Lake Mokoan) Capable of Holding Achieved Achieved Within Cost Estimates

g- mw

annual report 2006/07 Continual improvement of ourpeople Integrity, respect andpride Openness to progress Co-operation Sustainability are ourhighestpriorities Human safety, theenvironment andcustomer service Our Values environmental considerations. economic growth, whilebalancingsocial, economicand regional customer andstakeholder needsandsupport T Our Mission o deliver sustainable water services thatmeet o deliver sustainable waterservices builds trust, knowledge andunderstanding isourcommitmenttofuturegenerations basedontheinvolvement ofpeopleisthekey is essential and underpins ourfuture isessentialandunderpins are valued characteristics arevaluedcharacteristics

g-mw Contents

4 Our Performance at a Glance 6 Modernisation Feature 15 Governance 21 Economic Sustainability 31 Social Sustainability 43 Environmental Sustainability 63 Financial Statements 89 Appendices

g-mw Annual Report 2006/07 Report from the Chairperson

What a year! The worst drought to sideline our responsibilities to the on record and the lowest irrigation environment and recreation. We allocations. Yet these events brought have worked with our Catchment water to the forefront of Government Management Authority partners on the and community interest. This interest has rivers and wetlands and through private been manifested in an unprecedented partnerships with the many lessees and offering of public funds to upgrade the developers who use our water resources irrigation system, both from the Federal to provide for public recreation. The and State Governments. While there is $8 million Jayco re-development of the concern around some aspects of both Nagambie Lakes caravan park was the National Water Security Plan from launched by the former Minister for the Federal Government and the Water, Environment and Climate Change Foodbowl Modernisation Project from John Thwaites and we expect completion the State Government both offer the before the end of 2007. potential for large amounts of money to re-build our system. The Board looks forward to a more normal year for inflows and a consequent Meanwhile Goulburn-Murray Water easing of the difficult circumstances our has undertaken the extensive planning customers have experienced recently. required to bring in unbundling and We will continue to enhance our system made good progress with our and seek out funds to ensure the reconfiguration plans across all districts. prosperity of irrigation in the north of Victoria. The drought resulted in direct funding from the State Government to help This is the final year of appointment customers meet their water delivery bills for this Board which ends in September on the systems which delivered less than 2007 and as Russell Cooper has changed 50% allocation and the government paid title to Managing Director from July, it is for the pumping of Waranga Basin to appropriate to thank him here for his extract another 7% for the Goulburn constant and extensive commitment irrigators. The Board, with the assistance to Goulburn-Murray Water and his of the Water Service Committees, was remarkable zeal in securing outcomes instrumental in arguing for and obtaining for our customers. Chairperson Don Cummins (left), Managing Director Russell Cooper (right). these amounts. At the same time the Board instituted a Tariff Review to I would also like to thank the other investigate alternative pricing and funding directors for the quite extraordinary work proposals for future low allocation years. each has put in during this difficult period. They have guided Goulburn-Murray Despite these dramatic changes to our Water through its most difficult period normal business, management was able and can be proud of the strong and to maintain our Advanced Maintenance respected position the organisation is in. Program, capital works program, institute the Watertight 2020 program and begin work on the Shepparton Modernisation project. This year we also completed the Tungamah Pipeline project well under time and below budget which has saved a substantial quantity of water as part of Don Cummins the Mokoan Return to Wetland project. Chairperson Nor have we allowed this difficult year

Report from the Chairperson Report from the Managing Director

we also invested extensive resources Management Authorities and relevant into building public awareness of the Departments including Department unbundling of water entitlements that of Primary Industry and Department took effect from 1 July 2007. of Sustainability and Environment all actively involved in shaping the future The current drought confirmed that the for irrigated agriculture in their region. long-term viability of irrigated agriculture across northern Victoria hinges on the We are also investing our knowledge efficiency and performance of our irrigation and experience in improving the supply network. It is therefore pleasing to performance of modernisation technology. report that our existing modernisation In partnership with Water for Rivers and and reconfiguration projects including the Rubicon Systems we provided guidance Shepparton Modernisation Project, the to improve the channel automation Future Management Strategy in Pyramid- technology and in particular the quality Boort, the Torrumbarry Reconfiguration control processes of manufacturing. We and Asset Modernisation Strategy (TRAMS) can all now have greater confidence in and the reconfigured Tungamah system all the future application of this technology took great strides forward in 2006/07. across our region.

In August 2006 we launched an ambitious Throughout the year we called on our new water-savings initiative to capitalise Water Services Committees to assist in on these projects and to harness our adapting and refining our strategies for accumulated expertise from right across managing very limited water supplies. Goulburn-Murray Water. WaterTight Goulburn-Murray Water is extremely 2020 aims to identify and capture grateful to the members of the various 400 GL of water savings by 2020. committees for their ongoing support and commitment during a very Rigorous measurement and analysis challenging season. I am also extremely is essential to understanding the proud of the staff of Goulburn-Murray performance of our irrigation Water for their commitment, along with infrastructure and identifying the Board and Executive team for their opportunities for improvement. leadership across a very trying season. The year proved to be extremely This year we substantially improved challenging for all our customers, our the speed and quality of our analysis The Foodbowl Modernisation Project employees and the wider Goulburn- through a range of initiatives including announced in June 2007 has delivered Murray communities. With record low the installation of measurement an important opportunity for our region. allocations, we undertook a number equipment across the network as part I believe our existing projects provide a of initiatives such as pumping Waranga of our Strategic Measurement Project springboard from which our region can Basin to boost supplies for irrigators, and (SMP), the launch of a fully integrated capture the benefits of the $1 billion introduced new communication efforts Geographic Information System (GIS), investment. It is a very positive position to ensure customers were kept informed as well as the development of the first from which to take on such a challenge as the season progressed. Pumping of ever portable test rig that measures the and we look forward to partnering with Lake Buffalo also delivered essential stock accuracy of irrigation meters in situ. stakeholders across the region to realise and domestic supplies for residents along the project’s potential. the Buffalo and Ovens rivers. But identification is only the first step to improving the irrigation system. With water in such short supply Community consultation is vital to we saw unprecedented water trading understanding the needs of our activity. Watermove was vital to building customers, and ensures local knowledge confidence in the water trading market is reflected in our reconfiguration and ensured buyers, sellers and the efforts. Our community engagement wider public had access to transparent processes continue to improve, with pricing benchmarks. Throughout the year customers, local councils, Catchment Russell Cooper Managing Director

g-mw Annual Report 2006/07 Our Performance at a glance 2006/07

Governance Economic Sustainability

Objective The Board aims to continuously improve its We will actively pursue new and improved ways to operate our We will contribute to Government water governance practices and strive to achieve high levels business to achieve the most cost effective total water system reforms, developing and adapting the of transparency, trust and stewardship. management whilst meeting all our (statutory financial and appropriate assets, technology and systems that customer) obligations. meet the future needs of our customers and communities and enable regional growth. Highlights Significant progress in the implementation of a We undertook a Tariff Review to investigate alternative pricing Commenced work on Cairn Curran Dam Safety whole-of-business risk management framework. and funding proposals for future low allocation years. Upgrade.

The Board undertook a review of its performance in We undertook an intensive communication program targeting We completed work on the Tungamah Pipeline accordance with the Minister’s guidelines, conducted customers and their advisers to explain the process and which will improve supply and service to with an external facilitator. benefits of unbundling, including more than 50 meetings that more than 400 customers and deliver 4,800 attracted more than 1500 attendees. megalitres of water savings each year. Results Performance Indicators Results Performance Indicators Results Performance Indicators Results Significant steps in the implementation Achieved Productivity Plan target of 3% reduction in cost Achieved Overall delivery system efficiency of Area 63.6% of a whole-of-business risk management compared to 04/05 base achieved. distribution systems 74% framework. AMP Water Plan works program achieved within Achieved 100% availability of bulk water assets to supply Achieved Board performance review and reporting Achieved cost estimates. customer orders to the former Minister for Water, Environment and Climate Change. Capital expenditure Water Plan works program Achieved Storages (excl Lake Mokoan) capable of holding Achieved achieved within cost estimates. 100% of design capacity 100% of the time

No unplanned service failures greater than 24 hours Not achieved

Area maintenance service standards met Achieved

Mildura-Merbein Salt Interception scheme Achieved assets available 69% Challenges Working with our customer committees to update Maximising the benefits of the Foodbowl Modernisation We will continue to work with customers committee charters and codes of conduct. Project to ensure the lowest possible sustainable price path. to maximise available water resources under for the difficult seasonal conditions. future Welcoming and inducting directors appointed as of 30 Undertake AMP to extend asset life and manage asset September 2007. replacement costs over the longer term.

Actively pursue productivity improvements available through process and technology improvements. More on page 16 More on page 6,21 More on page 29,49

Environmental Sustainability Social Sustainability Objective We will be conscious that what we do has a significant We will provide a range of responsive and We will provide a safe, healthy and We will develop productive, and lasting effect on the environment and seek innovative services with a price and delivery satisfying place for our people to work, empathetic and enduring to reduce this impact, contributing to enhanced mix that balances existing and emerging because it is through a competent, relationships with all interested environmental outcomes. customer needs. committed and adaptable workforce that parties to achieve the best balance our long term security and success is of economic, environmental and assured in a rapidly changing world. social outcomes. Highlights Seasonal conditions led to the lowest ever allocations. We launched reconfiguration programs in Staff and Management negotiated a new We invested $784, 000 on We undertook a range of communication initiatives to Central Goulburn, Rochester-Campaspe, Enterprise Bargaining Agreement. research and development ensure customers were kept informed of our water Murray Valley and Shepparton districts. programs in the irrigation sector. management strategies and had opportunity for input. We successfully redeployed field staff in Torrumbarry Reconfiguration and Asset line with seasonal conditions. We worked with our partner The Minister launched Goulburn-Murray Water’s Modernisation Strategy (TRAMS). working organisations to deliver water WaterTight2020 campaign. group undertook extensive community We successfully retained our status as a reform initiatives. consultation to inform development of its plan. Registered Training Organisation and our Our Environmental Management System (EMS) was SafetyMAP accreditation. Our annual Charity Golf and certified to international standards. We signed agreements with 20 customers as Bowls Day raised over $12,000 part of the Pyramid-Boort Future Management We established a new record of 465,282 for local charities and community We met our greenhouse reduction targets for Strategy. hours worked by our staff and contractor groups. emissions from Goulburn-Murray Water buildings, staff without a lost time injury. offices and vehicles. Results Performance Indicators Results Performance Indicators Results Performance Indicators Results Performance Indicators Results Minimum river flow regimes: Area service delivery standards met. Achieved At least 75% of surveyed Achieved - 85% Relationships with Achieved. staff satisfied with of surveyed customers, industry Regulated rivers: Flows greater than or Partially Accounts issued in accordance with Achieved G-MW as an employer. staff are happy partners. equal to specified min. flows 100% of Achieved agreed billing schedules with no with their work the time - 93.2% more than 1% error rate. arrangements and proud Unregulated streams: Flows meet agreed Achieved At least 80% of surveyed customers Not to be part of targets or natural flow 90% of the time satisfied with our services. achieved G-MW. (77%) More than 500,000 hrs Partially worked without a Lost achieved – set Time Injury new record of 465,282 hours Challenges We will continue to identify and realise We will seek to align our existing We aspire to be an employer of We will continue to work closely water savings through innovative projects. modernisation programs to match the choice and will adopt initiatives to with stakeholders to progress the for the objectives of the Government’s Foodbowl further this goal. Foodbowl Modernisation Project. future We will align our efforts with those of Modernisation Project. the Foodbowl Modernisation Project. We aim to achieve 500,000 person hours We will work closely with worked without a lost time injury. stakeholders to address issues arising from the unbundling of water entitlements. More on page 44 More on page 32 More on page 39 More on page 41 Our Performance at a glance

Governance Economic Sustainability

No unplanned service failures greater than 24 hours Not achieved

Area maintenance service standards met Achieved

Actively pursue productivity improvements available through process and technology improvements. More on page 16 More on page 6,21 More on page 29,49 g- mw Environmental Sustainability Social Sustainability Annual Report 2006/07 Annual Report Objective We will be conscious that what we do has a significant We will provide a range of responsive and We will provide a safe, healthy and We will develop productive, and lasting effect on the environment and seek innovative services with a price and delivery satisfying place for our people to work, empathetic and enduring to reduce this impact, contributing to enhanced mix that balances existing and emerging because it is through a competent, relationships with all interested environmental outcomes. customer needs. committed and adaptable workforce that parties to achieve the best balance our long term security and success is of economic, environmental and assured in a rapidly changing world. social outcomes. Highlights Seasonal conditions led to the lowest ever allocations. We launched reconfiguration programs in Staff and Management negotiated a new We invested $784, 000 on We undertook a range of communication initiatives to Central Goulburn, Rochester-Campaspe, Enterprise Bargaining Agreement. research and development ensure customers were kept informed of our water Murray Valley and Shepparton districts. programs in the irrigation sector. management strategies and had opportunity for input. We successfully redeployed field staff in Torrumbarry Reconfiguration and Asset line with seasonal conditions. We worked with our partner The Minister launched Goulburn-Murray Water’s Modernisation Strategy (TRAMS). working organisations to deliver water WaterTight2020 campaign. group undertook extensive community We successfully retained our status as a reform initiatives. consultation to inform development of its plan. Registered Training Organisation and our Our Environmental Management System (EMS) was SafetyMAP accreditation. Our annual Charity Golf and certified to international standards. We signed agreements with 20 customers as Bowls Day raised over $12,000 part of the Pyramid-Boort Future Management We established a new record of 465,282 for local charities and community We met our greenhouse reduction targets for Strategy. hours worked by our staff and contractor groups. emissions from Goulburn-Murray Water buildings, staff without a lost time injury. offices and vehicles. Results Performance Indicators Results Performance Indicators Results Performance Indicators Results Performance Indicators Results Minimum river flow regimes: Area service delivery standards met. Achieved At least 75% of surveyed Achieved - 85% Relationships with Achieved. staff satisfied with of surveyed customers, industry Regulated rivers: Flows greater than or Partially Accounts issued in accordance with Achieved G-MW as an employer. staff are happy partners. equal to specified min. flows 100% of Achieved agreed billing schedules with no with their work the time - 93.2% more than 1% error rate. arrangements and proud Unregulated streams: Flows meet agreed Achieved At least 80% of surveyed customers Not to be part of targets or natural flow 90% of the time satisfied with our services. achieved G-MW. (77%) More than 500,000 hrs Partially worked without a Lost achieved – set Time Injury new record of 465,282 hours Challenges We will continue to identify and realise We will seek to align our existing We aspire to be an employer of We will continue to work closely water savings through innovative projects. modernisation programs to match the choice and will adopt initiatives to with stakeholders to progress the for the objectives of the Government’s Foodbowl further this goal. Foodbowl Modernisation Project. future We will align our efforts with those of Modernisation Project. the Foodbowl Modernisation Project. We aim to achieve 500,000 person hours We will work closely with worked without a lost time injury. stakeholders to address issues arising from the unbundling of water entitlements. More on page 44 More on page 32 More on page 39 More on page 41 Modernisation BUILDING THE FUTURE FOR IRRIGATION IN NORTHERN VICTORIA

Since 2002 Goulburn-Murray Water has been modernising our region’s irrigation infrastructure at various levels, from the main supply channels right through to the individual outlets. While modernisation will achieve significant water savings through a more efficient supply network, its primary goal is to ensure the ongoing viability of irrigated agriculture through improved irrigation services and a cost-effective delivery network.

This year Goulburn-Murray Water’s growing expertise and capability has allowed us to expand our efforts to plan for modernisation on a broad scale across all regions. The modernisation strategy is essential to fulfilling our current and future economic, social and environmental obligations to our customers, our community and our stakeholders including the environment. The following feature section highlights the progress we have made in modernising our irrigation infrastructure and through this, building the future for irrigated agriculture in northern Victoria. The streamlined systems harness Goulburn-Murray Water has also Goulburn-Murray Water’s growing system invested considerable time and A growing source knowledge and experience in designing knowledge in working with suppliers of local expertise - and implementing modernisation projects. to improve the performance and reliability Modernisation G-MW staff and They also ensure projects take account of of key modernisation technology. suppliers the full range of factors, from soil type and Goulburn-Murray Water was dissatisfied infrastructure usage to council zoning and with the performance of the initial Total Goulburn-Murray Water is rapidly local amenity that must be considered in Channel Control technology but by accumulating substantial expertise in developing modernisation programs that working with us to address our concerns, all aspects of modernisation. Each stage are relevant to the local region. We Rubicon Systems developed and of the process calls for a different mix expect that irrigation districts just implemented improved quality control of skills from system analysis, project beginning their reconfiguration efforts processes at their manufacturing plants. design, community consultation and will progress more rapidly as a result We are now confident the technology financial management to the evaluation of these tools, and Goulburn-Murray can deliver on its potential. and selection of modernisation techniques. Water’s growing experience. During the year, Goulburn-Murray Water During the year, Goulburn-Murray streamlined key aspects of modernisation Water appointed reconfiguration project project design. Our staff now have access GIS decision tools and asset solutions harness managers in each of its six irrigation to Goulburn-Murray Water-developed our experience and streamline the selection districts. Reconfiguration project managers of modernisation techniques as part of area ‘decision tools’ and ‘asset solutions’ to support the progress of projects in their modernisation planning. Clockwise from top determine modernisation techniques left: channel automation; GIS, decision tools and irrigation region, and are able to share that are most appropriate to the needs asset solutions; channel lining; channel experience and innovation across districts. automation, installing flume gates; rock amouring. of the district.

g-mw Annual Report 2006/07 Innovation by Goulburn-Murray Water Stategic measurement staff and business partners continues to project improving Technology realise important benefits for Goulburn- service and system enhances system Murray Water and its customers. During the year, Goulburn-Murray Water knowledge knowledge With the completion of the Strategic Rigorous monitoring and analysis undertook a pilot testing program to evaluate the performance of various Measurement Project (SMP) Goulburn- are essential to understanding the Murray Water will be able to accurately performance of our existing irrigation irrigation meters in the field. The project has informed our understanding of determine the water efficiency of system at all levels. During the year we sub-systems and identify the source substantially improved the technology existing meter technology and the potential for existing meters to meet and location of major system losses. in place to support this analysis and Loss minimisation plans will be developed have commenced a range of initiatives the more stringent tolerances required under the proposed National to target future water savings in a to improve the speed and accuracy structured and sustainable way. of our system monitoring. Meteorological Standard.

With no existing technology available, The automated structures also: Our Strategic Measurement Project • improve customer service delivery (SMP) continued to grow, with a total Goulburn-Murray Water in partnership with Theiss Services designed and built and system operational efficiency, of 730 automated gates now in place • provide accurate water measurement, across all of the major channels in the a mobile test rig and developed a rigorous testing regime. The rig is the first of its kind • achieve water savings by reducing Goulburn-Murray region. The network outfalls, provides real time information and in Australia and the testing procedures developed by Goulburn-Murray Water and • enable Goulburn-Murray Water to monitoring of the channel network. This identify and measure water loss from information assists our understanding Theiss provide accurate and comparable test results, over a short time frame, with channel leakage and seepage, of how the network operates allowing • focus maintenance and capital repairs the comparison of performance along a testing system accuracy of better than one per cent. programs on areas of greatest need, sections of the network. This information • enable us to measure savings to ensure will enable more effective targeting of real and sustainable benefits. automation and channel remediation The rig and testing program will become a key feature of Goulburn- efforts and will also assist in identifying In the Goulburn system 119 of the and evaluating opportunities for Murray Water’s ongoing system n proposed 230 structures are complete. improvements and rationalisation. monitoring and assessment program, and will greatly improve The Victorian Water Trust and Water for Rivers are jointly funding this $16 million From July 2007 the network will be the understanding Goulburn-Murray Water and its customers have of the project as it will improve water use io connected by a radio Canopy network efficiency and provide water savings. (see opposite). The radio system will performance of meters under field relay real-time information to and from conditions over time. With meter t In the Torrumbarry and Murray Valley the automated gates to Goulburn- error one of the key contributors to “lost” water, the testing program irrigation areas 48 of the planned a Murray Water’s Area Offices. The radio is helping Goulburn-Murray Water 57 structures are complete. The Canopy network is the largest of its $4.63 million project is scheduled

s deliver water savings. type in the world and will further to be completed in September 2007. i improve the speed and accuracy of Goulburn-Murray Water’s During the year Goulburn-Murray system analysis. Water also developed a new financial

n system that will improve project based Goulburn-Murray Water’s Geographic reporting, adopted a new project delivery system and introduced tailored

r Information System (GIS) launched in June 2007 is another important new water industry project management tool that allows Goulburn-Murray training. These new systems will further e Water staff to view and analyse all enhance Goulburn-Murray Water’s current system information in live, project delivery capability. electronic map format. It has already enhanced our understanding of how the various components of the system interact, and improved our ability to undertake analysis of individual pods and outlets as part of our modernisation strategies. Mod

g-mw Annual Report 2006/07 World’s largest radio communications network

A major part of the Strategic Measurement Project (SMP) is the provision of a radio communications system that covers the current and potential future locations of automated gates across the Shepparton, Central Goulburn, Rochester and Pyramid-Boort Areas. The “Canopy” radio system was recently completed by Rubicon Systems, covering an area of almost one million hectares. It is thought to be the largest area covered by such a system in the world.

The solar powered Canopy technology operates at computer operating speed (57 GHz) and uses a broad band of radio frequencies and intelligent feedback systems to change transmission frequencies to provide the best signal clarity, and avoid significant radio interference from other sources and signal interception. The Canopy system has a very large capacity for radio traffic. It can self adjust transmission power to also overcome any detected interference.

The Canopy system is based around Area offices with a matrix of thirty one 25-metre high radio “node” masts. Signals from Area offices are sent to the node masts and from there to the automated gates.

A similar, but non-Canopy system, has also been recently installed covering the Murray Valley and Torrumbarry Areas. This system is capable of being upgraded to “Canopy” when required.

G-MW puts meters to the test Water Tight 2020 - engaging staff New national metering standards proposed for implementation from and local 2009 will require irrigation meters to operate within an accuracy range communities of +/- five per cent in the field. With more than 21,000 meters in place across In August 2006, Goulburn-Murray the region, Goulburn-Murray Water sought to determine whether the existing Water embarked on an ambitious new meters could meet these more stringent requirements. program called WaterTight 2020. The program was launched by the former While a variety of studies have been conducted across Australia and our region, Minister for Water, Environment and none had systematically looked at the performance of meters in the field. A key Climate Change and aims to identify obstacle was the lack of a portable testing machine with the ability to generate and capture up to 400 GL of water results that are comparable across meter types, locations and over time, and savings by 2020. Staff and community which also allowed for the comparison of performance of the meter after participation is a vital component of adjustments in the field. the initiative, with a dedicated phone line and web address enabling anyone Goulburn-Murray Water commissioned Thiess Services to develop a testing to share their ideas for water savings regime using its Remote Electronic Verification System (REVS) that could with Goulburn-Murray Water. provide this type of rigorous and comparable testing in the field. In early 2007 Goulburn-Murray Water undertook a pilot program that tested 28 meters Goulburn-Murray Water’s Water including 12 Dethridge wheels, seven flume gates, seven electromagnetic meters Tight 2020 consolidates the and two ultrasonic meters. growing momentum of our wider modernisation initiatives. The testing procedure and the results of the pilot program were reviewed by an independent consultant Hydro Environmental Pty Ltd and confirmed that: • Dethridge meter errors are significant ranging from one per cent to

24 per cent in favour of customers, with an average of 10 per cent. • Dethridge meter errors are caused by a range of factors many of which cannot be controlled or even influenced by Goulburn-Murray Water. n • All other meters tested operated within the tolerances of the proposed standard except for a MagFlow meter installed by a landowner on his property which under recorded by 10 per cent. io In addition to improvements to the operation and testing regime, it was also recommended that Goulburn-Murray Water expand the pilot project t to increase the sample and so provide more robust findings. a Goulburn-Murray Water intends to undertake further tests over the coming irrigation season and is already developing a program to enable the staged s

i replacement of existing Dethridge wheels that takes into account potential rationalisation of outlets as a result of modernisation.

From left: Our meter testing rig is the first of its kind in Australia and can n accurately test meter performance in the field. G-MW Managing Director Russell Cooper inspecting a Dethridge wheel. The pilot program will be expanded to test more meters over the coming year, to further build our r understanding of meter performance. e Mod

10 g-mw Annual Report 2006/07 development of Goulburn-Murray At the farm level, Goulburn-Murray Water’s modernisation strategies. Water’s modernisation working groups’ During the year more than 80 plans have determined components Community individuals including customers, along of the irrigation network such as consultation with representatives from the meters, channels and outfalls that can improves outcomes Catchment Management Authorities, be removed with little or no impact During the year, reconfiguration Department of Primary Industry, on the overall supply network. programs were launched in the Department of Sustainability and Goulburn-Murray Water is working Central Goulburn, Rochester- Environment, local shire councils and with individual customers to agree Campaspe, Murray Valley and the community have worked in on financial assistance to redesign Shepparton districts. These programs partnership with Goulburn-Murray on-farm layout to match the will build on the experience of our Water to map out the strategic vision streamlined supply system. existing reconfiguration programs in for their region. The broad Torrumbarry and Pyramid-Boort membership of these groups, combined irrigation districts. with Goulburn-Murray Water’s analysis and experience, ensures local Our Water Services Committees knowledge is a key component of area (WSC) and Reconfiguration Working modernisation strategies. Groups are the key forums for the

Goulburn-Murray Water’s reconfiguration approach ties Reconfiguration all modernisation aspects Infrastructure Reconfiguration Plans together to develop a long term strategic plan for individual irrigation areas Rationalisation

Automation

Pipelining Modernisation Design Business Cases & Construct Channel Lining

Accurate Metering

Regional development initiatives to meet growing service & supply needs

G-MW reconfiguration field coordinator Bill Streader and Appin irrigator Jack Hewitt.

g-mw Annual Report 2006/07 11 Building the future for irrigation in Northern Victoria - Modernising our irrigation areas

Torrumbarry Cohuna Weir. In 2003, the Woorinen system was established with a 53 kilometre pipeline servicing 220 customers and supplied from a pump station on the River Murray.

The Torrumbarry Reconfiguration and Asset Modernisation Strategy (TRAMS) working group was established in June 2006 to develop a district wide vision for irrigation in the region. A Stage 1 system overview was completed this year identifying Area characteristics and trends as well as the challenging environmental issues to be managed within the Area.

Shepparton Automation of East Goulburn Main Channel. The $188.2 million Shepparton Modernisation Project will realise 52 gigalitres of water savings by 2010.

Initial funding of $10 million enabled Goulburn-Murray Water to commence construction in June 2007 with targeted works involving automation of 12 key structures in the northern portion of the East Goulburn Main channel. The remaining channel regulators along

n the East Goulburn Main, from Goulburn Weir, will be installed next year, with preparation works along the main trunk channels completed this winter.

Full project funding could see Goulburn-Murray Water implement

io a combination of works that include rationalising 35 km of open channel and around 600 outlets, and installing 135 km of gravity pipeline and 40 km of pressurised pipeline. Channel automation t is a key component of the project with regulating gates to be installed at 570 sites across the Shepparton irrigation area. Farm outlets will

a also be upgraded with flume gates and magnetic flow meters installed enabling remote monitoring and some remote operation.

s A community reconfiguration working group was established in i December 2006 and is developing and implementing a number of rationalisation case studies. The working group includes community representatives to address the district’s unique challenges associated Planning is also underway to automate Goulburn Weir operations, with a growing urban population and increased number of ‘lifestyle’ automating channel control structures along the East Goulburn n properties. The Working Group has also facilitated community No. 12 Channel, automating remaining channel control structures meetings and been actively involved with the Shepparton on the EGM and designing pipelines associated with the Katandra Modernisation Project. area and Shepparton East horticultural area. These works are r expected to be implemented over the next 12-18 months. e

Decommissioning of the Murray Valley No. 1 channel benefits Murray Valley irrigators and the local Cobram community. A community reconfiguration working group established in November 2006 is developing a reconfiguration plan for the region. An Area overview report was prepared during the year and provides a snapshot of the irrigation infrastructure currently in place in the Murray Valley. Following a series of community meetings, works began on developing plans for individual pods across the region. Mod

12 g-mw Annual Report 2006/07 Building the future for irrigation Swan Hill

Kerang in Northern Victoria - Modernising our irrigation areas Cohuna Cobram

River Pyramid Hill Nathalia Boort Hume Wodonga Dam Tongala Corryong

Wangaratta Rochester Shepparton Stanhope Tatura Lake Mokoan Dartmouth Dam

Laanecoorie Lake Lake Lake Reservoir Eppalock Nillahcootie William Seymour Hovell Cairn Curran Flume gates. entral Reservoiroulburn C G Goulburn River Channel automation to more effectively monitor and control the Lake Eildon Tullaroop supply of water along the CentralReservoir Goulburn channels 1, 2, 3 & 4 (CG 1,2,3,4) forms the basis of this area’sHepburns modernisation program. The CG 1,2,3,4 channels accountNewlyn for around 20 per cent of the Reservoir Lagoon Central Goulburn Irrigation District and was the area chosen to pilot channel automation.The program also includes upgrading meter outlets along with some channel remediation works in high-loss pools to be completed in 2008. The total project is budgeted at $42.8 million and will deliver 15.2 gigalitres of water savings.

A community reconfiguration working group was established in June 2007 and is developing a reconfiguration plan for the remainder of the region with a strong focus on improving the performance and efficiency of the irrigation network at the farm level.

G-MW reconfiguration field coordinator Bill Pyramid -Boort Streader and Appin irrigator Jack Hewitt. The Pyramid-Boort reconfiguration working group was established in 2004 and is the most advanced of Goulburn-Murray Water’s reconfiguration projects. The group has developed a comprehensive vision for irrigated agriculture in the region detailed in its Future Management Strategy. The Strategy has initial funding of around $6 million from State Government to realise 3,000 ML of water savings. Modernisation planning has identified works requiring further funding of $100 million to realise a further 26,000 ML of water savings.

During the year 20 local customers signed the first ever reconfiguration agreements with Goulburn-Murray Water that will see 14.5 km of channel, 50 meter outlets and 23 structures rationalised. The Future Management Strategy has identified 220 kms of supply channel, 650 Dethridge wheels and 600 other structures such as channel regulators that can be taken out of service without compromising on-farm supply.

Cost effective lay flat pipeline near Echuca overcomes seepage and reduces water loss in Rochester - Campaspe channel targeted for future redundancy. A community reconfiguration working group established in December 2006 is developing a reconfiguration plan for the region. Pilot rationalisation projects have been developed to capture 142 ML of water savings as a result of local irrigators agreeing to rationalise 1.8 km of channel and associated assets, with a total replacement value of $1.5 million. The pilot projects are a vital step in understanding the modernisation opportunities and the future needs of irrigators and business in the region. The reconfiguration plan will also be informed by an area overview conducted during the year which identifies local area characteristics and trends.

g-mw Annual Report 2006/07 13 An eventful year

G-MW Chairperson Don Cummins with the former Minister for Water, Environment and Climate Change The Hon John Thwaites at the Watertight 2020 opening.

Minister for Agriculture From left: Gordon McKern, Chairman, Coliban Water, Joe Helper visits G-MW. Victorian Premier John Brumby and G-MW Managing Director Russell Cooper at the opening of the Goldfields Superpipe at Colbinabbin.

G-MW Chairperson Don Cummins, former Minister for Water, Environment and Climate Change John Thwaites and Andrew Evans G-MW at Waranga Pumping Station.

14 g-mw Annual Report 2006/07 Governance

g-mw Annual Report 2006/07 15 Goulburn-Murray Water: Profile Trading as Goulburn-Murray Water, the Goulburn-Murray Rural Water Authority was constituted by Ministerial Order under the provisions of the Water Act 1989, effective from 1 July 1994. During the reporting period the responsible Minister for Goulburn- Murray Water was the Hon. John Thwaites, MP, Minister for Water, Environment and Climate Change (formerly the Minister for Water).

Goulburn-Murray Water manages water-related services in a region of 68,000 square kilometres, bordered by the Great Dividing Range in the south and the River Murray in the north, and stretching from Corryong in the east downriver to Nyah. Goulburn-Murray Water also operates salt interception works on the Murray downstream of Nyah, manages Mildura Weir, delivers bulk water to supply points outside its region and is the Victorian Constructing Authority for the Murray-Darling Basin Commission. Three Key Goulburn-Murray Water Divisions

Assets and Water Planning and Technical Services Delivery Services Environment manages Goulburn-Murray Water’s manages the delivery of water to is responsible for water systems assets to agreed service levels and customers on over 14,000 serviced and water resource management, required safety standards. The group properties in constituted irrigation, water savings and environmental plans our asset works programs, water and waterway management management. The group provides including maintenance and capital districts and six management areas a range of environmental services that works and operates our large dams. (Shepparton, Central Goulburn, are purchased mainly by governments These activities include the delivery Rochester-Campaspe, Pyramid-Boort, through programs coordinated by of bulk water entitlements and supply Murray Valley and Torrumbarry). catchment management authorities. to other rural and urban water These services include gravity and Our environmental services include authorities, the environment and pumped water supply, surface and surface and sub-surface drainage private hydro-electricity customers. sub-surface drainage and flood support, water quality and land The group also manages recreation protection. The group also operates management planning, and salt and other public activities on and regulated and unregulated surface interception management. around our major water storages. water and groundwater diversion services to customers on over 12,000 serviced properties in Goulburn-Murray Water’s area.

The three business divisions are each the responsibility of a separate organisational group and are supported by other groups that provide a range of services including the corporate secretariat; corporate strategy, planning, coordination and communications; water storage amenity; business and water market development; financial management; information technology; water administration; and property, legal and human resources.

16 g-mw Annual Report 2006/07 Goulburn-Murray Water: Profile Organisational Structure

Board of Directors Don Cummins (Chairperson), John Pettigrew (Deputy Chairperson), John Brooke OAM, Craig Cook, Peter Fitzgerald, Des Powell, Jean Sutherland

Managing Director RUSSELL COOPER

Assets & Technical Water Delivery Planning & Strategy & Business Services Services Environment Stakeholder Affairs & Finance DAVID STEWART IAN MOORHOUSE Alex Marshall Garry Smith Trevor Ierino

Corporate Risk & Asset Strategy Shepparton Catchment Programs Corporate Secretary Strategic Financial Projects

Major Projects Central Goulburn Strategy & Systems Corporate Communications Finance

Technical Services Rochester-Campaspe Water Savings & Policy WSC Relations Human Resources

Goulburn/Loddon Dams Pyramid-Boort Water Resources Economics & Tariffs Property & Legal

Murray/North East Dams Murray Valley Water Storage Amenity Information Technology

Torrumbarry Regulatory Project Mgr Water Administration

Business Improvement

Diversion Operations

g-mw Annual Report 2006/07 17 Board of Directors Des Powell, Director Director of Goulburn-Murray Water since 1 July 2004.

Des has held a range of senior executive management roles in the private and public sectors in Australia and Asia. He operates his own consultancy business for industries such as transport, logistics, forestry and water. Des is a Commissioner and Deputy Chair of the National Transport Commission, Deputy Chair of the Port of Melbourne Corporation and Chairman of the National Marine Safety Committee.

Craig Cook, From left: Chairperson Don Cummins; Managing Director Russell Cooper. Director B.Ec Russell Cooper, Director of Goulburn-Murray Water Don Cummins, since 1 July 2004. Managing Director Chairperson BSc, GradDipMgt, FIEAust, CPEng, B.Ec, B.Ed, Dip Tchng, P.G.Dip Asian Craig is a management consultant FAICD Studies, GAICD to business and government. He Chairperson of Goulburn-Murray is a director of the Rural Finance From 1 July 2007, Russell’s role as Water since 1 July 2004. Corporation, a director of IM Medical Chief Executive changed to Managing and a director of Goulburn Ovens Director. Russell joined Goulburn- Don is a member of the Goulburn Institute of TAFE. Craig operates a beef Murray Water as Chief Executive Broken Catchment Management cattle property and vineyard at Tallarook. in July 2005 and has more than 20 Authority and of the Murray Darling years experience in the water and Basin Commission Community environmental industries. Russell is Advisory Committee. He is Deputy Chairman of the Management and Chair of the Mt Buller-Stirling Resort Business Standards Sector Board for Management Board. He is a director Standards Australia Limited, and a of Goulburn Valley Water. Don is a member of the Manufacturing Sector former Mayor of Delatite and Mansfield Advisory Council of CSIRO. Russell is Shire Councils and a former teacher. a National Councilor of the Australian He owns a cattle-grazing property Industry Group and a Director of the at Nillahcootie. CRC for Irrigation Futures. He became a board member of the Victorian Water Industry Association Inc. in 2007 Jean Sutherland, and is a Director of Irrigation Australia Director Ltd. Prior to joining Goulburn-Murray Cert Bus.Studs, CPA, GAICD Water, Russell was Chief Executive Director of Goulburn-Murray Water of SUEZ Environment, encompassing since 1 July 2001. the water (Degremont) and waste businesses (SITA) for Australia and Jean is a member of the North Central New Zealand. From 1995 to 2001, Catchment Management Authority. She Russell was Managing Director of is a graduate of the Loddon Murray South East Water Limited, a Melbourne 2000 Plus Leadership program and based retail water company. has extensive accounting experience, particularly in rural business enterprises.

From left: Jean Sutherland, Des Powell, Craig Cook.

18 Board Committees fulfil three specific roles:

Financial and Management Audit Committee Oversees the internal and external audit program and risk management program, reviews annual financial statements and associated checklists, and monitors and advises the Board on financial, management and accounting responsibilities.

From left: John Brooke, John Pettigrew, Peter Fitzgerald. Membership: John Brooke (Committee Chairperson), Jean Sutherland (independent John Brooke OAM, John Pettigrew, member), Des Powell (independent Director Deputy member). B.Com, B.Ed, FCPA, CA Chairperson Director of Goulburn-Murray Water GAICD since 1 July 2004. Director of Goulburn-Murray Water Remuneration Committee since 1 July 2001. Deputy Chairperson Oversees executive remuneration John is an irrigation farmer near Pyramid since 1 July 2004. policy and monitors executive Hill. He has extensive experience remuneration. The committee also in local government, water resource John is a director of Paton Smythe advises the Board on executive management, business management Pty Ltd, Horticulturalists. He is also remuneration responsibilities, and natural resource management. a member of the Goulburn Broken including individual remuneration He is a member of the North Central Catchment Management Authority, a packages for senior executives. Catchment Management Authority and former Chair of the Shepparton Water a director of Coliban Water. Services Committee and a former Membership: Jean Sutherland director of SPC Ltd. John has extensive (Committee Chairperson), experience as a company director and Don Cummins, Peter Fitzgerald. in community participation in natural resource management planning and implementation. Safety and Environment Committee Peter Fitzgerald, Oversees environmental and Director occupational health and safety Advanced Dip. Ag. , GAICD policy development, monitors Director of Goulburn-Murray Water performance and compliance with since 1 July 2004. requirements and advises the Board on environmental and occupational Peter served on Goulburn-Murray health and safety responsibilities. Water’s customer committees for over 10 years, with three years as Membership: John Pettigrew Chairman of the Central Goulburn (Committee Chairperson), Water Services Committee. He is a Craig Cook, Peter Fitzgerald. former Councillor for the United Dairy Farmers of Victoria and a graduate of the Australian Rural Leadership Program. Peter runs a dairy and beef operation at Tongala and Kotupna.

g-mw Annual Report 2006/07 19 Directors’ attendance at board and committee meetings Director Board Meetings Financial and Remuneration Safety and Management Audit Committee Environment Committee* Committee Held Attended Held Attended Held Attended Held Attended Don Cummins 11 11 7 4 3 3 5 2 John Pettigrew 11 11 7 1 - - 5 5 John Brooke 11 11 7 7 - - - - Craig Cook 11 11 7 1 - - 5 4 Peter Fitzgerald 11 11 7 1 3 2 5 5 Des Powell 11 11 7 7 - - - - Jean Sutherland 11 10 7 6 3 3 - - Russell Cooper 11 11 7 5 3 3 5 5

* Directors who are not permanent members can attend meetings of the Financial and Management Audit Committee. * Russell Cooper became a director as at 1 July 2007. Previously he was the Chief Executive.

Our governance practices In 2006/07, as part of its commitment processes. Significant progress was development and management to continuous improvement, the Board made in the implementation of the of groundwater management plans continued to improve its governance whole of business risk management within the Campaspe Deep Lead. in a number of ways: framework, including the development of strategy, procedures and guidelines • Adhering to a range of governance • A review of the Board’s Committee relating to corporate risk. principles. The legislation governing membership structure and, in the case Goulburn-Murray Water activities is of the Financial and Management Audit • Further development of the policy and the Water Act 1989, however, the Committee, the adoption of a revised procedures on the trading of water Board voluntarily follows the applicable charter. The updated charter enshrines entitlements by Goulburn-Murray governance principles of the Corporations the right of all other non-member Water directors and employees Act 2001, the ASX Corporate directors to attend any meeting of following a review of the procedures Governance Council Principles of the Committee, with the Board by external auditors. Good Corporate Governance and Chairperson having the right to vote Best Practice Recommendations and at any such meeting. • We sought improved governance and the Public Administration Act 2004. relationships with our Water Services • A review of the Board’s performance Committees, working with the • The Chairperson attended the 2007 and review of individual director committees to develop a new code Company Directors International performance. The reviews were of conduct for customer committees; Conference. conducted by an external facilitator the code of conduct was subsequently with the outcomes reported to the approved by the Board. Work former Minister for Water, Environment continues with Water Services and Climate Change. Committees in preparing updated committee charters. Two new • Adoption of an updated risk committees were established, the management policy to reflect changes first to assist with the development to Goulburn-Murray Water’s risk of management rules for the sustainable management framework, ensuring its pumping of groundwater in the whole of business risk management Mid-Loddon Water Supply Protection framework is incorporated into Area and, the second, to provide management and decision-making stakeholder perspectives on the review,

20 Economic Sustainability

g-mw Annual Report 2006/07 21 “We will actively pursue new and improved ways to operate our business to achieve the most cost effective total water system management whilst meeting all our statutory financial and customer obligations” Trading result

Goulburn-Murray Water recorded a storage inflows on an already depleted to fund the pumping of Waranga basin $658,000 profit for the year based on base of water in store at the start of partly offsetting this revenue loss, but its current pricing policy of regulatory the year. also matched in expenditure by the depreciation based accounting. additional pumping cost. Maintenance All allocations were at record lows, expenditure increased as the 2006/07 proved to be the most with the Goulburn system at 29 per Advanced Maintenance Program, difficult year ever experienced cent of entitlement, and the Murray which commenced in late 2005/06, by the irrigation community in the at 95 per cent. The result was a was in full operation for the year. This Goulburn-Murray Water districts. reduction of $6.6 million in consumptive program is a key component of the The continuation of widespread charges. Overall revenue was down pricing policy introduced in 2006/07. drought resulted in record low $1.3 million, with a Government grant

2006/07 saw record low storage inflows on an already depleted base of water in store - Lake Eppalock.

22 Trading result as per Australian Financial Reporting Standards For 2006/07 our new pricing policy was expenditure is higher, with the target This approach means that in an average introduced, replacing the use of a of reducing the long term cost of assets. year the Authority maintains commercial renewals annuity. The new policy uses Under this approach the Authority made viability, whilst showing a loss in the regulatory depreciation, in line with the a profit of $658,000. financial statements. Essential Services Commission approach. This approach excludes from pricing the The financial statements, however, are The operating result shown in the recovery through depreciation of assets prepared in accordance with Australian attached financial statements prepared in existence at 1 July 2004. New capital Financial Reporting Standards, which in accordance with Australian Financial expenditure since that date is depreciated require that asset consumption be Reporting Standards is reconciled with and the depreciation included in pricing, measured using conventional depreciation the current pricing policy based profit and this amount will slowly build over charges based on replacement costs and in the table at left. time. In the early stages of this policy the expected asset lives. Advanced Maintenance Program

2006/07 2005/06 A comparison of trading results for $’000 $’000 the last six years, based on financial statements prepared in accordance with Profit/(Loss) for the year in financial statements, (28,250) (4,215) Australian Financial Reporting Standards, prepared in accordance with Australian Financial is shown below. Reporting Standards Add back depreciation 31,302 30,516 Year Result Deduct regulatory depreciation (2,394) 2006/07 $28.3m loss Deduct renewals annuity (20,412) 2005/06 $4.2m loss Profit/(loss) for the year 658 5,889 2004/05 $11.4m loss under pricing policy 2003/04 $2.1m profit The financial statements indicate an operating loss of $28.3 million in 2006/07. 2002/03 $21.6m loss Financial Performance - 5 year summary 2001/02 $7.5m loss 2006/07 2005/06 2004/05 2003/04 2002/03 Revenue $’000 $’000 $’000 $’000 $’000 Charges for water 77,129 82,905 79,497 74,002 63,801 Other revenue 41,459 36,983 31,098 41,305 32,285 Total 118,588 119,888 110,595 115,307 96,086 Expense Operations 62,392 54,375 55,797 54,366 56,382 Maintenance 32,699 24,075 19,999 18,130 17,613 Depreciation 31,302 30,516 30,806 26,991 28,486 Other expenses 20,445 15,137 15,403 13,734 15,212 Total 146,838 124,103 122,005 113,221 117,693 Profit/(Loss) (28,250) (4,215) (11,410) 2,086 (21,607) Current assets 50,281 44,698 55,488 41,538 22,680 Non-current assets 1,930,826 1,905,679 1,882,528 1,858,940 1,695,945 Current liabilities 49,693 41,202 43,193 28,165 27,322 Non-current liabilities 14,023 14,809 15,288 23,751 8,717

Enhanced financial With the introduction of Goulburn-Murray Water’s new financial management management systems system, we have significantly upgraded the consistency and rigour of our financial management processes. We have also introduced more efficient and flexible to support financial reporting capabilities that can more effectively meet the needs of external agencies accountability such as Essential Services Commission and the Department of Treasury and Finance.

The improved financial management system will ensure Goulburn-Murray Water maintains its high standards of public financial accountability over coming years and has the flexibility to support a range of project and business partnerships. g-mw Annual Report 2006/07 23 Announcement of the Foodbowl Modernisation Project Steering Group in July 2007. From left: G-MW Chairperson Don Cummins, former Premier Steve Bracks, Steering Group Chair John Corboy, G-MW Managing Director Russell Cooper and G-MW Director John Brooke. Victorian Government funded rebate Planning for future program capital works In November 2006 the Victorian Government announced a drought response During 2006/07 Goulburn-Murray program of rebates to customers in systems with less than 50 per cent Water commissioned an independent allocation as at 1 December 2006. Eligible customers had the first $5,000 of asset management review of its business, their fixed water supply charges paid in full. measuring against a quality asset management framework. Generally, In addition the program allowed a deferral of the payment of any balance of fixed Goulburn-Murray Water was assessed water supply charges for up to five years, with the interest to be funded by the as having well established practices with Victorian Government. Under this program $6.1 million of rates were deferred. some activities being at best appropriate practice. The review also identified some opportunities for improvement Foodbowl which have been included in an asset management performance plan for Modernisation Project the Corporation. In June 2007 the Victorian Government announced the Foodbowl Modernisation There are significant requirements Project. As shown at note 27 Post Balance Date Events, there is a potential for to improve major dams in line with this to have a significant impact on the presentation of Goulburn-Murray Water’s modern standards, and works to financial statements in the future. Whilst there is still a great deal of stakeholder refurbish channels and structures will consultation and detailed planning to be undertaken, it is likely that implementation increase significantly in the future. There of the plan would impact the future financial statements by: is also a substantial increase in works, to • The receipt of large sums of Government contributed capital affecting the be funded by governments, as part of the statement of changes in equity. national and state water savings initiatives. • Increases in borrowings to fund the Corporation’s part contribution of up to $100 million. This year Goulburn-Murray Water also • Large asset write off expense as assets are reconfigured and rationalised. progressed its draft Water Plan for the 2008/09 to 2012/13 period, which is Tariff Policy Review currently under review as a result of the Goulburn-Murray Water engaged independent consultants to review our tariff policy $1 billion Foodbowl Modernisation to identify options to address customer concerns with paying fixed charges when water announcement. The plan has regard for availability is very low. existing and future modernisation and rationalisation opportunities, whilst A total of 13 options were identified including rebates for fixed charges, extended balancing social, economic and payment terms, insurance products to manage risk as well as fundamental changes environmental considerations. to the tariff mix. The options were considered from the perspective of balancing the need to ensure a sustainable revenue base for Goulburn-Murray Water’s operations while recognising the challenges for irrigators in years of low supply.

Following consultation with Water Services Committees it was agreed that offering deferred payments terms was the most appropriate response.

24 Unbundling Water EntitlementS

Water rights, domestic and stock allowances and diversion licences on regulated waterways were unbundled on 1 July 2007. This represented the next step in the Victorian Government’s water reform program. The new arrangement will help Victoria meet its obligations under the Commonwealth Government National Water Initiative announced June 2004.

Unbundling recognises that an irrigator’s right is actually a bundle of different types of entitlements that can be better managed when separated into three individual components: Water share: a legally recognised, secure share of water available for consumption. Delivery share: an entitlement to have water delivered to a property. For regulated diversion licences this will be called an extraction share. Water use licence: an authority to apply water for irrigation on a property.

In conjunction with unbundling, ‘water sales’ were converted into an independent, tradable lower-reliablilty water share owned by irrigators.

Since early 2006 Goulburn-Murray Water has undertaken an intensive customer and stakeholder information campaign to explain the process and benefits of unbundling – firstly to gravity irrigation customers whose entitlements were unbundled on 1 July 2006, and then to other customers whose entitlements were unbundled from 1 July 2007. Central to the campaign has been the use of the “Water Wheels” Information Van which has visited every area to explain tariff reform and unbundling to customers and communities.

g-mw Annual Report 2006/07 25 Unbundling

Unbundling – spreading the message to customers Goulburn-Murray Water worked providers, interested groups and the Specialised training was provided extensively with customer community. Meetings were run by for water brokers and solicitors representatives through the Water Goulburn-Murray Water and some in the mechanics of unbundling, Services Committees and service were held in partnership with various enabling them to deal with their providers such as lawyers, farm organisations such as DPI, DSE and the clients efficiently. consultants and water brokers to Law Society. Attendees totalled up to identify how the changes could affect 1,500 with some 1,000 customers Goulburn-Murray Water’s internal water customers. Potential issues were attending 40 customer meetings. processes were also modified to then addressed with DSE to minimise enable unbundling to proceed any impact on customers. A series of information packages were efficiently, with customer records mailed to customers in February, updated and a new water register Customers learned about the changes March and May 2007. and customer relationship and new flexibility provided by management system developed. unbundling through a variety of means Fact Sheets explained the benefits over the past year. The Water Wheels and process of unbundling and a series The first water share transactions Information Van toured the Goulburn- of advertisements throughout the year under the new system began to be Murray Water region for four months explained the concept and advised processed in August 2007, heralding including attending field days and other customers of information sessions a new era for flexibility and customer-related events. Goulburn- and when the Water Wheels Van was responsiveness in water ownership Murray Water attended or held over visiting their area. and trading. 50 meetings for customers, service Unbundling facts 29,000 water shares 2006/07 14,000 delivery shares On 1 July 2007, unbundling of water entitlements 4,000 extraction shares resulted in the creation and conversion of the following entitlements: 17,500 water use licences

26 The range of rehabilitation techniques In addition to the works on the Extending currently being used includes: irrigation infrastructure approximately • rock armouring inside channel bank 140 drainage structures were replaced batters; and 430 beached and rehabilitated. the life of • reinstating eroded bank material from the bed of the channel onto the inside Over the next year, Goulburn-Murray of the channel bank batter; Water will continue implementing the our assets • repairing concrete channel structures; and AMP, supported by a mix of in-house • beaching channel structures. resources and external contractors. Goulburn-Murray Water’s Advanced Maintenance Program (AMP), is based This year, we completed over The primary benefit of the program on implementing a number of rehabilitation 300 kilometres of rock armouring, is that through responsible asset techniques that will extend the life of 90 kilometres of reinstating eroded bank management, asset replacement the asset and ultimately reduce the total material, rehabilitated 150 irrigation expenditure is deferred and the peaks cost of maintaining and replacing the structures, rock beached 187 irrigation are smoothed, providing for a smoother asset over its full life. Well-maintained structures and fenced over water price path for water users. assets also perform more efficiently and 30 kilometres of channels following reduce water loss. the rock armouring works. “We will contribute to Government water reforms, developing and adapting the appropriate assets, technology and systems that meet the future needs of our customers and communities and enable regional growth”

Stage 2 of the project, completed Cairn Curran Dam Safety Upgrade will be in May, saw the sand and rockfill buttress delivered ahead of schedule and under budget. extended across the upper part of the Cairn Curran main embankment and a similar buttress Dam Safety Upgrade constructed on the secondary Goulburn-Murray Water is undertaking embankment to provide protection works to bring Cairn Curran Dam up to the whole dam. Other work to be to modern design standards. Built in completed by October 2007 includes: 1956 it has a capacity of 148,000 ML, making it the largest storage on the • Construction of a filter buttress Loddon River. Its main purpose is to on the main embankment above provide irrigation water to customers the first berm in the Pyramid-Boort Irrigation Area • Replacement of the deteriorated and the Loddon Waterworks Districts. concrete wave wall on the main The Reservoir is also critical to water embankment by raising the clay core users who hold direct diversion licences of the dam from the Loddon River. Once the • Stabilisation of the rock spillway chute upgrade is complete, the dam will be through installation of rock bolts and protected against the potential for dental concrete uncontrolled seepage or major damage • Strengthening of the spillway gate during an earthquake. The dam will also trunnion beams be able to withstand larger floods. Some 230,000 tonnes of filter, clay and In 2002, Goulburn-Murray Water rock were used in Stage 2 of the project. completed Stage 1 of the upgrade The main civil works are directly project. This initial work involved managed by Goulburn-Murray Water constructing filters in the most using contracted plant and labour. vulnerable part of the dam wall, Specialised activities such as the spillway next to the spillway structure. works are undertaken by contract. g-mw Annual Report 2006/07 27 operation of the water supply. The new ecommissioning $2.7 million pump station and pipeline D from the Murray River downstream Murray Valley of Cobram was funded jointly by No.1Channel Goulburn-Murray Water, Moira Shire, The Murray Valley No.1 pump station the Victorian Government, the and pipeline was officially opened by Australian Government and Cobram the Hon Candy Broad, Minister for District Hospital. Local Government in October 2006. This new 65 megalitre per day pump Decommissioning the channel involved station and 1.3 km rising main was a backfilling the old open channel, which major component in the project to now provides reclaimed land for decommission the old open channel alternative uses such as extensions and pipeline from the centre of to the Cobram Hospital car park and Cobram township. providing open spaces in the urban area.

Until this year, the open Murray Valley The project is now mostly complete, No.1 channel ran through the middle with some minor alterations to occur of Cobram. But with the growth of at the pump station over winter and the town, the location of the channel land transfers still ongoing. The new started to create public safety concerns, pump station was successfully operational as well as constraints on development for the 2006/07 irrigation season of the region and on safe and effective as planned.

Protecting the Catumnal Domestic Corporate risk security of our assets and Stock System Significant advancements have been Goulburn-Murray Water’s assets are As part of the West Loddon Domestic made to progress the implementation of the foundation of our business, and and Stock system, an area near Boort the Whole of Business Risk Management protecting them is a crucial part of is supplied by the Catumnal 2/3 and Framework which has included the our job. Security threats to critical 3/3 channel systems. This innovative development of strategy, procedures and infrastructure have been rigorously partnership with Coliban Water is part guidelines relating to Corporate Risk. assessed and security control measures of the WaterTight 2020 program. The implemented consistent with state channels will be replaced with a An Enterprise Level Risk Assessment has and national strategies. A program pressurised pipeline system, supplied been completed during the 2006/07 of detailed vulnerability assessments from the existing Mysia Urban Dam period to ensure all Strategic risks have and security audits is underway to (owned by Coliban Water). As part of an been identified across the organisation. ensure continual improvement of Agreement with Coliban Water, who will This Assessment has enabled the these measures. fund the $464,000 project and gain the development of a revised Corporate Risk 220 ML of water savings, Goulburn- Register which will assist in the ranking, Goulburn-Murray Water is represented Murray Water will take over the assets business prioritisation, identification and on the Water Services Infrastructure upstream of Coliban Water’s urban development of mitigation strategies to Assurance Advisory Group. This is a pump station. The new system will be reduce the level of risk and maximise national forum where water supply constructed and on-line prior to the business opportunity. asset owners share information about scheduled November 2008 dam fill. security threats and controls measures, To assist in the ongoing management, and develop risk-based ways to protect As part of the Agreement, Coliban evaluation and control of Corporate assets and business continuity. Water is also providing $75,000 funding Risks, specialised software has also been to undertake a Business case for the purchased during this period and is Mitiamo Domestic and Stock Scheme. proposed for implementation in the near future.

28 • New Pump Station has two submersible pumps with 60 ML/day capacity.

• New 600 mm diameter pipeline supplies 6,000 ML to customers.

• Old Town Siphon used to run under three roads, a primary school, four house lots and the Cobram hospital. It took more than 470 cubic metres of low strength grout to fill the decommissioned pipeline.

• Four road culverts abandoned.

• 3km of channel pushed in and graded.

From left: Chairman Cobram and District Hospital, Phillip Pullar; G-MW Chairperson Don Cummins; Local Government Minister Candy Broad and Moira Shire Mayor Ed Cox unveil the official plaque for the new pump station and pipeline.

Gunbower Gunbower Weir. Weir During the year detailed design of the new Gunbower Weir progressed with a new weir scheduled for construction in 2007/08 at an estimated cost of $2 million. The Weir is a key structure in the Torrumbarry Irrigation system, regulating flows to the Gunbower Creek pumpers and the supplies to 28 per cent of Torrumbarry’s customers. The existing timber weir is in very poor condition and suffered a minor structural failure in 2006.

Southern Hydro dispute finalised During the year, a dispute between Goulburn-Murray Water and Southern Hydro was successfully resolved. Definitions of revenue have been redefined, and the method of calculating the Entitlement Charge under the Dartmouth Entitlement Agreement simplified.

g-mw Annual Report 2006/07 29 Asset Rationalisation of $6.4 million of existing assets with During the year, Goulburn-Murray a ‘present value’ of $3.2 million were Efficient Water continued to work with local rationalised with $0.8 million of new landowners to identify opportunities assets put in place to reinstate supply, to rationalise assets. Goulburn-Murray resulting in a net reduction of operations $5.6 million in asset value. Water also provided $1.2 million of financial assistance to landholders to enable them to align their farm with These projects have also delivered their new supply arrangements. A total water savings of 161.7 megalitres.

Table 1: Summary of asset rationalisation projects (excluding Reconfiguration Project)

Irrigation Number of Assets Rationalised Cost to Rationalise Annual Area projects Renewals Present Value Capital Recurrent TOTAL Water completed Cost (6%, 30yrs) Savings (ML/year) Shepparton 8 $1,225,250 $638,095 $18,000 $206,800 $224,800 20.2 Central Goulburn 2 $1,337,430 $658,017 $34,750 $492,463 $527,213 65.3 Pyramid-Boort 1 $599,500 $319,958 $89,000 $29,000 $118,000 10.5 Murray Valley 16 $3,258,261 $1,592,028 $686,900 $451,900 $1,138,800 65.7 TOTAL 27 $6,420,441 $3,208,098 $828,650 $1,180,163 $2,008,813 161.7 Notes: 1. 2006/07 Performance target – abandon $2 million of existing assets and save 100 ML. 2. No rationalisations were completed in Rochester-Campaspe or Torrumbarry as those identified were not feasible.

Some backwaters within the Goulburn Weir have been re-infested with Yellow Water Lily and Fanwort following the previous Goulburn treatment program undertaken between 1996 and 2003. Rapid growth of the weeds over the summer of 2006/07 has lead Weir Weed to a decline in water quality in some backwaters. Following consultation with a number of local stakeholders, it was agreed to establish a trial program in one backwater to assess the Management effectiveness of glyphosate treatment and mechanical harvesting. After assessing the results, including any subsequent impacts on Program water quality (such as glyphosate concentration, dissolved oxygen, nutrients and turbidity), a management plan will be formulated

Goulburn-Murray Water expects the weed management program to commence during the summer of 2007-08. Yellow Water Lily infestation in Goulburn Weir.

30 g-mw Annual Report 2006/07 Social Sustainability

g-mw Annual Report 2006/07 31 “We will provide a range of responsive and innovative services with a price and delivery mix that balances existing and emerging customer needs” Customer Code and Customer Charter As part of the change to the new regulatory regime under the Essential Services Commission, Goulburn-Murray Water developed a new Customer Code and Charter. In consultation with our customer committees we have developed the new charter and code that will replace our previous Customer Service Agreements. The new charter details how Goulburn-Murray Water will meet its service obligations and specifies service standards that customers can expect to receive.

Helping customers in hardship Web This year Goulburn-Murray Water developed an initiative to enable customers who were required to install a meter or who asked us to install a meter on their behalf to pay by instalments over a 3 year period. Following customer committee requests, this ordering initiative was undertaken as a drought response initiative to assist those in need. Goulburn-Murray Water introduced a new internet based facility to enable Campaspe drought pumping syndicate customers to complete their water ordering transactions online. This For the third year in succession, a group of customers in the Campaspe Irrigation complements the existing widely used District co-operated with Goulburn-Murray Water to pump water purchased Waterline phone ordering system. privately from the Goulburn system back into the Campaspe East channel and then We responded to customer requests on to supply their properties. The co-operation required to make such a system for this facility and implementation work is considerable, and for such a venture to succeed for three consecutive years was completed in November 2006. demonstrates the commitment of both customers and Goulburn-Murray Water staff. Customers can place and confirm The venture provided water for these properties when there was no general their orders and query usage and allocation for irrigation available. entitlement without contacting Goulburn-Murray Water directly. Customer use of the facility has been very good with takeup continually Lake Buffalo increasing and 8 per cent of all orders drought pumping. now placed via the web. Several improvements have been identified and are being incorporated in the development of the new irrigation planning software currently being implemented.

32 G-MW’s Customers Service Serviced Continuously Properties Gravity Irrigation and Drainage 13,644 improving customer Pumped Irrigation and Drainage 418 Domestic and Stock 1,025 service Surface Water Diversions 11,289 Our business services a broad range of customers across northern Groundwater Diversions 4,840 Victoria. We continually strive to service their needs and provide quality customer service. The table here details our range of customers. Flood Protection 120

Other customers Improving our Urban Water Authorities 4 response to Urban/Rural Water Authorities 2 Free translation customer service complaints Rural Water Authorities 1 Goulburn-Murray Water provides A total number of 23 complaints Hydroelectric Companies 2 a free translation service to cater were registered in our Complaints for the rich diversity of our Management System. The system Lessees and Licensees 835 customer base. The service reports and monitors customer can provide translations in over complaints using a work flow system. Houseboat Licensees 706 100 languages and works via a Customer service officers across the three-way phone conversation region record the complaints. The TOTAL 32,886 between the customer, a translator number of new complaints is and a Goulburn-Murray Water reported to the Board each month. customer service representative.

During the year our IPM was significantly and mailing information are all captured upgraded to generation 2 technology in one central source. Authorised (IPMG2) improving its ability to service customer service staff can view a pgraded systems customers and meet new requirements customer’s record, initiate customer U arising from the unbundling of water requests and then track their progress. improve service Each year Goulburn-Murray Water entitlements. The system more effectively processes around 200,000 water orders supports communication and delivery SAM will substantially improve service from irrigators across the region with of orders between customers and levels for individual customers. It also a growing number placed using our Goulburn-Murray Water business areas. improves our business wide logging, automated telephone and internet tracking and management of customer ordering systems. By working with Unbundling of water entitlements means issues and service delivery including our our customers and carefully planning the new Victorian Water Register must ability to track business performance deliveries we aim to supply water where also have access to the latest information against service benchmarks. and when it is needed, as efficiently about customers’ water entitlements and as possible. Goulburn-Murray Water’s account balances. IPMG2 now enables Irrigation Planning Module (IPM) is constant communication between the critical to capturing customer orders, Water Register and Goulburn-Murray planning the supply and coordinating the Water ensuring customers can trade and delivery of orders through our area staff receive water as efficiently as possible. and by remote technology. Goulburn-Murray Water also introduced a dedicated customer relationship system. Our Stakeholder Account Management (SAM) captures customer information, previously held in several systems and business areas, in one central database. Irrigation assets, entitlement and use, as well as billing g-mw Annual Report 2006/07 33 Meeting our customer performance targets The difficult seasonal conditions had The Goulburn-Murray Water Board customers and this is reflected a significant impact on Goulburn- and the Water Services Committees in results from the customer Murray Water’s ability to meet its endorsed revised targets for water satisfaction survey. service delivery targets. A high deliveries based on ‘All Orders number of service interruptions Delivered +/- one day’ of the This year’s customer satisfaction resulted from pipeline breaks and requested start time. The new targets survey was conducted independently low channel flows as a result of the allowed Goulburn-Murray Water to by the Australian National Committee drought conditions right across the focus on system efficiency during a on Irrigation and Drainage (ANCID) Goulburn-Murray Water region. The year of low allocations, with the as part of a national survey and the pipeline breaks are attributed to the Water Services Committees changed approach means that long dry period causing ground understanding that this would impact comparisons with previous year’s movements and the low channel flows on the service level they received. survey results is not straightforward. were a consequence of the very low All operational Centres met the levels of water orders and the tight revised targets. The 2007 customer survey found that operation of the supply system in an overall 77 per cent of respondents place to minimise water losses. In 2006/07 was a challenging year with rated Goulburn-Murray Water service total there were 10 unplanned service the lowest ever water allocations and as Good to Very Good. This did not interruptions greater than 24 hours the highest number of streams on meet the target of at least 80 per cent for the 2006/07 season. restrictions and suspensions. The of respondents satisfied with their severe drought conditions created services from Goulburn-Murray significant stress and hardship for Water.

Goulburn-Murray Water Order Delivery Performance 2006/07

100% Deliveries +/- 1 Day 98% 99% 80% 99% 97% 99% 98% 96% 95% 96% 94% 96% 97% (all orders) 60% Target +/- 1 Day 40% (all orders) 20% 0% Shepparton Central Rochester Pyramid- Murray Valley Torrumbarry Goulburn Boort

Goulburn-Murray Water continued to support and provide leadership in technical aspects of dams management through our involvement with Australian National roviding Commission On Large Dams (ANCOLD) and the International Commission on P Large Dams (ICOLD). technical leadership in managing dams David Stewart (Executive Manager Assets & Technical Services) was appointed Chairman of ANCOLD.

We also participated in the VicWater’s Working Group, the Institution of Engineers Australia and the Victorian State Critical Infrastructure Review Committee. Our involvement in these and other technical and professional organisations brings about opportunities to exchange knowledge and experience with other dam owners through technical papers, conference presentations and the development of national and international guidelines and standards in dam engineering.

34 g-mw Annual Report 2006/07 Temporary Transfer Water Entitlement (transfers processed by G-MW) Developing open and viable water markets - Watermove Volume (ML) Goulburn-Murray Water is committed to developing an 350,000 open and viable trading market that ensures water can 347286 340,000 move to higher value uses. The Watermove exchange, 338088 337707 330,000 operated by Goulburn-Murray Water, continues to set 329259 320,000 a benchmark for the water market by publishing an 310,000 informed water price, valuable trade data and offering 300,000 competitive and transparent fees. 290,000 286418 280,000 Over the past year, Watermove has continued to operate 270,000 in competitive water trading markets across Victoria and 260,000 southern NSW. 2002/03 2003/04 2004/05 2005/06 2006/07 Permanent Transfer Water Entitlement (transfers processed by G-MW) Volume (ML) 60,000 Watermove Temporary Trade Volumes 60536 (trades processed) 50,000 51335 Volume (ML) 40,000 44302 44851.4 30,000 120,000 20,000 100,000 98283 19697 80,000 89926 10,000 88934 83221 60,000 0 63541 2002/03 2003/04 2004/05 2005/06 2006/07 40,000 20,000 Water trading trends 0 Water trading is maturing into a highly developed trading 2002/03 2003/04 2004/05 2005/06 2006/07 market, with irrigator demand driving improved processes and services. During the year Goulburn-Murray Water worked towards the implementation of unbundling which will provide flexibility for irrigators. Provide easier ways to trade water Goulburn-Murray Water has continued to support the Watermove Permanent Trade Volumes development of an open and equitable water trading market (trades processed) and has provided a number of products to assist in this. Volume (ML) 1,200 Goulburn-Murray Water played a key role in the development 1,000 and implementation of carryover as a drought response 1039 996 measure. The carryover arrangements allowed irrigators to 800 secure water for the 2007/08 season. The publication of 600 686 Watermove trading results was also very important to ensuring 400 505.7 buyers, sellers and the wider community had access to timely 200 and transparent benchmarks. 0 0 2002/03 2003/04 2004/05 2005/06 2006/07 Season report The water trading market was highly active this season due to the dry conditions and resulting record low allocations. The increased demand for water in the early part of the season saw the market trading as early as late August.

Continuing dry conditions throughout the season lead to the introduction of ‘Domestic and Stock’ entitlement trading and the release of seven gigalitres of water quality reserve to the Goulburn System. This maximised the availability of temporary water for irrigators and ensured trading continued through to the end of the season. g-mw Annual Report 2006/07 35 Water Services No. of Meetings Average Committee members held Attendance Peter Serpell, Deputy Chair – Murray System. Ross Crawford, Chair – Central Goulburn. Shepparton 8 11 78% Richard Anderson, Chair – Rochester-Campaspe. Central Goulburn 8 12 86% John Horder, Chair – Shepparton. Craig Madden, Chair – Regional Groundwater. Rochester-Campaspe 10 12 87% Alan Rothacker, Chair – Goulburn System. Pyramid-Boort 10 10 81% Geoff Williams, Chair – Torrumbarry. John Nelson OAM, Chair – Pyramid-Boort. Murray Valley 8 12 92% Rod Squires, Chair – Tungamah. Torrumbarry 9 12 80% Heather du Vallon, Chair – Murray Valley. Loddon Water Districts 9 5 87% Tungamah 7 6 95% Loch Garry 5 2 90% Regional Groundwater 14 4 71% Murray System (Diversions) 12 4 77% Goulburn System (Diversions) 8 4 94% TOTAL WSCs 108 94 Upper Murray Catchment Committee 4 2 Mitta Mitta Catchment Committee 6 2 Kiewa Catchment Committee 8 4 Ovens Catchment Committee 6 2 Mid Murray Catchment Committee 6 2 King Catchment Committee 6 2 Broken Catchment Committee 6 2 Goulburn Catchment Committee 8 2 Campaspe Catchment Committee 6 2 Loddon Catchment Committee 5 2 Loddon Valley GMA Reference Committee 13 2 Springhill WSPA Reference Committee 3 2

Lakes on the Murray has been constructed to ensure safe Working with bulk This year in addition to the continued access at all lake levels in future years. water and recreation implementation of the Lake Mulwala The low level at Hume provided an customers Land and On-Water Management Plan, Stakeholder forums are a key aspect opportunity to construct a new boat Goulburn-Murray Water, in partnership of the relationship Goulburn-Murray with Moira Shire began development ramp on the Bellbridge peninsula with Water shares with its customers and of a Foreshore Masterplan for a grant received from Marine Safety communities. The forums provide valuable Lake Mulwala. Victoria. The new ramp provides opportunities to share ideas and listen improved access to launch boats down to community issues, concerns and This plan will provide a coordinated to a lake level of 5 per cent. expectations that inform the way we approach to the management of act and manage in our broader water the foreshore to provide sustainable The Lake Hume Land and On Water storage role. recreational and community benefit Management Plan has been developed Goulburn-Murray Water works while protecting the high environmental this year with several important studies completed, including a cultural heritage closely with other water authorities, aspects of the lake. hydroelectric power companies, assessment, water quality data review, recreational and tourism customers socio-economic study and grazing The very low water levels at Dartmouth and representatives from communities and Hume this year caused significant impact assessment. Goulburn-Murray around our storages. impact on water users. At Dartmouth Water has engaged in extensive Goulburn-Murray Water modified an community consultation throughout the This year, we regularly convened old haul road left after the original year to gather input from all community and participated in stakeholder and construction of the dam to provide stakeholders. community reference groups, including access for launching boats when the community-based panels at Mansfield, water level dropped below the existing Murrindindi Shire, Lake Eildon, Lake Nagambie, Lake Eppalock, Lake Mulwala public boat ramp. Extensive work was and Lake Hume. required to keep the ramp operating safely over the summer months. A new extension to the original public ramp 36 In April, Goulburn-Murray Water issued As part of their involvement in major a call for nominations for positions on business decisions, customer committees orking with a number of committees, with a total developed business plans for each of W of nine new representatives appointed their areas, influenced Goulburn-Murray our Water Services alongside the existing 99 members. Water’s Water Plan, contributed to the Committees way in which we charge for water (tariff Goulburn-Murray Water’s Water During the year, the Water Services reform), and implemented key White Services Committees (WSCs) provide Committees were particularly active Paper reforms. a valuable forum for the discussion in identifying and addressing the issues of water management issues, and for and practical concerns expected to Goulburn-Murray Water greatly capturing the thoughts and views of arise from the unbundling of water appreciates the skill, scrutiny and customers from across Goulburn-Murray entitlements. With water allocations at time that Water Services Committee Water’s region. record lows the committees provided members provide in giving advice regular and ongoing input into Goulburn- from both a customer and community Goulburn-Murray Water has 12 WSCs Murray Water’s water management perspective. and 10 Catchment Committees, which strategies. As a result, Goulburn-Murray represent customers in irrigation areas, Water more effectively tailored the surface and groundwater diversions, supply of water to meet critical demand flood protection and water districts. In periods for the wide range of irrigated all, over 100 WSC members represent agriculture industries across our region. customers on these committees - The Committees also participated in a approximately one WSC representative range of industry forums and meetings. for every 330 customers.

g-mw Annual Report 2006/07 37 “We will provide a safe, healthy and satisfying Providing training for our workforce place for our people We maintained our status as a to work, because it is Registered Training Organisation, meeting all responsibilities and audit requirements through a competent, of the Office of Training and Further committed and Education. Extensive vocational training was provided to ensure our employees adaptable workforce meet national competency standards and can meet the needs and expectations of that our long term our customers and communities. We also security and success play a major role in training nationally through Government Skills Australia, is assured in a rapidly through which we contributed to the changing world” review and endorsement of a new National Water Industry Training Package. Similarly, contributions were made to the Year Total % men % women Victorian Water Enterprise Training employees* Advisory Board managed by VicWater. 2006/07 659 83 17 2005/06 632 84 16 Operations staff 2004/05 624 84.3 15.7 redeployment 2003/04 601 86 14 Low allocations on the Goulburn system reduced the field labour requirement in 2002/03 603 87 13 several major work centres. In the Water 2001/02 610 88 12 Delivery Services group, recruitment to fill vacancies was slowed and an active 2000/01 598 90 10 employee redeployment program was * Full-time equivalent number accounts for part-time undertaken. This program ensured that employees as a fraction of full-time hours workable. employees were directed to productive For example, two people each working 2.5 days per employment in other locations and in week would equal one full-time equivalent employee. some cases external to the organisation. This redeployment program ensured that services could be delivered with a reduced overall workforce and costs of labour reduced where actual workloads diminished. Creating a better This program also ensured that Goulburn- Murray Water retained the core of the workplace skilled field workforce during a time of extreme low allocations and organisational At 30 June 2007 we had 632 full-time equivalent employees, compared stress. Workloads in some areas of to 621 at the same time last year. The actual number of employees was operations such as surface water diversions 659 compared to 632 last year. Our numbers increased as we undertook actually increased as the need for greater more work with our own staff, rather than contractors, to fulfil the compliance monitoring increased. requirements of various government-funded projects. Major occupational During the year we conducted a Charon Radar staff survey, which health and safety showed that our employees were most satisfied with work safety, our achievements sustainable management of water, respect from work mates, application The year was highlighted by the establishment of environmental procedures and pride in our organisation. of a new record of 465,282 hours worked by our staff and contractor staff without a lost Goulburn-Murray Water management and staff also negotiated a new time injury. Enterprise Agreement taking a new approach to the negotiations with all parties showing high levels of co-operation. The new Agreement was delivered in shorter timeframes with the support of all parties and provides greater certainty for staff and the organisation. Staff will be 38 asked to vote on the agreement in September 2007. Making our workplace safer Goulburn-Murray Water continued its to support safety initiatives and one major injury and in some locations commitment to workplace safety with maintained a Safety and Environment compounded by the time taken to ongoing review and update of OHS Committee. obtain medical attention in small rural procedures. Our work ensured we communities. maintained our SafetyMAP accreditation Although we were disappointed with the following a rigorous surveillance audit. increase in our Lost Time Injury In the coming year our attention will SafetyMAP is a recognised occupational Frequency Rate compared with last year, focus on the consistent application of health and safety audit tool provided by the long term trend is one of procedures with special attention to the Victorian Work Cover Authority to improvement and the severity of injuries working near powerlines and to work measure an organisation’s health and in the year, as measured by the average practices that are generating sprain and safety performance. The Board continued lost time rate, were less than last year. strain type injuries. The average lost time was influenced by

Year Lost Time Average Lost Injury Time Rate OHS Frequency (average key indicators Rate number of (lost time days lost per Occupational health 2006/07 2005/06 injuries per lost time and safety key million hours injury) indicators worked) Number of health and safety 14 14 2006/07 10.4 18.4 employee representative committees 2005/06 7.8 30.2 Number of lost time injuries 11 8 2004/05 17.4 10.8 for the year 2003/04 14.5 10.1 Number of days lost to injuries 202 242 2002/03 19.3 15.9 incurred during the year. Lost Time Injury Frequency 10.4 7.8 2001/02 18.1 20.2 Rate (lost time injuries per 2000/01 26.9 10.3 million hours worked) Average Lost Time Rate 18.4 30.2 (average number of days lost per lost time injury)

Promoting diversity Women’s Professional the Network’s vision, objectives and and the role of women Development future direction for the following 12 month period. A training calendar of in the field Network proposed development opportunities Water Delivery Services undertakes the In 2006/07 the Women’s Professional based on participant feedback has been main field customer service functions Development Network has been established and workshops covering within Goulburn-Murray Water. This year revitalised with a new Steering these topics have commenced. a further three females were employed in committee and Strategic Direction. field based roles. We also employed a The program was originally introduced In the near future the Steering new female water service trainee at the into Goulburn-Murray Water as a core Committee will lead the establishment of Pyramid Hill centre. component of the Growing a mentoring program across Goulburn- Organisational Capability Project and Murray Water in conjunction with other Donald Hughan, wheelchair bound due supports career progression through the professional development opportunities to spina bifida, has been employed as professional development of woman which will be available to all employees at a trainee receptionist at the Rochester within our workforce. all levels of the Corporation. office. Donald impressed Rochester staff during a work experience placement During the 2006/07 period a Business while still at school, and was selected Planning process was initiated by the to take up a traineeship with Goulburn- Steering Committee to enable the Murray Water at Rochester. development of a Strategic Plan, outlining g-mw Annual Report 2006/07 39 Using technology to improve the way we work Graduate The focus of the year was on preparing for the introduction or upgrade of a number of new key business systems. Development Program The drivers for these new systems were in part the introduction of Unbundling and the complementary In addition to the days of training we provided, Goulburn-Murray Water State Water Register, however other maintained a graduate development program as part of its commitment to drivers included the need for improved making Goulburn-Murray Water an employer of choice and to provide a range financial management reporting of training and experiences to develop graduate employees. capabilities, customer service, efficiency of the irrigation planning process and The Graduate Development Program for 2006/07 officially commenced in late irrigation asset reconfiguration planning. 2006 and currently has 24 graduates from all areas within Goulburn-Murray Water. The program focused on developing and training graduates and The following were the highlights for included activities such as classroom training on all areas of the business and the year: tours of Goulburn-Murray Water assets. A strategic plan is being developed for • Successful completion of a data 2007/08 with input from a newly formed steering committee. The plan is communications upgrade for major aimed towards attracting and retaining graduates. remote offices. This has seen significant performance improvements and relieved a degree of frustration in the use of a range of corporate Members of G-MW’s graduate development program visited key sites across the region including Lake Hume. systems. • Introduction of an automated Call Attendant system for the Tatura Office. A significant amount of inbound calls are now automatically routed to the relevant customer service staff based on a simple push button menu system presented to callers. • Further development of Information Technology Business Continuity facilities have reduced the risk level of both technology failures and other disasters. • Development of an IT Strategic Plan covering the period 2006/07 to 2012/13. This was required as a result of the need to develop a five year Water Plan. External consultants were engaged to develop the plan in conjunction with the Information Technology Unit, a broad range of business unit representatives and the Executive Management Team.

“We will develop productive, empathetic and enduring relationships with all interested parties to achieve the best balance of economic, environmental and social outcomes”

40 g-mw Annual Report 2006/07 Planning for a sustainable future through research Building cooperative and development This year Goulburn-Murray Water expended relationships $784,000 on programs that focus on research and development in the irrigation sector. In order to deliver our services and With record low allocations, Goulburn- This included $250,000 to the Cooperative meet the needs of our customers and Murray Water’s participation in DPI Research Centre for Irrigation Futures and local communities across our operating briefings and forums provided important $183,000 to the eWater Cooperative area, it is essential that we work in opportunities for Goulburn-Murray Research Centre. Our membership of these partnership with a large number Water to improve awareness of the national programs means we benefit from of different organisations. water resource position and the impact projects addressing policy, planning, on water allocations for irrigators. sustainability, technology and practice across Some of the key organisations with the irrigation industry. One eWater product which we have worked to develop • Murray-Darling Basin with direct application for use by Goulburn- cooperative partnerships over the past Commission (MDBC) Murray Water is its decision support tool for year include: We have a strong relationship with the river operations. Goulburn-Murray Water is MDBC, both in our role as the Victorian also a member of the National Program for • Catchment Management Constructing Authority for the Sustainable Irrigation, a program of Land & Authorities (CMAs) Commission and in contributing a Water Australia. Locally, we continue to Goulburn-Murray Water works closely Victorian view to a number of MDBC investigate water supply sustainability issues, with the North East, Goulburn-Broken, coordination and planning forums. including: North Central and Mallee CMAs to This includes the River Murray Water • minimising chemical use in controlling the align our water management activities Committee, the Commission’s Water aquatic weed Arrowhead with their respective Regional Liaison Committee and the Water • risk assessment of herbicides used by Catchment Management Strategies. Audit Working Group. Goulburn-Murray Water In addition, we deliver a number of • improved methods for monitoring pesticide programs on behalf of CMAs relating • Water Industry Organisations residue in channels to water quality, salinity management Goulburn-Murray Water is an active • biological, biochemical and molecular and drainage in the Goulburn-Broken member of a number of industry methods of microbial risk assessment in and North Central areas. organisations to whom we offer our water supply networks knowledge and expertise and from • flow metering devices with enhanced • Department of Sustainability whom we learn. These organisations performance or cost advantages and Environment (DSE) include the Australian National • improved water quality management Goulburn-Murray Water employees Committee on Irrigation and Drainage for storages have been involved extensively in (ANCID), the Australian National developing and implementing major Committee on Large Dams Complementing Goulburn-Murray Water’s reforms flowing from the government’s (ANCOLD) and the peak body for own supply studies, we participate in a joint white paper Our Water Our Future. Victorian water authorities, the Melbourne & Monash University water research This required a strong partnership with Victorian Water Industry Association centre (“Uniwater”) project to develop systems DSE Water Sector Groups covering (VicWater). that capture and process water status information irrigation entitlement reforms and on-farm, thus enabling cost-effective on-farm water savings projects. We have also In addition, we have worked extensively improvements in irrigation. This Regional worked closely with regional units, with local government, irrigation industry Economic Benefits from Smarter Irrigation particularly in relation to the Lake groups, recreational groups, other rural project has border-check irrigated pasture sites Mokoan-Return to Wetland project. and regional water authorities and as well as micro-irrigated orchard and vineyard various government agencies. sites spread from Corop to Dookie. • Department of Primary Industries (DPI) The Irrigation Futures of the Goulburn-Broken DPI and Goulburn-Murray Water Catchment project concluded in 2006/07. employees this year pooled their Scenarios developed by the project are being expertise in a range of areas, used in reconfiguration planning, for including delivery of CMA programs development of the Goulburn-Broken regional and communicating tariff changes catchment strategy and for local government to support Our Water Our Future land use planning. This project recognised the reforms. importance of developing flexible irrigation systems and a small subsidiary project has been co-funded by CRCIF and Goulburn-Murray Water to provide improved technical data to engineers involved in irrigation system design. g-mw Annual Report 2006/07 41 Left: Goulburn-Murray Water Director Peter Fitzgerald presents the award to Kain Richardson (left). Right: Charity golf and bowls day.

Playing a role in Charity Golf and International Dairy Bowls Day roviding water Week Goulburn-Murray Water employees P Australia’s world-famous dairy expo, again contributed a considerable amount education through International Dairy Week, was held in of their own time and effort to National Water Week Tatura in January. Goulburn-Murray organising our annual golf and bowls day Goulburn-Murray Water was proud to Water and its water exchange, Watermove, to raise money. The highly successful sponsor National Water Week in the supported this significant event. event, held at Hill Top Golf and Country Goulburn Broken catchment again this Club at Tatura, raised over $12,000. year. Coordinated with our catchment Given the recent drought and This takes the total funds raised by partner organisations, the week-long government water reforms, the rural Goulburn-Murray Water to more than series of events educated and raised water industry in Victoria is enduring $260,000 from this annual event which community awareness of the value of our a period of significant adjustment. has been conducted for more than water resources. In 2006/07, the events International Dairy Week provided 20 years. The majority of funds were involved more than 4000 participants. an important means of communicating distributed to drought relief which The Water Week Awards Night new developments to water users. was considered most appropriate for celebrated innovative and efficient water Several Goulburn-Murray Water our local region. Smaller donations were use and environmental initiatives in our specialists attended the expo with made to Reach Foundation for support community. Goulburn-Murray Water’s important information on rural water of less fortunate children. Best Practice Irrigation Management on matters, including unbundling of water Farm Award winner was Kain Richardson, entitlements, tariff reform, channel with Chris Harrison runner-up and John, automation technology, water trading Rodney and Philip Pike highly opportunities and online trading. commended.

Other National Water Week events included guided river and wetland walks, boat cruises, school pantomime performances, film nights, art competitions, photography and short story competitions and a canoe tour of Lake Nagambie.

42 Environmental Sustainability

g-mw Annual Report 2006/07 43 “We will be conscious that what we do has a significant and lasting effect on the environment and seek to reduce this impact, contributing to enhanced environmental outcomes” Pumping Waranga Basin, funded by the State Government, increased allocation to Goulburn irrigators by seven per cent. Delivering water to where it’s needed in our region The 2006/07 water year was Several storages including Dartmouth, Resources in the Campaspe and exceptionally dry, with rainfall totals Buffalo, Eildon, Eppalock, Cairn Curran, Loddon systems were too low for any and storage inflows well below average Tullaroop, Newlyn and Hepburns were irrigation allocation during 2006/07. across the region. Record low monthly drawn down to record low levels. Rights to water in these systems were inflows occurred at several Goulburn- Temporary pumping plants were qualified to allow limited supply to Murray Water storages, and none filled installed to Lake Buffalo, Waranga permanent plantings and to meet to capacity. Basin and Tullaroop Reservoir to essential domestic and stock needs only. augment supplies. This was the first season that the Dartmouth and Hume storages on the Campaspe and Loddon systems had Murray system filled to 65 per cent and Responsible failed to receive an allocation. 22 per cent of capacity respectively. management in a Lake Eildon peaked at 23 per cent in prolonged drought For the first time, the final allocation mid-August and Waranga Basin only in the Murray system was less than Poor resource position in 2006/2007 reached 41 per cent of capacity. 100 per cent of Water Right. An prevented allocation of ‘sales’ in any Inflows to Lake Eildon during June allocation of 95 per cent was available system, and led to the lowest seasonal were above average and represented to customers, despite the extremely allocations ever announced by 46 per cent of the annual total. poor inflows and record low storage Goulburn-Murray Water. The final levels throughout the Murray-Darling Goulburn seasonal allocation of Lake Eppalock on the Campaspe Basin during 2006/07. 29 per cent of Water Right was only system did not rise above its July 2006 the second time an allocation of less volume of 4 per cent capacity. On the Recognising the hardship caused by the than 100% had been available. Loddon system, Cairn Curran and drought and low allocations, Goulburn- The previous lowest allocation was Tullaroop storages filled to 6 per cent Murray Water regularly updated 57 per cent in 2002/03. and 15 per cent respectively. seasonal allocations and sought Nillahcootie reached 58 per cent and opportunities to maximise water The final allocation in the Broken Mokoan 30 per cent. availability while minimising losses. system was 77%. This was the lowest Customers were kept informed of allocation ever announced for the Lake William Hovell on the King management actions and operational Broken system. River filled to only 73 per cent of its decisions by newsletters, industry relatively small volume of 13,500 forums and regular engagement with megalitres, which was the first time Water Services Committees. the storage had failed to fill. 44 Goulburn-Murray Water continued by the bulk entitlement were not met Goulburn-Murray Water and the to cooperate with government agencies at several locations. The flows in the North Central Catchment Management and other stakeholders to manage lower reaches of the Ovens River were Authority jointly prepared adaptive the ongoing impacts of low water particularly affected by the water drought management plans for the availability on system operations and shortage. Emergency drought pumping Campaspe and Loddon systems, which customer service. facilities at Lake Buffalo were included comprehensive water quality commissioned to maintain flows monitoring programs to ensure river Operations were challenging across in the Buffalo and Ovens Rivers and to health was maintained under reduced the Goulburn-Murray Water region. provide a water supply to Wangaratta. environmental flow conditions The Goulburn system allocation was supported by the pumping of Waranga The irrigation ban on the King River The graph below shows water Basin from February 2007 onwards. was lifted in April and a month later deliveries in 2006/07 compared The irrigation season in the Goulburn in the Ovens River as rainfall began to the highest and lowest on and Murray systems was closed two to improve river flows and storage record. Further details are provided weeks earlier than normal to reduce volumes. in Appendix B. losses and increase water availability for customers. All supply systems were highly Goulburn-Murray Water is now regulated during the season to planning system operations to Irrigation was banned on the regulated conserve water. Releases from the maximise water availability during Ovens and King Rivers mid-season Campaspe and Loddon storages were 2007/08 as it ends the 2006/07 to maintain supply to urban users minimised to prolong availability for season with most storages at including the town of Wangaratta. customers, and environmental flows in record low levels. The unprecedented lack of water in both systems were qualified in October the Ovens system shifted the operational to make more water available for focus to maintenance of river flows and essential domestic needs. Both systems assurance of urban supplies, and meant reached their lowest ever reserves as environmental minimum flows required inflows remained low.

Seasonal deliveries all systems (amount delivered to G-MW customers)

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000 Seasonal deliveries (ML) Seasonal deliveries

500,000

0 1 Jul 31 Jul 30 Aug 29 Sep 29 Oct 28 Nov 28 Dec 27 Jan 26 Feb 28 Mar 27 Apr 27 May 26 Jun

10 Year Rolling Average (1997/98 to 2006/07) 2006/07 Water Right 1994/95 Highest on record 2002/03 Second lowest on record 2006/07 Deliveries g-mw Annual Report 2006/07 45 Goulburn Broken CMA and G-MW harvesting Azolla on Broken Creek.

investigation of the method is being DSE we have begun a program of undertaken by the Catchment installing Fish Tag readers at four lower Management Authority. Broken Creek weirs and fishways. The Broken Creek readers will monitor movement of Management • Environmental flows tagged fish up and down the creek to The Lower Broken / Nine Mile Creek Because of limited catchment flows determine the effectiveness of fishways system is one of the most important due to drought, to maintain creek and optimal strategies for fish habitats in Victoria for the endangered water quality and habitat Goulburn- management under different flow Murray Cod. The Creek system is also Murray Water passed a small flow (less scenarios. used to supply entitlements to Murray than 100 ML per day) from the Murray Valley irrigation customers. In system at Lake Mulwala, via the Murray partnership with the Goulburn Broken Valley open channel network to the • Arrowhead Treatment Program Catchment Management Authority and creek and then passed this flow back We have completed the second year other agencies we have implemented to the Murray River. This by-pass flow of a treatment program to control the several key initiatives to maintain and ensured that fishways could remain exotic aquatic weed Saggitaria improve the creek environment and open all season, helped limit azolla (common name Arrowhead). Funded improve customer service. build ups and maintained water quality. through the Goulburn Broken Catchment Management Authority we • Azolla Removal Trial • Increasing fish numbers have used experienced contractors We have completed a trial of The amount of Murray Cod in the who have been very successful in mechanical removal of the floating lower Broken Creek has increased gaining control of the nuisance weed in aquatic fern, azolla. Azolla regularly dramatically since the completion of the creek environment. The program builds up in winter and spring in the fishways at all weirs and barriers on has been very successful with the area lower Broken Creek under low flow the lower creek system. The treated reduced from 95.5 ha in conditions to such an extent that it Goulburn Broken Catchment 2005/06 to 37.2 ha in 2006/07. can lead to system blockages and Management Authority and DSE’s water quality degradation. Excessive Arthur Rylah Institute for azolla build ups were linked to a fish Environmental Research has death event in November 2002. A undertaken surveys to compare weed removal contractor was populations since fishway construction commissioned to install a conveyor commenced in 1997. Murray Cod in removal system at Kennedys Weir the four uppermost weir pools were near Barmah. The trial was successful found to have increased by 500%. In with over 136 cubic metres removed partnership with the Goulburn Broken in a six day period. Further Catchment Management Authority and

46 Management Goulburn-Murray Water will also be The Loddon and Campaspe catchments of groundwater making substantial headway into the in the west of the region experienced development of legislative Stream Flow very low flows through much of the year. resources and Management Plans for the King Parrot Regular water quality monitoring was unregulated streams Creek, Yea River and Upper Ovens and conducted in both catchments under Demands for water from aquifers and Kiewa Rivers in the coming year to an agreement with the North Central unregulated catchments remained strong formalise management rules to provide Catchment Management Authority in northern Victoria. Severe, sustained for the needs of irrigators and the and Department of Sustainability and low flows in unregulated catchments environment in these important Environment to reduce environmental occurred across the entire region resulting unregulated river systems. flows. Short-lived black water events in a significant workload to manage occurred in the Bet Bet Creek and in the available flows between individual water Loddon River downstream of Loddon users, domestic and stock and urban Weir, but no serious environmental supplies and the environment. Meeting the challenge of managing streams incidents occurred in the Campaspe River. This year saw the need to suspend in drought conditions Goulburn-Murray Water in conjunction irrigation on all unregulated catchments Many of the unregulated streams in the with North Central Catchment for varying periods with the exception Goulburn-Murray region experienced Management Authority, regularly of the main stem of the Kiewa River, drought conditions this year, requiring monitored water quality conditions along which was also restricted. In many cases rostering and restrictions, while flows the lower reaches of the Campaspe and this was the first time suspension has continued to recede. These actions were Loddon River systems during the dry been required. necessary and ensured equity for water conditions. We installed aerators at Lake users and the environment. Eppalock and Tullaroop Reservoir to As a consequence of low surface water reduce the risk of low dissolved oxygen availability demand for additional access to Catchments across the Goulburn-Murray levels adversely affecting fish populations groundwater resources rose significantly. Water region received well below average or triggering a potentially toxic bloom of Goulburn-Murray Water answered the rainfall and very low flows for much of blue-green algae. We undertook a carp challenge by working with the State the year. Rivers downstream of storages removal exercise to increase the survival Government and customers to maximise were highly regulated, with very few chances of the remaining native fish in the possible groundwater allocations and unregulated events occurring due to rain. Lake Eppalock. to provide opportunities for customers impacted by low surface water availability In the east, environmental flows in the Very high concentrations of blue-green through the implementation and support Ovens system were jeopardised as water algae were detected in Eppalock and of groundwater trading. levels in Lake Buffalo fell and supply to Tullaroop during 2006/07. Releases Wangaratta was endangered. Pumping continued with regular review of Refinement of processes for transfer from below the minimum operating downstream water quality. applications and promotion of the level at Lake Buffalo occurred for availability of trading options resulted in a approximately three weeks until rainfall Goulburn-Murray Water holds a 340% increase in the number of trades in saw the storage rise and the resumption memorandum of understanding with 2006/07 compared with 2005/06. This of regular releases. the Department of Sustainability and number is expected continue to grow in Environment to develop the stream flow the coming year. Goulburn-Murray Water In partnership with the Goulburn Broken management plans listed in the Our also improved methods for dealing with Catchment Management Authority, Water Our Future White Paper, 2004. new licence applications to manage the water from the Goulburn Water Quality The Yea River, King Parrot Creek, Upper potential impacts to existing users and the Reserve in Lake Eildon was diverted to Ovens River, Kiewa River and Seven environment. the lower Broken Creek in October to Creeks are all listed streams. flush an accumulation of aquatic weed. This year saw the implementation of a new Groundwater Management Plan for As a result of collaboration with NCCMA, the Katunga Water Supply Protection some of the Goulburn Inter Valley Trade Area. The coming year will also see Account held in Lake Eildon was used for significant effort into the refinement of a small environmental flow in the lower sustainable groundwater management in Campaspe River from December until the Mid-Loddon & Upper Loddon Water the close of the irrigation season and Supply Protection Areas and the review provided some relief in an extremely dry of the current Campaspe WSPA situation. incorporating the Southern Campaspe Plains North East of Bendigo into the current management area. g-mw Annual Report 2006/07 47 Lake Mokoan - Return to Wetland During the year Goulburn-Murray A pressurised pipeline is proposed Measures contained within the packages Water continued work on a number to replace the supply system for include remote control and monitoring of of projects that will provide alternative approximately 40 customers (13 irrigation, supply structures, pipelining of supply to supply arrangements for residents and 33 stock and domestic, 4 commercial) some areas to reduce river losses and landholders once Lake Mokoan is that currently draw from the Lake. provision of small on/off stream storages decommissioned under the The preliminary design of pipeline was to allow harvesting and reregulation of Government’s Lake Mokoan - Return completed during the year and proposes surplus river flows. The selection of a final to Wetland initiative. a pump station near the Lake outlet and offset package for implementation will a deepening of the Lake outlet channel follow the completion of an expression of to allow it to function as the supply pool interest process with irrigators in the sale for the new pipeline system. Construction of their water entitlement. ake Mokoan works are expected to be finished by L March 2008 with projected cost of Mid Murray Storage Diverters Pipeline $10.7 million. Lake Mokoan is an off-stream storage, Project which in its current configuration In announcing the decision to provide receives harvested water from both the Mokoan Offset 44 gigalitre of water savings through the Broken River and Hollands Creek Measures decommissioning of Lake Mokoan, the systems. Water is released from Mokoan A key component of the Mokoan - Return government recognised for part of the via Stockyard Creek, which was altered to Wetland Project is the government’s water saved to benefit the Snowy River. during construction of the lake works commitment to ensuring that the reliability to become the outlet channel, and of water supply to Broken System The Mid Murray Storage project involves connects back to the Broken River just irrigators is maintained after the the reintroduction of Lake Boga into the upstream of Casey’s Weir. decommissioning of Lake Mokoan. Murray water supply system and when operated in conjunction with Lake Lake Mokoan in its present configuration Extensive investigation of a broad range Charm and Kangaroo Lake, will allow accommodates direct diversion of of individual measures has resulted in the up to 19 gigalitres of the Mokoan irrigation, commercial and stock and development of four packages of offset decommissioning water savings to domestic water to various businesses and measures, each of which meet the supply be transferred by substitution to the dwellings in the vicinity of the lake. The reliability commitment. The packages Snowy River. decision to decommission Lake Mokoan comprise a range of potential will alter the way in which these diverters infrastructure, efficiency improvement can access water, since direct diversion and water purchase options. from the Lake will no longer be possible.

Left: The former Minister for Water, Environment and Climate Change at the Commissioning ceremony for the Tungamah Water District. Right: Tungamah before. Far right: Tungamah pipeline.

48 Investigation of a new channel route The pipeline saves 4,800 megalitres to release water into the Little Murray each year, with the savings contributing River from Lake Boga and works to to environmental flows in the Murray minimise the flooding risk associated with and Snowy Rivers. Other environmental changed operation of Kangaroo Lake benefits included the modification were completed, and detailed design of obstructive weirs on natural has commenced. waterways, improving habitat and passage for native fish. Water Savings from the Tungamah Pipeline Mitchell Australasia, which successfully completed similar projects for Goulburn- Project Murray Water at Normanville and In March 2007, the former Minister Woorinen, constructed the project. for Water Environment and Climate Change attended the formal The existing channel system will be commissioning ceremony for the decommissioned by the end of 2007 Tungamah Water District. Goulburn- increasing land availability and improving Murray Water’s $20.4 million pipeline farm access. project replaced the more than 500 kilometres of indirect, open channel with 370 kilometres of pipelines, a pumping station and a 140-megalitre earthen storage basin.

The water for the new system is drawn from the East Goulburn Main Channel and provides an efficient, year-round water supply service to 400 customers over a 63,000 hectare region.

g-mw Annual Report 2006/07 49 Our Water Our Future

The Victorian Government’s Our Water Our Future water reforms included a range of initiatives directly relevant to Goulburn-Murray Water. This year we undertook extensive work in partnership with the Department of Sustainability and Environment, the Department of Primary Industries and catchment management authorities aimed at delivering against these initiatives. The major areas of activity are summarised in the following table:

Our Water Our Future Actions Goulburn-Murray Water Reconfiguration of irrigation systems Reconfiguration programs were launched in the Central Goulburn, Rochester-Campaspe, Murray Valley and Shepparton districts. These programs build on the experience of our existing reconfiguration programs in Torrumbarry and Pyramid-Boort irrigation districts.

Lake Mokoan-Return To Wetland Project During the year Goulburn-Murray Water continued work on a number of projects that will provide alternative supply arrangements for residents and landholders once Lake Mokoan is decommissioned under the Government’s Lake Mokoan -Return to Wetland project. (see page 48 for further details)

Tungamah Pipelining Project Works for the $20.4 million project were completed in December 2006, and officially commissioned in March 2007. Decommissioning of the existing channel system will continue over the remainder of 2007, with the channel system rehabilitated to its natural condition. The project provides more convenient and reliable stock and domestic supplies to more than 400 customers as well as 4,800 megalitres of water savings each year.

Mid-Murray Storage Project Investigation of a new channel route to release water into the Little Murray River from Lake Boga and works to minimise the flooding risk associated with changed operation of Kangaroo Lake were completed, and detailed design has commenced.

50 Water savings through channel automation With completion of Goulburn-Murray Water’s 2007 winter works Our Water Our Future program a total of 841 automated gates will have been fitted at 757 sites across our region, since Goulburn-Murray Water began its Total Channel Control Project in 2002. A total of 131 gates were installed this winter

Establishment of Statewide Entitlement Register Goulburn-Murray Water assisted in developing the new Victorian Water Register by undertaking a comprehensive data cleansing exercise as well as extensive user acceptance testing in conjunction with DSE.

Unbundling of Water Entitlements Community Awareness Goulburn-Murray Water worked closely with DSE to build community awareness and understanding of the unbundled water entitlements that took effect from 1 July 2007. This involved a range of communication initiatives including information sessions for landholders and their advisers, regular advertising and a number of direct communications with individual customers.

Systems support The unbundling of water entitlements demanded significant adjustments to the recording and management of existing water entitlement information within Goulburn-Murray Water’s information management systems. The adjustments also provide relevant information to the newly established State Water Register.

Sales Package Goulburn-Murray Water identified low reliability supplies as part of the unbundling of water entitlements. As part of the conversion of prior ‘sales’ access to clearly specified unbundled water entitlements, 80 per cent of sales was allocated to irrigators in the form of a low reliability water share and the remaining 20 per cent was returned to the environment as a low reliability environmental entitlement. This represents the transfer of over 200,000 ML of low reliability entitlements to the environment.

Recreation and Water Storages Despite unfavourable seasonal conditions, Goulburn-Murray Water continued to work with local stakeholders to deliver sustainable recreation services that meet community needs. This year, we regularly convened and participated in stakeholder and community reference groups and in partnership with Moira Shire began development of a Foreshore Masterplan for Lake Mulwala. The Lake Hume Land and On Water Management Plan was developed with several important studies completed.

g-mw Annual Report 2006/07 51 Reducing environmental impacts Goulburn-Murray Water’s commitment to the environment is outlined in its Environment Policy Statement. This policy is supported by its Environmental Management System (EMS) which was certified to the International Standard AS/NZS ISO14001:2004 in November 2006. The EMS provides the framework and tools for employees to manage environmental risks, meet legal and other obligations and improve business performance.

A number of initiatives and on-going programs were implemented in 2006/07 to progressively reduce Goulburn-Murray Water’s environmental risks. These are outlined below:

From left: Pygmy Bay and Gorton Bay; Managing Director Russell Cooper and Vanessa Baughurst Manager, Planning and Environment Strategy Development with G-MW’s EMS Certification.

Goulburn-Murray Water Risk Reduction Initiatives and Programs Managing environmental incidents Goulburn-Murray Water continues to use its established environmental incident process. Goulburn-Murray Water recorded 95 incidents for 2006/07 of which four were attributed to Goulburn-Murray Water.

Goulburn-Murray Water participated in the establishment of partnership agreements for waterway incidents in the Goulburn Broken and North East Catchments. The agreements are a commitment to establishing clear arrangements for stakeholders involved in response to an incident.

Continuous improvement Goulburn-Murray Water established an Environmental Management Program under its EMS. The program outlines targets and associated actions to improve environmental performance in 2006/07 against its Environmental Policy objectives.

Monitoring performance Goulburn-Murray Water has established an environmental monitoring and reporting program. In particular, environmental sustainability indicators were trialed this year to monitor Goulburn-Murray Water’s environmental performance across the business. Regular reporting is provided to senior management and the Board. Goulburn- Murray Water is currently undertaking a review to better provide triple bottom line reporting for the organisation.

Significant Risk Management Plans and An investigation program and risk management plans were developed to address Investigation Program Goulburn-Murray Water’s significant environmental risks.

52 Effect of Herbicides Greenhouse Gas on Native Fish Reduction torage and Goulburn-Murray Water, in collaboration Goulburn-Murray Water met its S with the RMIT University, undertook 2006/07greenhouse reduction target Catchment modelling research to assess the toxic effects of four of 293 tonnes equivalent carbon dioxide Goulburn-Murray Water continues to aquatic herbicides used by Goulburn- emissions from Goulburn-Murray Water develop and refine catchment models Murray Water (glyphosate, amitrole, 2,4-D buildings, offices and vehicles. In addition, for the Goulburn and Loddon systems. amine and acrolein) and two pesticides an energy audit supported by These models will assist Goulburn-Murray that were frequently detected in Sustainability Victoria, was conducted to Water and our catchment stakeholders Goulburn-Murray Water irrigation identify realistic actions for greenhouse in identifying key areas for fencing and channels (endosulfan and copper) on the gas management. Goulburn-Murray revegetation works that protect and Murray Cod and the Murray River Water is currently in the process of improve our waterways, including the Rainbowfish. Ecotoxicological revising its Greenhouse Gas Strategy foreshore of our storages. experiments conducted this year found to fit within the Victorian Water that Glyphosate, 2,4 D amine and Industry Framework. amitrole had virtually no effect on Murray Cod larvae. Acrolein at 10mg/L can affect the survival of Murray Cod larvae. Murray River Rainbowfish larvae were sensitive to acrolein and endosulfan as low as 1 µg/L.

g-mw Annual Report 2006/07 53 Protecting catchment Working with biodiversity Goulburn-Murray Water continued to work under the Biodiversity Strategy Stakeholders adopted in 2002, which aims to: • Value the breadth of services provided Goulburn-Murray Water continued to work with catchment management by ecosystems managed by Goulburn- authorities, local government, research groups and other agencies to improve our Murray Water. collective understanding of natural resource management, especially of waterways • Identify mechanisms for efficiently and storages. conserving key biodiversity assets on Goulburn-Murray Water-managed land We participated in the bushfire recovery program and coordinate water quality by focusing on the management of monitoring in storages and waterways in bushfire affected catchments. threats to biodiversity. • Identify priorities for conservation and restoration of biodiversity on and in our assets. • Encourage, undertake and facilitate identified priority tasks to protect and enhance biodiversity within Goulburn- Eppalock Special Murray Water assets and influence. Nagambie Area Plan Lakes System Goulburn-Murray Water is working with We worked with Catchment Management The Goulburn River Environmental NCCMA, DPI, DSE and local councils to Authorities and other stakeholders to Audit recommended an improved develop a Special Area Plan (SAP) to prioritise risks and identify activities that understanding of ecological processes improve and protect water quality and will enhance biodiversity in and around our within the Nagambie Lakes system by yield in the Eppalock catchment. The water storages. This year, our foreshore addressing knowledge gaps identified SAP will pull together existing programs management programs included fencing in a 2002 assessment by a scientific and focus on three key areas, namely: and revegetation, pest plant and animal expert panel. Goulburn-Murray Water • Risk of pathogens to human health management and erosion control works. has co-invested in a research project from stock grazing on the lake bed We worked to improve community investigating water and sediment quality and foreshore. awareness of best management practices in the Nagambie Lakes System. The • Salinity in Lake Eppalock. for agricultural and industrial activities in research consortium is coordinated by • Water yield to Lake Eppalock. the catchment of our storages. the Water Studies Centre at Monash University and has completed a review To compliment this work, Goulburn- Goulburn-Murray Water also worked of existing data. Murray Water is developing a with Catchment Management Authorities catchment runoff model to identify to identify fishway locations and effective Tahbilk Lagoon the significant sediment and nutrient operating methods. We improved our Management Plan generating sub-catchments that drain understanding of the ecological processes Goulburn-Murray Water is leading into Lake Eppalock. including real-time water quality and flow the development of a Management monitoring on the lower Broken Creek Plan for the Tahbilk lagoon. To date, Land Use Planning and Goulburn Weirpool. The information meetings with GBCMA, Parks Victoria, Goulburn-Murray Water continued gathered guides us in providing effective Greening Australia and Chateau Tahbilk to work with local government to environmental passing flows. have developed agreed management review and improve the strategic land directions for the wetlands. use planning framework. Collectively, Drought response environmental we applied current best management management plans for the Loddon and practices to achieve consistent and Campaspe systems were developed in sustainable land use planning outcomes conjunction with regional stakeholders. The in our region. plans were designed to ensure that we protect aquatic values while meeting our obligation to supply water to our customers.

54 Improving recreational facilities at Lake Eppalock to protect the environment Goulburn-Murray Water manages a large network of sewerage and other associated works around Lake Eppalock that supports the local recreation industry. This year we continued to invest in bringing the assets, many of which date back to the 1960s, up to industry best practice standards, improving service levels and protecting the environment. We have now invested over $800,000 on this work.

Left: During 2006/07 the Kimbolton Pool boat ramp was extended and upgraded at Lake Eppalock

g-mw Annual Report 2006/07 55 Delivering salinity benefits for catchments

Sunraysia Salt required under current operating rules, Interception Program preventing in excess of 30,000 tonnes of salt from entering the river. yramid Creek Investigations are well underway for the P redesign and refurbishment of the Salt Interception ageing and under-performing Mildura- Estimating Salt Scheme Merbein Interception scheme. We are Disposal Impacts of In 2006/07, Goulburn-Murray Water also investigating ‘in river’ groundwater Catchment Strategy commenced Stage 3 of the $13 million influences and floodplain related Implementation Murray-Darling Basin Commission groundwater salinity zones adjacent to The Shepparton Irrigation Region (SIR) (MDBC) salt interception scheme the Red Cliffs reach of the River Murray Salt Disposal Audit project was along the Pyramid Creek. with airborne electromagnetic surveys completed this year. The primary and field drilling programs. The objective was to estimate the changes The Pyramid Creek Salt Interception development of the Regional Disposal to the region’s salt disposal impacts Scheme, the first of its kind to Strategy underpins likely future since 1988 using a method endorsed incorporate commercial harvesting investment in salt interception in the by MDBC (for Victoria to comply with of salt from plastic-lined evaporation region. The strategy development, the Murray-Darling Basin Agreement). ponds, will deliver significant benefits undertaken collaboratively with the A computer model was developed to to regional and broader River Murray NSW Department of Natural simulate flows and salt loads generated water users. The scheme, involving Resources, seeks to provide economically from SIR drainage catchments. This up to 36,000 tonnes of salt harvested and environmentally sustainable options model was calibrated against data from 250 hectares and diverting for salt disposal well into the future. collected at drain gauging stations, and 22,000 tonnes away from the river, has then used to generate drain flow and benefits assessed at over $1.4 million Barr Creek Salt salinity time series data that represents per annum. Interception Scheme the SIR. The SIR model outputs for the The Murray-Darling Basin Commission’s MDBC climatic reference period In September 2007 the Pyramid Creek Barr Creek Drainage Diversion Scheme (1975-2000) were provided to the Salt Interception Scheme won the continued to deliver significant benefits MDBC to obtain estimates of salt Environment & Sustainability category to River Murray water users by disposal impacts. The impacts obtained as well as the Overall Award for diverting saline drainage flows in Barr were slightly less than those calculated Engineering Excellence at the prestigious Creek to the Tutchewop Lakes disposal by previous methods, but enabled Victorian Engineering Excellence Awards. complex. In 2006/07 the scheme identification of a potential downstream It is now a finalist in the national awards, diverted 100% of the flow and salt load impact due to a reduced volume of announced in November. drain outfalls that has previously not been recognised. 56 Support to Catchment Management Authorities

Goulburn-Murray Water provides planning and support services to Catchment Management Authorities to develop and implement Regional Catchment Strategies. Support provided includes development of Land and Water Management Plans, investigation and construction of public and private groundwater pumps, drains and wetland management investigations.

2000 and to provide necessary direction preserve the natural flow of water to ensure the current investment through the Stanhope Depression, in line strategy is on track for completion over with the Drainage Course Declaration Providing drainage the next five years. The final report will approved in August 2005. In December for sustainable be completed in July 2007. 2006, Goulburn-Murray Water began irrigation Stage 1 of the project which included Five year reviews of the Shepparton Irrigation drainage upgrading road crossings. Irrigation Region Surface Water management Management Program and the Work continued with our catchment The Stanhope Depression Drain Project Subsurface Drainage Programs were partners to protect the water quality involves the construction of 13.6 completed this year. The reviews found of receiving waterways by improving the kilometres of primary surface water that outcomes are being met, in line way Goulburn-Murray Water manages management system and the removal of with funded targets, and that the its surface drainage assets. The first full obstructions along the lower Stanhope Programs have positive triple bottom application of the decision support Depression. It is part of the Shepparton line assessments. The reviews included system started in the Broken Creek Irrigation Region Surface Water consideration of the outcomes of water catchment. It found that the key water Management Strategy administered by reform and the Irrigation Futures quality parameters affected by drainage the Goulburn Broken Catchment project and concluded that continued in the Broken Creek are Total Management Authority. implementation of the Programs is Phosphorus and Suspended Solids. warranted and recommended that the Management techniques are currently The two stages of the project including current adaptive management approach being considered to address these the removal of obstructions associated be further strengthened. parameters with the aim of ensuring with the Drainage Course Declaration water quality at Rices Weir continues are estimated to cost $2.5 million. SIR Surface Drainage to improve. Strategy Review The 2006 Review of the Shepparton Stanhope Depression Irrigation Region (SIR) Surface Water Drain Management Strategy commenced in The Stanhope Depression Drain Project September 2006. The review has been will provide a drainage service to carried out to look at the achievements irrigators in the Stanhope Depression of the program since the last review in catchment and at the same time

g-mw Annual Report 2006/07 57 58 structures and services acatchmentarea andservices structures management systemandassociated surfacewater 5.3 kilometresofprimary The projectinvolves of construction justsouthof Depression Drain Tatura. 40 whichoutfallstotheMosquito oftheMosquitoDrain construction Approval wasgiven toproceedwiththe M the supply ofpumps. calledfor withtenders works Drainage on thepumpstationandStage1A 11commenced.Drain Work continued for Murray negotiation theworks Valley ofplanningand After many years Drain 11Stage 1 M commence in2008. expectedto with construction andtheShireof Gannawwara Wakool submitted toboththeShireof Planning Permit applicationshave been Planning Scheme Amendment and is$5.6million.to completetheseworks associated structures. The estimatedcost surface watermanagementsystemand of17kilometresprimary construction one kilometrepipelineandthe 60 megalitreperday pumping station, a The projectinvolves ofa construction andKoondrook.between Murrabit River which outfallstotheMurray oftheBenwell Drain construction 1 Approval wasgiven toproceedwiththe irrigation region) (Loddon Murray B to commencein2008. expected withconstruction Shepparton submitted totheCityofGreater Planning Permit applicationshave been Planning Scheme Amendment and are$1.4million.complete theseworks of 2,950hectares. The estimatedcoststo enwell Drain1 osquito Drain 40 urray Valley

effort right along the Murray system. alongtheMurray right effort toamoresignificantcontrol precursor Wetland andhopefully willbethe of thisweed throughout theBarmah attempttoreininthespread the first with theGBNCMAstaff. This hasseen Goulburn-Murray Water Wetland hasbeencoordinatedby Broken CreekandwithintheBarmah both alongthe weed controlprogram A jointly funded andwoodyArrowhead method indrains. control in steamcontrolasanalternative Murray Water andGBCMAislookingat Additional jointresearchby Goulburn- with thedirectionofthisstrategy. hasbeenputtogethertoassist strategy committeefor the Steering A tri-State groups for thenextstepsinplan. from MDBC, andotherstatefederal agencies. isbeingsought Fundingsupport basin. by many The planissupported the controlof acrossthe Arrowhead Water Basin,Murray-Darling of the problemArrowhead acrossthe waterways.natural To theprofile raise and posinganenvironmental threatto system spreading throughtheirrigation isanoxiousArrowhead aquaticweed Arrowhead tocontrolpartners with ourcatchment W

has developed a strategic planforhas developed astrategic orking Goulburn-Murray Goulburn-Murray inconjunction

Cabomba, Senegal Y intothefuture. stakeholders the rolesandrequirementsofall practices.inappropriate Italsodetails also reducethenegative impactsof environmental feature and important improved watersupply regimetothis Basin near Tongala thatwillallow an Assets withinandaroundtheStorage modifications to Goulburn-Murray Water Groups. This plandetailstheproposed Murray Water andthelocalLandcare DSE, Parks Vic, GBCMA, Goulburn- signed by allstakeholders, includingDPI, Management Planhasbeenfinalisedand The Kanyapella BasinEnvironmental Management Plan Basin Environmental K the smallpilotareaactivities. of waterqualitychangesasaresult includesextensive monitoring The trial plants intheNagambieLakes system. proposed approachtomanageaquatic representatives, todevelop anagreed andagency including localstakeholders A Reference Committee wasestablished, of CabombainGoulburn Weir. Mexican Water Lily andproliferation following ofthe there-emergence Murray Water out.Nagambie wascarried for dealingwithaquaticweeds inLake removal andchemicalcontroloptions environmental effects ofmechanical A pilotprojecttoassessthe Goulburn Weir Tea Plantcontrol at

ellow Water Lily, anyapella undertook these works theseworks undertook Goulburn-

g-mw General Information

Consultancies Consultants were engaged by the Authority during 2006/07 to assist with: · The provision of expert analysis and advice to facilitate decision making · Specific one-off tasks or set of tasks · The provision of skills not currently available within the Authority

There were no consultants engaged at a total contract cost of $100,000 or more.

Consultants engaged at a contract cost of less than $100,000 numbered seven and were paid $224,068 in total.

Merit, equity and privacy The State Government’s merit and equity principles provide the foundation for our recruitment processes; position advertising and employee selection. During the year 78 internal and 50 external applicants filled 128 positions in the organisation (of the total of 154 positions advertised). In addition, Goulburn-Murray Water employed six engineering and science vacation students.

All employee grievances and complaints were handled internally.

Goulburn-Murray Water also provided additional employee training on the Information Privacy Act 2000 and steps were taken to improve privacy criteria in new customer data bases and processes.

mw Industrial relations The Central Consultative Committee, comprising management and employee representatives, met four times during the year to discuss workplace/industrial issues. In addition an Enterprise Bargaining committee comprised of employee, management, Australian Workers Union and Community and Public Sector Union representatives met to develop a new Enterprise Agreement. There were no work bans or other similar action and no time was lost to industrial action and no matters were referred to the Industrial Relations Commission.

Auditors Internal: AFS and Associates External: Victorian Auditor-General

Building Act Goulburn-Murray Water observes statutory requirements set down by the Building Act 1993 and the accompanying Building Regulations 2006.

g-mw Annual Report 2006/07 g- 59 60 General Information Statement of Availability intheFinancialManagement ofOtherInformation Act 1994. The accountable officerwill, onrequest, provide listed underFRD22 information I Water intendstoimplementallrecommendations. Watermove hasindicatedareasfor improvement inthisregard. Goulburn-Murray by the of CompetitionandEfficiencyCommissionintotheoperations Victorian for NationalCompetition Policy,timeframes includingcompetitive neutrality. A report Goulburn-Murray Water aimstocomply with Government policiesand Victorian N 2007 theapplicationfee is$22.00 reduced ifpayment ofthefee would causehardshiptotheapplicant). As of1July mustinformation beaccompaniedby anapplicationfee (whichmay be waived or Under section17oftheFreedomInformation Act 1982arequestfor accessto T 40 CaseyStreet Goulburn-Murray Corporate Secretary should bemadeinwriting, addressedto undertheFreedomofInformation Applications for accesstoinformation Act 1982 over asat30June2007. was notproceededwithandoneapplicationcarried wasnotdisclosed). privacy personal Five applicationswere refused. Oneapplication Two affecting (information applicationswere metinfullandfive were metinpart Act 1982. Goulburn-Murray Water received 14applicationsundertheFreedomofInformation F – Treasury approval C atura Vic 361 Improvement Project Dam Curran Cairn system Project –Goulburn Measurement Strategic Tungamah Pipeline (CG 1234) Total ChannelControl upgrade Eildon damsafety Project nformation available reedom ofInformation apital projects over $5million ational CompetitionPolicy W ater DTF • • • • • Evaluation Project • • • • • Approved complete Approximately 50% complete Approximately 75% Complete complete Approximately 78% Completed 30 June 2006 Progress at

attributed to Goulburn-Murray toGoulburn-Murray attributed Water. There were noLevel 3complaints complaints, and1wasaLevel 2complaint. these, 42were enquiries, 16were Level 1 toGoulburn-Murray matters Water. Of In 2006/07theOmbudsman59 referred in and waterservices Victoria. ofelectricity,conciliation for customers gas which provides anindependentthird-party Limitedscheme,Ombudsman (Victoria) We & areamemberoftheEnergy Water Limited Ombudsman (Victoria) E $69,156.15 inthepreviousyear. pensioner concessions. This comparedto $29,839in 2006/07we granted During obligations community service V Toll free: 1800500 509 Telephone: 0396135212 GPO Box 469, Melbourne Vic 3001 The Ombudsman Victoria Email: [email protected] Facsimile: 039637 8129 Telephone: 0396378575 PO Box 500, EastMelbourne Vic 3002 Department of Sustainability and Environment Deidre Egan, Protected Disclosure Coordinator may bemadeto: Goulburn-Murray Water oritsemployees Disclosures ofimproperconductby DSE proceduresinmanagingdisclosures. disclosures underthe Act, andapplies for Goulburn-Murray Water toreceive and Environment (DSE) actsasanagent ofSustainability for theDepartment The protecteddisclosurecoordinator investigation ofthesematters. for the and toprovide aframework wrongdoing inthe Public Sector Victorian aboutserious disclosing information The Act isdesignedtoprotectpeople 2002.came intoeffect on1January The Whistleblowers Protection Act 2001 Protection Act W nergy & nergy Water alue of histleblowers

g- mw Corporate Directory

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

Dams Operations Goulburn Unit Manager Goulburn Dams – Ivan Smith Lake Eildon High Street, Eildon 3713

Murray Unit Manager MDBC Operations – Stuart Richardson Hume Dam Private Bag 2, Wodonga 3691

Loddon Unit Manager Loddon Dams – Ivan Smith Cairn Curran Reservoir Maldon 3463

Water Delivery Operations

Shepparton Centre Manager – Phillip Hoare 21 Wheeler Street, Shepparton 3630

Central Goulburn Centre Manager – Graham Smith

mw 33 Casey Street, Tatura 3616

Rochester-Campaspe Centre Manager – Jeff Parry 49 High Street, Rochester 3561

Pyramid-Boort Centre Manager – Damian Wells 4 Barber Street, Pyramid Hill 3575

Murray Valley Centre Manager – Kevin Preece Dillon Street, Cobram 3644

Torrumbarry Centre Manager – Lester Haw Koondrook Road, Kerang 3579

Newlyn Centre Midland Highway, Newlyn North 3364

Wangaratta Centre ‘Tara Court’, Ford Street, Wangaratta 3677 g-mw Annual Report 2006/07 g- 61 Goulburn-Murray Water region

Mildura Woorinen Weir Irrigation Victoria District Goulburn-Murray Water region Nyah Swan Hill Irrigation District

Tresco Irrigation District Kerang D Cohuna River Murray Cobram Macorna Torrumbarry D Channel Yarrawonga Weir Broken Yarrawonga Weir River Pyramid Hill KOW Nathalia Main Channel River Murray SWAMP Boort Hume National B Channel Wodonga Dam Tongala Corryong Creek Western East Goulburn Main Channel Wangaratta Waranga Rochester Shepparton D Campaspe D Stanhope Tatura D Broken Ovens River Mitta Mitta Irrigation Lake District King River Mokoan Kiewa River Channel River Waranga Dartmouth Stuart Murray Canal River Basin Dam Loddon Goulburn Lake River Bendigo Cattanach Weir Canal Buffalo Laanecoorie Lake Lake Lake Reservoir Eppalock Nillahcootie William Seymour Hovell BCairn Curran Reservoir Goulburn River Lake Eildon

Tullaroop Campaspe Reservoir B Newlyn Hepburns Lagoon Reservoir D

Great Dividing Range DISTRICT SERVICES IRRIGATION AREAS WATER DISTRICTS Shepparton Tungamah Central Goulburn East Loddon Rochester-Campaspe West Loddon Pyramid-Boort Normanville Murray Valley FLOOD PROTECTION DISTRICT Torrumbarry Loch Garry N SCALE OF KILOMETRES

MAJOR STORAGES KEY 0 50 100 150 GOULBURN SYSTEM MURRAY SYSTEM Channel/Canal Area Lake Nillahcootie Dartmouth Dam* River Lake Mokoan Hume Dam*‡ OFFICES: Lake Eildon Yarrawonga Weir* B Bulk Water Operations Goulburn Weir Torrumbarry Weir* Area Management Waranga Basin Mildura Weir* D Diversions Operations Lake Eppalock Lake Buffalo Other Work Centre Cairn Curran Reservoir Lake William Hovell Newlyn Reservoir * Murray-Darling Basin Hepburns Lagoon Commission assets ‡ Managed by NSW Tullaroop Reservoir Constructing Authority Laanecoorie Reservoir 40 Casey Street 7328 PO Box 165 Tatura Victoria 3616 DX 32951 T 03 5833 5500 Printed on 50% recycled paper, F 03 5833 5501 manufactured using ECF pulps. E [email protected] Marketing Business Production

A W www.g-mwater.com.au Financial Statements

g-mw Financial Statements 2006/07 63 Financial Statements Operating Statement for the year ended 30 June 2007

64 g-mw Financial Statements 2006/07 Balance Sheet as at 30 June 2007

g-mw Financial Statements 2006/07 65 Statement of Changes in Equity for the reporting period ended 30 June 2007

66 g-mw Financial Statements 2006/07 Statement of Changes in Equity Cash Flow Statement for the reporting period ended 30 June 2007 for the period ended 30 June 2007

g-mw Financial Statements 2006/07 67 Notes to the Financial Report for the year ended 30 June 2007

68 g-mw Financial Statements 2006/07 Notes to the Financial Report for the year ended 30 June 2007

g-mw Financial Statements 2006/07 69 70 g-mw Financial Statements 2006/07 g-mw Financial Statements 2006/07 71 72 g-mw Financial Statements 2006/07 g-mw Financial Statements 2006/07 73 74 g-mw Financial Statements 2006/07 g-mw Financial Statements 2006/07 75 76 g-mw Financial Statements 2006/07 20(a) & 20(b)] 20(a) & 20(b)] 20(a) & 20(b)]

g-mw Financial Statements 2006/07 77 78 g-mw Financial Statements 2006/07 g-mw Financial Statements 2006/07 79 80 g-mw Financial Statements 2006/07 g-mw Financial Statements 2006/07 81 82 g-mw Financial Statements 2006/07 Goulburn-Murray Water Statutory Certification

g-mw Financial Statements 2006/07 83 84 g-mw Financial Statements 2006/07 g-mw Financial Statements 2006/07 85 Goulburn-Murray Water Financial Perfomance Indicators

86 g-mw Financial Statements 2006/07 Goulburn-Murray Water Goulburn-Murray Water Financial Perfomance Indicators Financial Perfomance Indicators

g-mw Financial Statements 2006/07 87 88 g-mw Financial Statements 2006/07 Appendices

g-mw Appendices 2006/07 89 List Of Appendices

Appendix A1 Bulk Entitlement (Eildon – Goulburn Weir) Reporting 91

Appendix A2 Bulk Entitlement (Eildon – Goulburn Weir) Reporting: Diversions By Other Authorities With Bulk Entitlements 92

Appendix A3 Bulk Entitlement (River Murray – Goulburn-Murray Water) Reporting 93

Appendix A4 Bulk Entitlement (Campaspe System – Goulburn-Murray Water) Reporting 94

Appendix A5 Bulk Entitlement (Campaspe System – Goulburn-Murray Water) Reporting: Diversions By Other Authorities With Bulk Entitlements 95

Appendix A6 Bulk Entitlement (Broken System – Goulburn-Murray Water) Reporting 96

Appendix A7 Bulk Entitlement (Ovens System – Goulburn-Murray Water) Reporting 97

Appendix A8 Bulk Entitlement (Loddon System – Goulburn-Murray Water) Reporting 98

Appendix B Irrigation Deliveries For Season 2006/07 99

Appendix C1 Table 1 - Permanent Transfers Of Water Rights And Diversion Licences Processed By The Authority During Year Ended 30 June 2007 - Summary 100

Appendix C2 Table 1.1 - Permanent Transfers Of Water Rights And Diversion Licences Processed By The Authority During Year Ended 30 June 2007 Transfers From And To Districts / Areas And Waterways Within The Goulburn-Murray Water Rural Authority 100

Appendix C3 Table 1.2 - Permanent Transfers Of Water Rights And Diversion Licences Processed By The Authority During Year Ended 30 June 2007 Transfers From Districts / Areas And Waterways Of Other Water Authorities 101

Appendix C4 Table 1.3 - Permanent Transfers Of Water Rights And Diversion Licences Processed By The Authority During Year Ended 30 June 2007 Transfers To Districts / Areas And Waterways Of Other Water Authorities 101

Appendix C5 Table 2 – Temporary Transfers Of Water Rights And Diversion Licences Processed By The Authority During Year Ended 30 June 2007 - Summary 102

Appendix D1 Watermove Temporary Trade Results For Greater Goulburn 103

Appendix D2 Pool Price established and Allocation Temporary Zone 1A and 1B - Greater Goulburn 103

Appendix D3 Pool Price Established and Megalitres Traded Temporary Zone 6 - Hume to Barmah 104

Appendix D4 Pool Price Established and Allocation Temporary Zone 6 - Hume to Barmah 104

Appendix D5 Pool Prices Established and Megalitres Traded Temporary Zone 7 - Barmah to Nyah 105

Appendix D6 Pool Prices Established and Allocation Temporary Zone 7 - Barmah to Nyah 105

Appendix D7 Permanent unused water trading results 106

Appendix E Private Diversions From Waterways As At 30 June 2007 107

Appendix F Groundwater Extractions As At 30 June 2007 108

Appendix G Major water users 108

90 g-mw Appendices 2006/07 Appendix A1 Bulk Entitlement (Eildon - Goulburn Weir) Reporting

g-mw Appendices 2006/07 91 Appendix A2 Bulk Entitlement (Eildon - Goulburn Weir) Reporting: Diversions by other Authorities with Bulk Entitlements

92 g-mw Appendices 2006/07 Appendix A3 Bulk Entitlement (River Murray - Goulburn-Murray Water) Reporting

g-mw Appendices 2006/07 93 Appendix A4 Bulk Entitlement (Campaspe - Goulburn-Murray Water) Reporting

94 g-mw Appendices 2006/07 Appendix A5 Bulk Entitlement (Campaspe - Goulburn-Murray Water) Reporting: Diversions by other Authorities with Bulk Entitlements

g-mw Appendices 2006/07 95 Appendix A6 Bulk Entitlement (Broken System - Goulburn-Murray Water) Reporting

96 g-mw Appendices 2006/07 Appendix A7 Bulk Entitlement (Ovens System - Goulburn-Murray Water) Reporting

g-mw Appendices 2006/07 97 Appendix A8 Bulk Entitlement (Loddon System - Goulburn-Murray Water) Reporting

98 g-mw Appendices 2006/07 Appendix B Irrigation Deliveries for season 2006/07

g-mw Appendices 2006/07 99 Appendix C1 Table 1 Permanent transfers of Water Rights and Diversion Licences processed by the Authority during year ended 30 June 2007 - Summary

Appendix C2 Table 1.1 Permanent transfers of water rights and diversion licences processed by the authority during year ended 30 June 2007 Transfers from and to districts / areas and waterways within the Goulburn-Murray Water Rural Authority

100 g-mw Appendices 2006/07 Appendix C3 Table 1.2 Permanent transfers of water rights and diversion licences processed by the Authority during year ended 30 June 2007 Transfers from districts / areas and waterways of other water authorities

Appendix C4 Table 1.3 Permanent transfers of water rights and diversion licences processed by the Authority during year ended 30 June 2007 Transfers to districts / areas and waterways of other water authorities

g-mw Appendices 2006/07 101 Appendix C5 Table 2 Temporary transfers of Water Rights and Diversion Licences Processed by the Authority during year ended 30 June 2007 - Summary

102 g-mw Appendices 2006/07 Appendix D1 Pool Price established and ML Traded Temporary Zone 1A and 1B - Greater Goulburn

Appendix D2 Pool Price established and Allocation Temporary Zone 1A and 1B - Greater Goulburn

g-mw Appendices 2006/07 103 Appendix D3 Pool Price Established and Megalitres Traded Temporary Zone 6 - Hume to Barmah

Appendix D4 Pool Price Established and Allocation Temporary Zone 6 - Hume to Barmah

104 g-mw Appendices 2006/07 Appendix D5 Pool Prices Established and Megalitres Traded Temporary Zone 7 - Barmah to Nyah

Appendix D6 Pool Prices Established and Allocation Temporary Zone 7 - Barmah to Nyah

g-mw Appendices 2006/07 105 Appendix D7 Permanent unused water trading results

106 g-mw Appendices 2006/07 Appendix E Private Diversion from Waterway as at 30 June 2007

g-mw Appendices 2006/07 107 Appendix F Groundwater Extractions as at 30 June 2007

108 g-mw Appendices 2006/07 Appendix G Major water users

g-mw Appendices 2006/07 109 Disclosure Index

The 2006/07 Annual Report of the Goulburn-Murray Rural Water Authority is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of the Authority’s compliance with statutory disclosure requirements.

FRD DISCLOSURE PAGE

22A Manner of establishment and the relevant Ministers 16 22A Objectives, functions, powers and duties 16 22A Nature and range of services provided 16 22A Organisational structure, names and functional areas of responsibility of senior officers 17 22A Names of board members, major committees - objectives and achievements 18,19 22A Statement of workforce data for current and previous financial year 38 22A Merit and equity 39 15A Executive officer disclosures 80 22A 5-year summary of the financial results 23 22A Significant changes in financial position during the year 23 22A Objectives and performance against objectives 4-5 22A Major changes or factors affecting performance 2-3 22A Subsequent events which will affect operations in future years 79 22A Details of consultancies > $100,000 59 22A Details of consultancies - total No. and cost < $100,000 59 12A Disclosure of major contracts 59,60 22A Application and operation of FOI Act 1982 60 22A Application and operation of the Whistleblowers Protection Act 2001 60 22A Compliance with building and maintenance provisions of Building Act 1993 59 22A Statement on NCP 60 22A Occupational Health and Safety 39 10 Disclosure index 110 22A Statement of availability of other information 60

110 g-mw Appendices 2006/07 This page was intentionally left blank

g-mw Appendices 2006/07 111 This page was intentionally left blank

112 g-mw Appendices 2006/07