28% for Bendigo, 14% for the Campaspe and 5% for the Loddon subgroup. With expansion in irrigation and light industry there is now a reported shortage of metal- working skills. A large increase in employed persons was experienced in the 15-24 years age bracket and the 40-64 years age bracket in the majority of catchment subgroups.

The North Central catchment is well serviced with infrastructure, including a major highway to Melbourne and connecting roads throughout Victoria. Education provision is strong also, with a number of tertiary institutions present. There are two major infrastructure development proposals, which include the faster rail for Bendigo and duplication of the Calder highway for completion by 2010.

Despite the growth, the area does show some vulnerability to change. Whilst, the North Central is experiencing an increase in employed persons and population it is also experiencing high unemployment. The unemployment rate for 2001 was above the average for the state in eleven of the 20 SLAs. Further, the Loddon is experiencing an increase in the number of people reliant on government support.

Further, the age dependency ratio for North Central is 58%, which is higher than that for Victoria (49.6%). There were also some SLAs with a large proportion of the families being one-parent families such as Campaspe - South recording 31% of families as one-parent families, and Greater Bendigo – Central and Greater Bendigo - Eaglehawk recording 24% of the population as one-parent families.

Also, the Campaspe, Loddon and Bendigo economies and communities are dependent on water through irrigation in the Campaspe and Loddon subgroups. A total of 5,820 irrigated holdings are involved in agricultural production contributing 53% of the gross value of agricultural production or $471 million. The irrigation community has also experienced significant economic and social stress as a result of the drought.

Further, the irrigation areas of the Loddon subgroup have been net exporters of water, with salinity and rising water tables having essentially sterilised a number of areas for production. Drainage systems are one of the reasons why some areas continue to be productive.

The communities of the Campaspe do benefit from the growth in the tourist town of Echuca, which is dependent on the River Murray for tourism. The Loddon subgroup also features the Kerang Lakes wetlands, which provide for nature conservation, recreation, saline water disposal for irrigation, and

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irrigation water storage and transport. The Lakes also provide facilities for sightseeing, camping, swimming, sailing, waterskiing, fishing, hunting and environmental studies. Waterbirds, including migratory species listed under the Japan-Australia and the China-Australia Migratory Bird Agreements also depend on the Lakes for habitat.

The key strengths of the area include: • strong regional centres; • tertiary education; • diversity of natural resources; • investment and employment growth; • population growth; • lifestyle strengths along the river; • natural features; • heritage; • a range of facilities; • proximity to Melbourne; and • active community working in partnership with government on their long term survival.

The areas of vulnerability to change include: • significant cumulative change in the last 18 months with the recent drought; • ongoing management of salinity and high water tables; • little value-adding in the Loddon subgroup; and • dependence of the economy through the primary, secondary and tertiary sector on irrigation in the Campaspe and Loddon subgroups.

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11. Mallee Catchment

11.1 General background

The Mallee catchment covers close to 43,000 square kilometres. The major urban centre is Mildura followed by Swan Hill. Small towns in the area include Ouyen, Red Cliffs, Merbein, Robinvale and Nyah.

The Mallee catchment has been grouped into the Swan Hill and Mildura SLAs. This has been done to aid analysis. Figure 90 shows the Mallee catchment.

11.2 Physical environment, natural resources and their use

11.2.1 Water resources

The Lower Darling River and the River Murray play an essential role for irrigated horticulture and the local economy. There has been an increase in water entitlement in the area with the transfer of just under 10,000 ML per year over the past four years (Sunraysia Area Consultative Committee 2001).

In May 2003, the Victorian State government announced its support for a $300 million project as part of a 10 year plan – Water for the Future – for the new Wimmera-Mallee pipeline which will replace 17,500 km of open, earthen channels with a pipeline system throughout 2.3 million hectares of the region, saving approximately 93,000 ML of water that would normally be lost through evaporation and seepage (The Guardian, 2003)

11.2.2 Natural features

The region contains natural bushland, lakes and billabongs, species of native wildflowers (Swan Hill Rural City Council, 2003). The Nyah and Vinifera State Forests of red gum and box trees provide habitat for many native fauna species, as well as containing Aboriginal sites. The Hattah Kulkyne and Murray-Sunset National Parks cover areas of native Mallee lands and floodplain woodlands. The region also contains aquatic features other than the River Murray, including Lake Benanee and Lake Boga (Parks Victoria, 2001). There is also the Wyperfeld National Park. There are some 900 wetlands in the Mallee including 14 ‘high value’ wetlands. There are 500 small reserves used for conservation scattered through the agricultural area and large tracts of riverine and dryland state forest.

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Figure 90 Mallee Catchment

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11.2.3 Land Use

Land use in the Mallee region is diverse, with agriculture the principal activity, utilising 62% of the land. The region's semi-arid climate supports various primary industries including Victoria's largest cereal, citrus, vine and fruit growing activities.

Dryland farming includes sheep and cattle grazing, grains, legumes and hay crops. Irrigated agriculture includes citrus, vegetable production and horticulture.

Approximately 38% of the Mallee region is public land that consists mainly of parks as described above.

11.2.4 Environmental issues

Salt is seen as a major problem and has now become a commercial concern. Sunraysia Rural Water Authority contracts with the Government to provide services related to river management including the Sunraysia Salinity Management Plan, and the Nyah to the SA Border Salinity Management Plan.

11.3 Social geography and demography

This section provides a detailed outline of the population of each SLA, focusing on the socio-demographic profiles, described in Chapter 3, and mapping the results where possible.

11.3.1 Population size and change

In 2001, the total population in the Mallee catchment was 69,096, growing by 5% between 1996 and 2001. This growth rate compares to 6% for Victoria and 3% for the defined Study Area.

The population living in SLAs located in the Swan Hill section of the Mallee catchment increased by 4% between 1996 and 2001. The population in the immediate catchment of Swan Hill is approximately 20,000 with the majority living on or close to the river (Industry Advice, pers. comm. 18/02/03).

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The area surrounding Swan Hill – Central however, experienced a decline in population of 2%. Part of the growth in Swan Hill – Central is due to people moving in from dryland townships and from outside the region. However, small towns off the river have maintained their size including Managatang (approximately 450) and Ultima (approximately 250) (Industry Advice, pers. comm. 18/02/03).

Table 39 presents the total population of the SLAs within the Swan Hill subgroup.

Table 39 Population by SLA – Swan Hill Subgroup Aboriginal and Torres Total Population Count Mallee Strait Islander Population

1996 2001 % 1996 2001 % SLAs Total Total Change Total Total Change

Swan Hill (RC) – Robinvale 3,855 3,917 2 355 360 1 Swan Hill (RC) Bal 7,152 7,022 -2 72 121 68 Swan Hill (RC) – Central 9,385 9,771 4 323 356 10 Total 20,392 20,710 2 750 837 12

The population living in SLAs located in the Mildura section of the Mallee catchment increased by 7% between 1996 and 2001, with the population and growth taking place in the regional centre of Mildura. The population in the area declined by 12% in the same period. Table 40 presents the total population of the SLAs within the Mildura subgroup. The major towns to Mildura - Merbein, Irymple, Red Cliffs - are satellite towns and are not declining.

However, dryland townships are struggling. An exception includes Ouyen, which had a slight increase in population. The areas’ stock and domestic requirements are supplied by a pipeline from the Murray.

The decline in the population of the rural area has much to do with the declining terms of trade in dryland farming, which has stimulated an increase in farm size through amalgamation and subsequent reduction in farming families.

Another influence on the decline of populations in the dryland areas has been the development of irrigation properties by corporations such as an operation in South Australia near Pinnaroo growing vegetables for McCains. The operations are managed remotely without onsite staff.

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Table 40 Population by SLA – Mildura Subgroup Aboriginal and Torres Total Population Count Mildura Strait Islander Population

1996 2001 % 1996 2001 % SLAs Total Total Change Total Total Change

Mildura (RC) Pt A 40,644 44,194 9 780 1,071 37 Mildura (RC) – Pt B 4,774 4,192 -12 19 37 95 Total 45,418 48,386 7 799 1,108 39 Source: ABS Census 2001, 1996, published data.

Figure 91 shows the population of the SLAs in the Mallee catchment, with the population concentrated at Mildura Part A. Figure 92 shows the change in population for the SLAs in the Mallee catchment.

Figure 91 Total Population of SLAs in the Mallee catchment (2001)

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Figure 92 Change in the Total Population of SLAs in the Mallee catchment (1996 to 2001)

11.3.2 Age distribution

Figure 93 provides the proportion of each age group for the Mallee catchment. The proportion of all age groups above 40 years has increased since 1996, except for the 65-69 years age bracket. The proportion for the majority of the age groups below 40 years declined, except for the 15-19 years age bracket.

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Mallee CMU Proportion of Age Groupings of the Total Population 1996 and 2001

75+

70-74

65-69

60-65

55-59

50-54

45-49

40-44

35-39

Age Grouping 30-34

25-29

20-24

15-19

10-14

5-9

0-4

0% 2% 4% 6% 8% 10% Proportion 1996 2001

Figure 93 Proportion of the Age Group of the Population for the Mallee catchment for 1996 and 2001 (Source: ABS CDATA 2001)

Figure 94 presents the change in the proportion of the population for two age groupings, greater than 60 plus and those aged between 15 and 29 years.

The proportion of the population between the age of 15 and 29 years has declined for all SLAs in the Mallee catchment, except Swan Hill – Bal. The change in the proportion for this age group is reflected in the results for New South Wales (-0.4%).

The proportion of the population aged 60 years and above increased in all SLAs, except for Swan Hill - Robinvale. This result is reflected in the results for NSW (1%).

The last 5 years has seen a growth in residences designed for retirees with three developments styled around a cluster. They are self supporting, provide medical support, and a variety of support structures.

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Mallee CMU Mallee CMU Change in the proportion of people aged 60 yrs + of the total Change in the proporation of people aged 15-29 yrs of the total population (1996 to 2001) population (1996 to 2001)

Swan Hill (RC) Bal Swan Hill (RC) Bal

Swan Hill (RC) - Swan Hill (RC) - Robinvale Robinvale

Swan Hill (RC) - Swan Hill (RC) - Central Central

Mildura (RC) - Pt B Mildura (RC) - Pt A

Mildura (RC) - Pt A Mildura (RC) - Pt B

-1.0% -0.5% 0.0% 0.5% 1.0% 1.5% 2.0% -2.0% -1.5% -1.0% -0.5% 0.0% 0.5%

Figure 94 Comparison of the change in the proportion of people aged 60 years above and those aged between 15 and 29 years between 1996 and 2001 (Source: ABS CDATA 2001)

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11.3.3 Age dependency ratio

The age dependency ratio was 60% for the Mallee catchment and 49.6% for Victoria. As shown in Figure 95 the age dependency ratio is higher in the centres of Mildura and Swan Hill than surrounding rural areas. Figure 95 shows the ratio for SLAs in the catchment.

Figure 95 Total Age Dependency Rate (2001) for the SLAs of the Mallee catchment

11.3.4 Family types

In 2001, one-parent families accounted for 15% of the total number of families in the Mallee catchment, the Study Area and in Victoria. The highest proportion was recorded for the centres of Swan Hill – Central (17%) and Mildura – Part A (16%).

The proportion of persons divorced or separated in the Mallee catchment, the Study Area and NSW, of the total number of persons over 15 years in 2001, was 8% (ABS CDATA 2001).

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11.3.5 Non English speaking

In 2001, the proportion of persons who did not speak English well or at all was 9% for the Mallee, 4% for the Study Area and 11% for Victoria (ABS CDATA 2001). The highest recording was 16% for the SLA of Swan Hill – Robinvale. Industry sources (pers.comm. 18/2/03) highlighted that the horticultural enterprises at Robinvale drew on a large seasonal workforce, many of whom were from non-English speaking backgrounds.

Interviewees advised that a community capacity building officer has been funded by the Victorian Business Centre to assist with community needs.

11.4 Socio-economic profiles and economy

11.4.1 Presence of regional centres

The major centre of the Mallee catchment is Mildura, which also is serving the southern part of the Lower Murray Darling in NSW. Swan Hill also represents a regional centre for the population in both the Mallee, North Central and Murray catchments.

11.4.2 Employment by tiers of the economy

Figure 96 depicts the proportion of employment in each of primary, secondary and tertiary sectors for the Mallee Catchment. This has been grouped according to the Swan Hill SLAs and the Mildura SLAs.

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Mallee Catchment - Proportion of Employment by Primary, Secondary and Tertiary Sector (2001)

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Sw an Hill Mildura Catchment Subgroup

Primary Secondary Tertiary Not Stated

Figure 96 Mallee catchment – Proportion of Employment by Primary, Secondary and Tertiary Industry (Source: ABS 2001 Census, published data)

Figure 96 shows that economic activity in Swan Hill is characterised by a large agricultural base supported by a significant tertiary industry. The primary sector represents a large proportion of persons employed in Mildura. The secondary sector accounts for a smaller share of the employment activity. The tertiary sector is important for both subgroups.

11.4.3 Industry profiles

The significant expansion of horticulture over the last 7 years has resulted in growth in the tertiary and secondary sectors. Swan Hill was a small service centre based on dryland agriculture and as recently as 5 years ago it was difficult to lure retail chains to the area. However, with expansion in horticulture and growth in employment, the population of the area is raising investment confidence stimulating further investment. Young people are shifting to the area bringing new ideas. Chain stores are now present.

Opportunities for further development and diversification arise from: • secondary processing and packaging of horticultural produce; • further expansion of horticulture, mineral sands, tourism and agriculture in general, providing for population growth and opportunities for young people;

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• further expansion of tertiary industries, including the tourism industry. The industry has the opportunity to capitalise on its proximity to Murgo National park, which is an international destination and lies 300 kms to the north; • the new educational facilities in the form of La Trobe University which is setting up a campus; • capitalising on the interest associated with the solar tower proposal; and • servicing the expanding population of retirees to the area.

Figure 97 presents the proportion of people employed by industry within the Mallee catchment based on ABS Census statistics for 2001. The top three industries for employment are Agriculture, Forestry and Fishing, Retail Trade, and Manufacturing.

Mallee Catchment - Proportion of Persons Employed by Industry (2001)

Agriculture, Forestry and Fishing

Mining

Manufacturing

Electricity, Gas and Water Supply

Construction

Wholesale Trade

Retail Trade

Accommodation, Cafes and Restaurants

Transport and Storage

Communication Services

Finance and Insurance

Property and Business Services

Industry ofIndustry Employment Government Administration and Defence

Educ ation

Health and Community Services

Cultural and Recreational Services

Personal and Other Services

Non-classifiable economic units

Not stated

0% 5% 10% 15% 20% 25%

Figure 97 Proportion of Employed Persons by Industry for the Mallee catchment (Source: ABS Census 2001, published data)

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Primary Sector

There is a diversity of land use within the Mallee catchment. It is a specialist grain growing area diversifying from livestock production in the 1980s. The dominant irrigated crops in the Mallee catchment are citrus and grapes.

Primary production around Mildura includes irrigated citrus, wine grapes, stone fruit, and almonds and dryland cereal cropping and grazing. There are approximately 70,000 almond trees (corporate investor), a significant number of olives, and asparagus developments with the majority of product exported via air to Japan. There is ongoing investment in the wine industry, both for area planted and infrastructure (Ted Lowe, Department of State and Regional Development, pers. comm. January 03).

Mining is also an important, emerging industry. Mineral sands mining has commenced at Wemen near Robinvale region, both for extraction and processing which usually is done on site.

Secondary Sector

Secondary industry plays an important role in the economies of the Mallee catchment. Industry Advice (pers. comm. 18/2/03) suggests that whilst secondary industry is not yet significant, it is experiencing expansion with a new abattoir (90 people) with plans for export, factories (10-40 people), a winery (35 people) and packing sheds. There are only some manufacturing firms that do not service the agricultural industry. The following are examples of companies involved in processing agricultural produce. • Mildura Fruit Juices is one of Australia's largest industrial producers of fruit and vegetable juices. It employs 45 - 65 staff (depending on seasonal demand) and exports juices to Japan, Israel, Singapore and New Zealand. • Sunbeam Foods of Irymple markets, producing 75% of Australia's dried fruit (sourced from local growers), with exports to over 40 countries. Sunbeam employs 120 staff and has been exporting dried fruits since 1946. • Magnorn Orchards in Woorinen grows and exports mostly stone fruits. It employs around 20 staff in peak season and exports 50 of its produce to Taiwan, Singapore, Hong Kong, Britain, France, New Zealand and China. • Lanteri Pty Ltd, situated in Robinvale, was founded 30 years ago as a small brokerage. The company now grows vines across the country and has become Australia's biggest table grape grower. Lanteri's employs over 100 staff at peak season and exports 30 of its crop.

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• Buronga Hill Winery, near Buronga in the Sunraysia district, is Australia's largest winery in terms of grapes crushed. Exports account for around 20% of sales. Major markets include the UK, New Zealand, Europe and the US. Buronga Hill Winery employs around 120 staff during the vintage period and purchases fruit from 450 local growers.

In addition to manufacturing agricultural production, there is also light manufacturing including wheel manufacture, stainless steel manufacturer, and boat building.

Tertiary Sector

The growth in population has led to growth in service and tertiary sectors. This may have led to a further decline in smaller towns with people choosing to go to Swan Hill or Robinvale to undertake their shopping. The towns along the river appear to be consolidating as residential enclaves (Industry Advice, pers. comm. 18/02/03).

The tourism industry is small, contributing only 3% of the Gross Domestic Regional Product ($30 million). However, tourism is considered to have potential. The Mildura Murray Outback Tourism has resulted in a more unified industry (Sunraysia ACC, 2001). The Mildura Rural City Council supplied a regional visitor centre and a coordinated events function.

Horticulture development in the Sunraysia region is supported by a strong horticulture nursery sector.

In Mildura, there are a large number of people employed in the tertiary sector. For example, there are ten national sized and 35 small to medium enterprise trucking companies.

11.4.4 Growth in jobs

The growth in persons employed in Mallee catchment was 12% between 1996 and 2001 as compared to a population growth rate of 5% for the Mallee catchment. Between 1996 and 2001 there was an increase in the number of jobs for the Swan Hill subgroup of 10% and for Mildura subgroup of 12%.

The result of the expansion in horticulture has been growth of employment for environmental consultants with an increased requirement for environmental approvals in the area of groundwater and salinity impacts. There has also been an increase in wine vat makers (3 manufacturers established in last 10 years employing between 20-50 people each). This is a reasonably significant development and represents new jobs.

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The growth in employment is unevenly distributed across the age groups and industries as shown in Figure 98 and Figure 99 however, for the majority of age groups, there has been an increase in employment.

Mallee Catchment % Change in employment by age group - 1996 to 2001 70%

60%

50%

40%

30%

20%

10%

0% 15 - 19 20 - 24 25 - 29 30 - 34 35 - 39 40 - 44 45 - 49 50 - 54 55 - 59 60 - 64 65 - 69 70 + -10%

-20% Age Group

Mildura Swan Hill

Figure 98 Percentage change in employment by age group between 1996 and 2001 for the Mallee catchment (Source: ABS Census 2001 and 1996, unpublished data)

Figure 99 shows that the number of persons employed in wholesale trade, finance and insurance, and government, administration and defence declined between 1996 and 2001, whilst all other industries experienced an increase in the number of persons employed.

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Mallee Catchment Change in the no. of persons employed by industry - 1996 to 2001

Agriculture, Forestry and Fishing

Mining

Manuf ac tur ing

Electricity, Gas and Water Supply

Construction

Wholesale Trade

Retail Trade

Transport and Storage

Finance and Insurance

Property and Business Services

Government Administration and Defence

Health and Community Services

Cultural and Recreational Services

Personal and Other Services

Not stated&Non-classfiable

-400 -200 - 200 400 600 800

Figure 99 Change in the number of persons employed by industry between 1996 and 2001 for the Mallee catchment (Source: ABS Census 2001 and 1996, unpublished data)

11.4.5 Unemployment rate

In 2001, the unemployment rate was highest in the regional centre of Mildura – Part A (7%) followed by Swan Hill (6.7%) close to the average unemployment rate for Victoria (6.8%). The unemployment rate was lowest for the SLA of Mildura – Part B, which extends into the dryland agricultural areas of the Mallee. Unemployment in the centre of Swan Hill was below the average for the state at 5.3%. Figure 100 shows the unemployment rate by catchment.

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Figure 100 Unemployment rate for the Mallee catchment SLAs (2001)

11.4.6 Employment by occupation

For the selected occupations described in Chapter 3 the number of persons employed grew by 3% or 173 employed.

The most prevalent occupation within the selected categories, ‘Farmers and Farm Managers’, experienced a 4% decline between 1996 and 2001, from 3,692 to 3,554. ‘Farm Hands’ as a category increased by 16%. Other categories experiencing strong growth included (in decreasing order of employed persons) nursery and garden labourers (22%), nursery persons (35%), green keepers (13%), and farm overseers (86%). The nursery sector has expanded with the increase in horticulture.

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11.4.7 Infrastructure

The infrastructure for Mildura is strong with plans for further development. The following is an exerpt from the Sunraysia Mallee Economic Development Board’s annual report for 2002: • Mildura is a major freight gate for Freight Victoria and is linked by rail to the Ports of Melbourne, Geelong and Portland. Both road and rail systems offer refrigerated freight transport and perishable goods may also be airfreighted direct to Melbourne, Sydney and Adelaide. There is an ongoing struggle to improve the transport infrastructure for the Sunraysia region, which involves standardisation of the rail system. • Being at the intersection of major highways, Mildura has road access to state capitals and regional centres in Victoria, South Australia and New South Wales. • Mildura is the third largest transport distribution centre in the State, and provides an important link between the three capital cities. The amount of produce and supplies, which need to be transported, has increased the amount of transport infrastructure required. Wakefield’s transport is on average loading a train with 25 – 40 carriages each day to send to Melbourne ports. 70% of the produce is bound for export overseas. • The airport is one of the better provincial airports in Australia.

The natural gas pipeline to the Sunraysia Mallee region is complete reducing the cost of energy to the manufacturing sector (SMEDB, 2002).

There are a number of proposals to improve transport infrastructure including an intermodal port and a rail link to the intercontinental rail. Merbein (Wakefields) is the only registered inland port for Victoria. All quarantine and customs is completed inland.

11.4.8 Household income

There is a significant percentage of people on government benefits in the Mallee catchment (Industry Advice, pers. comm. 01/03/03). Organisations are being proactive in trying to engage these people including Mallee Family Care, which is an active, government funded organization established a long time ago.

Figure 101 shows the median household income for SLAs in the Mallee catchment for 2001 and the proportion of households earning less than $299 per week.

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For the Mallee catchment the proportion of households earning less than $299 per week is 14%. The average for the Study Area is 14% also.

Figure 101 shows that for the median income in 2001 for households was $600-699 per household per week.

Figure 101 Median Household income for SLAs in the Mallee catchment and the Proportion of Households earning <$299 a week (Source: ABS Census 2001, published data)

11.5 Dependence on water

This section explores firstly the dependence of the communities on irrigated agriculture and secondly the dependence on the water resource highlighting non-agricultural uses. The information presented includes quantitative and qualitative descriptors.

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11.5.1 Dependence on irrigated agriculture

This section provides an overview of the: • quantity of water irrigated agriculture consumed; • the value contribution of irrigated agriculture; and • the area of land devoted to irrigated agriculture.

Irrigated water entitlements and usage

The Cap on long-term diversions for the valleys in the Victorian MDB relevant to the Study Area total 4,024 GL per annum.

Table 41 provides a summary of the water entitlements for irrigation in the irrigation areas in the Mallee catchment. The main irrigation area is Sunraysia, located near Mildura, and also along the River Murray near Swan Hill and Robinvale. Downstream from Mildura is the First Mildura Irrigation Trust.

Some assumptions have been made in preparing the data for this table, which are summarised in the footnotes to the table.

The total entitlement is 399 GL, of which approximately 305 GL were delivered in the 2001/2002 season (76%). A total of 3,741 irrigated holdings are involved, irrigating approximately 36,000 hectares.

Table 41 Irrigation entitlements and average water delivered, farms, hectares irrigated by Irrigation Areas in the Mallee Catchment Irrigation Areas No. of Ha Ha Entitlement Water Proportion Irrigated Total Irrigated (ML) delivered Delivered Holdings (ML) Sunraysia Irrigation Schemes: Sunraysia Merbein 37,091 24,938 67% Sunraysia Robinvale 24,464 18,736 77% Sunraysia Redcliff 49,864 34,453 69% Total Sunraysia 1,465 32,392 29,153 111,419 78,127 70% Nyah to the Border 1,076 NA NA 202,674 178,837 88% Private Diverters First Mildura Irrigation 1,200 6,850 6,850b 85,055 47,586d 56% Trustc Mallee Total 3,741 39,242 36,003 399,148 304,550 76% Source: Sunraysia RWA Website; b No estimate was available so the total hectares for the area was used.c ANCID (2002) d 10 year average of deliveries.

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Sunraysia Rural Water Authority (RWA) delivers irrigation water within the Sunraysia region to the irrigation districts of Merbein, Red Cliffs and Robinvale. It also delivers water for stock and domestic purposes to the residents of the Millewa Rural District and the Waterworks District of Carwarp/Yelta. Private diversion activities from the Murray River between Nyah pumps and the South Australian border are also managed by the Authority, together with bulk supplies to the Lower Murray Water Authority for urban water supplies in Mildura and Robinvale. Bulk water supply to the First Mildura Irrigation Trust is also the responsibility of the Authority.

Sunraysia Rural Water Authority is responsible for the collection and disposal of sub-surface drainage water resulting from irrigation activities. The following table provides an overview of water use for irrigated agriculture.

There are two main irrigation areas and suppliers: • The Sunraysia RWA area is within the current boundaries of the Pilot Interstate Water Trading Zone; and • First Mildura Irrigation Trust (FMIT) also has 1,600 garden supplies in addition to irrigation customers. The major landuse in the Trust area is vines followed by vegetables. The main irrigation types in the Trust area are sprinkler and drip irrigation. Sub-surface drainage services 78% of the area (ANCID, 2002). FMIT is in the immediate Mildura area and as such is effected by residential growth with the expanding township encroaching into the FMIT irrigation district. .

The last five years have seen significant horticultural expansion. Water rights have been purchased to service large winery plantings and private industry plantings, which are under contract to wineries.

In addition to the local economies being dependent upon irrigated agriculture and produce, the agricultural produce from the area is significant on a national scale: • 42% of Australia’s wine grapes and table grape crop comes from the Sunraysia region; • 98% of the dried fruit exports are from the region; • 30% of citrus grown and exported in Australia is from this region; • 80-90% of Australia’s pistachio crop is from the region; and • 33% of Australia’s wine crush is from this area and exported to wineries along the Riverland.

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Economic contribution of irrigated agriculture

Based on the method described in Chapter 3, Volume 2, an estimate of the value of irrigated agriculture was generated. Table 42 summarises the total value of irrigated agriculture as a proportion of the gross value of production for agriculture in the sub groups of the Mallee catchment. The value of irrigated agriculture accounts for approximately 26% of the gross value of agricultural production or $223 million. The gross value of agricultural production increased by 51% between 1997 and 2001 (Ag Stats, 2003).

Table 42 Gross Value of Agricultural Production and Irrigated Agriculture for the Mallee Catchment by Subgroup (2001) Mallee Total Value of Total Value Irrigated Proportion Subgroups Agriculture ($ Agriculture ($ million) Irrigated million) Agriculture Swan Hill 342 125 37% Mildura 525 98 19% Mallee Total 867 223 26% Source: IRDB Version 2002; the proportions for irrigated for the SA MDB catchment was based on field work and publications of the Swan Hill Shire Council.

Area of irrigated agriculture

Irrigated agriculture accounts for approximately 5% of the land area devoted to agricultural production in the Swan Hill subgroup, and 2% of the Mildura subgroup. The area of land to irrigated agriculture increased by 26% between 1997 and 2001, as compared to an increase of 11% for all agriculture (AgStats 2003).

11.5.2 Dependence on water (excluding irrigated agriculture)

In the Mallee catchment, there are a range of uses and associations with the water resource and ecosystems in addition to irrigated agriculture including domestic and industrial consumption, stock watering, tourism, recreation, conservation and providing a sense of place.

Commercial tourism and recreation is considered to be the second largest employer in the region and growing. The river is a major attraction for the bulk of visitors – skiing, fishing, houseboats, riverine habitat, boating etc. It is estimated that business to accommodation providers is based 50% on outback and 50% on river related activities (Tourism Industry Advice pers. comm. 25/02/03).

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The marina to be developed at Mildura will be a major attraction for the area. Currently, many paddlesteamers and houseboats moor illegally increasing the area of the riverbanks impacted by rivercraft, affecting native vegetation.

The River Murray also provides transportation for various attractions including Trentham winery restaurant, the zoo and River-side Golf (Industry Advice, pers. comm. 25/02/03).

There is also a range of events held in the region which focus on the river.

Figure 102 presents the results of the Australian Tourism Satellite Account. The description of the Satellite Account is provided in Chapter 3.

The results show that for all SLAs in the Mallee catchment employment dependent upon tourism accounts for less than 5% of total employed persons. Tourism employment is highest in the Swan Hill Central area with 10% of employment associated with tourism.

Mallee Catchment Proportion(%) of Jobs by Industry by SLA

Mallee

Sw an Hill (RC) - Central

Mildura (RC) - Pt A

Sw an Hill (RC) - Balance

Sw an Hill (RC) - Robinvale

Mildura (RC) - Pt B

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0

Proportion (%) Tourism Agriculture/Fishing/Forestry Mining Manuf ac tur ing

Figure 102 Proportion of Jobs by Industry by SLA in the Mallee catchment (Source: TTF Australia, 2001)

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11.6 Community wellbeing and services

In this section we provide an overview of the social support services and community infrastructure present.

11.6.1 Access to goods, services and opportunities for social interaction (ARIA Score)

The ARIA Scores – Remoteness and Accessibility for the centres, Mildura Part A (2.7) and Swan Hill Central (2.9) identify them as accessible, that is there are some restrictions to accessibility of some goods, services and opportunities for social interaction. The remaining SLAs all have ARIA Scores identifying them as moderately accessible, where the communities have significantly restricted accessibility of goods, services and opportunities for social interaction. Figure 103 shows the ARIA Score for SLAs in the catchment.

Mallee Catchment ARIA Score by SLA (1999) (Remoteness)

Mildura (RC) - Pt B

Swan Hill (RC) - Robinvale

Swan Hill (RC) Bal

Swan Hill (RC) - Central

Mildura (RC) - Pt A

- 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 ARIA Score

Figure 103 ARIA Score for SLAs in the Mallee Catchment (Source: Department of Health and Aging, 2001)

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11.6.2 Tertiary services

Education

A significant change in education has been the increased availability for adult learning, growing significantly in the last decade. A new TAFE Campus has been established. Sunraysia Institute of TAFE offers a wide range of courses and has locations in Mildura, Swan Hill. The TAFE also has two Koori Liaison Officers. Courses include: • Arts & Community Education; • Business, Computing & Hospitality; • Industrial Technology; • Primary Industries & Environmental Science; • Automotive, Clothing, OH&S; • Building & Plumbing; • Health & Community Services; • Business and Computing; • Engineering/Electrical; • Further Education; • Environmental Science; • Primary Industry; • Administration & Office Technology; • Visual Arts; • Automotive, Building, Engineering; and • Koori and Art.

(Sunraysia Institute of TAFE, 2003)

There are also two secondary schools, which are competitive and large and small primary schools.

La Trobe has established a campus at Mildura to involve a $2-3 million purpose built unit.

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An important social and long-term issue for the community is the education and employment of indigenous youth. The Area Consultative Committee has appointed an Indigenous Employment Facilitator for the Mildura Grant STEP project in partnership with Centacare Employment (Industry Advice, pers. comm. 01/03/03).

Research

Horticulture development in the Sunraysia region is supported by research facilities and private sector organisations, including a strong horticulture nursery sector. The State government has allocated $10 million to the upgrade of the Sunraysia Horticulture Centre (SMFB, 2002).

The area is the base for the Cooperative Research Centre for Freshwater Ecology.

Health and Welfare

Mallee Family Care and the Northern Mallee Primary Health and Community Health Service is established and growing. The area is serviced by two hospitals, one of which is privately owned and the other operated as the Mildura Base Hospital. The majority of community welfare services are represented however there is a shortage of skilled staff across the health and welfare industries. Of particular concern is the shortage of nursing staff and skilled personnel such as Occupational Therapists and qualified counselling staff (Sunraysia ACC, 2001).

11.7 Cultural heritage

The Bookmark Biosphere area includes important cultural sites. Three Indigenous Nations border the area. The Bush and Backwater’s website provides a locational map. It has received Federal and State support and La Trobe University include the area in their campus scope.

Table 43 provides a summary of heritage sites categorised into Indigenous sites, spiritual places, constructed features (eg bridges, memorials etc), public and private buildings, natural features, heritage attractions (such as gold mining sites) and other. The information was captured from the Register of the National Estate; NSW Heritage Office; SA Heritage Register and Victorian Heritage Register.

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Table 43 Heritage Sites and Places in the Mallee Catchment Area Indigenous Spiritual Constructe Public Private Natural Heritage Other (eg Site Places (eg d Features Build- Build-ings Features Attraction gold fields, Church) (eg ings etc) Bridges) Swan Hill 6 6 2 2 2 2 Mildura 8 1 6 3 8 13 1 Mallee 1 1 2 1 5 Total 14 2 13 7 11 20 2 1 Source: Register of the National Estate; NSW Heritage Office; SA Heritage Register and Victorian Heritage Register though http://www.heritage.gov.au/ahpi/index.html (accessed 23/06/03).

Table 43 underestimates the number and significance of Indigenous sites in the Mallee, with sites protected in national parks and State Forest not listed.

11.8 Cumulative change and community response

The major changes that have taken place over the last 10 years in the Mallee catchment are as follows. Interviews in the area have provided the majority of input with data providing validation.

Swan Hill

Water trading: Water trading has led a significant expansion of horticulture and subsequently increased the reliance of the area on irrigation. At the same time as water is moving into Swan Hill water is moving from the south of Swan Hill to Sunraysia (Nyah to Mildura). Farmers in that area are buying high security licences from Victoria.

Historically, water was tied to the land in Robinvale and Swan Hill. Since the 1990s however, as a result of water reforms and the development of water trading markets, water has traded into the area. Horticulture development in that time has increased from approximately 10,000 to 20,000 ha. Investment in primary production has come from both corporations and families.

Investment in secondary processing is gathering momentum, with winery development, soft fruit packing for the export market, almond processing. Vegetables are also expanding in the Robinvale area with carrot juice being processed in the area for export to Japan. This enterprise provides employment to 180 people for three months of the year.

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Department of Employment, Education and Training has advised local government that over the last 2 years there has been an increase of 1,400 jobs, most in the services and retail sectors. Attracting skilled and unskilled labour has lead to increasing ethnic diversity via seasonal work opportunities and management opportunities for young professionals, attraction of retail/service industries, leading to transport development.

The area is experiencing housing shortages. As the population grows, conflict between residential development from growth and agricultural uses is arising. To combat this issue, the number of tenements per block have been limited for residential development.

Centralisation of government headquarters: The continuing centralization of government head quarters is an ongoing concern for small rural towns. Water authorities for example have shifted to Mildura, Bendigo, and Tatura.

LWMP: priority development zone planning has taken off as an extension to LWMPs. The planning guides development into those areas suitable for irrigation and away from those that are not. This provides more certainty and management of salinity risk.

Drought: The area has largely been cushioned from the drought because entitlements purchased for developments were all high security and thus received 100% of their allocation. Further, the dryland cropping areas have recently had some of their biggest years. The Northern Mallee pipeline which draws water from the Murray provides stock and domestic water, allowing farmers to run stock with watering during the drought as long as they have feed. This outcome is different to the 1980s where the drought nearly closed Swan Hill. The drought has affected the Lakes however, as they are drying out. There are concerns over toxic algae, dust and unstable lake sediments. The process however, is likely an important part of wetland cycles (The Guardian – Sunraysia Daily, 2003).

Mildura

Water trading: In the Sunraysia area there is little temporary trading within the pumped irrigation districts. Private diverters carry out most of the trade. In the past season 10,000 ML were brought into the region and around 5,000 traded out. The water has moved in from Pyramid Boort in the North Central catchment, while that which has moved out has predominantly gone to South Australia. In the FMIT area there is no trade between growers as farms are fully developed and they have reliable allocation. Water trading is therefore contributing to part of the expansion of horticulture and viticulture, increased population, attraction of retail/service industries and expansion of educational offerings. Housing and services are strained with the expansion.

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Change in irrigation technology and irrigation water application: Vineyards have shifted to drip irrigation and the practice of stressing vines to improve the quality of grapes for wine production is commonplace. Salinity management plans have also encouraged the shift. The efficiencies gained have resulted in further expansion of horticulture.

Removal of tariffs on juice concentrate: 5-6 years ago the citrus industry underwent a shock with the removal of tariffs and restrictions on juice concentrate blending rules. As a result citrus growers converted to wine grapes or producing oranges for the fresh fruit market. The impact of the slump was cushioned to some extent on the economies of the irrigation areas for at the same time wine grape production expanded. Melbourne’s Golden Circle is supplied with oranges from Riverland and Mildura.

Expansion of mineral sands: Significant deposits exist from Pooncarie to Hamilton. The rail link to the transcontinental underpins further expansion of the industry. Local businesses in the areas of Pooncarrie and Hamilton, Ouyen, Weeman, and Mildura have been invigorated. The industry needs water to expand. The negatives of the industry include a large number of trucks on the road. The mineral sands industry has the potential to generate significant employment.

11.9 Summary

The subgroups of the Mallee catchment include Swan Hill and Sunraysia.

Land use in the Mallee region is diverse, with agriculture the principal activity, utilising 62% of the land. The Mallee is a specialist grain growing areas diversifying from livestock production in the 1980s. The Sunraysia region has irrigated horticulture as its base. Swan Hill is a diversified economy with both dryland and irrigated agricultural products.

Secondary industry plays an important role in the economies of the Mallee catchment and is anticipated to expand. The tertiary sector is also significant.

Mildura, Robinvale and Swan Hill are serviced with a range of educational, health and research services. Mildura and satellite towns are also supported with a highway system connected to Melbourne, Sydney and Adelaide, a freight rail service, inland port (rail) and an airport. There are a number of proposals to improve transport infrastructure including an intermodal port and a rail link to the intercontinental rail.

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The Mallee catchment has been growing in terms of population, employment and economic activity. The population in the Mallee catchment grew by 5% between 1996 and 2001. However, the growth was centred in the urban areas of Swan Hill and Mildura with the surrounding areas declining by 12% in Mildura and 4% in Swan Hill.

The growth in population has led to growth in service and tertiary sectors. This may have led to a further decline in smaller towns with people choosing to move to Swan Hill or Robinvale. The towns along the river are consolidating as residential enclaves.

The number of persons employed in the Mallee catchment grew by 12% between 1996 and 2001 as compared to a population growth rate of 5% for the Mallee catchment.

Despite the growth, the area does show some vulnerability to change with an age dependency ratio of 60% in 2001, as compared to 49.6% for Victoria. Further, there is a high proportion of people who don’t speak English well or at all in the Mallee (9%) as compared to 4% in the Study Area. The highest recording was 16% for the SLA of Swan Hill – Robinvale.

Further, the catchment communities are dependent on water through irrigation, although to a lesser extent than the Riverland for example. A total of 3,740 irrigated holdings are involved in agricultural production contributing 26% of the gross value of agricultural production or $223 million. The communities of the Mallee are also dependent on water for tourism and recreation, stock watering, industry and domestic consumption.

There are many natural features present in the catchment including the Bookmark Biosphere area, which includes important cultural sites. There are also wetlands, national parks, and lakes.

The key strengths of the area include: • a strong regional centre; • tertiary education; • diverse agricultural base, in particular dryland and irrigated production; • investment and employment growth, although focussed in the centres; • population growth, again focussed in the centres; • lifestyle strengths along the river at Mildura and Swan Hill; • high security water entitlements; • emerging industry of mineral sands; • heritage; and • a range of facilities.

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The areas of vulnerability to change include: • dependence of the economy on irrigated agriculture; • aging population and high age dependency ratio; • population decline in the rural areas; and • proportion of people who do not speak English well or not at all.

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12. South Australia MDB Catchment

12.1 General background

The South Australia MDB (SA MDB) catchment area is 6.9 million ha and includes the SLAs of Berri, Barmera, Renmark, Paringa, Loxton, Waikerie, Unincorporated Riverland, the Coorong, Karoonda East, Mid Murray, Murray Bridge and parts of Alexandrina (Coastal and Strathalbyn). Figure 104 shows the SA MDB.

The SA MDB has been grouped according to the following subgroups to assist with analysis: • Riverland (Renmark and Paringa, Berri and Barmera, Loxton and Waikerie SLAs); and • Murraylands (Mid-Murray, Murray Bridge, Alexandrina – Coastal and Strathalbyn, the Coorong and Karoonda-East Murray).

The SLA boundaries approximate the boundaries of the SA MDB and include those that are influenced by the River Murray.

12.2 Physical environment, natural resources and their use

12.2.1 Water resources

South Australia has an entitlement flow outlined in the Murray Darling Basin Agreement. This is outlined in Chapter 4.

The Riverland is supplied by water from the River Murray. The Murraylands also relies on water from the River Murray and to a lesser extent on tributaries that flow from the Adelaide Hills.

Adelaide and much of rural South Australia and the Iron Triangle industrial towns of Port Pirie, Port August and Whyalla, although not within the MDB, also rely on the River Murray for water supplies (MDBC, 2001).

Adelaide and other metropolitan centres in South Australia draw their water partly from the Murray and also from the Adelaide Hills and the Adelaide Plains. In a normal year, about half the water is extracted from the Murray and the other half from the Adelaide Hills and its catchments around it. In dry years, the city draws up to 90% of its water supply from the Murray River.

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Figure 104 South Australia MDB Catchment

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12.2.2 Natural features

The Riverland is home to the Bookmark Biosphere and the Chowilla Floodplain. In the region there are spectacular gorges and protected lagoons along the lower Murray, and the Punyelroo caves and Ngaut Ngaut Conservation Park (Captain Cook Cruises, 2002).

Also located in the region is the Murray River National Park (Bulyong Island, Lyrup Flats and Katarapko) which include examples of floodplain and Mallee terrain and vegetation, and the Loch Luna Game Reserve, which contains wetlands of interwoven creeks and swamps linking the Murray River and Lake Bonney (Berri and Barmera Visitor Information Centres, 2001).

12.2.3 Land use

Land use in the SA MDB varies across the catchment and includes grazing, cropping, irrigated horticulture and viticulture, irrigated pastures, dairying, conservation areas, national parks, and urban areas.

Irrigation areas are concentrated in the Lock system from the NSW / South Australian border through to Morgan. Irrigated dairy and horticulture also takes place through the Lower Murray Swamps. Viticulture is expanding approximately 30 kms west of Murray Bridge.

Small lot subdivision for hobby farms and viticulture is a feature of the eastern side of the Adelaide Hills. Farm landscapes are changing in the Hills while broadacre grazing and riverine irrigation occur along the Murray and its tributaries. Competition for water is experienced in the tributaries, exacerbated by strong controls over groundwater access.

12.2.4 Environmental issues

Much of the Riverland is dependent on subsurface drainage. Water tables and salinity are high with significant upward pressure. Without the drainage schemes in place, many areas of the Riverland would be under water. In some areas, drainage has stopped with improvements in water use efficiency and the drought however, groundwater mounds still remain.

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Another significant issue in the Riverland is that the flood plain wetlands at present are suffering from a lack of water with the last flooding experienced in 1992/93. There is a strong perception that the Lock system could be used to control the wetting and drying of wetlands to improve environmental health and in particular satisfy the requirements of River Red Gums for a one in three year flood.

A report prepared by the Wentworth Group of Concerned Scientists for the World Wide Fund for Nature found that the lower Murray River now effectively experienced drought conditions one year in two. Under natural conditions it was one year in 20. Native fish populations are also at 10% of their pre-European settlement levels and 16 of the Basin’s 35 native fish species are now listed as threatened. The causes are considered to include relentless cumulative impact of land clearing, agricultural and urban development, river regulation and irrigation (Austin, 2003).

Local Action Plans (LAP), which are developed by Local Action Planning Groups in South Australia, aim to increase awareness of water issues and land and vegetation management solutions. There are a number of groups in the Riverland working to improve wetlands, irrigation water use efficiency and find productive activities in areas affected by salt. There has been a recognised improvement in landholder awareness since the formation of the program w hic his funded by NHT.

In the Murraylands there are concerns for water quality, dryland salinity and improved water use efficiencies. In the south of the Murraylands, dryland salinity poses a strong risk. Groundwater quality is in decline and vegetation cover is limited. These issues are considered by some to be driving a degree of amalgamation of dryland farms leading to a slow decline in population.

Alexandrina Council is taking a lead role in building greater community awareness for issues through: • LAP implementation and funding; • adoption of new vineyard development guidelines which seek to improve irrigation practices; and • reviewing its development plan for consistency with the Catchment and Water Management Plan.

The Coorong Council is also working to stabilise population and service levels, through running natural resource management (NRM) response programs. Through its leadership, considerable investment is going into NRM, specifically into community awareness, involvement in LAP programs and land-owner participation in devolved grants projects.

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Coorong Council, together with the fishing and boating groups, are advocating for rehabilitation of the lower end of the MDB and opening of the Murray Mouth. It was reported in May 2003 that no significant water flowed through mouth since December 2001, which was the longest period in history of Australian settlement. The resulting impact of salinity on the Coorong is a concern to tourism operators, environmentalists, local government, the general public and residents (Shepparton News, 2003).

In addition to the areas in the MDB, the water supply of Adelaide, the Iron Triangle and rural South Australia is affected by rising salinity levels. Professor Peter Cullen, a member of the Prime Minister’s Science, Engineering and Innovation and past Director of the CRC for Freshwater for Freshwater Ecology stated: over the 20 to 30 years, at current levels, salinity will increase to the stage where it will be outside World Health Organisation recommended drinking levels for much of the year. That's serious for Adelaide. ( http://www.abc.net.au/science/slab/salinity/default.htm 8 April 2003). Mr Crean, was reported in the Deniliquin Pastoral Times, 2003 as stating that Adelaide’s water supply would be undrinkable in two days out of five.

Industry will be impacted as Adelaide’s water quality deteriorates. Aggregated effects include greater cost to industry and householders of replacing for example hot water heaters, as increasing salt levels rust infrastructure and appliances.

The impacts of unpleasant tasting water can extend to retarding of tourism, infrastructure investment, and industry development, for example beverage and food processing.

Water quality impacts on Adelaide are not restricted to salinity. Other degrading impacts on water quality - including turbidity, nutrients, pathogens, endocrine receptors - representive increases in treatment costs for Adelaide.

The perception that the Adelaide and South Australian communities are burdened with water quality and quantity constraints has the potential to impact on investor confidence in general as well as social well-being. Alternatively, it may act as a stimulus for city leadership and innovation, building models for addressing water issues worldwide.

Several water futures for Adelaide and associated towns can be envisaged. The costs of greater independence of the Murray River for water supplies (stringent efficiency targets, desalination, retrofitting rain water tanks, or reuse schemes), weighed up against costs to industry specifically and community in general of continued and increasing dependence on MurrayRiver water.

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12.3 Social geography and demography

This section provides a detailed outline of the population of each SLA, focusing on the socio-demographic profiles, described in Chapter 3, and mapping the results where possible.

12.3.1 Population size and change

The population for the SLAs in the SA MDB catchment grew by 4% between 1996 and 2001 to a total of 80,807 people. This growth rate compares to 3% for South Australia and 3% for the defined Study Area.

The population of The Coorong and Loxton – Waikerie West were the only SLAs in the SA MDB to experience a decline in population.

The population living in SLAs located in the Riverland increased by 1% between 1996 and 2001. Table 44 presents the total population of the SLAs within the Riverland subgroup.

Table 44 Population by SLA – Riverland Subgroup Riverland Total Population Aboriginal and Torres Strait Islander Population 1996 2001 % 1996 2001 % SLAs Total Total Change Total Total Change Renmark Paringa (DC) - Paringa 1,752 1,766 1 21 23 10 Renmark Paringa (DC) - Renmark 7,814 7,921 1 105 187 78 Berri & Barmera (DC) - Barmera 4,279 4,284 0 103 114 11 Berri & Barmera (DC) - Berri 6,739 6,939 3 149 214 44 Loxton Waikerie (DC) - East 7,116 7,268 2 55 80 45 Loxton Waikerie (DC) - West 4,691 4,608 -2 47 60 28 Total 32,391 32,786 1 480 678 41 Source: ABS Census 2001, 1996, CDATA 2001; Unincorporated Riverland records zero population.

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Table 45 presents the total population of the SLAs within the Murraylands subgroup. The population living in SLAs located in the Murraylands increased by 6% between 1996 and 2001 with growth along the coast greater than that for the state. The population is centred in Murray Bridge. The SLA of Alexandrina – Coastal includes the town of Goolwa and extends into the Fleurieu region which is outside of the Study Area.

The area's proximity to Adelaide and a boom in boating interest levels underpin the rising cost of property and rentals in the tourist townships; and the industry expansion and employment in other towns eg Strathalbyn.

Table 45 Population by SLA – Murraylands Subgroup Murraylands Aboriginal and Torres Total Population Strait Islander Population 1996 2001 % 1996 2001 % SLAs Total Total Change Total Total Change Alexandrina (DC) - Coastal 7,915 9,243 14 74 117 58 Alexandrina (DC) - Strathalbyn 7,502 8,192 8 38 43 13 Mid Murray (DC) 7,965 8,433 6 98 118 20 Murray Bridge (RC) 15,880 16,508 4 623 695 12 The Coorong (DC) 5,946 5,645 -5 286 281 -2 Total 45,208 48,021 6 119 1254 12 Source: ABS Census 2001, 1996, CDATA 2001

Figure 105 shows the population of the SLAs in the SA MDB catchment. Murray Bridge and Strathalbyn have benefited over time from settling of commuters to Adelaide with the finalisation of the highway from Adelaide reducing travelling time to approximately 1 hour.

The townships between Murray Bridge and Wellington are within easy driving distance from Adelaide and new residents are attracted given the cheaper housing prices. The result is increasing residential development in attractive rural and riverine areas. There has also been an increase in industries supplying urban markets that need cheaper land, access to the eastern seaboard as well as Adelaide, or large buffer zones required for agricultural activities. Council, State and Development Board initiatives are actively promoting industrial development in and around Murray Bridge (Industry Advice, pers. comm. 06/03/03).

Figure 106 shows the change in population for SLAs in the SA MDB. Those closest to Adelaide, the coast and the River Murray have increased.

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Figure 105 Total Population of SLAs in the SA MDB Catchment (2001)

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Figure 106 Change in the Total Population of SLAs in the SA MDB catchment (1996 to 2001)

12.3.2 Age distribution

Figure 107 provides the proportion of each age group of the total population for the SA MDB catchment for ABS Census years 1996 and 2001.

The proportion of the majority of age groups above 40 years increased between 1996 and 2001, except for the 45-49 and 65-69 years age group. The proportion for the majority of the age groups below 40 years declined, except for the 15-19 year old age group.

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SA MDB CMU Proportion of Age Groupings of the Total Population 1996 and 2001

75+

70-74

65-69

60-65

55-59 50-54

45-49

40-44 35-39

Age Grouping 30-34

25-29 20-24

15-19

10-14

5-9

0-4

0% 2% 4% 6% 8% 10% Proportion 1996 2001

Figure 107 Proportion of the Age Group of the Population for the SA MDB catchment for 1996 and 2001 (Source: ABS CDATA 2001)

Figure 108 presents the change in the proportion of the population for two age groupings, greater than 60 plus and those aged between 15 and 29 years.

The proportion of the population between the age of 15 and 29 years has declined for all SLAs in the SA MDB, except the for SLA Berri & Barmera – Berri. The change in the proportion for this age group is reflected in the results for South Australia (-4.2%).

The proportion of the population aged 60 years and above increased in all SLAs. This result is reflected in the results for South Australia (1%).

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SA MDB CMU SA MDB CMU Change in the proportion of people aged 60 yrs + of the total population Change in the proporation of people aged 15-29 yrs of the total (1996 to 2001) population (1996 to 2001)

The Coorong (DC) The Coorong (DC)

Renmark Paringa (DC) - Renmark Renmark Paringa (DC) - Renmark

Renmark Paringa (DC) - Paringa Renmark Paringa (DC) - Paringa

Murray Bridge (RC) Murray Bridge (RC)

Mid Murray (DC) Mid Murray (DC)

Loxton Waikerie (DC) - West Loxton Waikerie (DC) - West

Loxton Waikerie (DC) - East Loxton Waikerie (DC) - East

Berri & Barmera (DC) - Berri Berri & Barmera (DC) - Berri

Berri & Barmera (DC) - Barmera Berri & Barmera (DC) - Barmera

Alexandrina (DC) - Strathalbyn Alexandrina (DC) - Strathalbyn

Alexandrina (DC) - Coastal Alexandrina (DC) - Coastal

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% -3.0% -2.5% -2.0% -1.5% -1.0% -0.5% 0.0% 0.5% 1.0%

Figure 108 Comparison of the change in the proportion of people aged 60 years above and those aged between 15 and 29 years between 1996 and 2001 (Source: ABS Census 2001)

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12.3.3 Age dependency ratio

The age dependency ratio for the SA MDB was 57%, above the average of 51.9% for South Australia. The age dependency for the majority of the SLAs within the catchment are within the 57-63% range. Figure 109 shows the ratio for SLAs in the catchment.

Figure 109 Total Age Dependency Rate (2001) for the SLAs of the SA MDB catchment

12.3.4 Family types

In 2001, one-parent families accounted for 13% of the total number of families in the SA MDB catchment, and 15% of families in the Study Area and 16% of the families in South Australia. The Unincorporated Riverland area, which extends north from the River Murray, recorded 26% of the families as one parent families. Murray Bridge followed with 17% of the families being one-parent

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families. The lowest proportion of one-parent families was recorded for Renmark & Paringa – Paringa (7%).

The proportion of persons divorced or separated in both the SA MDB and South Australia, of the total number of persons over 15 years, was 9%. The proportion for the Study Area was 8% in 2001 (ABS CDATA, 2001).

12.3.5 Non English speaking

In 2001, the proportion of persons who did not speak English well or at all was 5% for the SA MDB, 4% for the Study Area and 7% for South Australia (ABS CDATA, 2001). The percentage was highest for the SLAs Renmark Paringa – Renmark (15%) and Loxton Waikerie – West (11%).

12.4 Socio-economic profiles and economy

12.4.1 Presence of regional centres

The major regional centre in the SA MDB is Murray Bridge located in the Murray lands. Berri is now the administrative centre of the Riverland. Berri has many government services, however each of the towns Berri, Loxton and Renmark could be considered centres. Goolwa, on the shores of Lake Alexandrina is also an important centre for commercial fishing, tourism and residential development.

12.4.2 Employment by tiers of the economy

Figure 110 shows the proportion of employment in each of primary, secondary and tertiary sectors for the SA MDB Catchment.

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SA MDB Catchment Proportion of Employment by Primary, Secondary and Tertiary Industry (2001)

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Murraylands Riverland

Catchment Subgroup

Pr imar y Secondary Tertiary Not stated

Figure 110 SA MDB catchment – Proportion of Employment by Primary, Secondary and Tertiary Industry (Source: ABS Census 2001, published data)

Figure 110 shows that employment activity in the Riverland and Murraylands is characterised by a large tertiary industry and a sizeable primary sector. The secondary sector accounts for a greater proportion of employment in the Murraylands than the Riverland.

12.4.3 Industry profiles

Figure 111 presents the proportion of people employed by industry within the Riverland and Murraylands subgroup of the SA MDB catchment based on ABS Census statistics for 2001. The top three industries for employment are Agriculture, Fishing and Forestry, Manufacturing, and Retail Trade.

The growth in population is generating a diversity and growth of intensive production, processing and transport industries; employment growth in skilled and unskilled work; population growth; increase in regional shopping and medical facilities; and increasing education services.

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SA M DB Catchment (Riverlands) - Proportion of Persons Employed by Industry (2001)

Agriculture, Forestry and Fishing

Mining

Manufacturing

Electricity, Gas and Water Supply

Construction

Wholesale Trade

Retail Trade

Accommodation, Cafes and Restaurants

Transport and Storage

Co mmunicat io n Services

Finance and Insurance

Property and Business Services

Government A dminist rat ion and Def ence Industry of Employment

Educat ion

Healt h and Co mmunit y Services

Cult ural and Recreat ional Services

Personal and Ot her Services

No n-classif iab le eco no mic unit s

Not stated

0% 5% 10% 15% 20% 25% 30%

SA M DB Catchm ent (Murraylands) - Proportion of Persons Employed by Industry (2001)

A griculture, Forestry and Fishing

M ining

Manufacturing

Electricity, Gas and W ater Supply

Construction

W ho lesale Trad e

Retail Trade

Accommodation, Cafes and Restaurants

Transp o rt and Sto rag e

Communication Services

Finance and Insurance

Pro p erty and B usiness Services

G o vernment A d ministratio n and D efence Industry of Employment of Industry Ed ucatio n

Health and C o mmunity Services

C ultural and R ecreatio nal Services

Perso nal and Other Services

N o n-classifiab le eco no mic units

N o t stated

0% 5% 10% 15% 20% 25%

Figure 111 Proportion of Employed Persons by Industry for the Riverland and Murraylands subgroup of the SA MDB catchment (Source: ABS Census 2001, unpublished data)

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Primary Industry

Vineyard development throughout the Riverland and also in the Murraylands is extensive, with corresponding increases in employment, and in the population of small towns. This development is highly dependent on the health of the wine industry. There is also some expansion of dairying.

The Coorong district has a more diverse agricultural base, with dryland farming making strong contributions. Irrigated dairy is a major contributor as well.

Raukkaan is a successful indigenous dairy enterprise relying on water allocated from the Lake.

Secondary Sector

With the expansion in irrigated agriculture there has been an expansion in manufacturing activities, including wine vat makers. For example, through the expansion of almonds, support industries have established including a major manufacturer of almond shakers.

Secondary industry (manufacturing) plays an important role in the economies of the SA MDB. The following are some examples. • Australian Native Produce Industries, based in Paringa, produces gourmet food products using native Australian ingredients. The company’s focus in 2000 was on the United Kingdom market where exports were projected at around $3-5 million for 2000. The company employed 15 people directly in 2000 and had an estimated 100 growers under contract. • Located in Loxton, Australian Vintage, part of the Simeon Group, exports an estimated $30 million of wine annually. New Zealand is its largest export market, followed by Europe, Japan and the US. The company employs approximately 100 people in the Riverland area directly and is supplied by over 100 growers, returning nearly $8 million to the region in wages annually. • Based in Berri, Riversun Export Pty Ltd coordinates the export of a large proportion of Australia’s navel oranges and is the largest exporter of citrus fruit to the United States. The company’s exports to the United States are expected to reach around $57 million in 2000. • Based in Moorook, Knispel Bros has been exporting long-life milk products to New Zealand for 15 years and began exporting fruit juices to Japan in 1992. Fruit juice and long-life milk exports were expected to reach around $700,000 and $300,000 respectively in 1999-2000. • Almondco exports raw and blanched almonds around the globe from its Renmark factory, which is renowned as one of the world’s leading almond processing plants. Exports totalled around $11 million in 1998-99, with 50%

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of this going to India. The company has 21 full time employees and an additional 20 seasonal staff. • Enviromist Industries in Berri manufactures agricultural spraying machinery, which it exports throughout the world. The United States is its largest market. Exports in 1999-2000 were around $3 million. 20 staff work at Enviromist. • GJ Dix Pty Ltd manufactures crop filtration systems and machines for labelling fruit and other fresh produce. The company has about 35 staff at its Renmark factory. Filtration systems are primarily exported to the United Arab Emirates, while the United States is the largest export market for the company’s labelling machines. • Horwood Bagshaw (formerly Shearers) at Mannum, manufacturers of farm equipment, employing approximately 50 to 100 (MDBC 2002c). • Allowrie Foods processes milk, cheese, and other dairy products, including Fruche. • Dairy Vale Co-operative dairy; • Metro Meats abattoir; • Milling Industries flour and stockfeed mill; • Steriline Manufacturing (centre pivot irrigation equipment, racecourse starting gates, gymnasium equipment); • Hardies Irrigation (domestic irrigation equipment); • Clipseal Switchgear (part of the Gerard Industries group); and • Nilsen Electrical. (MDBC 2002c)

Tertiary Sector

Figure 110 shows that for each subgroup the tertiary sector plays an important role. Tourism and recreation are an important component of this sector. The sector includes visitors involved in fishing, boating, house-boating, visiting natural attractions, driving holidays, visiting wineries, and holidaying in holiday ‘shacks’ located along the river.

In addition, there are a large number of services provided to the irrigation industry that have expanded with the expansion of grape growing for wine production. There has been an expansion of service industries, including packing and transport.

The Murrayland’s proximity to Adelaide contributes to it attracting one of South Australia’s largest levels of day trip visitation (South Australian Tourism Commission 2002).

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12.4.4 Growth in jobs

The growth in the number of persons employed in the SA MDB catchment was 5% between 1996 and 2001 as compared to a population growth rate of 4% for the SA MDB catchment.

Growth was concentrated in the older age groups with declines in the number of persons employed in the 20 to 39 years age bracket.

The growth in employment is unevenly distributed across the age groups and industries as shown in Figure 112 and Figure 113.

SA MDB Catchment % Change in employment by age group - 1996 to 2001 70%

60%

50%

40%

30%

20%

10%

0% 15 - 19 20 - 24 25 - 29 30 - 34 35 - 39 40 - 44 45 - 49 50 - 54 55 - 59 60 - 64 65 - 69 70 + -10%

-20% Age Group -30%

Murraylands Riverland

Figure 112 Percentage change in employment by age group between 1996 and 2001 for the SA MDB catchment (Source: ABS Census 2001 and 1996, unpublished data)

Figure 113 shows that the number of persons employed in mining, electricity, gas and water supply, wholesale trade, finance and insurance, and cultural and recreational services, declined between 1996 and 2001 whilst all other industries experienced an increase in the number of persons employed.

This is the only catchment for which there has been a decline in employment in the cultural and recreational services industry.

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SA MDB Catchment Change in the no. of persons employed by industry - 1996 to 2001

Agriculture, Forestry and Fishing

Mining

Manufacturing

Electricity, Gas and Water Supply

Construction

Wholesale Trade

Retail Trade

Transport and Storage

Finance and Insurance

Property and Business Services

Government Administration and Defence

Health and Community Services

Cultural and Recreational Services

Personal and Other Services

Not stated&NonClassifiable

-800 -600 -400 -200 0 200 400 600 800 1000

Figure 113 Change in the number of persons employed by industry between 1996 and 2001 for the SA MDB Catchment (Source: ABS Census 2001 and 1996)

12.4.5 Unemployment rate

In 2001, the unemployment rate was highest in the SLA of the Unincorporated Riverland (12.1%), followed by Murray Bridge (9.8%), and then Mid Murray (8.6%). The unemployment rate for the remaining SLAs was below the average for South Australia of 7.6%. The unemployment rate was lowest for Loxton Waikerie and then Renmark Paringa. Figure 114 shows the unemployment rate for SLAs in the catchment.

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Figure 114 Unemployment rate for the SA MDB catchment SLAs (2001)

12.4.6 Employment by occupation

For the selected occupations described in Chapter 3 the number of persons employed grew by 6% or 470 jobs.

The most prevalent occupation within the selected categories, ‘Farmers and Farm Managers’, experienced a 7% increase between 1996 and 2001, from 4,463 to 4,774. ‘Farm Hands’ as a category also increased, by 14% from 2,191 to 2,502.

Other categories experiencing an increase include (in decreasing order of numbers of employed persons) nursery and garden labourers (17%), farm overseers (5%), acquaculture farmers, horticultural trade persons and skilled agriculture and horticultural workers.

Declines occurred for gardeners, greenkeepers, agricultural and horticultural labourers, nurserypersons, animal trainers and wool, hide and skin classers.

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12.4.7 Infrastructure

The SA MDB is serviced by several major road transport routes. Murray Bridge and Goolwa are well connected to Adelaide with a highway.

12.4.8 Household income

Figure 115 shows the median household income for SLAs in the SA MDB catchment for 2001 and the proportion of households earning less than $299 per week.

For the SA MDB catchment the proportion of households earning less than $299 per week is 16%. The average for the Study Area is 14%.

The Mid-Murray SLA has the highest proportion of low-income earners and the lowest median income. Unincorporated Riverland, and the remaining SLAs in the Murraylands, also have a higher than average proportion of households earning less than $299 per week.

The median household income for all Riverland SLAs is $600-699 per household per week. The majority of SLAs in the Murraylands have a lower median weekly household income, except for Alexandrina – Strathalbyn.

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Figure 115 Median Household income for SLAs in the SA MDB catchment and the Proportion of Households earning <$299 a week (Source: ABS Census 2001 published data)

12.5 Dependence on water

This section explores firstly the dependence of the communities on irrigated agriculture and secondly the dependence on the water resource highlighting non- agricultural uses. The information presented includes quantitative and qualitative descriptors.

12.5.1 Dependence on irrigated agriculture

This section provides an overview of the: • quantity of water irrigated agriculture consumed; • the value contribution of irrigated agriculture; and • the area of land devoted to irrigated agriculture.

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Irrigated water entitlements and usage

The Cap on long term diversions for the valleys in the MDB relevant to the SA MDB total 607 GL per annum. The entitlements held by irrigation companies or areas equates to 286 GL per annum or 23% of the Cap. This figure is based on the summation of the irrigation entitlements for each of the irrigation areas in the Study Area (ANCID, 2002). This figure may underestimate the entitlement to irrigated agriculture as a proportion of the Cap as the estimated entitlement for irrigation does not include private diverters.

The irrigation areas in the region include Central Irrigation Trust (CIT), Renmark Irrigation Trust (RIT), Sunlands and Golden Heights Irrigation areas and Lower Murray Irrigation. There are also a number of private diverters. The irrigation areas are located along the Murray, predominantly in the Riverlands.

Table 46 provides a summary of the water entitlements for irrigation in the irrigation areas in the SA MDB. Some assumptions have been made in preparing the data for this table, which are summarized in the footnotes to the table.

Dairy, feedlots and poultry growing, as well as substantial food processing industries, are moving into the fringe areas of Murray Bridge resulting in an increase in the demand for water.

Of the total entitlement is 286 GL, approximately 205 GL are delivered (72%). A total of 2,650 irrigated holdings are involved, irrigating approximately 22,540 ha.

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Table 46 Irrigation entitlements and average water delivered, farms, hectares irrigated by Irrigation Areas in the SA MDB catchment Irrigation Areas No. of Ha Total Ha Entitlemen Water Proportion Irrigated Irrigated t (ML) delivered Delivered Holdings average (ML) Central Irrigation Trust 1,700 11,000 11,000 119,527 97,544a 82% (9 districts) (CIT) Renmark Irrigation 700 5,000b 5,000b 49,000 37,000 76% Trust Sunlands Irrigation 65 900 795 8,920 7,724c 87% Trust Golden Heights 65 807 744 7,916 7,020 c 89% Irrigation Trust Lower Murray 120 5,000 5,000d 100,000 56,000 56% Irrigation SA MDB Total 2,650 22,707 22,539 285,363 205,288 72% Source: ANCID (2002); a 2000/2001 delivery; b Reported 5,000 ha of permanent plantings (Hassall & Associates, 2002) increasing from 4,500 in 1993 (Smith and Watkins, 1993); c 1999/2000 season; d No estimate available for the area irrigated, therefore the area irrigated is assumed to be 5,000 hectares.

Central Irrigation Trust

The CIT is an amalgam of ex-government irrigation areas. There are nine districts within the Trust area (Chaffey, Berri, Loxton, Moorook, Cobdogla, Kingston, Waikerie, Cadell and Mypolonga).

CIT was established as a private company on the 1st July 1997. Loxton joined the Trust in July 2001. The larger districts are Berri, Loxton, Cobdogla and Waikerie, which range from 3,000 to 4,000 ha. The remaining districts range from 300 to 1,000 ha (Hassall & Associates, 2002).

The CIT infrastructure was first built in 1910, however since becoming a private company much of the infrastructure has been replaced with pressurised piped irrigation water. The replacement value of the assets was estimated to be $187 million (ANCID, 2002).

The main crop for the CIT area is grapes. The secondary crop is citrus. The two main industries are wine making and fresh fruit production (ANCID, 2002).

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Renmark Irrigation Trust

The Renmark Irrigation Trust (established 1893) has a large area of permanent plantings. There are now some 4,700 hectares of irrigated horticultural crops and pastures (Hassall & Associates, 2002).

Golden Heights Irrigation Trust

The primary crop in the Golden Heights Irrigation Trust at Waikerie area is citrus. In 1999/2000, 80% of the water was used for citrus production at an application rate of 10.8ML/ha. The remaining 20% of the water was used for viticulture at an application rate of 6.3ML/ha. The dominant industry is fresh fruit production (ANCID, 2002).

Sunlands Irrigation Trust

The primary crop in the Sunlands Irrigation Trust is citrus. Vines are the secondary crop. The dominant industry is fresh fruit production (ANCID, 2002). The water delivery methods used are pumps and pipes resulting in 100% of the diverted water being delivered to customers (ANCID, 2002).

Lower Murray Irrigation

Along the lower reaches of the Murray in South Australia, are schemes unique in the context of MDB irrigation, where a number of former swamp and wetland areas have been drained. The first area, some 1,300 ha near Wellington, was reclaimed in 1881, the work being carried out by Sir W.F.D. Jervois, who was then Governor of the Colony of South Australia. The remaining areas were reclaimed between 1904 and 1929 and now cover over 5,000 ha (Smith and Watkins, 1993).

Being below the level of the River, they are flood irrigated and mainly used for pasture and fodder production. They support a major part of the South Australian dairy industry, particularly for the supply of fresh milk to Adelaide. The Lower Murray region produces 25% of the state’s milk production with the Jervois Dairyfarmers factory also exporting to Japan. Their production is worth $36 million at the farm gate and $125 million to the regional economy (Advertiser, 2003; Industry Advice, pers. comm. 05/03/03).

There is some high-level intensive irrigation of fruit and vegetables, similar to that in the Riverland, adjoining a number of the reclaimed lands, particularly at Mypolonga (Industry Advice, pers. comm. 05/03/03).

Irrigated dairy and horticulture also takes places around the Lakes and Langhorne and Currency Creek. Viticulture is expanding rapidly (Industry Advice, pers. comm. 10/03/03).

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Economic contribution of irrigated agriculture

Based on the method described in Chapter 3, Volume 2, an estimate of the value of irrigated agriculture was generated. Table 47 summarises the total value of irrigated agriculture as a proportion of the gross value of production for agriculture in the sub groups of the SA MDB catchment.

The value of irrigated agriculture accounts for approximately 31% of the gross value of agricultural production in the SA MDB catchment or $382 million. The gross value of agricultural production increased by 75% between 1997 and 2001 (AgStats, 2003).

Table 47 Gross Value of Agricultural Production and Irrigated Agriculture for the SA MDB catchment by Subgroup (2001) SA MDB Total Value of Total Value Proportion Subgroups Agriculture ($) Irrigated Irrigated Agriculture ($) Agriculture Riverland 682 220 32% Murraylands 551 162 29% SA MDB Total 1,233 382 31% Source: IRDB Version 2002; proportions for irrigated agriculture for the SA MDB are based on field work and desk top.

The Riverland is dependent on irrigated agriculture. Berri, Barmera, Loxton, Kingston, Waikerie and Cadell are surrounded by irrigated land producing vines, citrus, stone fruits, vegetables and other crops. These form the basis for numerous wineries and food processing industries.

Growth in irrigated agriculture has mostly been through corporate farming and expansion of existing farms. The position for growers over the preceding 5-8 years has been good with supply being less than demand resulting in good prices. However, production has come into line with demand resulting in a downward pressure on prices and an increase in the quality requirements of wine companies.

Wine growers who have borrowed heavily to redevelop, change irrigation systems, plant new varieties and extend their irrigation areas are vulnerable to changes in the current market situation. Grapes produced in the Riverland underpin a number of winery operations, however some have options with the company’s operations extending over a number of regions. Smaller players that depend 100% on Riverland grapes include Salina Estate (20-30 employees), Kingston Estate (100+ employees), Angoves (100 plus employees) and smaller players such as Pennyfield.

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Other dependencies on irrigated agricultural produce in the Riverland include: • glass production by Amcor (Adelaide Plains); • ICI (Adelaide); • Renald – Transport which delivers wine to Adelaide for bottling (Riverland); • packaging (Adelaide); • Melbourne’s Golden Circle (oranges from Riverland and Mildura); • labour – 90% permanent labour; and • major export markets.

Input dependencies include: • grape harvesters/contractors; • agricultural chemical suppliers; • service industries including machinery and car suppliers; and • stainless steel tank manufacturers (JMA, based in Berri).

As a result of the growth in the economy through expansion of the irrigation sector and subsequently the services sector, there is more confidence in the future and the financial capacity to manage change and invest. Residential developments are also expanding. This is taking place particularly in Berri, which is the regional centre for State government services.

Area of irrigated agriculture

Figure 116 shows that the area devoted to irrigated agriculture in the SA is less than 5% for both the Riverland and the Murraylands, however contributes 31% of the value of agricultural production. The area of land devoted to nirrigated agriculture increased by 72% between 1997 and 2001, whereas the area of land for all agriculture declined by 3% (Ag Stats, 2003).

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SA MDB Area of irrigated agriculture as a proportion of the total area of agricultural holdings (2001) 40% 35%

30% 25%

20% 15% Proportion 10%

5%

0% Riverland Murraylands Subgroup

Figure 116 The area of irrigated agriculture as a proportion of the total area of agricultural holdings for the SA MDB catchment (Source: AgStats 2003)

12.5.2 Dependence on water (excluding irrigated agriculture)

In addition to agriculture, a range of tourism and recreational activities are dependent on the River Murray and the associated environment.

A Marine Safety [South Australia] survey identified 300 houseboats for commercial hire. The largest operation bases include Murray Bridge, Mannum / Younghusband, Renmark / Paringa / Murtho, and Berri.

The houseboat industry supported total ‘trip’ expenditure of $16.5 million in SA in 1995/1996, of which 57% was directly on hire costs, with the remainder on trip support costs. This supports a total of 346 full time equivalent jobs and incomes of $16.2 million; 90-100 of these jobs are directly in the houseboat industry.

In addition to commercial enterprises there are at least 600 private house boats with the majority concentrated in Murray Bridge and Mannum, due to the proximity to Adelaide (Industry Advice, pers. comm. 27/2/03).

The houseboat industry has been reported as being affected due to low fish numbers and interviewees advised that the industry, as long as there was consultation and planned management, would manage variability should it result in an improvement in environmental condition (Industry Advice, pers. comm. 03/03/03; 10/03/03).

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Coorong tourism is built on natural and indigenous cultural attributes. Tourism operators conduct tours through the Coorong, Lakes and backwaters. At the present time operators are restricted because of the lower level in the Lakes and river.

Figure 117 presents the results of the Australian Tourism Satellite Account for SLAs in the Riverland and Murraylands. The SLA names are as they were in 1997/98, which for some areas was prior to the amalgamation of local government areas. The description of the Satellite Account is provided in Chapter 3.

The results show that for the Riverland and the Murraylands employment dependent upon tourism accounts for 4% of total employed persons. However, employment dependent on tourism is higher for the Goolwa SLA and Berri SLAs.

The commercial fishery of the Coorong, Lakes and the River Murray are directly dependent upon the quality and level of water in the system and the health of the riverine floodplain and wetlands. The 28 commercial fishers in the stretch of river between the NSW/SA border and Wellington are being phased out. Approximately 6 derive their only income from fish sales.

The government is working with these fishers on options for adjustments to maintain their involvement in managing the fishery for conservation. The 30 commercial fishers in the Coorong and Lakes area have detailed environmental management systems to ensure the ongoing sustainable management of the resource for future generations. The fishing industry, mainly based in Meningie and Goolwa is worth $5 million per annum, mainly fishing in Coorong.

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SA MDB Catchment - Riverland Proportion (%) of Jobs by Industry by SLA

Riv erland

Berri (DC) (Berri Barmera)

Barmera (M) (Berri Barmera)

Renmark (M) (Renmark Paringa)

Loxton (DC) (Loxton Waikerie)

Paringa (DC) (Renmark Paringa)

Waikerie (DC) (Loxton Waikerie)

Unincorporated Riverland

Brow ns Well (DC) (Loxton Waikerie)

0 1020304050607080

Proportion (%) Tourism Agriculture/Fishing/Forestry Mining M anufacturing

SA MDB Catchm ent - Murraylands SLAs Proportion (%) of Jobs by Industry by SLA

Murraylands

Port Elliot and Goolw a (DC)

Morgan (DC) (Mid Murray)

Meningie (DC) (The Coorong)

Mannum (DC) (Mid Murray)

Ridley-Truro (DC) (Mid Murray)

Murray Bridge (RC)

Coonalpyn Dow ns (DC) (The Coorong)

Peake (The Coorong)

Karoonda East Murray (DC)

0 1020304050607080

Proportion (%) Tourism Agriculture/Fishing/Forestry M ining Manufacturing

Figure 117 Proportion of Jobs by Industry by SLA in the SA MDB, Riverland and Murraylands Subgroup (Source: TTF Australia, 2001)

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The communities and industry in South Australia are also dependent on the water resource for consumption. The Murray is an absolutely essential source of water for the Iron Triangle and a major source for Adelaide and much of the rest of South Australia.

Approximately one million people and $16 billion worth of industry and commerce around the Adelaide region rely on River Murray water, which flows through the Riverland and the Murraylands. Water is extracted at the off-take at Murray Bridge. Figure 118 shows that the Adelaide metropolitan area, much of rural South Australia and the Iron Triangle industrial towns of Port Pirie, Port August and Whyalla are not within the MDB, they rely on the River Murray for water supplies (MDBC, 2002).

The manufacturing activities in the three Iron Triangle towns are supplied with water from the River Murray. Production valued at $1.2 billion (1991/92) accounts for most of the manufacturing in the Northern Statistical Division. For the Adelaide Statistical Division, manufacturing turnover in 1991-92 was valued at $12 billion. Most of this would not be possible without water from the River Murray (MDBC, 2002c).

Figure 118 Water pipelines and areas served by them in South Australia (Source: MDBC, 2002f)

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12.6 Community wellbeing and services

In this section we provide an overview of the social support services and community infrastructure present.

12.6.1 Access to goods, services and opportunities for social interaction (ARIA Score)

The ARIA Score – Remoteness and Accessibility - for the SLAs in the Riverland subgroup have an ARIA Score between 3.6 and 4.5 identifying them as moderately accessible, where the communities have significantly restricted accessibility of goods, services and opportunities for social interaction.

The SLAs in the Murraylands have an ARIA Score between 1.4 and 3.3 identifying them as highly accessible to accessible, meaning that there is a gradation from relatively few restrictions to some restrictions to accessibility of some goods, services and opportunities for social interaction. Figure 119 shows the ARIA Score for SLAs in the catchment.

SA MDB Catchment - Riverland SA MDB Catchment - Murraylands ARIA Score by SLA (1999) ARIA Score by SLA (1999)

Berri & Barmera (DC) – Barmera The Coorong (DC)

Unincorp. Riv erland Karoonda East Murray (DC) Berri & Barmera (DC) - Berri Peake (Mid Mur r ay ) Renmark Paringa (DC) – Renmark Truro (Mid Murray) Loxton Waikerie (DC) - East Mannum (Mid Renmark Paringa Murray) (DC) - Paringa

Loxton Waikerie Murray Bridge (DC) - West (RC)

- 1.0 2.0 3.0 4.0 5.0 - 0.5 1.0 1.5 2.0 2.5 3.0 3.5 ARIA Score ARIA Score Figure 119 ARIA Score for SLAs in the SA MDB Catchment 1999 (Source: Department of Health and Aging, 2001)

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12.6.2 Tertiary services

There are a range of services throughout the Riverland in terms of education, recreation and tourism and support systems for families and youth. The rise in land values as a result of expanding irrigation and associated growth, has resulted in an increase in rate revenue. This has resulted in the Renmark Paringa local government developing a recreational centre providing more recreation and entertainment opportunities (Industry Advice, pers. comm. 26/02/03).

The region is well served by health and medical facilities including four hospitals, which offer diversified services, including a training hospital in conjunction with Flinders University. The region is well served by both ambulance and police, with stations in most towns (Industry Advice, pers. comm. 04/03/03).

12.7 Cultural heritage

The towns along the River have a significant settlement history. Berri development dates from 1910. Near Lake Bonney at Barmera is the Cobdogla Irrigation Museum. Loxton is the newest community, being essentially a post World War II soldier settlement scheme. Waikerie was originally established as a community settlement in 1894, though its real growth only came in the post World War II period (MDBC, 2002).

In the catchment there is the Punyelroo caves and Ngaut Ngaut Conservation Park, one of the most significant aboriginal archaeological sites in Australia (Captain Cook Cruises, 2002).

Table 48 provides a summary of heritage sites categorised into Indigenous sites, spiritual places, constructed features (eg bridges, memorials etc), public and private buildings, natural features, heritage attractions (such as gold mining sites) and other. The information was captured from the Register of the National Estate; NSW Heritage Office; SA Heritage Register and Victorian Heritage Register.

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Table 48 Heritage Sites and Places in the SA MDB Catchment LGA Indigenous Spiritual Construct Public Private Natural Heritage Other (eg Site Places (eg ed Build- Buildings Features Attract- gold Church) Features ings ion fields, etc) (eg Bridges) Renmark Paringa 2 2 4 1 Berri Barmera 2 3 2 Loxton Waikerie 1 7 3 Karoonda East Murray (DC) 2 2 Mid Murray 1 6 8 14 1 1 3 Murray Bridge (RC) 1 5 7 8 11 9 4 1 The Coorong 5 1 9 3 5 20 2 1 Total 6 8 35 24 39 32 8 5 Source: Register of the National Estate; NSW Heritage Office; SA Heritage Register and Victorian Heritage Register though http://www.heritage.gov.au/ahpi/index.html (accessed 23/06/03).

Table 25 underestimates the number and significance of Indigenous sites in the SA MDB, with sites protected in national parks and State Forest not listed.

12.8 Cumulative change and community response

The major changes that have taken place over the last 10 years in the SA MDB are as follows. Interviews in the area have provided the majority of input with data providing validation.

Riverland

Drought: The drought has affected the dryland areas of the Riverland, agricultural suppliers and tourism operators. There are perceptions by Adelaide residents, an important source of visitors to the Riverland, that the river is dry and dying, primarily due to newspaper reports. Houseboat operators are expecting a reduction in revenue due to the publicity. For irrigated agriculture, the Riverland has not been affected by a lack of water, however a light grape crop resulted due to the high temperatures. Producers are concerned about the 2003/2004 season with estimates of 60% allocations if above average rainfalls are not received in the storage catchments.

Water Allocation Plans: The government is a driver of change with requirements for improving irrigation efficiency to utilisation of 85% of water delivered, by 2007. There was a strong community response to threatened decline in productivity in the early 1990s with rising water tables and salinity. Rehabilitation has taken place throughout the Riverland with the majority of Central Irrigation Trust areas under pressurised pipes and drip/spray irrigation. The improved water efficiency has freed water for further developments mainly into wine grape production.

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Local Action Planning and Funding: Local action planning has raised the capacity of communities to engage, and through training in the areas of water use efficiency, led to improved irrigation practices. Further, LAP courses, in conjunction with irrigation trusts, have supported growers to meet wine company quality requirements (reducing water application to stress the vines producing higher quality fruit). They provide training in using soil moisture testing equipment to improve water use efficiency and grape quality.

Increasing mechanisation of the wine grape operation: Many of the wine grape growers are converting vines to trellised vines and to machine picking. This has resulted in a decline in available seasonal work for families and itinerant workers. Growers are experiencing a shortage of skilled labour for such activities as pruning (both machine and hand pruning takes place).

Water Trading: Water trading has also seen the expansion of vineyards and wineries undertaking their own expansions of production. Investment from outside of the region and within the region is taking place. Other businesses are benefiting including wine vat manufacturers, irrigation equipment suppliers, and irrigation specialists. Educational offerings are also increasing. Income growth and expanding opportunities for younger professionals in managing corporate farms has resulted. With the expansion in production of grapes for wine production there has been a shift to mechanical harvesting resulting in a reduction in handpicking work. There are approximately 12 companies involved in contract harvesting.

The overall result has been a turn around in the Riverland economy, with population increases, property values improving, expansion of service and secondary industries, including packing, transport, equipment manufacture. For example, through the expansion of almonds, support industries have established including a major manufacturer of almond shakers. Crushed grapes in the Riverland however, are generally produced into wine elsewhere such as the Barossa/Adelaide. Corresponding with the expansion of irrigated agriculture, there has been a rise in environmental spending.

Bankruptcy of Wine Companies: As a result of the bankruptcy of wine companies families are struggling. It has much to do with the contracts – essentially the wine company owns the grapes and pays growers to grow them. Grapegrowers are therefore unsecured creditors. This structure puts growers in a vulnerable position.

Commodity price cycles: Grapes produced for Brandy & Port fell out of favour in the early 1980s, resulting in a government assisted vine pull scheme in 1985. From 1987-1995 there saw the emergence of table grape varieties – shiraz, chardonnay, semillon, and cabernet - resulting in a decline in the prices received for grapes. The driver was a shift in demand towards high quality wines.

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Removal of tariffs on juice concentrate: 5-6 years ago the citrus industry underwent a shock with the removal of tariffs and restrictions on juice concentrate blending rules. As a result citrus growers have converted to wine grapes or eating oranges. Some are still in the process of conversion. The impact of the slump on the economies of the irrigation areas was cushioned to some extent by the expansion of wine grape production.

Amalgamation of Local Governments: In 1996 -1998, the local government areas of South Australia were amalgamated. Interviewees expressed that the amalgamations went smoothly and has provided benefits through efficiencies.

Murraylands

Dairy deregulation: Structural adjustment in response to dairy deregulation has occurred over the last five years resulting in some retirements, amalgamations and additions of dryland farms to dairy businesses.

Drought exacerbating low flows: Drought has impacted irrigation in the Lower Murray Swamps and around Lake Alexandrina and Albert. Reduced water levels have made it difficult for the gravity-fed system in the Lower Murray Swamps and for pipes drawing water from the Lakes for vineyards. Increasing salinity of irrigation water remains a threat (it has led to farmers pumping water from the river as the river levels are too low for the gravity fed systems. Feed costs have also doubled for dairy farmers).

The further reduction in river and Lake levels and strength of flow has also reduced boating access to Lake, its tributaries and the Coorong and also contributed to the closure of the Murray Mouth. Tourism is slowing, retarded by the national perception that the Lower Murray is polluted and drying up. There have been physical difficulties for mooring and some vessels have run aground incurring damage. The drought has exacerbated these conditions.

Rehabilitation of the Lower Murray Swamps: Combined with the drought, South Australia’s proposed effluent and water efficiency regulations for water quality and quantity (targets, rehabilitation requirements) are estimated to cost an average of $200,000 per farm with a proposed subsidy of 50% for public benefits delivered. Farms are excluded from water trading sales until the rehabilitation is complete. Despite strong demand for whole milk, anticipated farm level changes resulting from the new regulations are extensive. On farm effects will depend on debt levels, with highest debt levels generally carried by the younger farmers. However, Lower Murray Irrigation has predicted that if the proposal is pursued given its current structure, 46-50% of all farmers will leave the area which equates to approximately 60 farming families.

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Community scale effects will depend on the impact on community outlook and representation, land suitability planning and the scale of farm retirements. Amalgamations will need to drive increased investment and higher farm production levels. Viability of transport haulage, agricultural retailing and community services may be impacted depending on the adjustment arrangements for rehabilitation requirements.

Structural adjustment in the Commercial Fishing Industry in the Lakes and Coorong: The adjustment has been the industry imposed environmental requirements of five years ago. This triggered an initial loss of income in the district followed by upgrading the fishing industry’s performance. Though the catch volume is reduced there is greater diversity and consequently improved income per fisherman. There is a high risk of fishery collapse without environmental flows.

12.9 Summary

The communities and industry in South Australia are dependent on the water resource for consumption. The Murray is an absolutely essential source of water for the Iron Triangle and a major source for Adelaide and much of the rest of South Australia. Approximately one million people and $16 billion worth of industry and commerce around the Adelaide region rely on River Murray water.

Land use in the SA MDB, which includes the Riverland and Murraylands, varies across the catchment and includes grazing, cropping, irrigated horticulture and viticulture, irrigated pastures, dairying, conservation areas, national parks, and urban areas.

The regional centre of the Murraylands is Murray Bridge. Berri is the administrative centre of the Riverland. Goolwa, on the shores of Lake Alexandrina, is also an important centre for commercial fishing, tourism and residential development. The catchment is serviced by several major road transport routs.

The communities of the Riverland, more so than those of the Murraylands, are becoming increasingly dependent on expanding irrigated agricultural industries, in particular the wine industry, for employment and as a driver of population growth. Berri, Barmera, Loxton, Kingston, Waikerie and Cadell are surrounded by irrigated land producing vines, citrus, stone fruits, vegetables and other crops. These form the basis for numerous wineries and food processing industries. The total number of irrigated holdings is 2,650 irrigating approximately 22,540 hectares. The concern for growers at present is that there is a danger of gluts in supply with production exceeding demand.

Irrigation areas are concentrated in the Lock system from the NSW / South Australian border through to Morgan. Irrigated dairy and horticulture also takes place through the Lower Murray Swamps and Lakes.

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In addition to agriculture, a range of tourism and recreational activities are dependent on the River Murray and the associated environment. The houseboat industry is also an important component of the economic strength of many of the river towns. The weir pools and the lock system contribute to the functioning of the industry however, the industry is currently finding a reduced riverine and wetland environment is leading to economic losses. Commercial fishers are dependent on the quality and level of water moving through the Lakes and Coorong. Many of the Riverland’s natural features are also dependent upon the River Murray and flooding events, including the Chowilla Floodplain.

Much of the Riverland is dependent on subsurface drainage as water tables and salinity are high. Without the drainage schemes in place, may areas of the Riverland would be under water. The Murraylands is also affected by salinity and is managing the risk via planning irrigation development zones and a range of NRM strategies.

The number of employed persons grew by 5% between 1996 and 2001. The number of farmers and farm managers increased by 7% and farm hands increased by 14%. This growth compares to a population growth rate of 4% for the SA MDB catchment. The SLAs for which populations declined were The Coorong and Loxton – Waikerie West. The growth rate was 4% between 1996 and 2001 however, only 1% for the Riverland and 6% for the Murraylands. Factors resulting in the significant increase in population in the Murraylands include: • completion of the highway bringing the towns from Murray Bridge to Wellington to within commuting distance to Adelaide; • cheaper housing prices as compared to Adelaide and the Adelaide Hills; and • relocation and expansion of industry in areas with cheaper land and less pressure from urban encroachment.

The growth in population is generating a diversity and growth of intensive production, processing and transport industries; employment growth in skilled and unskilled work; population growth; increase in regional shopping and medical facilities; increasing education services; and expansion in manufacturing activities that support irrigated agriculture.

The unemployment rate in 2001 for the majority of SLAs was below the average for South Australia of 7.6%, however was high for Unincorporated Riverland (12.1%), followed by Murray Bridge (9.8%), and then the Mid Murray (8.6%). The Mid-Murray SLA and Unincorporated Riverland, have a high proportion of households earning less than $299 per week.

The changes that have taken place over the last 5-10 years in the Riverland have revolved around the expansion of irrigated agriculture, leading to population, employment and services expansion. The drought may have an impact in the coming season, but has not taken affect yet. The communities in the Murraylands have been affected by the drought as a result of the low level of flows and declining water quality. The Lower Murray Irrigators however, are

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being confronted with significant decisions in terms of required rehabilitation of the irrigation infrastructure.

The key strengths of the Riverland include: • natural features; • tertiary education • range of services in close proximity to all towns; • presence of three tiers of economic activity; • investment and employment growth; • diverse agricultural base (for some SLAs where dryland and irrigated agriculture are important); • growth in employment; • population growth; and • long history of settlement.

The key areas of vulnerability of the Riverland include: • dependence on the wine industry, for both primary and secondary sectors; • a proportion of irrigators where water use and water entitlement are equal; • high water tables and salinity risk resulting in reliance of irrigated agriculture on drainage systems; • risks of further deterioration of water quality for both irrigation and domestic consumption; and • a high proportion of communities who do not speak English well.

The key strengths of the Murraylands include: • a strong regional centre; • diverse agricultural base; • investment and employment growth; • population growth; • natural features; • presence of three tiers of economic activity; • long history of settlement; • infrastructure and proximity to Adelaide • lifestyle strengths in the Alexandrina SLAs; • cultural heritage; and • a range of facilities.

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The key areas of vulnerability of the Murraylands include: • further deterioration of water quality for irrigation, domestic consumption and maintenance of conservation values; • increasing reliance on irrigation and wine development for economic activity (dairy industry also); and • areas of low household income and unemployment.

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13. References

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ANCID (2000) 1998/99 Australian Irrigation Water Provider Benchmarking Report, February 2000, Australian National Committee on Irrigation and Drainage, Victoria.

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Coleambally Irrigation (2002) Annual Report 2001-02, Coleambally Irrigation Company Limited.

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Griffith City Council (2001) Griffith City Council Draft Social and Community Plan 1999/2000, Griffith City Council.

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MDBC (2002e) The Living Murray, Murray-Darling Basin Commission, Canberra.

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Swan Hill Rural City Council (2003) ‘Swan Hill Rural City’, Located at: http://www.swanhill.vic.gov.au/, extracted on 16 February 2003.

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