annual re2port 009 Murray Irrigation Limited about this report
The Murray Irrigation Limited 2009 Annual Report is a summary of operations and performance of the company from 1 August 2008 to 30 June 2009. This year the company’s financial year Menindee Lakes changed from 1 August to 31 July, to a standard financial year of 1 July to 30 June. Subsequently
Menindee the reporting period for this Report is 11 months. Weir 32 Operations and performance for this period have been measured against the company’s Key
Performance Indicators as detailed in the Murray Irrigation Limited 2006 – 2011 Strategic Plan,
r e v in addition to meeting our statutory reporting responsibilities. The company performance has also i
R
g n
i been measured against its core business goal, despite the challenges presented by the drought,
l
r a
D to supply water to shareholders at the lowest sustainable price.
This Report provides a concise but comprehensive summary. The objective of this Report is to provide information to our member customers to demonstrate our transparency, accountability and performance. Included in this information are comprehensive five-year comparisons of our performance at the beginning of each chapter and detailed audited financial information. The 2009 Annual Report is distributed on request to all member customers and is available electronically via our website (details below), as per the requirements of our Constitution.
Additional copies of the Murray Irrigation Limited 2009 Annual Report can be obtained by:
• Visiting the Murray Irrigation Limited website www.murrayirrigation.com.au. Lake Victoria • Visiting the Murray Irrigation Limited offices at Deniliquin, Finley and Wakool. Wentworth
• Writing to Murray Irrigation Limited, PO Box 528, Deniliquin NSW 2710. Mildura
bidgee R Murrum iver Hay
M ur ray River NEW SOUTH WALES
B Moulamein illa bo ng Cr E e d ek W w a a r k d o R o iv Conargo Swan l e R r Jerilderie Hill iv er S.A Wakool Deniliquin MIL Location N.S.W. Barham Finley Berrigan SYDNEY Mathoura CANBERRA VIC. Tocumwal MELBOURNE Mulwala A Moama
Echuca
Shepparton
D contents
Year in review ...... 2
Chairman’s report ...... 4
General Manager’s report ...... 6
Company profile ...... 8
Chapter 1: Water services ...... 12
Chapter 2: Managing our assets ...... 20
Chapter 3: Business growth and diversity ...... 26
Chapter 4: Policy and community relations ...... 30
Chapter 5: Protecting environmental values ...... 36
Chapter 6: Company culture and structure ...... 42
Financial statements 2008/2009 ...... 52
Directors’ report ...... 53
Financial statements ...... 57
Directors’ declaration ...... 80
Auditor’s independence declaration ...... 80
Independent audit report ...... 81
Wagga Wagga Accuracy and independence ...... 82
Glossary ...... 83
Abbreviations ...... 84
Company directory ...... Inside back cover
Albury
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1 year in review
August 2008 general security licence holders Darling Basin Authority to and 95% for high security prepare a Basin Plan. I Allocation remains at zero licence holders. This is the first I On 15 December the NSW percent for NSW Murray time since 2005/06 there is a Department of Water and general security entitlement NSW Murray general security Energy announces an increase holders, while the NSW announced allocation. to general security to 4% of Department of Water and Energy I Representatives of the entitlement. Murray Irrigation announces a 25% allocation for Department of Environment, also announces a 4% allocation NSW Murray high security Water, Heritage and the Arts for Class C (General Security) entitlement holders. visit Murray Irrigation’s area entitlement holders. I The first round of operation to discuss the I Vicki Meyer resigns from the Modernisation Stakeholder Integrated Package of Works Murray Irrigation Limited Workshops are held throughout and Measures. Board of Directors. the region to present concepts I The ACCC releases draft I Murray Irrigation Limited for development of the recommendations for the Water Board of Directors conducted Modernisation Plan and provide Market and Water Charge the 2008 Annual General an opportunity for member (Termination Fee) Rules. Meeting. customers to have input. I Murray Irrigation Directors and November 2008 January 2009 management meet with staff from the Australian Competition I Alex Anthony resigns her I Nominations are sought to fill and Consumer Commission to position on the Murray Irrigation two Member Director vacancies discuss the ACCC’s draft Limited Board of Directors to on the Murray Irrigation position paper for Water Market become Chairperson of the Limited Board of Directors. and Water Charge (Termination Board of the Murray Catchment I The NSW Department of Management Authority. Fee) Rules. Water and Energy announces an I Murray Irrigation increases its increase to 9% for NSW Murray September 2008 announced allocation for general Valley general security licences. security entitlements to 2% and Murray Irrigation announces a I The Department of Water and high security entitlements Class C (General Security) Energy announces an increase in (including towns) to 82%. This Water Entitlement allocation allocation to 50% of entitlement increase is able to be made after increase to 8%. for NSW high security a review of the 2008/09 I Murray Irrigation launches its entitlement holders. operating plan and assumptions ‘Offer of Water Entitlements I The Commonwealth about the volume of water for Sale by Murray Irrigation’ Government announces a $50M required to deliver water across initiative. The initiative is water entitlement purchase for the region. designed to maximise the sale the Southern Murray-Darling I Murray Irrigation makes a price for sellers of Murray Basin. presentation to the ACCC Irrigation Water Entitlements. hearing in Deniliquin about the I Murray WaterBank is launched October 2008 draft Water Market and Water by Murray Irrigation. This Charge (Termination Fee) Rules. I The Department of Water and initiative will keep Water Energy increases the high Entitlements within Murray December 2008 security allocation in the NSW Irrigation’s area of operation to be used for irrigated agriculture Murray to 80% of entitlement. I The Senate passes the Water Act through a lease-back I On 15 October the NSW Amendment Bill. The key arrangement. Department of Water and outcome is the requirement for Energy announces 2% for the newly formed Murray-
2 e y n i r a e r we i v h c r a M F I I I I I I I b e u r the o in G $ Ch D th due E r ir s M s R M M M M W M M M T ac S A D th a h o h depo a a Cl W th f c (T M p ro ubs uc n n lt onc 1 take res e n f e ner se he ove epar ire fr En r ober roug at e er at at y r a ode ini al nounc em ic ur ur ur anag ur houg .3 r l as i a -f F oss m 2 d at ange ce gat as t ent t end er dec er hae eque mi cond s M ct r r r r loc A g ret ut st 0 t C hold o de he tr r s m r viro ay ay ay ay ber the the Pe M nir y . i tm 90 nme or 90 0 2 nn er and M f ro m ts hout ur t nat on s em ful uc T is e h l H op at i on he I (Ge I I La of 209. fo e Finle s e s D sat ed ion ark et ntly nny ent ual round i r r i r r i r r n Sy reig bu tur he nme ion er no i liv ion ent in tions prog am ffi ca nd an nt ughe ea r ion ire NSW D Worksh t are gat gat gat by
si er Ap r t nera o e i ci ndida inc Clim Re Wong in to apo he so IL P e s nes y he unde nc on. dney and Fee) nt c y los enc f Wat t an io io io for t nv ram adopt the Pla tor n. 208/ la offi Cas cre reas he N vi it s reas of Mo d Wate l il. s Comm n i n an n an and These ns est e wil and noun y ew ate Secur tes n. Rul . Wate inted as as r the s elction ce, pil t in (LWMP) i an er an ops e for s sav he e w men epa e precast to r SW Cli nounces nounces is posi C fr of Mark Finley wo ot proje to no 09 de operate e om the ced as the in ha r a t r as the ity), mee r on s. Wa ma t re d eciv nir sa un 9%
ment Ch gs rks ng ne for an wea he t te and ce tin e e w ble ar by r f a ld tio e s ct. g s gs lth nd or e n J M A I I I I I I I I n u r p y a l i ( fund W al var c ( R T M M M M M A T T negot Ent re announc t Phi T fi w L m am 3 R on w of w y c di Ent C adapt C Wat e LW he en Ter om om ear of 1 90 0 2 nanc 90 0 2 andholder rans s he NSW Go he NSW s he M ompan harge mai i sc et ul ul 90 0 2 at ra ur ra ur ra ur ra ur ra ur o announ July l ende. ious ec l i i
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dv s and Wa n Fe ol ion o an ie te arge e l f tion A une. Ag ent i g e r unde l La n Boar la t ul ic ds s i r Mar and un rans nanc aunc ter s se ugus es ns n it e s Wate k ati to er are reem nd ema t s ti s m e h the s . to and to t d
to that sal ) o ative ons a bargo s fe r t t ial he t t he inin nd e k d s r ter en r
et he he for o d. to it . t” g I I w M r de l R S u O i c w M D D s P M G eve s ubm ainf ar tor a major l ate ate o arl eve i an and Bus r ur r ur r ur pe ve r ver NS ef cu i $ G T i gui T on 1 T f ope Wate the on 1 Mar F ls y age or t ing n r r al r t r and l ndent r 650 ove e e lopm , is a a a he he fec ove wi Mur cent st l r nme ig y I y-Da y I s and o pro de Wat W mi ) he F s a rat i o l t C Min k R ation on t Bas ti Se J r M a r m th i r r r r r et l c vel is Ch an nati iv nd infl i wate nme s or o ent omonw on wi ne nt i ule er ig ig R ra im on er pte rli e ut in s un r y uar v o the r r y ue v y s s. ation ation is s i i infr Mar pro ure ko ide
arge on Fe ng of the nes ule ite ail for s tr n Se e ig P te n NS nt re mbe 20 r int nd .off . ys i l ab atio bu r for d i an b s 20 ow g s B funding s nte t ast
wi C ( r 09 i has ’s toc ac em ke C le o 20 as ng pte a t r r r 2 Mode l T e i m s 10 W from eas n al r to on om c i Mu as eal r an . T int t R ul r e y the Wate l ig n uc t k and dome e re mbe r s 0 e c and the fo s h i mi e A ation he 09 th s uffic t m pr e L s o the om are main a to t s ul e ure oc d spr r m 9. uth r r the . s Wate nation n / on
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3 year in review chairman’s report
The past year has seen Murray and recognition of the need for the point of the announcement that Irrigation face the challenge of investment in infrastructure in the a token amount of funding from the changing its role and business face of water buybacks to ensure the state has resulted in the cessation of operations in the context survival of the irrigation industry the Plans in any significant form of government water reform and and rural communities. The from this financial year. This is a continuing drought. Commonwealth on-farm efficiency disappointing outcome given the program funding has now stepped great achievements of the Plans and The company moved to develop a up. This is an exchange of funding I congratulate the working group Package of Integrated Works and for water entitlements to the chairmen and members, and Murray Measures for water recovery, and Commonwealth, and has generated Irrigation staff members, involved in water purchasing initiatives, to broad interest from members. their implementation and provide leverage for the best possible achievements since 1995. outcomes for members in the water The decision by the Minister for market. While some members have Water Penny Wong to invite the In February this year a Postal developed individual water recovery Australian Competition and Ballot was held to fill two Member proposals to decommission supply Consumer Commission to devise Director vacancies brought about and drainage infrastructure and Water Charge and Water Market by the resignation of Member sell water entitlements to the Rules has seen the unprecedented Directors Vicki Meyer and Alex government directly, Murray situation where an external body Anthony. As a result of this election Irrigation with the cooperation of with no background knowledge or we welcomed two new Member Southern Riverina Irrigators has understanding of the water industry Directors in Michael Hughes and continued to encourage members has had input into the operation of Mark Robertson. Michael has to consult with the company to NSW Irrigation Corporations and served as the Chairman of the ensure negotiations have a whole- their members. Identifying the Denimein Landholders’ Association system approach. practical implications of these Rules and as a member of the Denimein to the ACCC and the Minister has LWMP working Group, and Mark Our water purchasing initiatives been a constant challenge in the has served as a member of the Board in Murray WaterBank and Offer past year. of SunRice for the past 13 years. of Water Entitlements for Sale We look forward to the have given our members options Unfortunately there was uncertainty contribution of these two new in the water market that had not surrounding the timeline for the Directors to work through the many previously been available. The adoption of the Rules. Directors challenges that are facing the Board exchange of contracts for the bulk moved to negate the issues of risk, and management of our company in sale of water entitlements has now and restructured water and delivery these tough times. taken place following the end of the entitlements in the best interests of NSW Government embargo. This protecting the water entitlements of I would like to recognise former will bring the negotiations with the members. Directors Vicki Meyer and Alex Commonwealth to a conclusion, to Anthony for their willingness to In the past year there has been no achieve a successful outcome for our take on the positions of Directors. clear path forward for funding of members who participated. Vicki had served on the Murray our hugely successful Land and Irrigation Board since 2007 and The company has continued to Water Management Plans. Without resigned in December 2008. Alex lobby for a level playing field in a commitment of Commonwealth had served on the Murray Irrigation relation to trade caps between states, funding the Plans have faltered, to Board since 2003 and resigned in
4 chairman’s report
November 2008 to take up the I thank my fellow Directors for their position as Chairperson of the input and continued commitment Board of the Murray Catchment to realising the vision and mission Management Authority. I extend a of our company, as implemented by vote of thanks to Alex for her years Anthony Couroupis and his of service as a Director of Murray dedicated management team, and Irrigation and have enjoyed I thank all Murray Irrigation staff continuing to work with her in her for their contribution and support new role at the Murray CMA. in the past year.
I am pleased to say that through the past year the Board voted to support our members with the offer of discounts for on-time payment of accounts. Through our weekly newsletter directly to our members, Talking Water, and through our Stewart Ellis website, Murray Irrigation has also Chairman attempted to play an active role in 6 October 2009 supporting our members through these difficult times with up-to-date information, whether it be on income assistance and subsidies, community support events, training opportunities, or hay giveaways.
The recognition of the absolute necessity of ensuring water entitlements to grow food seems to be gaining some momentum in the media and I’m pleased to say Murray irrigation has supported the Water4Food campaign initiated by the Riverina and Murray Regional Organisation of Councils. The Murray Irrigation area of operation offers a clean, green, efficient means of growing staple food; we look forward to the significance and implications of that fact becoming broadly accepted by all levels of
government and society in the t r o
coming year. p e r
s ’ n a m r i a h c
5 general manager’s report
More waves of change washed over governments’ water recovery activities. The conclusion of the review of the Murray Irrigation and its member Unfortunately, this pace is only likely Murray Irrigation organisational customers in 2009 as the company to accelerate in 2010, as the structure was also largely completed and those it serves endeavored to Commonwealth Government in in 2009. This saw the establishment cope with and adapt to the twin particular accelerates its planned water of four new teams lead by four influences of drought and the purchase expenditure. This will no Executive Managers, three of them continued implementation of doubt have a significant and new to Murray Irrigation. Each of governments’ water reform agendas. permanent negative impact on the Executive Managers has made a Murray Irrigation well into the future. contribution to the performance of Limited water availability again the company in 2009, and I very necessitated the implementation of The continued implementation by much look forward to working with an operating plan that concurrently Murray Irrigation of governments’ them in 2010 as we cement the minimised expenditure and water reform agenda posed many benefits of the restructure for long maximised water availability, primarily challenges over the course of the year, term gain. for on-farm use. The outcome of the and particularly tested its relationship implementation of such initiatives was with our member customers as we highlighted by the achievement of a work within the boundaries of Governments’ activities 74% water supply delivery efficiency what is a primarily hostile The impact of the Commonwealth assessment. In light of water sales of government agenda. Whilst having Government’s significant reform 69GL for the period (less than 9% of little good news for its member agenda became more apparent this Murray Irrigation’s annual average customers, Murray Irrigation has year. The implementation by the deliveries and its second lowest on continued to try and engage this vital Minister for Water of the record) this achievement is an group in the decision making recommendations of the Australian outstanding one, and is a testament to processes of the company. Competition and Consumer the company’s investment in both Commission set a pathway for water management infrastructure and Business performance increased Commonwealth its people over time. Government involvement in our The company’s financial performance Cost containment remained a high activities. This has and will continue featured a $3.2M loss from irrigation priority for the business as the to manifest itself directly and activities. This was broadly in line drought continued to impose a heavy indirectly through a variety of with the budgeted position for the toll on the company’s water sales influences over our internal and year, with three major unbudgeted income. The transfer of staff resources external water charging and trading items heavily influencing the final from water management activities to settings. outcome: government funded capital works projects was again a feature of those Direct water purchasing remained 1. The increased level of on-farm containment measures, along with a a priority for governments in the water deliveries (70 GL) variety of other initiatives. attainment of water recovery targets compared to the original budget through 2009. NSW brought to (minimal deliveries); The challenges facing the company an end its commitment to the 2. Termination Fee income of arising from the drought were aptly The Living Murray first step decision, $8.5M received during the year; expressed through the 2009 budget whilst the Commonwealth and and charges setting process. As forecast accelerated its Water for the Future 3. The recognition by the company in the 2008 Annual Report, Murray expenditure, resulting in an estimated of a liability for interest on the Irrigation’s forecast result for the year 50-fold increase in expenditure for disputed tax liability ($8.7M). was a significant loss. The challenges the period. associated with setting budgets and The scale of terminations experienced charges in such an environment The impacts of this purchasing during the year is a direct reflection of remain for the coming year. activity are yet to be fully understood
6 g n e r e e ’r r s e g a n a m l a tr o p m lo c im de 20 M Re la ov Ba si a pr lo gr I M w T t e is ir a de Prog N a n g a r n i pa r i t t c and T de wi a bu o o a t pro in r 201 a nte nte o as he l o o hat ecov eco et n r g nd cr pro nd s o om nt over ve ot o do f i sue u t a r u ee l he I he at ve ng c an ag emnt io ts r i c r uk er t h anagemnt ur velo nti spite tu par th es si ig a ur plem os nc al g itlemn ts v ts n we a t r e i es 8. 0 res te ra g nes verc n s mo i r g ir new io s on ter si ide us i r , th c r res ewa tmen l ts me n ul th n r l a r s th er govnment.er h
ni tio ay f nme po i pr nte s g
ti th st e i r u
po o f u n ou o i hal pment, tar o O te ove ro tu e g e pas tment s es bt y se at s ng ga ted o re th e entat e at al m e m n atu ral p o n n r ni der er d I w atenes chal e m a r c tenti d f to r g ur r re m r r r ns th getd at r th e l me . se i em s e e s ase relati water of the l
nt s as ter Land t te mbe r of r reco r
ar app esul n ate as
ig ure nme W e M be in in w campa i bot un i mebr custo m t t we t e to thes c r u o
eas ea of o perati on go v ion of t i m.r ained p ea ati on s a s fr om udie al glo bal lenges n and detr that twel al at s in i r ag m d n to the co- invest Plans W ro i o ray the Mur ati os Mu ves t i ve m th new infor ch Pa so e ti h er 4 onal pu
c ig y ur i d nt and Wat n ments er of ed ate tia t ac its.mer This is a es on pr n t Th for t ra ur i lv fu ray I Mur govnm er us e m e g a n a m e
ni o mi n un der cultu re. stor l n its of mer ve mont t i of water ckage Foo d ev reso ur h cont inues i e f has ben a gn , a n ef f r4 Foo d r r e ch alen g a co-invest ce over 209, to in flu en nfrast r r tom e f oo d i n fi can t f th e ives i s u n t upo r in our and s m he per therr n th e or he M is ositive to wate r mont els wi t ay I igat r y Ir he envir ig at . Whi cas o s oje min f adr uch an f er com r r s r ce p u r devel ed vo lum or fut u e s ct ubsequent r ur hs ros -D ar – e vyth inge r hs, ’ ig an d pr ig r r ed l ct ent nesd in e t ’s asem e v in t sec its es s hal es t , alb ei w ati t or to an ent s’er
iabi , yi eldin g has also ur pec ay b vi ar ce t es, po ion on rec o th he men m at at it ior pr re. eff o ati o albeit on’s it ur oped l lin e in he ail f ut b ion e tn e nen en men li e o tive r o h ou y sh plan ty g vyer t he n tsr t e t y . t en t ect f i f sl t in or al o y t. n , y t pr of e of ch l a f D l ma e d re pe r c a Th co w i w co Whi s pe s e re Th e s e pos pl w m Mur de cu co cu s In be bot i w p a dr Th S s ocal a m n up a i ho ur e nd l n h ffor nvi s n x ir roc e g t rg mo ci at p i g i i cape c ace he cor e
fe l an om oug f f a d vi te rf rf l i al n al n s m th th n ect pac th an e ace dr f na ii ver s e i n e to re to po w on h i n er e s di t ona s r pi m or m or if t len len co i r r n it su n i g wa s i , l t ray t i e Mur ly i g t r s s on on fes t d o me nui e t i mer ge n a n t i o ot on s o av fi m s s t en s t te t t r n h can g t to ha t he r s i ieg th bs i o m he r f ed by ff es o u cr on s ges ged f al g po t m l, s e i es he na me t por pact
t men men he n , r w em th ta on ha n o r an c an c I ail n i ng f im ey equen d t m er d , M h ig to n he s en – a i r r emb s pan ona h t f t r o reg t ai na ncia ti o m ed es l o es g ti at
abi nt reg r y b m e m a in d t ext co ve our v t t o a ve b he a r ha ve ai n a wi eno e co e, t f of s g nd s ni n ul to ay re g i t. ta e a raur et f t in uc r g a o f s it pro hea hl s na l y io at l ga un t el c l , st l g s l he io ts l ive r et r pe w a t u ’s i - ta di ed b he y sup th m ed. he c i tl i ed w th r c hi ty ao n s nd e n et ont ou ge i nc D od o u cti g on
r s hem rem it s res ved en n, ta nt oups ff y mo r a o i yr Ir l s i n. con h s rd
n a l ffe i in t i a rdi redu e pr on it u over us f i a na a ia is Mur n st f v r e ndwa e, or n es ies ted ’s inu r es .f p i o f nd it uo y ear . ts mpti n de ci , be t on t it an o fl l i nue m em i nd st meb l rent ts Whi to in or ater a t ew c dy c na r wor s ults tan tr ies uen c . ai n us fo r h ti , elv n- g co o th e ed or g me ir g B by t Th on on t e m o t s u T ib im i an t t vi th l ce c wet at f s o d to i r nu na mi on cum t y c s din g s in g o of w hey i i es i ay I ute or e at k i s man o he de mpr io hal ng pr ro a e oi n d o n si o is s r taf f be r n vai r nto s as le e e pa s r
pro n l ed he i the io g le ays s lo n li o f th mwate ke y nme , dr ur r ir ea w about ex hr s er e in ar n. d
le s n r r mati s n r ta labil g go o ca n a r d c ha e mpac v t taff h r 20 ve
ac f ch ac s ur al ou gh nge an c age ten ig a ec ar -f ig he m el y rg me r og par wor l t y sr ter e . s
a re e , nta l d a e s , i iss ati ak en e as et r e a 0 e ns c to ity to ds os m e s is ear t n 9 am r m o ed ues. ave ur s d in o t k t iv r th e as , t on e s ns a n nt g e o e n . a t I h / 9 0 0 2 A 6 G numbe the Ir e of un a do end t i po fo c D I a fu tur Thi the su Ste My pe D pe se re cha con the thei a n n s l v Oct l w r wa a ir ir n th ene t por
en i Mu r es s dr ig a ave t s wa us fo si e e l th he ba ona s t r ra cou Ex le e i s i r n o ct ct r ha es ou gh b e r hi s ed o n r l ds obe t al t in ng on r ted f l to le n o dou mea b ma u o 0 1 or or i e o f e r r pl wh s r e i t El on a r a l c uti
o f a r cut r e o utc t a s t M ona a ay I r 20 d wor s s s y we ac nc e a f n ea e nd x on i t s on pea c g ye a of w nt ils n d pos o iv tr nt de is Co nd m e n na s e s l r r r h ha o l t diti re , d a ao o e M tha t 09 ur d i s
a sc ome ime r h avin g a e ove to t the n ger 20 ko o iga bt th a l
u a n k l n tur iv a r e t . U r to ts s r di c ons ha le ge to d the r iti i t c . T nks a er a , a i ti me o r co th e n ha s r nd r o f na on n to he c n the v t has f or on e 9/ unw u in g be a nf or sh a , e l hanks ge t th g r t pis gem an be t me t whe bo th t a n e 10 mbe il al i cha l co B e nue t e o to Ch th e pas m l Mu r om men y be spe ade m ike tun at c . T e c tr oar ave mpany ’ ent or n t pl o an a br o le r als pany’ t ye ye f to r bes yi n en a c c ly . r ompa n nt he d t r e o i r ng e o ti s r he he Team n u hi ye ay be e o ng v inu e of em g ti i mpac s ar or l e t go to ai m or y ar p ov e t y , es s s ome . ap the a nd th i
th e r s a fel for me man, i y is u n i r al e a t pt s , r n v r s ts s . e. d
7 general manager’s report company profile
Our Vision Our Mission Our Values
Murray Irrigation is recognised as I Manage and maintain Murray We will be highly reputable in our a leader of the irrigation sector in Irrigation’s share of the Murray business dealings and will conduct Australia. River’s water to support all business activities with honesty shareholders’ needs; and integrity. I Operate the most efficient, Our business decisions will be fair accountable and responsive irrigation company in Australia; and follow due process. I Meet best practice in customer We will meet high standards of service and shareholder quality and will strive for engagement; continuous improvement. I Promote viable and informed We will be commercial in our shareholder customers in a business dealings for the interest of thriving regional community; our shareholders. We will also be I Be proactive in the development diligent, innovative and resourceful. and implementation of policies to improve natural resources. Our decisions will be well informed.
There will be high levels of transparency in all decisions, actions and the reasons for outcomes. Murray Irrigation Reporting Periods The Board and management team Murray Irrigation financial year will be accountable for their decisions and actions. August 1 – June 30* Board members will meet best Irrigation season practice in corporate governance and act at all times in good faith and Operation of supply and in the best interests of the company stormwater escape systems August 15 – May 15 as a whole.
Water monitoring June 1 – May 31 We are committed to a high standard of safety for staff, customers Supply and drainage water Winter : June 1 – August 31 and the wider public. quality monitoring (DWE) Spring : September 1 – December 31 We will exercise high standards in our duty of care to the Summer/Autumn: January 1 – May 31 environment.
Murray LWMP (income & expenditure) financial year and targets We will be a supportive, ethical workplace that empowers staff. July 1 – June 30
* Reporting period for 2008/09 is 1 August 2008 to 30 June 2009. The 2009/10 financial year will be 1 July 2009 to 30 June 2010.
8 Murray Irrigation Limited
Murray Irrigation Limited is I Regional population Australia’s largest private irrigation company, formed in 1995 as an – 33,000 including adjacent service towns unlisted public company. The company is based in southern NSW, I Offices and its shareholders are the – Deniliquin, Finley and Wakool irrigator-customers who own the 2,389 landholdings it supplies water I Depots to. This represents over 1,670 family farm businesses. – Deniliquin, Finley and Wakool
Irrigated agriculture is the I Staff – 113 foundation of the social and economic wellbeing of our towns I Water Access Licences and businesses; water is a significant part of the region’s capacity to – 1,486,451 units from the prosper and thrive through variable NSW Murray Regulated River resource climatic conditions. We strive to operate the most efficient, I Landholdings supplied – 2,389 accountable and responsive irrigation company possible, I Area of supply operations maximising the water available for – 748,000ha productive use. Food and livestock are the focus of regional production Supply system including rice, wheat and other I cereals, canola, maize, tomatoes, – 2,954km gravity-fed earthen channel potatoes, onions, dairy, prime lambs and cattle. I Drainage catchment We are also committed to our – 249,000ha stewardship of this important part of the Murray-Darling Basin. Working I Drainage system with government and irrigators, – 1,425km gravity-fed earthen channels through the Murray Land and Water Management Plans, we are investing I Sub-surface drainage catchment in on-ground works, education and awareness, to better manage our – 25,000ha natural resources and protect the Murray River. I Sub-Surface drainage system – 115km pipes, 54 pumps, 2,100ha evaporation basins e l i f o r p
y n a p m o c
9 management structure
Board of Directors David Clarke Murray Irrigation has nine Executive Manager Directors. The Board of Directors Water Management develops the company’s strategic B.Eng (Civil) (Hons) direction and is ultimately responsible for the company’s compliance with its licences and David Watts other legislation. Seven Directors are Acting Executive Manager company shareholders, elected by August – October 2008 members. Two are non-member Directors with specialised expertise who are appointed by the Board and endorsed by members. There are no Jenny McLeod executive Directors. Executive Manager Policy and Stakeholders Divisions of the company B.Ag.Sc.(Hons), MA Org. Comm. Water Management
The Water Distribution team of this division delivers water for irrigation to landholdings and the Nick Ritchie townships of Berrigan, Finley, Executive Manager Wakool and Bunnaloo during the Infrastructure irrigation season from August to Anthony Couroupis Services May. This is in addition to deliveries General Manager B.Eng. (Civil), used to assist with the operation of MIE Aust. B. Ec (Hons). Grad. Dip. CSP the River Murray, redirecting flows Company Secretary around the Barmah-Millewa Choke to meet demand for downstream Evangel Aseervatham water users. Water is delivered Acting Executive Manager according to orders placed via the August – October 2008 company’s telephone water ordering system. There is a lead time of up to Company Secretary four days for water orders and a Matthew Watts once-a-day service for changes to Geoff Cutter Assistant Company orders, which requires co-ordinating Executive Manager Secretary channel flows of up to 12,350ML a B. App. Sci., MCTS Corporate Services Since April 2009 B.Ec., MBA, FCPA day through 1,798 channel regulators and more than 5,100 David Petrina water supply outlets. Company Secretary B.Bus. (IR, HR, Acct), CPA The Works team of this division September – December David Petrina 2008 carries out maintenance works on the Executive Manager irrigation and drainage systems and September – December 2008 Warren Elsbury associated infrastructure, including Company Secretary Andrew Lelliott both programmed works, reactive Dip. Bus. FICA, MAICD Acting Executive Manager August – September 2008 maintenance and minor construction August – September 2008 work. Programmed works include
10 pl po th n Ma a s dev th w a a i Ma i p o e d i co a a i a i co T I Po w Th g D mo c o w a di A an g Wa A S dev n s n nc r tanda n nd se nd nd se so nd ompa nvir u o i rou rou f ew per r his ditio cqu ee vo vis vis a ith h r for roug an $804M r d njunc mm fra iga licy vi per l the ai es nn l is di l icy , ich ko nag nag ni e e t re t m icy ud ciat d c acce stak e
lve mo 1,425km ma na io ion a lo lo a r nd ndwat pons mi on dr divi tor is ti str ing ti ol T M de rds and es i u n de pmen pmen h t ny ge eme on a it ont em on vi fur d i ai anag int ed ng men nvolve re nal r nic s and S eplac com ti 2,954km io u ss i y or also a nag si ur s , ng, holder en velopm Sc ’s ib on wi he ulak n s ion cture mai bis ent ena prepa rol n ( on c tha of po nd s infra ati co ve er nt ra nd drai le co em M
Co tal i es hem t t i e . plia tat hm and m , y L em for lops i SCADA) system, st on, des mpan P n 20, Ac nc pumpi nclu li ns of c of t Plans of pons nten con s tak ool Su s ub-s uc r o-or ent e c ra ur st th lans S ra ni par tr ntr re e o ent nc ie ent an and ent uc r e, st and na t il a he the ti uction on iv ti eh s er s, of st t st des of ting
mwa or nage system an ance. e with 0 ponsible gag nd im ures. y ibili ol on t a ( y water ative ain y dinates and f the d , v ities i uction fu r mon akeh , ture. ng schem , the stem r vice ucti str mo LWMP). ol comp
and Wa policy . the company’s in a bsurf Lan im is active alue suply chann nd fu and D , bank th eme ten of d sder ti uctur str t s der ple in e operati es i ion the old i itor dd company’s ple This s d and W a nclude in an ter escapes, the ace
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l l E t i r Q , si e re m gati m Mic pr ec ay ent gator d i 0% t B l s age ua
an, at ig of si tn par on a range t n x a on i l al ht. as on it sha m hae e re t . y s t s r , e er re nt l 1 company profile CHAPTER 1 water services
Our core business is providing efficient irrigation supply services to maximise the water available for productive use
How we are performing
Performance
2004/05 2005/06 2006/07 2007/08 2008/09
Supply network delivery efficiency * 84% 87% 83% 60% 74%
Water delivered as ordered 99.70% 99.90% 97% N/A# N/A# Water delivered in accordance with order period – four-day minimum notice
Water price Sum of fixed and variable charge excluding LWMP charges $21.11 $22.57 $25.25 $26.34 $25.67 (Murray Irrigation and Government)
* Assessed consistent with National Water Commission Benchmark. # Due to modified performance delivery arrangements this performance measurement was not available.
12 “In order to limit transmission losses and control costs, Murray Irrigation introduced modified delivery arrangements for the 2008/09 season.”
Directors (from left) Mark Robertson and Michael Hughes with Water Operations Supervisor, Scott Barlow, inspecting works in the Murray Irrigation area of operation.
The new Water Management divison operate and maintain about 4,500km I Reduced operating levels with of Murray Irrigation’s business was of supply and drainage infrastructure. many channels operating at or formed at the start of the 2008/09 below sill level The new Water Management staff season as part of the company staff I Opportunistic deliveries for restructure. structure was approved by the Board as a reasonable balance between irrigation only. The Water Management divison reducing fixed costs, risk Later in the season when Class C employs more than half of the management and meeting customer (General Security) allocations had company’s staff and is responsible for service expectations. increased to 9% as announced on 16 Murray Irrigation’s core business, February 2009, Murray Irrigation was being the supply of water to member Delivering water efficiently able to relax some of these conditions customers. In order to limit transmission losses for the Autumn Irrigation Program. The new staff structure consists and control costs, Murray Irrigation of 73 positions, including 43 in introduced modified delivery
arrangements for the 2008/09 season. s Distribution, 24 in Works and 6 e c i
The details of a modified operating v between Supervisory Control and r e Data Acquisition (SCADA – radio plan were announced to member s r e telemetry system), Compliance and customers in TalkingWater on 22 t a
October 2008. Key parts of the plan w
Administration. :
included: 1 r e
The assumed basis of the new staff t
I No changes to supply on p structure includes long term average a weekends or public holidays h sales of 700,000ML and the need to C
13 Figure 1.1 Our licensed access to water Irrigation’s area of operations, with Comparison of water available (ML) the previous time occurring during to Murray Irrigation by source, Murray Irrigation is the largest NSW the 2007/08 when a net total of 2004/05 to 2008/09. Murray Valley Water Access Licence 12,623ML was traded out. holder (Table 1.1). Murray Irrigation % There were no periods of 100 diverts water from the Murray River (Mulwala Canal Offtake) and Supplementary Water access Colligen Creek (Wakool Canal announced in the Murray Valley, nor any opportunity to source additional 80 Offtake) into an open gravity-fed channel system to deliver stock and water from Snowy Hydro Limited, domestic, town and irrigation water. for the 2008/09 season. 60 Total combined channel capacity for Murray Irrigation customers have an Murray Irrigation’s offtakes is existing debt of 177,627ML to 12,350ML/day, however 2008/09 Snowy Hydro following advances to 40 season daily diversions were allocations made during the 2004/05 substantially below this due to very and 2005/06 seasons. Repayment of low water availability. these advances are due to commence 20 when NSW Murray General Security allocations reach 50%. Water available for irrigation 5 6 7 8 9 0 0 0 0 0 / / / / /
4 5 6 7 8 Late in the season Murray Irrigation 0 0 0 0 0 0 Murray Irrigation’s water availability successfully negotiated an early 04/05 05/06 06/07 07/08 08/09 Allocation Snowy Advance on-farm for the 2008/09 season was Snowy Hydro borrow repayment Carryover Supplementary Water Transfers approximately 157,000ML. provision with the Department of Water and Energy. This means that Figure 1.1 compares water availability landholders now have the flexibility by source for the past five seasons. of removing their Snowy Borrow The Murray and Lower Darling encumbrance from their landholding Water Sharing Plan remains by repaying this water early. suspended by the NSW Minister for Water due to the prolonged drought. Stretching our limited supplies
The 2008/09 season resulted in a Controlling delivery losses was record net amount of 53,539ML of critical to Murray Irrigation’s ability annual water (temporary) transfers to make available a higher Class C being traded outside of Murray (General Security) allocation to Irrigation’s area of operation. This is member customers than would only the second time there has been otherwise have been available. The a net trade of water out of Murray Water Entitlements Contract with member customers requires Murray Table 1.1 Irrigation’s internal allocations to be Murray Irrigation NSW Murray Regulated River Water Access Licences as at 83% ( as nearly as possible ) of the 30 June, 2009 general security allocation announced by the Department of
Licence type Unit Shares Total Murray Percentages Water and Energy for the NSW Valley Entitlements Murray Valley. This meant that Murray Irrigation announced an High Security – Towns 3,170 3,195* 99.20% additional 2% (9% total) over and above the expected 7%. High Security – Irrigation 117 183,534 0.1% Deliveries on-farm totalled Conveyance 300,000 330,000* 90.9% 69,293ML for the 2008/09 season General Security 1,187,634 1,668,123 71.2% (Table 1.2). This included 7,112ML
Supplementary 121,704 252,368 48.2%
*Excludes 33,497 Local Water Utility Entitlements
14 being delivered as off allocation The use of Murray Irrigation’s Figure 1.2 water in May 2009 as part of Murray channel supply infrastructure for such Five year comparison of water Irrigation’s end of season channel water deliveries provides mutual delivery and loss volume draining operations. benefits. This includes significant ML reductions to the travel time for water Despite the increase in water 1,000,000
to be delivered to local waterways 8 3 0 allocations made available to member , Deliveries 5
plus reduced transmission losses 8
9 Loss customers from company water including seepage and evaporation reserves, Murray Irrigation still has a losses. Murray Irrigation’s channel 800,000 sufficient reserve of water under an supply infrastructure also substantially expected worst case scenario to increases NSW’s capacity to deliver 0 4
secure critical stock and domestic 2
600,000 ,
water to other river users downstream 1 5 supplies for the 2009/10 season. of the Barmah-Millewa Choke. 6 Murray Irrigation’s carryover from Both the Wakool Town and 400,000 the 2008/09 to 2009/10 season was Niemur Syphon escapes were used 124,680ML required to deliver extensively again this season as a carryover and meet the most basic critical part of State Water
200,000 8 stock and domestic supply. 8 0 6 4 , 4 3 9 6 4
Corporation’s and the Department of 2 0 9 3 8 5 , 2 3 2 8 , , , 1 , 2 2 3 1 9 0 9 9 8 7 6 4 5 1
Water and Energy’s drought 0 , 1 0 9 8 2 ,
Assisting river flows contingency operations of the 9 0 9 Wakool/Yallakool and Colligen/ 04/0504/05 05/0605/06 06/0706/07 07/0807/08 08/0908/09 Murray Irrigation has continued Niemur river systems. Each of these to assist Murray Valley and Murray- escapes significantly improved Darling Basin river operations delivery efficiency within these with the delivery of water using waterways to assist with the supply of Murray Irrigation’s channel supply essential stock and domestic infrastructure to deliver water out requirements. The delivery of this credited escapes into local waterways. water also provided significant Following negotiations with the environmental benefits to these Department of Water and Energy, waterways. State Water Corporation and River Murray Irrigation has applied to Murray Water, Murray Irrigation the Department of Water and Energy delivered water to local waterways to have each of these escapes around the Barmah-Millewa Choke recognised as fully credited escapes for the 2008/09 season.
Table 1.2 Murray Irrigation Diversions and Delivery Efficiency 2004/05 to 2008/09
2004/05 2005/06 2006/07 2007/08 2008/09
GS Allocation 42% 56% 0% 0% 9%
Gross diversions (ML) 1,284,693 1,642,645 755,538 149,352 269,105
On-farm deliveries 651,240 985,038 222,688 29,401 69,293
Other planned deliveries (credited escape flows) 429,440 441,186 401,660 60,112 128,508
Unaccounted water (includes seepage & evaporation) 204,013 216,121 131,190 59,839 71,304
Delivery supply efficienc y 84% 87% 83% 60% 74% s e
Unaccounted water c i v
per km of channel 69ML/km 73ML/km 44ML/km 20ML/km 24ML/km r e s
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15 Figure 1.3 on a permanent basis. A response to Wetland watering Non-credited escape flows as a this application remains pending. percentage of net diversions No wetland watering was Murray Irrigation has continued to undertaken during the 2008/09 % 2.5 work closely with State Water season in cooperation with the Corporation to place advance water NSW Murray Wetlands Working orders for its bulk water diversions as Group due to limited water accurately as possible. This ensures availability. Murray Irrigation instead 2.0 that water is not unnecessarily recommended that the released from storage upstream of environmental water allocated to the Hume Dam. NSW Wetlands Working Group be 1.5 made available to the Wakool System 0 0 5 . . . The accuracy of Murray Irrigation’s 2 2 2 to assist with the health of several water orders placed with State Water local waterways. 1.0 Corporation were again lower than normal this season due to the Water quality significant amount of uncertainty The quality of water Murray 0.5 associated with low flows. Diversions 0 5
. Irrigation diverts remains at low 7 0 . 0 in the Mulwala Canal normally range salinity levels. Goulburn-Murray 9 6 8 5 0 0 0 0 from 6,000 to 10,000ML/day during / / / / 8 5 7 4 Water continues to provide data on 0 0 0 0 the summer period, however flows 0.0 Murray River salinity levels at Lake 04/05 05/06 06/07 07/08 08/09 were less than 1,000ML/day for most Mulwala, where both Goulburn- of the 2008/09 summer. Murray Water and Murray Irrigation
Table 1.3 Murray Irrigation’s credited escape capacity from the supply network to local waterways
Capacity 2008/09 ML/day Actual Deliveries (ML)
Edward River Escape 2,400 88,740
Wakool River Escape 500 2,626
Finley Escape (to Billabong Creek) 250 16,136
Perricoota Escape (to Murray River) 200 1,004
Yallakool Creek Escape 50 3,752
TOTAL 3,400 112,258#
Note: Non credited escape flows for the 2008/09 season was 3,534ML. # Does not include the Wakool Town and Niemur Syphon Escapes.
Table 1.4 Quality of water diverted from Lake Mulwala for irrigation
2004/05 2005/06 2006/07 2007/08 2008/09
55EC 57EC 45EC 52EC 46EC
Note: EC – Electrical Conductivity which is a measure of salinity
16 supply offtakes are located. Salinity level was likely to be due to the levels ranged from 40 to 60EC radial gates at the offtake regulator throughout the 2008/09 season, with which draw water from below the an average of 46EC (Table 1.4). surface of Lake Mulwala. Blue-green algae tends to develop on the surface In April 2009 the Murray Regional of the water where there is light and Algal Coordinating Committee warmth. declared a red alert for levels of blue- green algae in the Murray Valley for Red alert levels were also declared in over 1,000kms of rivers downstream the Edward River near the Wakool from Hume Dam. As a result, Offtake, which diverts water from Murray Irrigation proceeded to the Colligen Creek. The same monitor blue-green algae levels situation was observed with the downstream of each of its major radial gates drawing water from supply offtakes during this period. below the surface, resulting in only amber alert levels being recorded in The results showed the level of blue- the Wakool Canal during the green algae in the Mulwala Canal corresponding period. were at amber alert levels. The lower s e c
The Edward River Escape near Deniliquin has a capacity of 2,400ML/day and is used extensively i v r between September and April each year to provide additional flow to the Edward River. e s
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17 Figure 1.4 The price of water Minimising costs Water price, showing variable (usage) and fixed (entitlement Water price remains a key indicator Murray Irrigation’s drought response based) components to member customers of the strategy continues to include
$ com$pany’s performance. Murray managing controllable expenditure, 30 Irri600gation continues to aim to provide strategically influencing government Total entitlement charge 0 1 Total usage charge water at thAveragee low priceest s perust ainable p. rice water pricing policy and offsetting 6
ML delivered 9 where sustainability relates to th5 e long increased expenditure with medium- 25 term500 viability of the company, term to long-term cost reductions or including the operation, maintenance, other efficiencies such as water
0 refurbishment and replacement of its savings.
20 7 400 . 5 3 3 9 9 . . 1 infrastructure. 2 3 1 1 The new Water Management staff 5 9 . 5 1 3
. Murray Irrigation remains a not-for- structure approved by Murray 15 1 300 1 1 profit business and does not issue Irrigation’s Board of Directors dividends to customers. This means consists of 73 positions, however as a 10 any200 trading surpluses are used to drought cost saving measure, eleven reduce future water price rises to the positions within Water Management 0 0 4 4 7 3 . 6 7 . 2 . . 1 6 2 6 2 1 benefit of member customers. remained vacant at the end of the . 9 7 1 1 1 5 . 100 0 6 9 9 1 2 2 9 .
. 2008/09 season (eight within Water 5 . 4 1 7 3 The 20083 /09 sum water price 2 Distribution). These vacancies will increased by 5.15% from $26.43/ML 0 0 need to be filled during the 04/05 05/06 06/07 07/08 08/09 03/04 04/05 05/06 06/07 07/08 04/05 05/06 06/07 07/08 08/09 to $27.7093/04/M0L4/05. Thi0s5/06 incl0u6/07ded0: 7/08 2009/10 season if water availability I An increase of $0.49 in significantly improves. government charges following In addition, several Water the release of the Independent Management staff were temporarily Pricing Tribunal’s four year redeployed to government funded pricing determination in works programs to further reduce September 2006. At this time company funded costs. IPART set a 23% increase in government charges between the Other efforts to reduce costs for the 2006/07 to 2009/10 seasons. 2008/09 season included: An additional $0.06 for I I Deferral of maintenance and infrastructure maintenance and other projects renewal. I Suspension of business I 4.5% CPI increase in other development company costs, including payroll. I Reduced plant and equipment The total of $27.79 is based on a operating costs. fixed charge of $11.74 per delivery entitlement and $16.05 per megalitre Compliance used. Based on actual on-farm water deliveries of 69,293ML however, the To ensure equity between actual cost per megalitre delivered in entitlement holders, Murray 2008/09 (water income divided by Irrigation has now developed and sales) was $220.31/ML (Figure 1.5). implemented a new Compliance Policy that was formally adopted by Although Murray Irrigation the Board in June 2009. developed a budget based on 700,000ML actual 2008/09 water During the latter half of the 2008/09 charges were based on a revised season a total of five Final drought budget of 0ML in sales. Determinations (consistent with the new Compliance Policy) were issued The basis for water charges has regarding compliance breaches. A dropped from 83% of water summary of the key compliance entitlements (approximately actions taken by Murray Irrigation 1,200,000ML) over the past seven during the 2008/09 season includes: years. Reductions to assumed water sales have a direct impact on Murray I Water allocation account debits Irrigations unit rate water charges. for unauthorised water use
18 I Recovery of costs associated effective operational efficiency of Figure 1.5 with repairs and investigations Murray Irrigation’s channel supply Average price of water per megalitre for unauthorised works infrastructure. delivered on-farm. I Implementation of water order (Total water income $15,158,000 divided by Striving to do more with less and megalitres delivered 69,293ML) debiting continuing to improve delivery I Temporary suspensions of supply e$fficiencies whilst minimising costs $ 30remains a significant and fundamental 600 I Orders to undertake corrective Total entitlement charge 0 1 challeTotalnge usage. Thi scharge challenge is being Average price per . actions. 6 ML delivered 9 made significantly more difficult due 5 25 500 Member customers were informed to the impacts of governments of the new Compliance Policy via purchasing water entitlements for the
Talking Water and a copy made 0
20environment from individu7 al sellers 400 . 5 3 9 . available in the customer area of 1 within Murray Irrigat2 ion’s area of 1
Murray Irrigation’s web site. 5 9 . operations. 5 1 5 3 . 1 15 0 300 . 1 1 1 Challenges In the1 short-term while the drought continues, balancing the need to
10 200 1 3 Access to water from extremely low reduce costs but maintain a reduced . 0 2
yet acceptable level of customer 2 0 flows continues to be a significant 4 3 6 . 2 . 6 2 6 2 5 .
service rem7 ains an ongoing challenge. 1 1 challenge. Reduced average sales in 5 . 100 5 0 . 6 9 1 2 9 2 0 . 5 7 . 4
the long term as a result of . 7 3 1
Future decisions about investments 2 prolonged drought, government 9 t0o upgrade, modify and rationalise 0 policy and more conservative farm 02/03 03/04 04/05 05/06 06/07 04/05 05/06 06/07 07/08 08/09 the 0s3/04ystem04/05 wil0l5/06 be e0s6/07sent07/08ial to the 04/05 05/06 06/07 07/08 08/09 water management decisions will long term success of the company. continue to place upward pressure This includes meeting customer on water prices and reduce the service expectations. s e c i v r e s
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19 CHAPTER 2 managing our assets
Our asset management strategy is commercially sound, based on optimal maintenance and replacement of infrastructure, to maintain and improve our services
How we are performing
Performance
2004/05 2005/06 2006/07 2007/08 2008/09
Provide for future asset refurbishment Asset Renewal Reserve $26.8M $30.5M $34.4M $36.8M $38.4M
Annual asset renewal levy per entitlement* $1.55 $1.60 $1.66 $1.72 $1.78
Asset renewal expenditure as % replacement asset value (target 2.5%) 1.2% 2.3% 2.1% 1.8% 1.75%
Maintenance expenditure as % of channels replacement value (target 1.7%) 1.4% 1.9% 1.3% 0.6% 0.75%
LWMP capital expenditure $4.1M $2.5M $1.9M $2.8M $2.3M
* Charged on delivery entitlements from 2007/08.
20 “Optimally plan future asset expenditures ensuring quality of service deliver y.”
Works underway on Murray Irrigation’s Warragoon Stage 2 Project which will complete an extensive stormwater management system in the Warragoon Drainage Basin in the West Berriquin area.
The key mission for the management funded from the Asset Renewal reinvigoration of the supply system, of Murray Irrigation’s assets is to: Program (ARP) and the Land and with expenditure exceeding $100M Water Management Plans (LWMP). over 15 years. “Optimally plan and manage future asset expenditures ensuring quality of Looking forward, the funds for the Figure 2.1 details the breakdown of service delivery.” renewal of assets will be sourced expenditure by asset type under the primarily from the Asset ARP. The strategies currently being Maintenance Renewal Reserve, implemented for delivering on the With the ARP almost complete, the which has accumulated over the mission are: company has moved to reduce past 14 years and has a current project personnel in line with Improved analysis of asset stock, balance in the vicinity of $45M. I reduced forecast expenditure over solutions and associated benefits Future infrastructure investments the coming years. Infrastructure will be assessed against competing I Instigate better controls on Services’ focus has shifted from options, and associated service s project delivery and construction into more strategic asset t delivery needs and benefits, prior e s I Develop internal structures/ management planning (i.e. the s to committing to them. a r
personnel which can be Modernisation Plan and Retirement u o
responsive to changing demands. The expenditure of the ARP Assessment Methodology). g n i
The supply and drainage assets funding is 97% complete, with full Infrastructure Services will continue g a
expenditure of the program due for to develop the tools and systems to n totalling $804M are managed by a Infrastructure Services to deliver on completion in December 2009 ensure service delivery quality into m :
(six months ahead of schedule). the future. 2
the stated mission. Historically, r e capital expenditures have been This program has prompted the t p a h C
21 Figure 2.1 Infrastructure strategy Irrigation Infrastructure Operators Expenditure by asset type since 1995 Program, with applications closing Core Mission: in late 2009. “Optimally plan future asset expenditures ensuring quality of Metering strategy 15% 12% service delivery.” 9% Murray Irrigation has conducted 5% Murray Irrigation operates and several investigations of metering 4% maintains supply and drainage assets points in response to changing 6% 12% worth $445M over a large Government policy and legislation. 5% geographic area. The major task of Murray Irrigation has responded to Infrastructure Services is to ensure the Non-Urban Metering 32% assets can deliver the required Regulatory Impact Statement and service and when assets can no engaged Hydro Environmental to Regulators Off takes $ 11,391,446 longer deliver the service, that the undertake investigation into metering Access Bridges $ 9,304,421 best solution is ready to be accuracy, and is currently developing Road Bridges $ 12,067,794 implemented. The development of a metering strategy to be finalised in Mechanised Gates $ 31,719,937 the asset system (incorporating asset parallel with State and Common- Stormwater Drainage $ 4,798,326 data, costs, spatial data, replacement Channel Works/ wealth Government legislation. Seepage $ 5,684,812 cost and asset condition) will ensure Meter Points/ that medium and long term capital The Commonwealth Government is Syphons/WTSSDS $ 3,942,962 programs are developed and anticipated to conclude a review of Fencing $ 4,454,848 potential solutions analysed to the Regulatory Impact Statement Design/PM $ 14,941,177 deliver the best solution to member responses in 2010 and the NSW TOTAL $ 98,305,723 customers of Murray Irrigation. Government is due to complete the State Implementation Plan also in 2010. The objective of the metering Modernisation plan strategy is to respond to these changes Murray Irrigation embarked on the in a measured and practical way upon development of a Modernisation confirmation of the company’s Plan in July 2008 with funding from requirements and obligations. the Commonwealth Government Water for the Future program. SKM Program delivery were awarded the consultancy to develop the plan under the Core Mission: following objectives: “Optimally manage future asset I Improve delivery efficiency expenditures ensuring quality of asset produced and service delivery.” I Provide for different levels of service and Infrastructure Services has I Ensure investments are continued to deliver large capital sustainable. projects over the 2008/2009 financial year, including both ARP The initiatives developed as part and LWMP projects. of the plan include end of system reconfiguration (channel remodelling, lining, piping and Funding outlet rationalisation) retirements and targeted service upgrades Government grants formed the (remote control and automation of majority of the capital expenditure service delivery). The Plan has over the past financial year making undergone two rounds of member up to 80% of expenditure. Capital customer consultation. One final expenditure of $10M in 2008/2009 round of consultation is due in is forecast to halve over the coming September 2009. Opportunities years, which recognises that exist for Commonwealth significant upgrade of assets has been Government funding to implement completed over the past 14 years. the plan under the NSW Private
22 Civil asset renewal projects Table 2.1 Works by asset type ($) The ARP in 2008/2009 has completed a number of civil projects ASSET TYPE Deni Finley Wakool TOTALS which are defined as concrete Regulators/Offtake 0.00 0.00 23,771 23,771 supply structures replacement. Subways & Cross Drainages 0.00 0.00 36,989 36,989 The value of works broken down by asset type is shown in the following Drainage Inlets 0.00 201,441 - 201,441
Table 2.1. Access Bridges 49,279 131,090 8,017 188,387
Road Bridges 331,997 456,023 334,749 1,122,770 Mechanising regulator gates TOTALS 381,277 789,123 403,528 1,573,928 The installation of Mechanical gates at regulators continued in 2008/09 replacing the timber drop bar Figure 2.2 regulators. The ability to maintain Proposed cumulative regulator gate mechanisation program 2005 to 2011 and pool levels in the low allocation actual completion to date (trend line) . years has been seen as a considerable benefit to service delivery and water No. of regulator gates savings. The mechanical gate mechanised 1,200 installations have occurred this year Scheduled mechanisation target – cumulative under contract with AWMA. Scheduled mechanisation target – annual component Scheduled Mechanisation Target annual component Mechanisation completed – cumulative The contract consists of upgrading 1,000 250 regulator sites on medium to Scheduled Mechanisation Target cumulative small sized channels at a total cost 800 of $6.72M. The manufacture of all gates was completed in April 2009, 600 with the onsite installation due for completion in October 2009. 400 The 2010 contract was also awarded to AWMA for the manufacture and installation of the final 150 regulator 200 sites in the 2009/2010 financial year.
Murray Irrigation does not intend 0 Completed Winter Winter Winter Winter Winter Winter Winter to upgrade the remaining 140 prior to program 2005 2006 2007 2008 2009 2010 2011 regulators (located at the ends of the system) at this stage due to the risk Completed Winter 2005 Winter 2006Winter 2007 Winter 2008 Winter 2009 Winter 2010 Winter 2011 of redundant investments. in June 2009 and has resulted in refurbishment of structures Stormwater construction including major farm drainage inlets structures, bridges and fencing. Infrastructure Services has undertaken work on three major Warragoon Stage II is a stormwater stormwater drainage projects over escape which will complete the the past financial year: original program of surface drains planned for the West Berriquin I Refurbishment of Berrigan
district and the Mokanger Basin. s t
Creek Stage II; e
Stage II provides drainage relief for s s a I Refurbishment of Box Creek; holdings extending over an area of r u
and 2,000 ha. The project is currently o
g
60% complete, with expenditures n I Warragoon Stage II. i g
totalling $0.71M. The project is a Berrigan Creek Stage II was n targeted for completion in a m completed in January 2009. Box
December 2009. :
Creek refurbishment was completed 2
r e t p a h C
23 Supervisory Control and Data operation and maintenance of the Wakool Tullakool Sub Surface Acquisition (SCADA) Drainage Scheme (WTSSDS). Murray Irrigation has over 200 sites Murray Irrigation’s works program that can be remotely controlled or is focused largely on the continual monitored and over 180 electronic maintenance of the supply and flowmeter sites. These sites are drainage networks. As a result, maintained by Murray Irrigation’s maintenance expenditure is SCADA team which forms part benchmarked as a percentage of of the larger Water Management the $338M replacement value of division. Murray Irrigation’s channels. A major upgrade of the SCADA As part of Murray Irrigation’s backbone continued with Stage 2 drought response cost reduction works well underway at the end of strategy, many staff within Works (plus the 2008/09 season. This includes staff from other areas such as Water the installation of communication Distribution) have been engaged on radio towers at Birganbigil and government funded works such as Finley. Stage 2 works are expected to the regulator mechanisation program. be completed by November 2009. This enabled Murray Irrigation’s maintenance expenditure to be Other key works undertaken by the reduced to $2.4M compared to SCADA section included: $5.6M for the 2005/06 season prior I Completion of remote control to the start of the severe drought. capabilities of 47 regulators on With the mid season improvements the Deniboota Main Canal, to allocations (9% of Class C water Billabong Main Channel, entitlements) it was clear that Wakool Main Canal, Southern Murray Irrigation was going to face Branch Canal and Northern significant challenges delivering this Branch Canal. water during the Autumn Irrigation I Isolation of power at the Program. The deferment of Mulwala and Wakool Canal maintenance in recent seasons as a offtakes drought cost saving measure has I Further development of Murray resulted in a significant increase in Irrigation’s magnetic flow the amount of silt and weeds within measurement metering pit. Murray Irrigation’s supply system. This increase has resulted in Maintaining our infrastructure substantial reductions to channel Murray Irrigation’s Works team capacities within many parts of which forms part of the larger Water the supply network resulting in Management division is primarily increased risks of future supply responsible for the maintenance of constraints. Murray Irrigation Murray Irrigation’s supply and engaged a number of contractors in drainage infrastructure, plus the addition to Murray Irrigation’s fleet and personnel to desilt/deweed targeted channel sections identified Table 2.2 as necessary for use as part of Scheduled maintenance works completed Murray Irrigation’s Autumn Irrigation Program. 2005/06 (km) 2006/07 (km) 2007/08 (km) 2008/09 (km)*
Bank building 63.4 55.6 2 6.6 This program was highly successful due to the relatively minimal Desilting 304.8 101.3 22.1 307.5 disruption to member customers’ Grading access tracks 967.8 505.2 264.1 281.2 autumn irrigation supply requirements and resulted in Sand access tracks 80.4 39.1 0.0 0.1 approximately 170km of channel *11-month period only being desilted/deweeded.
24 As advance planning for the resulted in the identification of 2009/10 season, work commenced other Sagittaria management options in May on a major winter including the use of above label rates desilting/deweeding program while of glysphosate (ref. APVMA Permit Murray Irrigation’s channels remain no. PER8325). closed for the winter period. This A total of approximately 36km of program will primarily focus on channel was treated with Arsenal main supply channels, with the view Xpress® during the 2009 Winter of Murray Irrigation limiting the Works Program. risk of it being unable to deliver a reasonable allocation for the Low flow conditions in Murray 2009/10 season due to channel Irrigation’s channels in recent capacity constraints. seasons, as a result of prolonged drought, means that weed control is Another key challenge faced by likely to become an increasingly the Works team was the relatively significant challenge in the future. high number of channel leaks and “blowouts” experienced during the Autumn Irrigation Program. As Challenges part of the measures to reduce transmission losses, many of Murray I The Modernisation Plan and Irrigation’s channels have been NSW Private Irrigators Funding operated below normal supply. applications requires future The dry soil in many of Murray casting in uncertain times Irrigation’s channels has therefore I Asset Management system shrunk and “cracked” which development requires significantly increases the risk of information consolidation and leaks and “blowouts.” This is likely to upgrades to meet Murray continue to be a significant Irrigation’s entire business needs. challenge in future seasons until I Managing assets and long term Murray Irrigation’s supply network infrastructure investments in a returns to normal use. rapidly changing customer and The total number of maintenance political landscape provides jobs logged in the Information challenges ensuring future Maintenance Reporting System demands are met. (IMRS) for the 2008/09 season was 2,099 with 93% completed. This compares with 2,568 (98% completed) and 2,609 (92% completed) for the 2006/07 and 2007/08 seasons respectively.
Weed control
The 2008/09 season saw the completion of major review of Murray Irrigation use of Arsenal Xpress®, a chemical used by Murray s t e
Irrigation’s to assist with the s s a management of Sagittaria . r u o
Sagittaria is an aquatic weed that can g n i
cause significant channel capacity g a constraints. The strategic review n a m identified more appropriate control
: 2
measures for Murray Irrigation’s r e future use of Arsenal Xpress® and t p a
The deferment of maintenance as a cost saving measure contributed to a h significant increase in weeds in the supply system. C
25 CHAPTER 3 business growth and diversity
Diversifying our business and providing services to help irrigators generate the best possible returns on their investment in the region will help us to manage industry risks
How we are performing
Performance
2004/05 2005/06 2006/07 2007/08 2008/09
Increase income from ancillary businesses Annual income from ancillary business $514,000 $539,000 $616,000 $884,000 $1,863,000 % of total irrigation income 2.1% 1.8% 2.5% 2.7% 6%
Increase value of Murray Irrigation entitlements Average annual water entitlement price with delivery entitlement $548.27 $569.29 $525.70 $605.17 $848 Value compared with river entitlements Not avail. 86% 66% 68% 63% Average annual water entitlement price without delivery entitlement –––$895.66 $1,164 Value compared with river entitlements –––66% 87%
Increase extent of high value crops ML used 25,430ML 25,465ML 18,512ML 1,834ML 6,306ML % of total water use 4% 3% 8% 6% 9%
26 “The Water Act 2007 (Cth) and its associated Murray- Darling Basin Plan represent Murray Irrigation’s most significant challenges in terms of future potential for business growth and diversity.”
The MILCast depot, located in Finley, manufactures and supplies a range of irrigation structures to individual irrigators, construction contractors and a range of other customers.
Activities to encourage business our joint venture initiative AWMA growth and diversity in 2008/09 Pty Ltd has reported a loss for the reflected limited production options period. Research and development open to member customers in times work has refined the flow of reduced water availability, while measurement capability of AWMA’s the company’s ancillary business gates to match the best in the world investments felt the impact of the and meet the new requirements of drought and current economic Australia’s National Standards. downturn. Sale of water entitlements During the year AWMA has been became a focus of member customer successful in winning tenders to a business activity and the company number of major urban and responded to support from member industrial water projects, including customers to enter into the water
gates supplied to the Sydney Blue y t
market to offer short and long-term i
Water Project, the North Head s r
options. The dominant feature of e v
Water Treatment Plant and upgrades i the water market in 2008/09 was d
of major storages for the Sydney d
Government activity at the state n Catchment Authority, thus opening a and Commonwealth level. h more opportunities in non- t w o irrigation projects. There remains r AWMA g s
significant opportunities for work s e n
The financial crisis facing business in related to irrigation refurbishment i s
and new meter investment right u
Australia has also been felt by b
AWMA. Due to factors including across the Murray–Darling Basin. : 3 r
ongoing research and development e There was no dividend distribution for t work, higher input costs and p a
2008/09. Murray Irrigation’s Deputy h reduction in sales due to drought, C
27 Figure 3.1 Chairman, Gordon Ball, and Director, challenge for 2009/10 as Murray MILCast customer profile by Michael Humphris, are directors on Irrigation has traditionally represented value of sales. the AWMA Board. For further two-thirds of overall precast sales. information visit www.awma.au.com. $ 2008/09 saw a significant change 4,000,000 in the customer base as MILCast
3,500,000 Dairy industry moved away from reliance on Murray Irrigation sales into other A part-time Dairy Strategy Officer 3,000,000 external sales. MILCast pursued has been employed in 2009, funded more tenders such as Goulburn- by the NSW Department of State 2,500,000 Murray Water, Shires, and the new and Regional Development. The opportunities presented in northern Dairy Strategy Officer has primarily 2,000,000 Victoria, with both the FoodBowl been involved in assisting dairy and NorthernVictorian Irrigation 1,500,000 businesses in the area with their Renewal Project (NVIRP) drought survival plans, providing programs receiving significant 1,000,000 information to business and industry, funding. and updating the Murray Irrigation 500,000 Customer Information Kit. Future marketing thrust and scoping for strategic business planning will The major promotional activities 0 explore new external business 04/05 05/06 06/07 07/08 08/09 07/08 08/09 planned for the position have been 04/05 05/06 06/07 opportunities for MILCast in order Agriculture postponed until improvements in MIL Shareholders for it to continue to contribute to MIL Works & LWMP seasonal conditions. Other commercial Murray Irrigation in a significant way.
Hydro power plant Mineral harvesting
Relatively low flows on the Mulwala Minerals are also harvested from the Canal during 2008/09 only allowed Wakool Tullakool Sub Surface approximately one month of energy Drainage Scheme (WTSSDS) – salt, generation from the hydro power gypsum and bittens. Cheethams Salt plant on the canal at The Drop Pty Ltd currently has the contract for between Berrigan and Barooga. mineral harvesting. In 2008/09, no salt, bittens or gypsum were removed. MILCast No additional stock of gypsum was added in 2008/09. MILCast continues to be the most significant ancillary business contributor to Murray Irrigation, Murray WaterBank despite a much more difficult Murray WaterBank is Murray trading year due to the drought and Irrigation’s five-year water lease- global economic downturn. back option for member customers. While enquiries for precast structures Murray WaterBank commenced in were down significantly (50%) the 2009 with two rounds of calls for conversion rate to sales was high, at applications from member around 50%. However, the most customers to participate. significant impact was the fall in sales Riverbank Holdings Pty Ltd, Murray due to the continued switch to Irrigation’s wholly owned subsidiary, mechanisation in the Asset Renewal has been chosen as the delivery Program (over structural vehicle for this initiative. Its improvement) and the last of the Directors are nominated by the major stormwater escapes Murray Irrigation Board of Directors, (Warragoon Stage 2) being and are presently Stewart Ellis and undertaken with LWMP funding. Anthony Couroupis. Riverbank The funding demise of these two Holdings purchased over 1,721 water programs will be a significant entitlements. It also entered five-year
28 lease-back agreements for these On 30 June 2009 there were entitlements during 2008/09. 60,457 water entitlements held by non-members, an increase of 27,407 It is expected that Riverbank in 11 months. Of these, 45,863 or Holdings’s investment in Murray 3.4% of Murray Irrigation water WaterBank will extend to a total of entitlements were owned by almost $5M during 2009/10 as government. other applications to participate in this initiative are accepted by member customers. Challenges
The Water Act 2007 (Cth) and its Water trading associated Murray-Darling Basin Plan represent Murray Irrigation’s For the second time in its history most significant challenges in terms Murray Irrigation was a net of future potential for business exporter of annual water, with a growth and diversity. large net transfer out of 53,539ML. Many member customers sold some Maintaining investor confidence or all of the annual allocation made in Murray Irrigation and the region available during the season, with in the face of continuing drought external buyers highly active on and the emerging impact on future Murray Irrigation’s water exchange. water availability is also a major challenge.
Murray Irrigation Water Exchange Understanding and adapting to the consequences of the sale of water The Murray Irrigation Water entitlements to governments on the Exchange showed a modest trading business and the viability of our year, with 54,921ML being traded member customers presents a this season, compared to a long term challenge to our company and will average of 61,779ML. The total be fundamental to our future success. value of sales reached a new high of $16.4M for the year, with individual sale prices being somewhat more moderate than the previous season, ranging from $255/ML to $600/ML.
Trading water entitlements Table 3.1 Summary of Murray Irrigation temporary water trading and water exchange operations The market value of Murray Irrigation water entitlements 2004/05 2005/06 2006/07 2007/08 2008/09 changed significantly in 2008/09. Murray Irrigation Class C Allocation 42% 56% 0% 0% 9% The presence of Governments in the permanent water market, MIL Water Exchange amongst other factors, has increased Number of Sales 1,155 1,258 1,403 902 1,833 the value of Murray Irrigation water
Total volume traded (ML) 66,729 95,068 58,936 11,537 54,921 y t entitlements significantly. The i s r comparative value with similar river Total value of sale $4.9M $4.2M $12.3M $7.8M $16.4M e v i entitlements (as indicated by the d
Average price $/ML $73.35 $44.59 $370.73 $680.04 $298.20 d n
Department of Water and Energy a
Lowest $/ML $44.00 $34.00 $70.00 $200.00 $255.00 h register of sales) increased t w o
significantly in 2008/09, with water Highest price $/ML $200.00 $140.00 $800.00 $1,100.00 $600.00 r g
entitlements with no corresponding s
Murray Irrigation Area Trade s delivery entitlements selling at a e n i
Net temporary trade into s higher equivalent price than NSW u regulated river units. MIL area (ML) 65,873 93,474* 47,127 -12,623 -53,539 b : 3
*Excludes transfer from Snowy Hydro Ltd r e t p a h C
29 CHAPTER 4 policy & community relations
We aim to provide a voice for the company and our member customers and to contribute to the development and implementation of water policy as Murray Irrigation and its member customers face an uncertain future as a consequence of unprecedented climatic conditions and government policy change
How we are performing
Performance
2004/05 2005/06 2006/07 2007/08 2008/09
Provision of information to member customers Scheduled Talking Water Issues 64 65 51 50 51 Additional Talking Water Issues 9 28 24 20 40
Total Talking Water Issues 73 93 75 70 91
30 “Continuing drought and its implications for the company, member customers and the wider community dominated 2008/09.”
Stakeholders and LWMP working group members travelled with Murray Irrigation LWMP staff to Sydney to present at the February 2009 LWMP Annual Review. Left to right: Alistair Starrit, Neil Gorey, Jane Paulet (MIL), John Pocklington, Kirsty Swinton (MIL), Bob Caldwell, Clare Fitzpatrick (MIL), Daniel Liphuyzen, Michael Pisasale (MIL), Darren Manzin and Michael Hughes.
Continuing drought and its and Water Charge Rules under the Engaging with governments implications for the company, Water Act 2007 (Cth) . on policy issues member customers and the wider Murray Irrigation supported the community dominated 2008/09. 1. Water for the Future efforts of NSW Irrigators’ Council As a result of drought, there was to represent the wider interests of Murray Irrigation has utilised the wider community pressure placed the irrigation sector politically, with funding assistance from Water for on the Commonwealth to intervene the company focussing its efforts the Future to develop a in Murray-Darling Basin issues. on issues of specific and high modernisation plan for Murray In particular, River Murray system importance to Murray Irrigation Irrigation’s water supply issues with greater public scrutiny and its member customers. infrastructure. This work has been of the irrigation industry and water undertaken by consulting engineers sharing arrangements. Efforts were made to provide a Sinclair Knight Merz and has coherent and robust voice to the With arrangements for provision of included analysis of Murray s
wider media. These efforts focussed Irrigation’s cost base and water n stock and domestic and irrigation o i
on the implications of the t
delivery efficiency. a water to member customers l e
government water buybacks on r established, the focus of Murray y
Member customers and other key t
regional communities, agricultural i
Irrigation’s external communication n
production and Murray Irrigation’s stakeholders have had two u
efforts was the Commonwealth m opportunities to provide input to the business, with concepts such as “the m
Government – Water for the Future o Swiss cheese” result and “not willing development of the Modernisation c initiative and participation in the &
sellers but desperate sellers”, and the Plan through independently y c
Australian Competition and i facilitated workshops. Murray l
need for an integrated approach o
Consumer Commission’s p from government at a local level Irrigation has also established a development of its Water Market : reference group which includes a 4 being our repeated themes. r e t p a h C
31 Murray Irrigation is actively involved mixture of different stakeholders in Approach” to government in the following organisations and our area, primarily irrigators to investment in water entitlements committees either as representative provide advice and guidance on the which provides opportunities for membership or individual Modernisation Plan which will be water entitlement sellers, irrigation appointment: presented to Government in supply companies to adjust their September 2009. Access to funding infrastructure costs and water I Irrigation Australia (merger of for infrastructure investment under delivery efficiency and also Irrigation Association of Australia the Water for Future, Sustainable opportunities for member customers and Australian National Water Use and Infrastructure to invest in more efficient farm Committee on Irrigation and Program requires the completion of infrastructure. Progress is slow; Drainage) a Modernisation Plan. however, the Company is persevering with this approach Murray Irrigation has also received I Murray Dairy Board and Industry because it will ultimately result in a $1.3M (subject to signing of a Steering Group better long term outcome for funding agreement) for a pilot Murray Irrigation, its member I Murray-Darling Freshwater on-farm water efficiency program. customers and the region. Research Centre Community This funding will allow a member Advisory Committee customer to transfer water 2. Australian Competition and I MDBA Community Reference entitlements in exchange for the Consumer Commission (ACCC) funding for investment in more Panel for the Living Murray The demands of responding to the water efficient farm irrigation National Irrigation Corporation various issues papers, position papers I supply systems. Water Entitlements Register and draft rules prepared by the The most controversial aspect of ACCC during 2008/09 were I NSW Murray Critical Water the Commonwealth’s Water for extensive. The Water Market Rules Advisory Group the Future program is the $3.1B and Water Charge (Termination Fee) I NSW Irrigators’ Council Restoring the Balance program Rules 2009 are now law and the for water buybacks. To date the ACCC is now focused on I National Irrigators’ Council Commonwealth has been a monitoring and compliance. I Snowy Hydro Consultative relatively minor investor in Murray The final advice on the Water Committee Irrigation water entitlements. Charge Rules has been submitted to However, in January 2009 in I NSW State Water Corporation the Commonwealth Water Minister. response to pressure from our Customer Service Committee The Water Charge Rules will member customers Murray primarily deal with Murray Murray Irrigation has participated in Irrigation launched its “Offer of Irrigation’s charges and are expected the following projects and working Water Entitlements for Sale by to include increased requirements groups in 2008/09 Murray Irrigation” water purchasing for disclosure of cost drivers by initiative. The primary objective of I National Water Commission Murray Irrigation. National compatible water this initiative was to achieve a register working group premium price for water The development of the Water entitlements from sellers. Market and Water Charge Rules has I National Water Commission highlighted the limitations of the Murray Irrigation is in the National performance Water Act 2007 (Cth) , where the process of entering into contractual Framework for rural water Market Rules only regulate non arrangements with the providers government organisations and their Commonwealth to sell water performance and the Water Charges I National Water Commission, entitlements, on behalf of individual Rules can only regulate where a Water Accounting Development members through the Restoring the charge is actually struck. The process Committee Balance Program. has also revealed that NSW is I Ricegrowers’ Association of Murray Irrigation has also worked recovering the greatest proportion Australia Environmental with key regional stakeholders and of its water management and bulk Champions Program. liaised with both the water supply charges from irrigators Commonwealth and state when compared to recovery by the governments to promote the Victorian and South Australian importance of an “Integrated Governments.
32 Our key stakeholders
Murray Irrigation’s key stakeholders water and its cost. Tables 4.1 and 4.2 include those organisations whose describe our key stakeholders, the decisions have the potential to affect importance of our relationship with our operations, most specifically our them and key issues addressed in short term and long term access to 2008/09.
Table 4.1 Murray Irrigation’s stakeholders: government agencies
Stakeholder Relationship with Murray Irrigation Key issues in 2008/09
GOVERNMENT AGENCIES/BODIES
NSW Government through Sets legislation and policy, state water policy, Access to water through NSW critical water supply NSW Department of Water represents state interests to the Murray- arrangements while Water Sharing Plan suspended, and Energy Darling Basin Ministerial Council; regulates Land and Water Management Plan governance, licence company licences; partner in regional water compliance and review of Irrigation Corporation licence sharing plan; implements government water conditions, Council of Australian Governments (COAG), policy and funding partner in asset renewal intergovernmental agreement, water trading policy (entitlement and annual) and government funding for asset renewal (LWMP).
NSW State Water Bulk water supplier Day to day water orders, deliveries and transfers, water Corporation Customer service committee trading, operation of Mulwala Canal, escape and supplementing flows in rivers and creeks
NSW Independent Pricing Reviews and sets our bulk water prices 2006-2010 determination on state government water and Regulatory Tribunal charges
NSW Department of Regulates Environment Protection Licence, Reporting, licence compliance, pollution control, LWMP Environment Murray Catchment Management Authority implementation, and water purchase for Living Murray and Climate Change
NSW Department of Mining licences, agricultural extension, Rural Assistance Authority exceptional circumstances Primary Industries fisheries issues; research partner assistance package, reporting, research projects based on irrigated agriculture, licence compliance, recruitment of native fish stock, participation in extension activities
Murray-Darling Basin Preparation of the Basin Plan and Living Living Murray water purchases Authority Murray
River Murray Water Manages Murray River storages flows and Resource outlook and river management options including operations escape flows and flows to supplement rivers and creeks
Murray Catchment Auspice agency for LWMP investment and Implementation and reporting of the LWMPs Management Authority integrated catchment management policy; funding partner
National Water Implementation of the National Water Funding for National Irrigation Water Entitlement register, Commission Initiative, and contributes to Commonwealth water market reports, benchmarking water policy and benchmarks
Australian Competition and Trade practices and pricing Development of Water Market Rules, Water Trade Rules s
Consumer Commission Water Act implementation and Water Charge Rules in accordance with the Water Act n o i
(Cth) t a l e r Department of Environment Water for the Future – water purchase Water for the future – Modernisation Project funding, y t and Water, Heritage and program and water efficiency investment, Commonwealth Entitlement Water Holder and i n
the Arts Commonwealth water legislation, Water Act amendments in accordance with COAG intergovernmental u implementation agreement and on-farm pilot project, Murray Irrigation m m
Integrated Package, Water Market and Charge Rules 2009 o c
&
NSW Department of State Opportunities for regional development Dairy industry support and development funding y c i
and Regional Development l o p
: 4
r e t p a h C
33 Table 4.2 Murray Irrigation’s stakeholders: member customers, community and business relationships
MEMBER CUSTOMERS, COMMUNITY AND BUSINESS RELATIONSHIPS
Stakeholder Relationship Key issues in 2008/09
Member customers Shareholders, water users, water entitlement Water availability and drought, water trading, changed holders; and partners in sustainable delivery operations, charges structure, LWMP production and water efficiency initiatives implementation and Modernisation Project input
Directors Irrigators and specialists providing leadership Strategic direction response to drought, company for company policies, response of state and national political changes and policy initiatives, Water for the Future and government water purchasing program
Staff and contractors Key business resources vital to our success, Company’s response to drought, implementation of provider of skills and services company policies, Quality Accreditation, Occupational Health and Safety, and purchase and tendering processes
Local Government authorities, Customer for town water supplies; partner in Town water supplies, impact of reduced water including Riverina and Murray Murray LWMPs; development consent availability on local communities, impact of water Regional Organisation of authority for major works and water trader, reform on land values and rate base, maintenance of Councils (RAMROC) Water4Food local infrastructure, LWMP implementation, approvals for stormwater construction
Town communities Provider of business services and staff for our Impact of reduced water availability on local company and shareholders communities, economic dependence on irrigated agriculture, environmental initiatives
Students Children of our shareholders; future Wildlife survey and other environmental initiatives, employees shareholders, businesses and grants programs, provision of school resources and community leaders field trips
MILCast, AWMA Key suppliers, provide additional income Asset renewal program, gate mechanisation and stream for company asset refurbishment, business management and profitability
Southern Riverina Irrigators (SRI) Elected landholder representative lobby Murray Irrigation fixed charges, water purchase and Landholder Associations groups Termination Fee policy, service levels
Modernisation Project Member customer group to provide input to Establishment and initial consultation with member Reference Group Modernisation Project customers
LWMP working groups Provide consultation and direction for LWMP contingency implementation arrangements, implementation of Murray LWMPs priorities for remaining funding and support for future funding
Research and educational Partners in research projects and training for LWMP research projects and river health survey organisations staff and irrigators
Conservation groups Partners in sustainable resource Reporting, sustainability performance, water trading, management, competitors for water water recovery initiatives
Other irrigation companies Collaborators on operational issues; partners Response to ACCC, and input into Water Act (Cth) in industry development and promotion of irrigation
Commodity groups: Producer networks and businesses involved Water availability, promotion of regional opportunities RiceGrowers’ Association, in irrigated agriculture; and tender for water entitlements SunRice, Murray Dairy
Industry groups: Professional networks for information National Water Commission initiatives (metering, NSW Irrigators’ Council, exchange and education; joint approaches reporting, water trading, water pricing, entitlement NSW Farmers’ Association, on water policy development, and improved registers), formation of National Irrigators’ Council, Irrigation Australia Limited, water management input into National Farmers’ Federation and National National Farmers’ Federation Irrigation Corporation Water Entitlement Register and National Irrigators’ Council
Media Representation of Company and irrigation Government buybacks, offer to sell initiative, drought issues in local regional and national media and organisational restructure
34 Water industry alliances Challenges Figure 4.1 Number of ‘Talking Water’ Murray Irrigation has concentrated The challenges faced by Murray recipients its contribution to water industry Irrigation at the end of 2007/08 No. of alliances to participation in NSW remain. The unprecedented drought recipients Irrigators’ Council and membership continues, threatening the fabric of 1,500 on the Board of the fledgling our regional community, challenging National Irrigators’ Council. Murray Irrigation to prioritise its 3
operations to provide financial relief. 9
1,200 2 , 8 1 0 7 3
The drought and purchase of water 2 7 7 , 1 1 1 4 Member customers and , , 0 1 1
entitlements for environmental use 1 , stakeholders 1 are likely to cause an unprecedented 900 change in our farming community. Talking Water is Murray Irrigation’s primary communication vehicle The formation of the Murray- with its member customers, with Darling Basin Authority, and the 600 51 scheduled issues and 40 release of its concept statement for additional issues in 2008/09. the preparation of the Basin Plan Talking Water is supported by with the new sustainable diversion 300 chairman, Stewart Ellis’ Weekly limit, is an important issue for 7 8 8 9 6 0 0 0 0 0 / / / / / 6 7 7 8 Radio program on 2QN. 2009/10, with the need to address 5 0 0 0 0 0 social and economic issues in 0 In 2008/09 Murray Irrigation also 04/05 05/06 06/07 07/08 08/09 parallel with environmental held a series of meetings across the requirements already highlighted. region to discuss Murray Irrigation’s costs and the company’s restructure. Consideration of the opportunities These meetings were attended by a presented by Water for the Future broad representation of member funding for Murray Irrigation’s customers. infrastructure must be made in the context of effective investment In addition, Murray Irrigation also decisions for assets that we will own held meetings in April 2009 in and be responsible for in the long conjunction with the Landholder term. Associations to describe the changes proposed to adapt to and comply with the Water Market and Water Charge (Termination Fee) Rules 2009.
Murray Irrigation has continued to support Southern Riverina Irrigators’ (SRI), holding bi- monthly meetings with SRI and the chairs of the landholder associations, and also attending SRI and landholder association meetings. s n o i t a l e r
y t i n u m m o c
&
y c i l o p
: 4
r e t p a
The Murray Irrigation Limited 2008 Annual General Meeting at h C the Deniliquin RSL Club.
35 CHAPTER 5 protecting environmental values
We are undertaking initiatives and policies to improve the health and productivity of the regional environment.
How we are performing
Performance
2004/05 2005/06 2006/07 2007/08 2008/09
100% compliance with company licences Number incidents reportable to regulatory agencies 0 10 00 0
100% landholder compliance with company environmental policies (Total Farm Water Balance, Rice Growing) Number identified policy breaches 11 25 00 0
Minimise area affected by high watertables - <2m (March) 8,447ha 14,334ha 3,257ha 346ha 18ha
Implement the Murray Land and Water Management Plans (LWMPs)* Increase landholder participation in the plans 782 949 1,058 1,103 427 Maintain government investment G: $8.5M G: $7.6M G: $10.2M G: $20M G: $6.5M Maintain landholders direct co-investment LH: $5.0M LH: $5.7M LH: $7.9M LH: $3.2M LH: $3.1M
36 “Murray Irrigation has policies which are designed specifically to influence on-farm water use and contribute to the control of watertables in the region.”
Maintaining a healthy creek ecology is a key priority of natural resource management.
Murray Land and Water Wakool. The total area of the Murray 6. Administration LWMPs is 960,000ha with 3,039 Management Plans 7. Stormwater Management holdings including 2,020 commercial The Murray Land and Water irrigated holdings. 8. Research and Development Management Plans (LWMP) are one From 1995 to 2009, $108M of NSW 9. Sub Surface Drainage of Australia’s largest integrated natural and Commonwealth government resource management programs in 10. Monitoring funds have been invested in the which Murray Irrigation is the Murray LWMPs, with the Implementation Authority. The community contributing a further program was established in 1995 to $28M cash and $491M invested s e address the environmental impact of u l
through on-farm works. a salinity from rising watertables and to v l a improve water quality to the Murray The Plans are divided into the t n River and its tributaries. The Plans following programs: e m n link the company’s performance with o r
1. Whole Farm Plans i landholder performance, and consider v n both indirect and direct regional 2. Wastewater Storage e g n i environmental impacts and outcomes. t 3. Vegetation to Reduce Salinity c e t o
There are four component plans r
4. NativeVegetation p based on the geographic sub-districts : 5
5. Education r
of Berriquin, Cadell, Denimein and e t p a h C
37 LWMP Implementation in 2008/09 willing to participate and invest further funds of $8M. Given the Total government funds invested continued difficult seasonal in 2008/09 were $6,517,477M. conditions the works completed This is well below 2007/08. The and ongoing interest from on-farm component of the plans landholders to complete further which includes incentives for farm works is outstanding. planning, wastewater storage and vegetation utilised $3.8M of The NSW Government continued available funds with landholders to provide funding to support the contributing $1.1M as part of their implementation of the program in cash contribution. 2008/09. The Commonwealth decision not to invest in the Murray The 2008/09 LWMP landholder LWMPs reduced the momentum survey indicated that landholders that had developed for the Plans in contributed a further $36M to non- the last five years. incentive Plan works. The number of landholders undertaking works For 2009/10 no funds will be made decreased significantly from 1,103 available by the Commonwealth in 2007/08 to 427 in 2008/09. This government and a minimal amount reduction is due to limited funding by the NSW government, although being available. The potential uptake, the NSW government have registered in the program’s provided their share of the Heads Expression of Interest list, indicates of Agreement commitment. that a further 355 landholders were This effectively signals the end of the Plans, which is disappointing given the remaining targets yet to Table 5.1 be achieved, proven results of past LWMP On-Farm Implementation Summary 1995 – 2009 achievements and efficiency in delivering incentives on-ground. Total number of landholdings 3,039 Number of commercial Irrigated landholdings 2,020 farms Sinclair Knight Merz audit all funds Works completed Cumulative works provided by government on behalf Program 08/09 completed 1995/2009 Total target No. of state government. – landholdings – landholdings – landholdings Annual expenditure is detailed Farm Plans 57 1,311 1,627 in the Murray Irrigation 2009 Irrigation Recycle Systems 20 1,006 1,627 Compliance Report available at www. murrayirrigation.com.au. Wastewater Storage Systems 15 747 1,528
Irrigation Accreditation Course 76 1,548 1,850 Tables 5.1 and 5.2 provide a summary of the LWMP on-farm works completed during the year Table 5.2 and cumulatively over the 14 years LWMP Vegetation implementation 1995 – 2009 of the program.
Program Works completed Cumulative works Total target 08/09 completed 1995/2009 number (ha)
Vegetation to Reduce Salinity (including perennial pasture) 796ha 46,746ha 70,542ha
Restore and regenerate native vegetation 368ha 5,619ha 16,305ha*
Active management of native vegetation 412ha 17,518ha 38,619ha*
*Source: Murray Catchment Management Authority Catchment Blueprint targets
38 Murray Irrigation licence reviews Murray Irrigation’s strategies to address watertable levels include Murray Irrigation is continuing company policies in relation to the to work with the Department of provision of stormwater networks, Water and Energy about the sub-surface drainage and improved development of its new Water on-farm and regional water Management Licences under the management. The implementation Water Management Act 2000. The of stormwater and on-farm water new licences essentially replace management strategies have been Murray Irrigation’s previous co-ordinated through the Murray Irrigation Corporation Water LWMPs since 1995 when more Management Works Licence that than 115,000ha (12%) of the was developed in 1995 at the time 905,000ha LWMP area was affected of Murray Irrigation’s privatisation by watertables within 2m of the under the Water Act 1912 . surface.
The new Water Management Extensive biannual groundwater Licences will define the future monitoring through a network of Annual Compliance Report 1,450 piezometers shows that the requirements to the Department of area affected by watertables of less Water and Energy each year. than two metres in August 2008 was 1,190ha, and declined dramatically Murray Irrigation also submitted to 18ha in March 2009. The August proposed amendments to its NSW 2008 depth to watertable is shown Environmental Protection Act issued in Figure 5.1. This is a reflection of Environmental Protection Licence the extremely dry climate and that were subsequently approved. negligible irrigation water The changes were relatively minor availability during 2008/09. and essentially related to the Chemical Control Plan and some The continuing dry weather and reporting requirements. Further low water allocations have been requested changes about the Land major factors in the improvement and Water Management Plans are of watertable levels, particularly still being considered. since 2002. However, the risk of rising watertables, salinity and waterlogging remains a long term Environmental risks threat to the region. Historically, one of the most significant environmental risks the region has faced is that of rising watertables and associated soil salinisation. Our aim is to maintain or reduce the area affected by shallow watertables (0-2m), with the target of less than 50,000ha affected incorporated within the Murray s e u Catchment Management Authority l a v
Catchment Action Plan. At present, l a t the region could be described as n e continuing to experience a “salinity m n o r
holiday” due to successive years of i v below average annual rainfall and n e significantly reduced water g n i t irrigation availability. c e t o r p : 5 r e t p
One of the programs implemented under the Murray LWMP is a h
‘Vegetation to Reduce Salinity’. This includes Saltbush plantings. C
39 Figure 5.1 Depth to watertable, Murray LWMP region, August 2008
Groundwater quality may recommence in the future after consultation with both the The salinity of the shallow Department and Murray Irrigation. groundwater has been measured every three years as a condition of Murray Irrigation has policies which the Water Management Works are designed specifically to influence Licence. There have been no on-farm water use and contribute to significant changes in the shallow the control of watertables in the groundwater salinity since the first region. This includes the Total Farm survey in 1997. Water Balance Policy and Rice Growing Policy. In 2008/09, The shallow groundwater west of irrigation intensity across Murray Deniliquin has salinity levels close to Irrigation was extremely low due seawater. Geologically, this area was the low announced allocation. There once under the sea. The shallow were 21 landholdings which grew groundwater east of Deniliquin rice using deep groundwater as the which has not been historically major water source. There were no inundated by sea water is less saline. breaches recorded of either policy. There are small pockets of shallow groundwater less than 3,000EC. Managing stormwater During 2008/09 Murray Irrigation requested and was granted an As our landscape is so flat, and exemption from measuring the natural drainage relief in our region salinity of the shallow groundwater is minimal, stormwater that is not every three years by the Department removed quickly following of Water and Energy. Shallow significant rainfall can lead to groundwater salinity monitoring waterlogging, rising watertables, soil salinisation and reduced
40 environmental health. The discharge As a result, a record low volume of of water from our stormwater saline groundwater (approximately network also has the potential to 464ML) was pumped to the affect receiving waterways, which all WTSSDS evaporation basins this ultimately lead to the Murray River. season. This compares with 4,213ML and 2,885ML pumped for the The company’s strategies with 2006/07 and 2007/08 seasons regard to stormwater management respectively. are four-fold. A project plan for an options study Continue to build stormwater I of the WTSSDS is currently being networks to improve the region’s developed. This plan is expected to capacity to manage and remove be finalised in the 2009/10 season stormwater. with work on the study expected to I Encourage landholders through commence soon after. the LWMPs to hold stormwater on-farm by providing incentives for properly constructed storages Challenges on appropriate soils. Attracting external funding support I Implement a stormwater policy for natural resource management detailing the conditions under initiatives involving on-ground which landholders have access to works is a challenge. Both the stormwater network to Commonwealth and NSW improve control of water quality. governments’ financial commitments I Undertake extensive monitoring are virtually zero for 2009/10. of stormwater for volume, Murray Irrigation is developing salinity, total nitrogen, total new initiatives such as the On-Farm phosphorus, turbidity, blue-green Efficiency Pilot project which will algae, and agricultural chemicals, trial the concept of landholders in line with our Environmental exchanging some water entitlements Protection and Water for efficient irrigation systems. If Management Works Licences. this project is successful, the Murray Irrigation’s stormwater company expects to position itself escape system was effectively not to deliver significant funds to utilised in 2008/09 due to minimal improve the efficiency and rainfall runoff as a result of economic viability of its irrigators prolonged drought conditions. within the region. This initiative is a significant component of the Sub-surface drainage Murray Irrigation Integrated Package of Works and Measures In addition to our stormwater for water recovery. The greatest networks, Murray Irrigation challenges will be managing the operates a groundwater pumping expectations of funding agencies scheme to provide sub-surface with the practicalities of a broad drainage to a section of the Wakool scale on-ground efficiency initiative. s e u Irrigation District. The Wakool l a v
Tullakool Sub Surface Drainage l a t
Scheme (WTSSDS) represents a key n e part of the company’s infrastructure. m n o r
The Scheme includes 2,100ha of i v evaporation basins, 115kms of n e underground pipe and 52 pumps. g n i t c e
Groundwater levels within the t o r
influence of the WTSSDS have p : remained low primarily due to the 5 r e impacts of the prolonged drought. t p a h C
41 CHAPTER 6 company culture & structure
Murray Irrigation is constituted to supply water at the lowest sustainable price to its members and maintain reserves to ensure the continued viability of the business.
We are committed to a high standard of safety for staff, customers and the public, with a culture of continuous improvement, clear direction, respect and accountability.
How we are performing
Performance
2004/05 2005/06 2006/07 2007/08 2008/09
Staff turnover target 10% to 15% 12.9% 14.9% 10.7% 18.6% 16.6%
Reduce number days sick leave per FTE 4.7 4.9 4.1 8.1 5.3
Reduce number of lost time injuries 7 10 557
42 “We aim to provide best practice in corporate governance and strategic leadership for our staff, our member customers and within the irrigation industry.”
Staff members of Murray Irrigation’s Water Management division.
corporate governance
Performance measures Board of Directors Non-member Directors are not shareholders, hold tertiary The company is a not-for-profit, The Board of Directors consists of qualifications and must have at least unlisted public company and the up to seven member Directors and ten years experience in a relevant Board of Directors takes ultimate two non-member Directors. All field, in particular finance or responsibility for its corporate Directors are independent of engineering. They are nominated governance. This includes management, and member Directors by member Directors with responsibility for strategic planning, are also shareholders, or in the case shareholders ratifying or vetoing the protection of the company’s financial of a corporate shareholder, an appointment at the Annual General position, legal and licence appointed representative. Meeting. compliance, risk management, Member Directors are elected for auditing, and reporting and e four year terms by shareholders via Chairman r u
evaluation of the Board and the t
postal ballot, with half retiring every c u
company’s performance. r
The Chairman and Deputy t
second year. Elected Directors are s
Many of Murray Irrigation’s confirmed at the Annual General Chairman of the Board are elected & e
by the full Board for a term of two r customers are also shareholders Meeting following the election. u t l
(members), linked to the company years. Both positions are open to u c
Members endorsed changes to the any Director. y
by ownership of land within the n
composition of the Board of a area of operations. However, p
Directors, commencing in 2007. m an increasing number of water o The number of member Directors c entitlement owners are non : will reduce to six at the 2009 6 members, holding water r e Annual General Meeting. t entitlements without owning land. p a h C
43 Our Directors Mr Kel Baxter MAICD Member Directors Mr Kel Baxter is from the East Berriquin district and has been a Mr Stewart Ellis member Director since 1995, last Mr Stewart Ellis Chairman Chairman re-elected to the board in 2007. MAICD He represents Murray Irrigation Mr Stewart Ellis is from the Wakool as a member of the Hume to district and has been a member Yarrawonga Waterway Advisory Director since 1995, last re-elected Group. He is also a community to the board in 2005 and elected representative on the Murray- Chairman in December 2005. He Darling Basin Commission represents Murray Irrigation as a Community Reference Panel for Member of the NSW Murray the Living Murray. Mr Gordon Ball Groundwater Management Mr Leigh Chappell Deputy Chairman Committee, is Chairman of the MAICD Snowy Hydro Consultative Mr Leigh Chappell is from the Committee, and is a delegate to the West Berriquin district and was first NSW Irrigators’ Council. He is also elected as a member Director in a Director of the National Irrigators’ December 2005. He is a past Council, and Riverbank Holdings Executive Officer of both Southern Pty Ltd (Murray Irrigation Riverina Irrigators and the Murray subsidiary company). Mr Ellis is a Valley Groundwater Users’ Member of the Australian Institute Association and is a Member of the of Company Directors. Mr Kel Baxter Australian Institute of Company Mr Gordon Ball Directors. Deputy Chairman Mr Malcolm Holm MAICD GAICD Mr Gordon Ball is from the East Mr Malcolm Holm is from the East Berriquin district and has been a Berriquin district and was elected as member Director since 1995, and a member Director in December was last re-elected to the board in 2005. He is a Past Chairman of the 2005 and elected Deputy Chairman Southern Riverina Irrigators, and Mr Leigh Chappell in December 2005. He represents was an Executive Councillor of the Murray Irrigation as a Member NSW Farmers’ Association in of the Murray-Lower Darling 2008/09. He is also Deputy Customer Service Committee. Chairman of Murray Dairy and a He is a Member of the Australian Graduate Member of the Australian Institute of Company Directors and Institute of Company Directors. the Riverina Institute of TAFE Advisory Council. He is also a Mr Michael Hughes Director of AWMA Pty Ltd Mr Michael Hughes is from the (Murray Irrigation’s 50% owned Denimein District and was Mr Malcolm Holm manufacturing company) and is a appointed as a member Director in community representative on the April 2009. He is a member of the Murray-Darling Basin Authority Denimein Land and Water Community Reference Panel for Management Plan Working Group, the Living Murray. Chairman of the Denimein Landholders’ Association, and on the Board of the Victorian Irrigated Cropping Council.
44 Mr Mark Robertson Conduct and conflict of interest MAICD The Board of Directors operates Mr Mark Robertson is from the according to a code of conduct East Berriquin District and was adopted from the Australian Institute elected as a member Director in of Company Directors based on Mr Michael Hughes April 2009. He has been a Director acting honestly, in good faith and in of SunRice for the past 13 years and the best interests of the company as the Deputy Chair for the past seven, a whole. and also holds Director portfolios on international SunRice subsidiaries in Directors are asked to resign from Papua New Guinea, the Solomon executive positions on district or Islands and the United States of regional landholder associations America. upon being elected, to prevent possible conflicts of interest between Non-member Directors these groups and the need for Directors to act in the interests of Mr Mark Robertson Mr Michael Humphris the company as a whole. FCA, FSIA, MAICD A code of conduct relating to water Mr Michael Humphris is a non- trading exists, which prevents not member Director who was only Directors but also any appointed to the board in December employee, from acting on or using 2007. He is an Accountant and information prior to it being Consultant/Specialist Advisor with available to members. Directors leading accounting and advisory must not receive commission for firm BDO Kendalls. He holds non- water transactions and must notify Mr Michael Humphris executive board positions in a the chairman of any permanent or number of listed public companies annual transfers carried out. and sits on various professional and educational committees, and is a A standard item exists on the agenda Murray Irrigation nominated of all Directors meetings to declare Director of AWMA Pty Ltd. any potential interests at the commencement of each meeting. Mr Tony Read Any Director declaring an interest Principal Engineer, NRM Group must exclude themselves from the
Kellogg Brown & Root Pty Ltd related debate and subsequent Mr Tony Read ME, MBA, FASCE, FIEAust, voting on resolutions. CPEng Training and professional advice Mr Tony Read is a non-member Directors have the right in Director who was appointed to the connection with their duties and board in December 2005. He is a responsibilities as Directors to seek Principal Engineer and Manager independent professional advice at Agribusiness with Adelaide based the company’s expense. Prior e consulting engineers Kellogg Brown r u
written approval of the Chairman t
& Root Pty Ltd (KBR). He is also a c u
is required, which will not be r t
Director of several companies s unreasonably withheld. & involved in the growing, processing e r and marketing of almonds and u t l pistachios. u c
y n a p m o c : 6
r e t p a h C
45 Board performance A representative from the auditor may attend meetings of this The Board of Directors is committee from time to time by responsible for setting the company’s invitation. The committee was strategic direction and has endorsed replaced by the Finance, Audit and the company’s vision, mission and Risk Management Committee in values. In June 2009 the board June 2009. initiated a process of reviewing the company’s strategic plan, with a Environment Committee view to setting a new five year plan Overseeing environmental audits, to 2014 later in 2009. maintaining communication The board has five committees, between the board and external each with its own terms of agencies, and reviewing the reference, which report to the company’s environmental board after each committee meeting. management and agreements with Committee members are appointed government, this committee advises for terms of two years, with the on and assists in achieving the current appointments made company’s environmental goals following the annual general including licence compliance, and meeting in December 2007. the implementation of the Murray Attendance at board and committee Land and Water Management Plans. meetings is included in the Infrastructure Committee Directors’ Report. Management provides reports to meetings of the The Infrastructure Committee board and its committees, and attend reviews and advises on the by invitation. maintenance, refurbishment, and renewal of the company’s irrigation In May 2009 the Board of Directors and drainage infrastructure. reviewed its Committee structure Activities include reviewing asset and resolved to restructure them, management controls and policies, consistent with the outcomes of this assessment of funding priorities, review of the organisational costs and performance, asset structure. The first of committee to management strategies, and review be re-formed was the Audit & Risk of government infrastructure Management Committee, has funding and operational agreements. become the Finance, Audit and Risk Nominations Committee Management Committee with the Environment Committee becoming The Nominations Committee’s the Environment and Water objective is to assess the skills Committee, the amalgamation of required by Directors, the General the Remuneration and Nominations Manager and the company secretary, Committees into the Resources to identify suitable candidates as Committee, and the formation of necessary and to recommend the new Policy and Stakeholders appointments. Committee. These committees will Remuneration Committee commence activities in 2009/10. The Remuneration Committee Audit and Risk Management considers conditions of employment Committee and remuneration of all staff, in Responsible for accounting and particular senior management, reporting practices, risk including annual remuneration and management, and related issues bonuses or other incentives. including audits, financial Remuneration information and accounting controls, management of Member Board of Directors are paid investments, administration a fixed rate of $22,640 per annum agreements with government and and a day rate of $255 for committee identifying risks to the company. meetings and special projects. Non-
46 member Directors are paid a fixed a Director of Murray Irrigation at rate of $35,375 per annum and a day the time of election) were also rate of $510 for committee meetings elected to the panel. and special projects. The chairman of the Board is paid a fixed rate of The Disputes Committee met once $45,280 per annum and a day rate of in the period, on 26 September $510 for committee meetings and 2008. Appointed to the Disputes special projects. Committee and in attendance were Gordon Ball, Malcolm Holm, Leigh The fixed rate identified is for the Chappell, Michael Hughes and preparation and attendance at Adam Wettenhall. scheduled meetings of the Board. The day rate is for undertaking Directors elected to the Disputes special projects and attending Panel at the Annual General Meeting meetings in addition to scheduled held 18 December 2008 were meetings. Reasonable expenses Gordon Ball, Kel Baxter, Malcolm incurred by Directors whilst Holm, Leigh Chappell and Vicki undertaking their duties are Meyer. Member representatives reimbursed by the company via a elected were Ted Hatty, Michael claims system (see Financial Moloney, Tim McKindlay, Adam Statements Note 21b). Wettenhall, Mark Martin, and The company provides the Michael Hughes (who was not a Chairman with a vehicle for Murray Director at the time of election). Irrigation associated travel, consistent with a resolution of the Company memberships Board of Directors approving this arrangement. The costs associated Murray Irrigation holds with any travel of a personal nature membership of the following whilst the Chairman is on Murray organisations: Irrigation business is recovered by the company from the Chairman. I Australian Environment Foundation Employees, including executives, I Australian Farm Institute are remunerated according to the I Australian Water Association company’s remuneration management system, which is based I National Irrigation Corporation on position assessments carried out Water Entitlement Register by Mercer Human Resource I National Irrigators’ Council Consultants using the Cullen, Egan I NSW Irrigators’ Council & Dell method of rating salaries. I Irrigation Australia Limited. Wages are capped at the 25th percentile of the national general market. No employee receives Donations and sponsorships company shares or other securities The company does not make as part of their payment or bonus donations to any political parties. schemes. e r
Sponsorship is provided to water u Disputes Panel and Disputes t c
and environmental industry-related u r
Committee t
events, to local organisations s
& providing learn-to-swim programs The Annual General Meeting e r u
within the Murray Irrigation area of t of 17 December 2007, elected the l u
operation, and to local schools for c following Directors to the Disputes y
individual projects to the value of n
Panel: Alex Anthony, Leigh a $250 per primary school and $2,000 p
Chappell, Gordon Ball, Kel Baxter m o and Malcolm Holm. Members per secondary school. The level of c :
donations and sponsorships is being 6
Tim McKindlay, John Lolicato, r
reviewed in light of continuing e Bruce Atkinson, Adam Wettenhall t p
drought. a
and Michael Hughes (who was not h C
47 our staff
We still remain one of the region’s Occupational Health & Safety largest employers currnetly with 113 (OH&S) accreditation are key staff (110.4 Full Time Equivalent). company strategies that apply across This is a reduction of 13 staff down the business. Staff contributions are from 126 last year. The company’s integral in maintaining the headquarters is located in company’s QA and OH&S Deniliquin and this is where the accreditation, which is important to majority of staff are employed. our corporate governance as well as Murray Irrigation also operates the safety of our staff, customers and offices and depots in Finley and the public. The nature of the core Wakool. business of the company involves creating, repairing and maintaining The company’s Vision, Mission and water infrastructure. This is often Values (p. 8) provides the framework physical and heavy work involving and direction for the operation of significant plant and equipment the company and its staff members. where safety procedures are Key components in the paramount. development of our corporate culture include: Murray Irrigation has an integrated Quality/OH&S Management Maintaining a high standard of I system which meets the safety for staff, member requirements of the Quality customers and the public Standard ISO9001 and OH&S I Providing an ethical workplace Standard AS/NZS4801. that values staff contributions We also aim to provide best practice I Providing on-the-job training in corporate governance and and career development strategic leadership for our staff, our opportunities. member customers and within the Our Quality Assurance (QA) and irrigation industry.
Table 6.1 Murray Irrigation workplace profile as at 30 June 2009
2004/05 2005/06 2006/07 2007/08 2008/09
Employees 134 137 134 126 113
Full time employees 129 132 129 119 107
Part time employees 55576
Full time equivalent 131.14 131.14 131.14 122.9 110.4
Employees under Enterprise Bargaining Agreement only 33000
Employees under contract 131 134 134 126 113
Male Staff 114 113 111 105 92
Female Staff 20 24 23 21 21
Casual staff 24241
Turnover rate (%) 12.9 14.9 10.7 18.6 16.6
Average sick leave per employee (days) 3.8 5.5 5.8 8.1 5.3
Net position creation 4.7% 3% -2% * -7.1%
Average length of service (years) 12.4 11.3 11.2 12.9 13.8
* No figure available
48 Our workplace profile regulator gate mechanisation program and existing regulator and bridge During 2008/09, our workplace maintenance. profile has change substantially due to a major company restructure. Details A major organisational restructure, of our profile, including Directors, is with decisions about the size of the shown in Table 6.1. All of Murray company and the operating cost Irrigation’s staff are employed under impact, has resulted in fewer staff individual common law contracts of positions. This, together with employment. We remain a largely insecurity in relation to future male-dominated workforce. employment if the drought persists, has meant that staff turnover has been higher than planned for. Changed work conditions in Murray Irrigation has sought to response to drought support staff through this difficult period with the provision of a free Drought conditions have continued and confidential support service, throughout 2008/09 and as part of including personal support and job its drought management program seeking assistance as required. Murray Irrigation has continued with the implementation and Further staff reductions may be construction of government funded required as a result of the (Asset Renewal Program) capital forthcoming finalisation of the works. This work continues to be LWMP and Asset Renewal Program. an important function for the company in managing its operations High standard of safety for staff, during a difficult season. customers and the public In an endeavour to further reduce company expenditure, staff have Murray Irrigation is committed to been redirected where possible from the development and continuous company-funded projects to improvement of safety practices government-funded projects. This which are regulated by the NSW applied particularly to Water Manage- Occupational Health & Safety Act ment, distribution and maintenance 2000, Regulations 2001 and staff. The work undertaken was Standards and Codes of Practice. predominately assisting with the Murray Irrigation’s safety perfor- mance is summarised in Table 6.2.
Table 6.2 Murray Irrigation accident and injury summary
2004/05 2005/06 2006/07 2007/08 2008/09
Average no. MIL staff covered by GIO 130 132 132 130 121
Fatalities 020 00
Work Cover reportable incidents 430 02 e r
Investigations conducted by Work Cover 010 00 u t c u
Directions given to MIL to provide documentation r t s under the OH&S Act 010 00 &
e Provisional improvement or prohibition notices r u t were placed on the company under the OH&S Act 000 00 l u c
y
Types of accidents n a p
Near miss incidents 521 02 m o c
Lost time Injuries 7 10 557 : 6
r e
Lost Time Injury Frequency Rate *N/A 40.3 20.7 22.2 34.4 t p a
Accident Severity Rate *N/A 93 54 32 41 h C * N/A Not available
49 Murray Irrigation operates an leave. The number of staff taking the OH&S committee with different type of leave available is representatives elected by the staff. summarised in Table 6.3 Membership of the committees The company has a comprehensive includes three employer-appointed human resources manual which is members and ten staff members the prime document that governs nominated by staff. staff and all new employees are During 2008/09, the company inducted into the company in recorded seven lost time accidents accordance with the company’s (an increase of two since the last induction process. financial year) and recorded a year end lost time accident frequency Communicating with staff rate of 34.4 against a target of 15. It is of note that the severity rate has Several meetings were held with staff increased to 41 (last year 32 – refer throughout the year to discuss the to Table 6.2). difficult season being experienced, the company’s organisational Fostering a fair, ethical workplace restructure, and changes that were made to working arrangements that values staff because of drought conditions. There were no breaches of human All staff receive a copy of the rights or labour laws reported company’s weekly Talking Water within Murray Irrigation during the newsletter distributed to customers. year. Nor have there been any Staff are encouraged to read this complaints registered in accordance newsletter to keep them up to date with the company’s policies with current water issues and developed as part of our human company activities. We also publish a resource handbook, which addresses staff newsletter, MIL Talk, more than specific issues including harassment, six times a year which provides an discrimination and workplace opportunity to recognise the efforts violence. These policies are aimed at of staff, as well as provide news and securing the safety of all employees information. and promoting a fair workplace, and are supported by counselling and Each work division holds group or grievance resolution polices “tool box” meetings at least quarterly. These meetings involve Murray Irrigation’s leave provisions quality assurance reporting including are consistent with NSW and discussions on our key performance Commonwealth legislation, and indicators and OH&S issues. include annual, personal (sick, carers and parental), special, study, paid and An annual review of individual unpaid maternity and volunteer performance is held between each staff member and their manager early in the calendar year. These Table 6.3 meetings are intended to provide a Number of staff and number of days leave taken by category in 2008/09 more formal opportunity to identify Average days per areas of improvement. This review Type of leave Number of days staff member is also used to discuss and identify individual staff training Annual 1194 10.6 requirements, needs and aspirations Long Service Leave 161 1.4 for the coming year. Leave Without Pay 344 3.1
Sick 603 5.3
Maternity 104 0.9
Special 48 0.4
50 On the job training and Irrigation has also continued to Recipients of the 2008 support local schools by providing Staff Excellence Awards: career development work experience for a number of We provide both essential training students throughout 2008/09. and professional development During 2009 Murray Irrigation training. made a significant contribution to Company-required training National Engineering Week by provided during 2008/09 was contributing articles of the following as follows: major engineering projects Kane Anderson undertaken by the company: I AS4000 & ISO9001 I OH&S Training I Irrigation Modernisation Project I Elec. Tag & Test I Warragoon Stage 2 Stormwater I Level 1 Bridge Inspection Escape Project I Farm Chemical I Mechanisation of Irrigation I Confined Space Infrastructure Chris Coughlan I Manual Handling I Flanagan’s Lane Bridge I Traffic Control replacement I Records Management I Water Management Operations Recognising staff Cert. III. This training was primarily required For several years, Murray Irrigation as part of OH&S policy and has continued to provide annual Geoff Shepherd involved 84 staff and 19 different awards to recognise staff excellence. courses. The recipients of these awards are nominated by co-workers who Training has generally been recognise excellent service to our restricted to mandatory customers and outstanding requirements for job performance. performance in the workplace. This reflects the measures taken by Recipients of the 2008 Staff the company in regard to its drought Excellence Awards in: Chandana de Silva management policy. I Water Management Division Attracting and retaining skilled were Assistant Works professional staff in our rural Supervisor/Plant Operator workplace continues to be a Kane Anderson (Deniliquin), significant challenge for the Channel Attendant Chris company. Murray Irrigation has Coughlan (Wakool), and continued its association with La Distribution Supervisor Geoff Jane Paulet Trobe University in the past year by Shepherd (Finley) offering sponsorships to students from the areas of both civil and I Infrastructure Division was mechanical engineering. Students Senior Engineer Chandana Harley Bond (Mechanical) and Travis de Silva e
Haw (Civil) have worked at Murray r u
I Policy & Stakeholders Division t
Irrigation during 2008/09 and we c u
was Denimein/West Berriquin r t
wish them well in their future s Land and Water Management Matthew Watts & endeavours. Plan Officer Jane Paulet e r u t We continued to participate in the l Corporate Services Division u
I c
Berrigan Shire Council Employment y
was Information Technology n
Expo to highlight the variety of a Officer Matthew Watts. p employment opportunities available m o within Murray Irrigation. The Expo Murray Irrigation congratulates c : 6 targeted secondary school students in these staff members and recognises r e the east of our area. Murray their valuable contribution. t p a h C
51 financial statements 2008/09
contents
Directors’ report ...... 53 Income statement ...... 57 Balance sheet ...... 58 Statement of changes in equity ...... 59 Cash flow statement ...... 60 Notes to the financial statements 1 Summary of Significant Accounting Policies ...... 61 2 Revenue ...... 64 3 Expenses ...... 64 4 Income tax ...... 65 Current Assets 5 Cash and Cash Equivalents ...... 66 6 Trade and Other Receivables ...... 66 7 Inventories ...... 67 8 Other ...... 67 Non-Current Assets 9 Available for Sale Financial Assets ...... 67 10 Other Financial Assets ...... 67 11 Property Plant and Equipment ...... 68 12 Deferred Tax Assets ...... 69 Current Liabilities 13 Trade and Other Payables ...... 69 14 Current Tax Liabilities ...... 70 15 Provisions ...... 70 16 Other ...... 70 Non-Current Liabilities 17 Deferred Tax Liabilities ...... 71 18 Provisions ...... 71 Equity 19 Contributed Equity ...... 71 20 Reserves and Retained Profits ...... 72 21 Related Parties ...... 73 22 Remuneration of Auditors ...... 74 23 Commitments for Capital Expenditure ...... 75 24 Segment Information ...... 75 25 Reconciliation of Operating Profit to Net Cash Inflows from Operations ...... 75 26 Non-Cash Financing and Investing Activities ...... 75 27 Land & Water Management Plans ...... 76 28 Financial Risk Management ...... 77 29 Credit Standby Arrangements ...... 79 30 Subsidiary ...... 79 Directors’ declaration ...... 80 Auditor’s independence declaration ...... 80 Independent audit report to the members ...... 81 Accuracy and independence ...... 82
52 D 4 e D a 1 c Th th to ge mo i A p D T D Y d n nd ompa xpe e our e r i he Au ir ir ir cl e io r s - e tatem nt ect ect ect ude s r o t c e r i a D A M M A V. S L K G D ef M D 208/ 4 th th o t c r gu pe f . . fe 5 d h .M .L .M D olowin .S. . Di G. ien i i C. .L .J . G. Cha or or or rect rect e er ny cti i r and en Hu d st per . i . r A re re . . B Elis . s’ s’ s Ho s M v R ent od ce wi Bal or or in H A 208 R d ctor e udit for of 09 ct axt R q pe i mphr io ead ey nt 16 ughe m for ch th ober ef on u ar th lm or r e abou d, the epor alif er fect er g hon fi on the e t por or’ is ange s l t D 16 nan w people he t i pr es (re ive o ic nc re ts s 1 s ece c s i y t par fi t t th 6 il Apr ompany ati on (apointed rep or . t.por 30 sign e ci ac lude d nanci t mb (res 9 d il Apr ent he al ons th cou to No (a is June ed e o igned e i per we r chan point 2 f t 30 an thei ’ 2 vember fi al nts an as 00 thi ther on 20 00 nan re 1 od: 209 i per Ju dur d a tr o p e r 9) s r g 09 1 as of 8 a pages ne ed Dire e eon. r s ci ) tepor a ing ) th is a od al 20 as 200 e ctor 0 8) 9. com du The M and The D S . K G S . L M M M . M . D A D G . G r i . G . . M . e e e r i e . G . . J . . L . i r S . K C b m c e L . c ng deli ve a h m t o t folow rel e . . B S H E H n i B t n A o R t e . r a h C a B VC . . G . l x a ’ s r o i p o r u l a x a B M t si s g t l e p l e h g i D ll r e b m he M e t h vant ll es . J . M . e r yn o E p p L . r y r A l re t y e M o . l s t s sr o t c si l i i fi D. . L . H , . f t n ng H ll e no nanc and h g u H e ml o D M m u i e nt nti re R i . t t A e r e r da e ab R er p t d n e t the o r h 34411------1 1 4 4 33 i t s lem 01 se c o B est al le be rt so e r o t d si 8 s r a 01 M M per s s numbe 01 et d a ents a x 01 s of m i g a n 44 ------44 44 01 s 01 s mu n iod h 01 out t 33------e r a he 01 9 of e m 00 0 , 1 e t t A i D A 01 l o h e u N N N N N N 01 to c e r r de d n t n t i d 31 ------11 33 t the 6--4 22 1 1 44 - - 66 D i i i i i i l l l l l l he of 01 1--4 - - - - 44 - - 01 d t & 3 ire 01 i x a M i -3 4------44 33 -- 0 gn s i R me 73 41122 1 1 44 33 77 com numbe c mu m June k tor 63 22 - - - - 33 66 67-- --11-- ti A n E pany , s d n e t t s -- 4------44 -- -- ng a h v in 2 I o r i r d n 86 2 , 2 33 1 , 7 48 4 , 1 34 5 , 1 75 9 , 4 de r 0 s e 53 7 of N m n t x a M h at e r i he as 9, l o li tn e m i m c n i d ende i mu t at shar ncl e g e t t A 30 I r f n ti udi d e d n ngs s a de Ju capi by c u r t e ng x a M ne i t n of D 86 2 , 2 33 1 , 7 00 0 , 1 48 4 , 1 34 5 , 1 75 9 , 4 u t i Wa m e l t tal me 3 7 mu 2 r ire th e n e m 0 r e t , 5 R A e e wat d n e t t ctor e ting 9, m D st u de n are i er re s. e M s a r x a ct of e i t m i as ntit o or mu n e n fol e D s i t t A 2 , 2 1 , 7 0 , 1 4 , 1 5 , 1 9 , 4 le m o N m e l t t 53 7 he e d n e i l me o e v 86 33 00 48 34 75 ws: l n i d d e y r M a nts, n t m i x a n o i st mu s 53 financial statements 2008/09 Company Secretary Officers Revenue from contributed assets The Secretaries of the company at Those persons who were officers of Under the Corporations Act 2001, the end of the reporting period, the company during the financial compliance with accounting together with their qualifications period to 30 June 2009 are listed on standards is mandatory. Accounting and experience, are set out below: page 10 and form part of this report. Standard AASB 1004 requires that infrastructure works, when A. Couroupis constructed, to the extent to B.Ec. (Hons), Grad. Dip. CSP Principal activity which their cost has been met from Mr Couroupis joined Murray The principal activity of Murray Government funding, be treated Irrigation Limited in 2008. This Irrigation Limited during the period as revenue of the company even followed over three years with consisted of the supply of water to though the receipt of the funding the NSW Murray Catchment landholders within an area from the is not revenue of the company. Management Authority as its Murray River to the Billabong General Manager overseeing the Creek extending 150km to the west Your Directors are concerned that coordinated investment of and 100km to the east of Deniliquin. this accounting treatment may be Government funds in the misleading and are of the view catchment’s natural resources. Results that neither the receipt of the Prior employment included government funding nor the value The results of the company for the performing the roles of General of the works constructed should be year were as follows: Manager and Company Secretary recognised as revenue. Accordingly, with Western Murray Irrigation $’000s the Directors feel obliged to Limited. He is a member of 2009 2008 explain that in their view, the Chartered Secretaries Australia and receipt of both the Land and Water holds a Graduate Diploma in Revenue from Management Plan drainage works Company Secretarial Practice. irrigation 30,808 24,145 and the Asset Renewal Program Employee funding should not be recognised M.K. Watts benefits -7,772 -8,381 as revenue by way of contributed B. App. Sci., MCTS assets of Murray Irrigation Limited. Mr Watts has 12 years experience Materials and The company has obtained advice in the Information Technology contracts -4,101 -3,154 over many years in respect to the field, and has been involved in the Depreciation and application of the Income Tax Law operation of Murray Irrigation amortisation -7,510 -7,004 to the Land and Water Management Limited’s statutory registers since Plans and the Asset Renewal joining the company in 2003, Bulk Water Program in order to form this view. including the company supply -4,684 -4,930 The company will continue to Constitution, Water Entitlements Interest on pursue these matters to achieve an Contract, and associated policies. Tax Liabilities -8,688 0 equitable outcome for the company. He has performed the role of Other -1,234 -2,086 Assistant Company Secretary since ------Dividends April 2009, and holds a Certificate Profit (Loss) in Governance Practice and from irrigation The company is a not-for-profit Administration and is currently undertaking -3,181 -1,410 organisation and no operating undertaking a Graduate Diploma of surplus may be paid or transferred Other revenue 10,610 13,496 Applied Corporate Governance. by way of a distribution of profit to ------Profit (Loss) members. before tax 7,429 12,086 Income Tax Expense -1,826 -4,123 ------Net Profit (Loss) 5,603 7,963 ======
54 comm o w w f wa T l Wa di En s i En l ma T n a h C Mu v n E A e R th s l s i de ye r 3 2 i 6 th Th o I r e compan t 3 compl i an e s n n or he pec uplie ubject el ema nv nd 2 9 0 ce pe rd he he i g i hi sc of e is ue a ta to 3D( i th ,8 0 mo C vir vir i v s d e nag ef est r ter. er a nce rat sl r r 8 Co har ch o r i r ils re i repor if o 78M ta h Au w e d the epor a n co u ins at n t onm onm ay e g u ie n men t ve t apte dated he re it ing ianc s l 2) on umber o em by n ha ion nder w of porr g e. d mpan Th d iat st of 3 t i dur y ra s e m es I ( A 32,236M o f o 30 as det 0 T v for ra li b) ve i r r L ti lev wat t t t ent t ge ed i in r ent ent nnual ast e 69,279ML axa is o NSW he he n ng J t s in r is r e p o at hi l a t n une o 1 Jun gat of ai e-alig 16 ng wi su be an els Comm A alt li th e h t of b y ions er at m , al ghe l re of of wa tio r NSW co ce i per bs y us the Clim es th i e er em in t J Sec e th iajor on of lati n 391 P un e ac 2009. s M ec nc sn o i t a tr mpa reas r n t tr te Re pe uply s 209. r his rotecion env i t a l u g e parraag ph e ning it Ac c no alia hed. t a t barked ucture Act, od, co ti y raur y rw ur e on th s hapter s L i r L r ear ,51ML. issio on ate t por ty ons, ti epor financi 2009, imited t Depar re ny t.rep or od nt iron an i e ays breaches below ties an 2001 o as t Thi quir of t allowing o a Thi f o 340(1) of f are he C n m ho 208/09 d 1 i r Ir i descr not w to no to water mental e hange i dur a on i July f a Aug i t s ng nt ssu ed g nd com ater es nants. lds s 2, he tme al i Li from chang be ra nti which i nclude gat r i a f th i s it least s F a 3, year cence per ng i an ust of – therur e es bed of i nt belo pany was on and and s t and ng fiv e J an he une. iod. th e o but of t o f w e the t rep or wer In not cons thr po amou al and be The thor ai unf s endor enti com pr As al al NSW is Mi enti (T Rul On M Wa rem on in com apro and (C ir 20 de In t com e h i r vol t t a ot m er 1 o o fore fine 07 li t ougho t adapt me ni t gat ter 1 h) %. cat cat he e t t c st ov hi es f ot ec 23 ough has delive plyi ponen ply ult lem lem c i e ved y s r July at no c n a n xim nt ter ( s ompa T mber herwi io pas s r d i ed t i i 209 Mu and s pur Ct ed opi a nat an the on on e at June re he t nd li n b ng in wit ent ent of he ot i u s o c for d s h) t por ut t y t at on t 209 ion ed ni rev he tle y r g i r r anc f wi for hi t i n c end uant u he i pr c fi ely t . s. wi a e s b h s. s ny w aff ompan se on he a t 209/ f of nwor onvey (C 209 nanc s Cli l o r wi l y e and i i M t expc r ate t eli a nt ew The t Fes t r aproa c e p nti air goes hes di h st he wi t Wat ans 17% g i t si w i q of of th r ur M m hi h) ng o m t eneral uc r r g sc ng e u i r s t o ate t i l deli of he e kab ni pro lem s la 209/1 at ray ur ent al mis th D anc of the do ) 10, me los and a Direc th e y s n t , c t n new t w , f t y e r R t of ation r ir e o it ic st by u onduc ew uc r R ch has ve e t ver le itle ed e A ents s mb C Ir ec e s r he Wate at ules inc s ant m t pr io nt e W wat ul Wa ea s o ct char i r han al n r em ec tor s t Ir ture l y ade n i me ope tor e r i i o igni onl es e ate um er c son. n e h t gati ludi loc t nt ule , 0 s and r t ur g c le om te er ul los 2 whi he , preve i s t s ha r thi ge i s s gati ge nts , r . me r 0 and s nts the y s rat ati e be i ts a b s fic M l on th Act t ng s e . ati C as ng pany y y s s a mus a 9 n ch from on r or ere . nts ark antl on of on harg nd , the s on, d es is nt mal as fo e t an i y t n e l t T o u r t o s i t b T L D n I r s m a fr c e f o H pr pr c c i i of ope de F b t l opi c pr iabi n ndem nc r h ub he o esu our equi v om om ont om y us k i p x f nus f ur om a her he ur e ean o e d edi em ejudi ail vel n t a re oper f o prote lude the w nion e s i he the ff ra o sa e a lt ne eq li ce ing ab pa pa pa r y l s u n m e c f mounts a eve per c c re opme ium s ac er ty th ct tions c i a ompan i it t e t uen nify s D s l sr h o n n n r l l d c me . s e atio i ve d t e e e the as f o T y y . y . c f i t i n e a i i r, i e d of in vel nde he r i o s rect nfor wat t t n t in s a s c i s v he s A paid pa i t ho t al Di nts f ing b , not t e r t on he e nts that ns and u or he Di al t a f and re t een e f this p o l y i c of he re m er se u s o inanc na re unpre y’ r s ab mati ondi s n o i of and hav e i equi rec sr ev offi ult c v s i pos ni nte of c a it li nci op n t l re co irc the e m l , the i no tor i re e ent k r abil wate s nc fi pre to s s t epor the sou t ely c n a er s or on mp re oper su ed tion s not ums he a r ial re of f o er ib dic n s om not l ot ive a ex nature at s m ity , lts of t d d w f y ts l rc s , s fect and an in r co he c on ye oper e e p o ion ea pec t t ium this r be t of i ompany’ to n i e ati , abil e, an a of of a l ar anc t be of y ar l m sr m r as t o n de s m h l s e g e the ng d it be in ik . dis t sig a r the the the pa d u anage e ati ac nde o the ed the or m ity in es a em i of r n a r othe e ve nflue t n o i t o i n nif c c e ay l c ve s ons . y pin t t et y , l urat c n r ial r os t r of , he he os avour es he nm d ican s t me t r as . s h e e ul ion s the nc st , d. e el an ide e ts at nt t e y nt ly d d e 5 financial statements 2008/09 Proceedings on behalf of the company with leave of the court Lead Auditor’s Independence company under Section 237 of the Declaration Corporations Act 2001. No person has applied to the The lead Auditor’s Independence Court under section 237 of the Rounding of amounts to the Declaration is set out on page 80 Corporations Act 2001 for leave to and forms part of the Directors’ nearest thousand dollars bring proceedings on behalf of the report. company, or to intervene in any The company is of a kind referred proceedings to which the company to in Class Order 98/0100, issued Auditor is a party, for the purpose of taking by the Australian Securities & responsibility on behalf of the Investment Commission, relating Johnson’s MME continue in office company for all or part of those to the rounding of amounts in the in accordance with section 327 of proceedings. Directors’ report, which have been the Corporations Act 2001. rounded off in accordance with that This report is made pursuant to a No proceedings have been brought Class order to the nearest thousand or intervened in on behalf of the resolution of the Directors of dollars. 6 October 2009.
S.G. Ellis G.G. Ball Chairman Deputy Chairman 6 October 2009 6 October 2009
56 O I B D Ma I Em R T P P P in Muray n i f O nt nc ul rof rof rof h e even ther ther co e er prec om ter ploy k above est it/(L it/(L it/(L Wat me ials e E R ue Irigaton a i e ati T o xpens e er n ax a venue in os) os) os) on f Be s nd i c n T r Su com ta om (E ax nef and es Co ply xpense)/Cr tem e f Bef f Limted L or r it st iga r Ir i om ntra abilities A s atement ore Expense Expense th mo en l a cts e igat r Ir ti r t Yea t In ion Expense sati fo sho come edit r r s on Unde uld the ion E a t be T xpe 1 Unde a 1 t r read x aking nse m s t n e m e t onth in t r s aking con ju perio nction Before d with ende Income the d 30 a ccompa J une Tax nyi 2 ng 0 0 not 9 es. No 3b 3c 3 4 2 2 te a s = = ––– ––– ––– = = ––– ––– ––– = = = –– –– –– = = ––– ––– ––– = 30,8 10,6 1 -1,234 -4,68 -8,6 -7,510 -4,10 -7,2 -1,826 -3,18 = = –– –– –– = = 7,429 5,603 1 $’ ––– ––– ––– pe = = 20 = –– –– –– = = m 0 ––– ––– ––– iodr = = 0 = –– –– –– ont = = ––– ––– ––– 9 = = h = – – – = = ––– ––– ––– = = –– –– –– 12 = = = ––– ––– ––– 12 24 13 -2 -4 -7 -3 -8 -4 -1 = = pe –– –– –– 7 $’ = = = ––– ––– ––– 208 m ,08 ,93 ,0 ,15 ,38 ,12 ,0 ,1 ,41 ,4 ,9 = = iodr –– –– –– 0 = = = ––– ––– ––– onth 86 45 96 63 = = –– –– –– = 6 0 0 4 4 1 3 0 = ––– ––– ––– = = 57 financial statements 2008/09 Murray Irrigation Limited balance sheet as at 30 June 2009
11 month 12 month period period
2009 2008 Notes $’000 $’000
ASSETS Current Assets Cash and Cash Equivalents 5 7,254 52,938 Trade and Other Receivables 6 13,405 23,944 Inventories 7 1,471 1,480 Other Current Assets 8 101 122 –––––––––––––––––––––––––– –––––––––––––––––––––––– Total Current Assets 22,231 78,484 –––––––––––––––––––––––––– –––––––––––––––––––––––– Non-Current Assets Available for Sale Financial Assets 9 77,486 17,601 Other Financial Assets 10 2,586 1,501 Property, Plant and Equipment 11 266,209 263,544 Deferred Tax Assets 12 3,250 2,748 –––––––––––––––––––––––––– –––––––––––––––––––––––– Total Non-Current Assets 349,531 285,394 –––––––––––––––––––––––––– –––––––––––––––––––––––– TOTAL ASSETS 371,762 363,878 –––––––––––––––––––––––––– –––––––––––––––––––––––– LIABILITIES Current Liabilities Trade and Other Payables 13 4,869 10,096 Current Tax Liabilities 14 14,016 8,821 Provisions 15 2,052 2,051 Other 16 7,949 6,204 –––––––––––––––––––––––––– –––––––––––––––––––––––– Total Current Liabilities 28,886 27,172 –––––––––––––––––––––––––– –––––––––––––––––––––––– Non-Current Liabilities Deferred Tax Liabilities 17 38,908 37,119 Provisions 18 125 80 –––––––––––––––––––––––––– –––––––––––––––––––––––– Total Non-Current Liabilities 39,033 37,199 –––––––––––––––––––––––––– –––––––––––––––––––––––– TOTAL LIABILITIES 67,919 64,371 –––––––––––––––––––––––––– –––––––––––––––––––––––– NET ASSETS 303,843 299,507 ======EQUITY Contributed equity 19 186,452 186,452 Reserves 20(a) 159,304 152,111 Retained Profits/(Accumulated Losses) 20(b) -41,913 -39,056 –––––––––––––––––––––––––– –––––––––––––––––––––––– TOTAL EQUITY 303,843 299,507 ======The above balance sheet should be read in conjunction with the accompanying notes.
58 I To G F R r T To P N st Muray ec nc i rof h a na ev et ate e in tal tal ogni om it aluat nc above In o f e eq Eq ment ial n or Irigaton com s T ed s io ui A ax ale ui t s he tat n/(D s di ty ty se e/(L on of em rec Year ts of at at Limted e av a It ev R t nt ly ems t os) ch t eco gni aluation) he he ilable of i n an hanges c inning beg Reco gni e End Reco qu ges sed for i ty of of gnise sale D in i n in Avai ir sed the equit pr ectly aset equit of ior d D lable Fina y Directly i t rec tly to ye should he sar for nci y Equity year fo to al Sale b r e Year E in th rea quity e d Equity 1 in 1 co m njun on th ction per wi iod t h t h en e accomp de d 3 a 0 nyi Ju ng ne not 2 es. 00 9 = = ––– ––– = = ––– ––– = = = 30,84 29,507 –– –– = = ––– ––– = 1 -1,809 -1,267 = = –– –– = = 5,603 1 $ ––– ––– pe = = 2 = ’ –– –– = = 542 m 0 0 ––– ––– iodr = = 0 = –– –– ont = = ––– ––– 0 0 9 = = h = – – = = ––– ––– = = 2 2 –– –– 12 = = = ––– ––– 9 91 = = pe –– –– 7 $’ = = = ––– ––– 208 m ,50 ,31 ,9 = = iodr 3 2 –– –– 0 -9 = = = ––– ––– onth 27 30 63 = = –– –– = 0 7 4 7 = ––– ––– = = 59 financial statements 2008/09 Murray Irrigation Limited cash flow statemen t for the 11 month period ended 30 June 2009
11 month 12 month period period
2009 2008 Notes $’000 $’000
CASH FLOWS FROM OPERATING ACTIVITIES Cash Received from Government 19,738 30,250 Water and Other Income 28,438 24,604 Payments to Suppliers and Employees -35,597 -54,834 –––––––––––––––––––––––––– –––––––––––––––––––––––– 12,579 20
Interest Received on Investments 3,631 4,841 Loan Costs Paid -25 -25 –––––––––––––––––––––––––– –––––––––––––––––––––––– Net Cash Inflow/(Outflow) from Operating Activities 25 16,185 4,836 –––––––––––––––––––––––––– –––––––––––––––––––––––– CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from Sale of Supplementary Water 0 18,000 Proceeds from Sale of Property, Plant and Equipment 751 991 Payment for Property, Plant and Equipment -2,215 -4,723 Payment for Non-current Financial Assets -60,405 -10,900 –––––––––––––––––––––––––– –––––––––––––––––––––––– Net Cash Inflow/(Outflow) from Investing Activities -61,869 3,368 –––––––––––––––––––––––––– –––––––––––––––––––––––– NET INCREASE/(DECREASE) IN CASH HELD -45,684 8,204 Add Cash at the Beginning of the FinancialYear 52,938 44,734 –––––––––––––––––––––––––– –––––––––––––––––––––––– CASH AT THE END OF THE FINANCIAL YEAR 5 7,254 52,938 ======
60 ta a o di ta e l w a r D ta c pr th a T pu h to s i i A f T C c B pr f T )b ( r T )a ( T 1 Mu th a A a a o G S r ba ta th to a f i s n in or in vi er ec epo ate pl t pl uthor co dopte nd onv ons na ta abil f av f e he cordi he he his he coun x x x x or h ro ff e ey e e epa es a se t pos r an an th deuc the ca ge t ndards ogni fe he en e e cted. em t rray a r l a n I s a B no c tax e u po ied ied se se d he th os a r ist rd anc t r at A u S ces s s enti e i us re r inc p ur ci ci a nt ne gen det enc p djus re ti e m o c ply c i r on et et es ta t A ei A s t-f por ent i ra d al al fin polic ha es e e he ed, es re I o c y r a m m ta d s pe r bas s i d nc ti to the om ng x c s ust nt r ed mi er t ate Irrig ti on. in is t es t or eral whi or-profi . re s ti o nt T cou s ng unde anc ted ar he the ib and t ca i r ta ly u f o ons e rate ar Boar ipa pret er as ax ve ly unle es ben th t he ralia t por t it t n e e f t t le od tem Ac o li i r r wit o T i per prof or se y o he es aplie o i t a r a p re P Sta s c atio ch e ial xa nti abi the ned s pu tax l of by prono na g n i a provi y ompa s a et not li Ac ts diffe me rel m r s c ac c is ing nd t d, hav s n h abi exp pr eparatio en ndards, ount f o em ng umu po r ti t st ar lit et a od’ t as it a ea at pr e c le co he t n expn t c t Ac A re onal re mbe o -for-prof Urgent at s, Pi l o hanges th vant he e se s ts y . ion ompany lit 201. t d, sure entity S d e rences the ustralian amoun y porar de Standards. Lim axable unting s emnts se and t ny’s pared uncemnts , rentlycur set at ts c i f i n g i counting r h cted he ies be ing to la An taxa and eco based ta ist s se i c s,r rwi a fin cost tive th income x tax en and n nd se o the ited othe a Di or i atr lia pr ver l e Sta excptio ut ra ble pa an as to i t se I b n or n in ical o ts rsector temporar bili company inci the dif sues li the i amounts polici rates n a ef etwen yab le on has ci t defe ha be ed the ndards defi of abi butable r defer unused aply stated. in i entiti fecti r no al feren ncom tie t ve evenue r lo pal cost y th the or tax liti th than ned ea r r w . are s te s es ben ose on ve e re n ed es are sr es. ces as e d i y s to th e 3 the whe enforc di at as int or Cur li di enforc tax are Defer tem wi pr for Defer or and in tem the ac di No re c re c the Fe made the infras of (D Land Ir t under pr vehic St on (i The fix de rec bus (i Re charg Re c ( abi i ) ) i r fi n r r ffer ) Mar at obab o-rat li y uar br i r ed et l a L t ends ec ec t l o o o ven ven l oun i 2 gat he os deuc ver o of a e f Recogn Wat n e v e R WC) porar porar Stat tra co DL nes defer b rent l gni gni gni un re rom t s be 3 s it c tly tly rans an enc t le ut es Go s. c fs rea and re re and ompa uc r c for y et mpan eab eab i nsa u Febr t ue ue ed harge akin le us t WC a on et ti h s , hen ab t s s a e e he d d to ei s s in in ion ed ed ci al as vai C r ng lis ver ac bas es a im . ed act 195. re d y y t t to and ct t when le c t t t le le Wat t 195. from is nd Sal hat e u ur A tax s ition on ib ax ax her o The i pr e t t er ent equi equi g et di di lab i when ar i iv ulta ny i pr N nme y r r i n t on t t i r i r s of e i le s t y ar c t on ea ec o o ax kno ndiv e ffe ffe de t he e R ibu r i i vati as as ai lev s us a er gh gh w s ofi fut t ax li li SW si ti r it w le t hroug re te w elat t am og an ta te m of a a o n neous t t t i ng e y di fer and r r he as tom los as et et o c t y . y t he r r bi bi T t t 195 nt as C enc enc y t s as mporar t ure wn hat her t as s s t rec i has o d R ni ed the e t t s s ount ar ig or a he et dual em a tr li li ons re ion tr cha D t i n g o o se s fro c et s s in (t eve s and ar no se ut t t et t ans e s er at om Dis tle es es A ans ale e ies ies d he ogn epar s at f of of et t hout as he t cor e ly . porar o a olows d axab m and ilise als io wa axab ver s rg is o nue or t by no i t t en ts wne an if fse fse . s . fe le ir r ax t on fer o o Mur pany t nly et for are o ir affe n l he ec State e o r a y is r t iabi Fi t porat r C i r th r r gal tme f s atio d l he e ic s r t t t the e iabil e is Ar l s re le he di bal ognis re a thos igat t c l wat gator r ega ed ur a xe and y et and c d ey ts r e he the l ti c offs i og l os shi : ur l ray d f i ffer lit c y i t ne , amount me s iabi tle s for profi nt n on ) on re d ni anc ogni NS e i an fr e s i nis ion ar ed ly it er from t ie ye re as e ng e p e t nt it wate t major ot om y e e is of s os s ial the t s nt li a 23 bas he the of ar . e nc d of ar e W is a on he is ty . t s tax se d e . m r e i r d r s, s s 1 1 m o [ t T i g i v i be c S w S w c r F G i T c c on G on M of c S as T c c s c fi r be i w s S ha t A pos as e on t r t ha e c t t c e nfras nflat r mpl s he he he he he he 2 o t ei equi equi nth om ar ont ont om om ont os an annot c s c alue ood tat tat ome tandar nanc undi an i r he he he A s s or hic o o it s 0 inc onomi onomi pe s anage ar c e e mb ly ent a as r ver ver t gati h the the s S aus ts t e e. be dards pr c c a c i ks ie be e pa n pa pa rol r r 8: nfras em of B1 St c ac s the h ont ont om ion, w w re re ur s peri t t the i i i umbe d pas s ur ial w of ng ompan ns s o uc r ial b b iv e s nme nme As of e se e pro n n n e on ate $1 c t il hen s me c n ute ute the d re be ts ent t his out h the ati and s me y y y ounts re l pan onst rol r the o the $ w 8, e ing c c c t s . s i pl th De A t re 5. od i c tur a d balanc e e c and 82 tate o b to ost uc r me c b r g infr s de as ompl r ag T pro d d phy bene s vent hen nt, nt, ts h ing A ans og at y c ver nt le an was 1 es ute apro b ubs r it c of i y redi ure ams os he manage e e. .5 Co M] Di uc r to as n y S c te ompan vant ion y are en t c of nt e tur d me of e nis i as he v ont me B1 P the ir t ons M as ha se t s s d the the ac i r i T aut t is he 15 funds uate ide rec ic t por r t under lans e d s tr fit e anc r ) et ded L or d probab e t for he e s he e ts re orat e as ffe he c i ve ion nts ffe apr c 18 e ve proc al N als ans re in nt and uc rol gat ( re tr s ontr re that ac ordanc C hor t a f inde t y the furbi s c as c othe d. a the ac s or im et ct lre e SW d . par em y c uc c ear : li o mus the be ompany . ompany mai ture m y omo ti orde . of co and s or ion t Expe te om Rev ab a of 30 T that of s t i hat o ons de are works es t an ity ady of nc b nd t te ec wh i val d he bodie ve s unting ti as that w o xe h to be b funds le ly . s ur s n r s ning c dr tac t d S the pany c hing as e d and ut hani ome enu A was of he the r Jun as re os Act d e e i d c v t t par ul ue in have manage i pr t i t pre ndit t are ainag Wate ate nat ng o c xpe ompl c e to al hat ed he s Unde he c nweal wi b t n for ar woul et the c the h w d epare e o ue re y pr d ounti of of as shi , sm 20 an e a $ pare mak g and s d ure t T n under to the the th t to as work is ure s of nde o th 5. futu o og nis in s t e to pe 200 his r t et e d from w as he 01 re y d hat t 2M the e the t b the d r o th ram d he or . s t ct e this of s e y a d b e he ng . r is t y e ks 9 s s 61 financial statements 2008/09 Murray Irrigation Limited notes to the financial statements for the 11 month period ended 30 June 2009
transaction is that the company gains (i) Available for Sale Financial period of the leases. These assets, in control of these assets at the time of Assets view of the long term nature of the construction. Therefore they are leasing arrangements and the future brought to account as revenue at Available for sale financial assets are economic benefits that are likely to this time in accordance with the brought to account at fair value. eventuate, are included in requirements of Australian Distributions are recognised in the noncurrent assets, on the basis of Accounting Standard AASB118. income statement when receivable. control. (Note 11). (iii) Interest Income (j) Investment Accounted for using Interest income is recognised as it (n) Non-Current Assets Constructed accrues. the Equity Method by the Company (iv) Revenue from the Sale of Assets The company’s investment in The cost of non-current assets Revenue from the sale of fixed assets associates is accounted for using the constructed by the company is recognised when risks and rewards equity method as the company does includes the cost of all materials have been passed to the buyer. not have control of the operations of used in construction, direct labour (v)Termination Fees the entity. The investment is initially on the project, and an appropriate Termination fees are charged and recorded at the cost of acquisition proportion of variable and fixed recognised at the time permanent and adjusted thereafter for post overhead. water transfers occur and associated acquisition changes in the company’s delivery entitlements are cancelled. share of the net assets of the entity. (o) Impairment of Assets (d) Cash and Cash Equivalents (k) Acquisition of Assets Assets are reviewed for impairment whenever events or changes in For cash flow statement presentation The cost method of accounting is circumstances indicate that the purposes, cash and cash equivalents used for all acquisitions of assets. carrying amount may not be includes cash on hand, deposits held Cost is determined as the fair value recoverable. An impairment loss is at call with financial institutions, of the assets given up or liabilities recognised for the amount by which other short-term highly liquid undertaken at the date of acquisition the asset’s carrying amount exceeds its investments with original maturities plus costs incidental to the recoverable amount. The recoverable of six months or less that are readily acquisition. amount is the higher of an asset’s fair convertible to known amounts of value less costs to sell and value in use. cash and which are subject to an (l) Property, Plant and Equipment insignificant risk of changes in value. As the company is a not-for-profit All property, plant and equipment entity and the future economic (e) Trade and Other Receivables is stated at historical cost less benefits of the company’s assets is Trade receivables are recognised at depreciation. Historical cost includes not primarily dependent on their fair value. Water accounts are raised expenditure that is directly ability to generate cash flows, value quarterly and are due for settlement attributable to the acquisition of in use is taken to be depreciated in 30 days. Other debtors are due the items. replacement cost provided that the for settlement in no more than 30 Estimates of remaining useful lives company would, if deprived of the days. are made on a regular basis for all asset, replace it. assets, with annual reassessments for (f) Interest on Water Debtors Accordingly, the company’s non- major items. The expected useful current assets are carried at amounts Accounts lives are as follows: significantly in excess of the values Interest is charged on water debtors Water that would be applied if the company accounts which are overdue and Infrastructure ...... 10 to 100 years were a ‘for profit’ entity in accordance outside of the normal credit Leased Assets ...... 40 to 100 years with the Accounting Standards had it arrangements . applied the impairment rules of a ‘for Buildings and Cottages ...... 40 years profit’ entity. (g) Doubtful Debts Plant & Equipment ...... 8 to 10 years (p) Maintenance and Repairs A provision for doubtful debts is Office Equipment ...... 3 to 14 years raised against water debtors accounts MotorVehicles ...... 4 to 5 years Maintenance, repair costs and minor where the collection of the debt renewals are charged as expenses may not be received within the (m) Leased Non-Current Assets occur. following 12 months. Certain assets comprising shire road (q) Trade and Other Payables (h) Inventories bridges and culverts, have been leased by the company from public These amounts represent liabilities Raw materials and stores are stated and local authorities for a period of for goods and services provided to at the lower of weighted average 99 years. The company is obliged to the company up to the reporting cost and net realisable value. maintain these assets during the date which are unpaid. The
62 a f th di ma go Ex de i to s pa pr r ta ba o o c s o L pa a r R th pa i C s Wa s ( R r ( a Mu ta i a r u th r a r r T i a L me i s nc nc nc s utur vi er vi er ic ec ec ec ec ec ate s mount mount so cqui nn ash ) per r nco sua ia ong ) he xa xa as sc ec even e e e es k i g r ym ya ya sis t par ve cl pec t f ec ov ei ogni ogni ogni tur l r ur l bilit a ges he in u rray h ud usi s oun m E G ciat r e r e le tion tion ve sure os ei ble bles ly . a nm r ces ces epor epor vab l e flows a xpens st nt og i er Se si ent av iabi s d o o anc ti , flows n l va Th it ed te n ely ed ure ve s. ues repo c ti s ng ie l p leav ab ed s s t y e pai r ie alr ni s ted as va re to, d le bles d on ion. ed ed t vice pro u o Irrig s aut aut i s e y o en ing o e lit are i ti ti of and wi n le s h se p f spe , s as lu to fut as c for GST d or ng ng e. a GST e and e t e y GST t r a as n a not t t d of are o us vide t i r he i hor i hor th e fr th xpe i xper he Le s pos o d n e wi s a t et atio ing bonds ure un be a a utf c for h , he s pay om, and nd c ing o t par wage ct re dat dat t e ing an the i t n E t av ot re ur ta , thi f flows pre hat of pe balance r of se e S lo i ns s d a ma ty , ty . un ec vit c e nu rec am ib lo e x dat re able. n her pay pa mou e e c e omponents ws m xpectd iods r n mea es by o t a fro e m e l t as e e c i v r s le, of u overa ng nce cov he les on at are al Lim i nc t date s de yables ented r m ogni with ount In e arket io e. 28 red set . ments . an and s re ce payable m e the the l expctd ploye y nt n se eave amo su i erable mpl T n whi thi pre C d n the of days ited s that or o ati shet. st n investi v r a a bl includi he sed red o onsi nd aset uthor sa f respct T ms ter iv a u c estimated s yi o employe e are sented f ice x a onal oyes c ost as se f unt and npai i lar GST case es’ n utu ar net elds GST h fr bles match, a of as are vi r derati n par e fr a to ( nd om are stated le G of of es ng o om, re of the ity g d are ng ce. pa ave T S to i the at te s r t t up o ar and of os at as t y of r i is h ) e s on or e to th e exc ac The Super S da Emplo Si li cum br futu wat asi The di 1. usag the be to (i mi Ag Re (i )t ( Wa m for amou trans res equit and (i that Res separa com t repor The funds wat pe Refe Suply Vi ar In The pr upe abi i ) i fi n 0 ffer i ) k c get ough o com ys i r de ) l ver e C enc m ven or ter vi l S e er er Wat r e s e R m Suply io ver ods at re l e L ulat pan i Le ont fer uply it c s pos pur pos pur 195 rann r her ade y de a an f enc danc fu i nt d of ando ion i n ompa tely t i pr nnua i r s c ies Not lion i e ue y Infrast pa o t es ave uply res elat e. Va t n k re ib r er nds he i t es m y’ iv e of t s ci al he c i ar of to e fi ym he c wit a a d lea uati for ont s The se v i r a ult Re i ar t ut Lev egali e e V vai nanc ny fr ed o wn B be e nd amoun ext t si i Vi ar an ati to a ar ion a s ny for basi ed r me e e wi om i ve ent com usi ic h i s si c 5 ng iat r r s i r r i r lable tw ng s v er on e epor t y y y s pr of of on er uc uper ng ende Lan t k the o A gat t t ( pur b t ear ount c o gali ne ialy per ta te m en h he at fut i res s s los i en ion oduct fr ut e ontr ) pr s le s . Me t fr t t as Lev pan . are be i ure Re fr hi hi t om i s , e ti on t om downe t ave ed he on No ofit ure t Co pos s se for lev r ts annuati t s om les ar d t a s s res ans t on mbe Plan led withs act nnu wit s as t y he se ibu y . unlik e r r A low et R as s Go y ntr the und es es s s e c enti Gove ge inv with liabil vr e . fer s en ts s t at t Go ua T on s of d es o fo e e h of h he as c to t et m et r ne ver i e ib her vr e vr e ld, ompany’ drawn an s r pr s e es s l the re r ide S tan volum e tr s s tl e the pos ve . on. s Fund. thi vr e , ut ten s r uply e ral on l that in ov tm em ity d i ib al r taki l y i nm ade the xpe e 1. n e r s nme ed is is d for es s to nm wate uti to s a t i ar 0 ent the s usa and de o a l ent is t t ent quate ng. o o A year c the e and of f e ons t the rom e s te he nt s ge. s no s s nt in r s et d e ts 1 1 m o t O of ac I b M )v ( A )u ( e D )y ( Whe )x ( T )w ( 2 fo dol 2 i t A L au c pe be 3 c fi t di fo be A F br br G c T ns o he he n nth om hang as l y 0 8( 0 nanc unds and s he m ut he eve o ur s f r r ought ought ves r c thor r ur r e hal cl tr in h der the ver ount s J lar a) iod in n the c “ ou 9. h i F P A d n a L A m o C R f une ta ing os ume pa inanc ons r c ne and re n . t or peri a l t n u o c c t n u o c c f i d n u o a C i c n a n re ounding an t s T m ed ompan ial ac nme y nt ed . ure ity n of He A to sn month t of l i c ful he . ne e ing as y d ty . is t c I s A us las r a p t t une he nts nt i re r r r ordanc od o o the d n a te i th ts s Wate s is l outs ial in ec this c l c n d . tral c nt l a g n s t por s ig es O c nc y ac ac R e ifi om pol y t a y t i i e N ordi are as e Com xpe g n g n r he y ation en re e s e t s n I r iv P es ne an c c efe ar ed y ar i ian Wt a der o t ar ar fi e v ot per ount ount i ” off lans r anding por I ic ab parati pe f s nanc ded w y , o P e P m d i are ha de e e nde Ma e n r s mpl m A e i r the and of nde le es n e m u S ith mi c ct gl nd pl Ir r e iod wi 98 Not ve 1( t tail o i r y c i l Li e ompa s s . and of y a t r nagem e d cur for n u o as as c of ial s M th em /0 ar ve i c 30 mi Am m d c d th from re be gat ) ki e t ompany to amount i ur ( e amount he e fr e g a n a n i a re d on, e ii) 1 31 a po st ousa t nd i re te ar f financ om st tie nt hat 1 hel 0 s or i Jun l re rati c ounts i 3 n num e R nti iabi gure n t por 6. d’s e ac 0 e s t 0 i J nt r ent i he s re 31 iv ab , rounde ng uly ti t el d N ng c c e p s nd ves C i J bot he ar & e s li oned fe une tn e m oun ating ye on s s ote ber la i e ty , Jul s ue is P r r al of 200 l i 2 are e h re s ar e n hav e in lans 0 for an t s d y ti . d 0 of the ot d ng t 8. to 9 e o . 63 financial statements 2008/09 Murray Irrigation Limited notes to the financial statements for the 11 month period ended 30 June 2009
11 month 12 month period period 2009 2008 $’000 $’000 2 Revenue
Revenue from Irrigation Undertaking Income from Water Sales 15,158 17,502 SupplyVariation Levy 60 24 Termination Fees 8,518 796 Precast External Sales 1,924 2,162 Interest on Funds of Irrigation Undertaking 1,862 2,163 Net gain on disposal of property plant and equipment 251 317 Gain on disposal of available for sale financial assets in current year 84 0 Gain on disposal of available for sale financial assets previously recognised direct in equity 1,809 0 Other Income 1,142 1,181 –––––––––––––––––––––––––– –––––––––––––––––––––––– Revenue from Irrigation Undertaking 30,808 24,145 –––––––––––––––––––––––––– –––––––––––––––––––––––– Other Revenue Interest – SupplyVariation, Asset Maintenance and Renewal Funds 1,606 2,562 Land and Water Management Plans Contributed Assets 2,278 2,919 Infrastructure – Contributed Assets 6,726 8,015 –––––––––––––––––––––––––– –––––––––––––––––––––––– 10,610 13,496 –––––––––––––––––––––––––– –––––––––––––––––––––––– Total Revenue 41,418 37,641 ======3 Expenses
Profit before income tax includes the following specific expenses:
(a) Depreciation and amortisation: Depreciation: Buildings 47 54 Plant and Equipment 1,732 1,918 Infrastructure 4,973 4,197 –––––––––––––––––––––––––– –––––––––––––––––––––––– Total Depreciation 6,752 6,169 Amortisation Leased Assets 758 835 –––––––––––––––––––––––––– –––––––––––––––––––––––– Total depreciation and amortisation 7,510 7,004 –––––––––––––––––––––––––– –––––––––––––––––––––––– (b) Interest on tax liabilities: Amounts charged on prior year tax liabilities 8,688 0 –––––––––––––––––––––––––– –––––––––––––––––––––––– The company has taken up the interest liabilities imposed by the Australian Taxation Office on prior year transactions that remain unpaid. As reported last year this was not previously brought to account. The company is continuing its efforts to have these liabilities set aside, however, it has brought these ATO assessed liabilities to account in this period in order to match the ATO's records (note 14).
64 Mu 4 ( ( ( (a c c b) ) ) ) Income rray Amo U No D B D D p Ne I I ( A B O O S D Wr Cu Nu T f T T n I ro i) nc nc har ax im r ene or gg he he iff efe efe oubt nder th th o c m (D De D r r t om om n it m rowing eren er reg e e er profi Irrig ef r r r r agg diff e ent fit e m de the ffec ec unts a cr i er o / ed ed e e ful er off at f expense: re ( a f eas duc of ere ce reg t t t over) red A t atio cal e t T ax ax t/( ax am ax ase t t ci D of WMA x a ax ax of e/ c i re nc i at ti nc C api es ebt n los a ( ount ) expns inc obs e ble ( n reconciliat t e per /i cognised o ( ost es inc a om xp i pro i r tal n s) ) t c s a Lim nc om ax mou are olet b s ens depre ma re reas be ounts e uta res reas vis lo c va alcu e t paya ited for nent se e)/cr reco ax e ul ion e) ble nt luati ta e aset t ci e s x expnse l i i and of (n a n n not ati i dire ble nci to in expnse t ncom edi n ion di on ed ote defe defe in on, o ffer i pr o led tax t te s prev c perating on of ctly calculated o of 10b) or r r r r ti amor ences e m a av cost ed ed the s t io to income e year a i ailab le folows: t nclude x usly o t tax tax ax th e operating base equity sati prof at li aset broug a @ on for fi n r bili of i ib t t in a 3 and utabl w an s x ti 0 ( ale ht note inco % ater es pr ex ci al to l (2 ofit ( as os e p n me set sol 0 ote ense t acount 1 o 0 2) o and s 8 s d the n ta te m tax : 17 30 disposal t e ) o finan %) ex xtr pe aordinar en ts ci nse al compr ye for ar y ite the di ise ffer m. 1 s: s 1 m o nth peri ======––– ––– ––– ––– ––– ======od ––– ––– ––– ––– ––– ======–– –– –– –– –– ======––– ––– ––– ––– ––– = = = = = 1 ======en –– –– –– –– –– ======1,826 1, 1, 7, 2, 1, 1,234 1,287 1 $ ––– ––– ––– ––– ––– p ======20 -835 -502 -132 = = = = = ’ e –– –– –– –– –– ======432 789 287 429 29 826 539 736 54 m 0 ded ––– ––– ––– ––– ––– iodr ======25 61 0 = = = = = –– –– –– –– –– ont ======––– ––– ––– ––– ––– 0 0 0 0 9 ======h 30 Jun = = = = = – – – – – ======––– ––– ––– ––– ––– ======–– –– –– –– –– 12 = = = = = e ======––– ––– ––– ––– ––– 12 ======pe –– –– –– –– –– 4 4 4 3 4 2 4 $’ = = = = = 200 ======––– ––– ––– ––– ––– 208 -5 -2 m ,9 ,0 ,1 ,4 ,6 ,1 ,0 ,4 ======iodr 1 3 8 7 2 2 –– –– –– –– –– 0 ======––– ––– ––– ––– ––– onth 07 90 9 61 9 83 86 23 2 2 26 23 62 28 49 2 86 2 ======–– –– –– –– –– = = = = = 7 0 0 5 = = = = = ––– ––– ––– ––– ––– 9 ======65 financial statements 2008/09 Murray Irrigation Limited notes to the financial statements for the 11 month period ended 30 June 2009
11 month 12 month period period 2009 2008 $’000 $’000
5 Current Assets – Cash and Cash Equivalents
Cash at bank and on hand 7,254 52,938 ======Restrictions are imposed on access to certain of the above funds as follows: SupplyVariation Reserve Fund – Restricted (Note (i) below) 00 Asset maintenance and renewals – Restricted (Note (ii) below) 4,902 19,218 Unrestricted Funds 2,352 33,720 –––––––––––––––––––––––––– –––––––––––––––––––––––– 7,254 52,938 ======(i) Under Rule 15.2 of the Constitution, the SupplyVariation Reserve Fund was established to provide the company with adequate funds to financially withstand periods of extended low volume water supply to members. The SupplyVariation Reserve funds have been fully drawn down in 2009.
(ii) Under Rule 15.2 of the Constitution, the Asset Management and Renewal Fund was established to cover capital expenditure for refurbishment, replacement and long term maintenance of the company's water infrastructure assets. The amount set aside is calculated after considering the advice of independent external consulting engineers. The amount so set aside totals $38,425,000 (2008 $36,819,000) comprising cash $4,902,000 (2008 $19,218,000), Government Bonds $0 (2008 $7,101,000), Floating Rate Notes $ 20,120,000 (2008 $10,500,000) and Fixed Rate Notes $13,403,000 (2008: $0) (Notes 5 and 9).
6 Current Assets – Trade and Other Receivables
Water Debtors (including Land and Water Management Plans) 7,985 10,428 Less provision for Doubtful Debts -457 -604 –––––––––––––––––––––––––– –––––––––––––––––––––––– 7,528 9,824
Government Agencies - Asset Maintenance and Renewal 3,647 7,862 - Land and Water Management Plans (Note 27(ii)) 0 2,155 - Supplementary Water Sale 0 0 - Other 295 230 –––––––––––––––––––––––––– –––––––––––––––––––––––– 3,942 10,247 –––––––––––––––––––––––––– –––––––––––––––––––––––– Other Debtors 1,935 3,873 –––––––––––––––––––––––––– –––––––––––––––––––––––– 13,405 23,944 ======
66 01 9 8 C F ( ( ( R ( F P R 7 Mu ( S i) ii) b) a) a) Car AWM Sh Car h i loa re om xed ec aw ares Ca pay Mo ar rray R Co R Ca r u C R R R Mo S ei tin y r y r o N o N u C e har M r eciva ev ev ec ec va R r r y r me ing ing i st g vem onwea of A e r vem n at ei ei aluat aluat bles r r n n at yi Irrig ing Rat es c r r u C - r r u C - ia er as t n va va Pt nts t n e pro e om ng a a ent s mou mou N ble ble y in oc ent s s A ( bles atio a e io io fit a) ls am ponen mou lth Lt s A ot Not s i n n t n e t n e asociates at s and from from s es i d t e nt nt s ount n n c s af es Indexed plus ur i s t e om s nts n ter es c Lim s t e s s A s t e s s A at at (b) Stores yin r ar t – ying r car As Subsi pone of the the – i a e v n I ncome ited t s e h t O al) tf /(shor ocia disposals th beg end g B nt diar e r o t n – – onds amounts te beg n r A t O of i nni of o ta y i a v AWMA e i amounts e h te s di x i Riv nning the (a) s ng l sposal r b a transfer Fn i erbank to of fi l of e nancial c n a the of P r o f th e investmnts ty the l a i red fin e l a S Hol L fi n t d year ancial s s A financ to dings an n Fa n i equity st e ci al ia in yea Pt l l a i c Asociate ye r y s 90 0 2 50 ar ta te m Ltd w O s s A n s r e st e s i h en ts p n I e r e t for s 0 2 t 50 the % 80 1 1 m o nth peri ======––– ––– ––– ––– ======od ––– ––– ––– ––– ======1, 1, ======I M ======1 –– –– –– –– ======2 0 2 ======––– ––– ––– ––– 10 04 ======,04 29,60 48,26 7,486 -61 1 -5,834 -1,267 ======0 L ======en –– –– –– –– ======7, 1,546 1,04 1,47 1, 1,546 2,586 90 90 1 $ s n o C ––– ––– ––– ––– C p ======20 ======’ r a e –– –– –– –– 0 ======10 10 146 40 m 0 ded ––– ––– ––– ––– iodr ======y r 0 ======–– –– –– –– ont ======i l o ––– ––– ––– ––– 0 0 0 0 9 ======i g n a d h 30 n u o m A d e t Jun ’ $ ======– – – – ======––– ––– ––– ––– 1, 1, 00 0 t ======1, -7 –– –– –– –– 12 ======0 0 2 0 0 2 e ======––– ––– ––– ––– 10 1 $ 82 10 10 ======pe ’ –– –– –– –– 6 7 7 1 1 1 7 $’ 28 ======0 0 200 ======––– ––– ––– ––– 208 8 8 m ,5 ,7 , ,1 ,1 ,4 ,5 , 9 1 ======iodr 3 1 6 4 4 4 1 –– –– –– –– 0 ======0 ======––– ––– ––– ––– onth 27 2 0 74 0 0 01 01 80 0 01 0 0 ======–– –– –– –– ======0 0 0 0 1 0 1 ======––– ––– ––– ––– 9 ======67 financial statements 2008/09 Murray Irrigation Limited notes to the financial statements for the 11 month period ended 30 June 2009
(iii) Summarised financial information of Associates
MIL’s share of: Period Assets Liabilities Revenues Profit 2009 (11 month period) 2,937 1,897 7,414 -61 2008 (12 month period) 3,065 1,964 5,858 -728
11 month 12 month period period 2009 2008 $’000 $’000 11 Non-Current Assets – Property Plant and Equipment
Freehold land - At Cost 2,026 2,039 –––––––––––––––––––––––––– –––––––––––––––––––––––– Water Infrastructure - At Cost 251,572 228,441 Less Accumulated Depreciation 45,324 40,499 –––––––––––––––––––––––––– –––––––––––––––––––––––– 206,248 187,942 –––––––––––––––––––––––––– –––––––––––––––––––––––– Construction-in-Progress 11,196 24,157 –––––––––––––––––––––––––– –––––––––––––––––––––––– Leased Assets - At Cost (Note 1(m)) 48,649 48,703 Less Accumulated Amortisation 9,128 8,402 –––––––––––––––––––––––––– –––––––––––––––––––––––– 39,521 40,301 –––––––––––––––––––––––––– –––––––––––––––––––––––– Buildings and Cottages - At Cost 1,949 2,175 Less Accumulated depreciation 639 672 –––––––––––––––––––––––––– –––––––––––––––––––––––– 1,310 1,503 –––––––––––––––––––––––––– –––––––––––––––––––––––– Plant and Equipment - At Cost 8,421 8,299 Less Accumulated depreciation 5,979 5,383 –––––––––––––––––––––––––– –––––––––––––––––––––––– 2,442 2,916 –––––––––––––––––––––––––– –––––––––––––––––––––––– Office Equipment - At cost 2,086 2,039 Less Accumulated depreciation 1,737 1,542 –––––––––––––––––––––––––– –––––––––––––––––––––––– 349 497 –––––––––––––––––––––––––– –––––––––––––––––––––––– MotorVehicles - At Cost 5,449 6,244 Less Accumulated depreciation 2,332 2,055 –––––––––––––––––––––––––– –––––––––––––––––––––––– 3,117 4,189 –––––––––––––––––––––––––– –––––––––––––––––––––––– Total Non-Current Assets 266,209 263,544 ======
68 31 O P Mu Wa L Mo B L O T T 21 R 11 A c R D Em L C S O r ur u and ea and lan r ui he mo on ou ec ec ff ther ther ade pera ter ic sed ploy ldi rray to ent onc t on un st bt b e o N o N u C and r & r ngs alanc Cre ful In nn C t Ve ts uct E A cil em e i f r r n n E qui Irrig li redi ina fras s r hic uat r r u C - r r u C - se Wa eco qui at de t n e iat io dit ben porar e ts ion nci pmen n tr gnis bts les ion tor atio ions or ter co pme uct l i b a i L i efi n al s s t n e t n e ise mpr s ed y Man of n P ts ure yea t nt diff ro g in Lim s t e s s A s t e s s A t s e i t i he r pro age eren re s are ited r car tempora fit ment – s ce et and – – y Tr s i n ou ng e D P e d a 1 o Plan r lo am e p o C t te s Aug e f y r s 263,54 amounts 187,942 below: ar $ 40, 24, n a r r o s ’0 di 2, 2, 1, 4, t r yi r unt d e to d ust 916 497 039 503 301 189 157 ffer y t O ng n a l P Tx a th e ences a 08 r e h of t A t each fi n s s se l b a Py a d n a ibuta atr st e Additi an 1,5 1,04 clas q E $ ci al ’0 165 238 e m p i u 69 of ons 0 0 0 0 3 ble s prtyoper , ta te m to: n t n i t n o c ( Dis - en ts $’ 1,340 pl -1 -7 -4 posals 0 -29 -13 -2 ant 46 25 05 d e u 00 0 for & ) the e quipment Transfer -2 1 24, 1 $’ 4, m 0 0 0 o 0 0 0 00 0 4 4 0 nth at s the peri Depre in beg = = = = ––– ––– = = = = od ––– ––– ======- –– –– = = $’ -4 = = ––– ––– = = 7,510 1 = = = = en –– –– -6 -2 -9 -7 = = = = 0 4,531 2,385 4,869 3,250 1 ,9 ning $ c ––– ––– pe = = = = 20 -47 = = ’ iati –– –– = = = = 10 17 05 73 58 38 142 653 m 0 ded ––– ––– iodr = = = = 0 70 0 = = –– –– ont = = = = ––– ––– 0 0 9 = = = = on and h 30 e 26, 2 30 nd Jun C 06 1 39 amount = = 2, 1, 2, 3, – – ar = = = = ––– ––– $’ June = = = = ,2 ,1 ,5 of –– –– 12 209 = = 42 310 026 3 17 e = = = = ––– ––– 0 1 r = = = = 48 96 49 21 pe ying –– –– 9 0 1 2 $’ = = the 200 = = = = ––– ––– 208 m ,5 , ,8 ,7 = = = = iodr 5 6 0 1 –– –– 0 ======––– ––– 09 onth 62 34 39 9 5 1 61 81 48 = = = = –– –– = = 6 2 5 = = ––– ––– 9 = = = = 69 financial statements 2008/09 Murray Irrigation Limited notes to the financial statements for the 11 month period ended 30 June 2009
11 month 12 month period period 2009 2008 $’000 $’000 14 Current Liabilities – Current Tax Liabilities
Provision for Income Tax 14,016 8,821 ======
There continues to be significant uncertainty in respect to the company’s taxation liability associated with grants for environmental works. As reported in prior years there has been an ongoing dispute between the company and the Australian Taxation Office regarding the taxation treatment of grants received for environmental works.
The company has obtained advice over many years in respect to the application of the Income Tax law to the Land and Water Management Plans and the Asset Renewal program in order to form its view. A resolution of the dispute between the company and the Australian Taxation Office was affected by the change of government in late 2007. The company has been forced to re-commence its formal appeal process, which remained current at 30 June 2009. Whilst the company has previously included the principal amount of tax liability payable in previous annual financial statements, it has now recorded the principal and interest accrued (refer note 3b), which may be payable depending on the resolution of the appeal process.
The company maintains its intent to have the total liability waived. Should the company be successful in this endeavour the provision for tax would be reduced by $14.016M and a further $4.956M would be recovered from the Australian Taxation Office.
15 Current Liabilities – Provisions
Employee Entitlements (Note 1(s)) 2,052 2,051 ======
16 Current Liabilities – Other
Land and Water Management Plans - Funds held as Implementing Authority (Notes 1(u) and 27(ii)) 7,949 6,204 –––––––––––––––––––––––––– –––––––––––––––––––––––– 7,949 6,204 ======
70 P 9 1 81 Mu C R G I A O Share Em A T 71 Mu D A C nv re u cr mou he mo apit on ov ie ev rdin e pay ploy rray lwa sel er aluat stm un su b o C o N o N al ed alanc ar nme nts mab me ts fue la C e ent alowa t n y n n Irrig io r int Can apit r r u C - r r u C - eco nts rec Sh l i r En nt le n s e reb a t u b ere gnis ares atio og of co st ti debt al al nce ore tle st t n e t n e d e ni ise mpr te av ed us n ments s s ai or ag s e in i u q E Lim and t i l i b a i L t i l i b a i L d la s e pro ble dire f e ited yt depr tempora fit (N fo ct and s e i s e i r ote ly eci sale n i n o – – lo ati 1(s) te s y r s equi r P D fi on nanci e i v o di e f to t ffer r r y i s d e al th e sn o ences aset Tx a fi n ibuta atr b a i L an ci al se i t i l i ble s ta te m to: 1,4 2 0 en ts 0 9 S 7 har for es 0 the 0 0’s 1, 208 1 4 1 m 7 o nth peri ======––– ––– ––– ––– ======od ––– ––– ––– ––– ======186,452 –– –– –– –– ======––– ––– ––– ––– = = = 37,2 38,90 38,90 1 ======en –– –– –– –– ======1,094 1 $ ––– ––– ––– ––– p ======20 209 = = = ’ e –– –– –– –– ======230 125 243 m 0 ded ––– ––– ––– ––– iodr ======45 4 30 0 = = = –– –– –– –– ont ======––– ––– ––– ––– 0 0 0 0 9 ======h 30 $’ 0 Jun = = = – – – – ======––– ––– ––– ––– ======1 –– –– –– –– 12 = = = e ======––– ––– ––– ––– 34 86 3 3 ======pe –– –– –– –– 1 6 7 $’ = = = 200 ======––– ––– ––– ––– 208 208 m ,7 ,1 ,45 , , ======iodr 5 2 2 5 1 5 –– –– –– –– 0 ======––– ––– ––– ––– onth 3 08 8 6 46 79 92 8 7 1 46 ======–– –– –– –– = = = 7 0 0 4 5 2 3 9 = = = ––– ––– ––– ––– 9 ======71 financial statements 2008/09 Murray Irrigation Limited notes to the financial statements for the 11 month period ended 30 June 2009
11 month 12 month period period 2009 2008 $’000 $’000
20 Reserves and Retained Profits
(a) Reserves: Contributed Assets 139,304 130,844 SupplyVariation 0 0 Water Reserve 20,000 20,000 Asset Revaluation Reserve 0 1,267 –––––––––––––––––––––––––– –––––––––––––––––––––––– 159,304 152,111 ======Movements: Contributed Assets – (Note 1(t)(i)) Balance – 1 August 2008 130,844 120,132 Transfer from Retained Profits 8,460 10,712 –––––––––––––––––––––––––– –––––––––––––––––––––––– Balance – 30 June 2009 139,304 130,844 ======Supply Variation – (Note 1(t)(ii)) Balance – 1 August 2008 0 0 Transfer from Retained Profits 60 24 Transfer to Retained Profits -60 -24 –––––––––––––––––––––––––– –––––––––––––––––––––––– Balance – 30 June 2009 0 0 ======Water Reserve – (Note 1(t)(iii)) Balance – 1 August 2008 20,000 20,000 Transfer to Retained Profits 0 0 –––––––––––––––––––––––––– –––––––––––––––––––––––– Balance – 30 June 2009 20,000 20,000 ======Available for Sale Investments Revaluation Reserve Balance – 1 August 2008 1,267 1,037 Annual Revaluation 0 230 Transfer to Retained Profits -1,267 0 –––––––––––––––––––––––––– –––––––––––––––––––––––– Balance – 30 June 2009 0 1,267 ======(b) Retained Profits (Accumulated Losses)
Balance 1 August 2008 -39,056 -36,307 Net Profit/(Loss) 5,603 7,963 Transfer to Water Reserve 0 0 Transfer to Contributed Assets -8,460 -10,712 Transfer to SupplyVariation Reserve -60 -24 Transfer from SupplyVariation Reserve 60 24 –––––––––––––––––––––––––– –––––––––––––––––––––––– Balance – 30 June 2009 -41,913 -39,056 ======(c) Nature and Purpose of Reserves Refer Note 1(t).
72 (a 12 Mu ( ( 1 Direc b) D.M. A.L. V.C. Oth Dire To D.R. D.T M. M.L. M.J. M.D. S.G. L. A.M. K.S. G.G ) ) l Inc Cha rray K G T (i) A M th E o T (i N. S Pos ta Ke H . hor f er . .T R he .M he c ey . Baxt Eli H e L M R ) l ude .L G. t Ba J. i umphr H t H tor An D R Gou t a l e y sor t his i . O co pel olm Ke phuy ea . Ri e A . unt Irrig ugh t- em folowin folowin i obe M l s Bal, M yer s H A rec ther s thon s d mpan er te y r Tot re er d e tc nt anagem ughe die epor ana ploy er to m r du es Ma t r atio hi ze hon va rs s K.S. P Key al son y nd e, n t r a gemnt y , nag be tham men t. s n D.K. an g g y di and nefi se i Baxt Managemn Lim per per was cy emnt re c ent t , paym Wa benefi D. ts so so D tly ited a er, .J. ns ns M. Pe per ts, di or L. C ent r w a r ector tson Rober Gros lso ts larke , sonne M. n sonnel i er C s ndi o hapel, e t K. had te s 1,439 1, D $’0 re ctly ( 2 until A. Wats. ) salar 106 3 ir l V 1 40 41 30 9 31 26 38 author ecto to compensat C 404 404 91 al , ue our y 9 dur S w th e ( .G s r 1) Novembr er o oupis f ity in of . e m El fi n g C apointed ot Mur and l the is, as or , an $’0 S h G ion t hor M.J v ra re .R. l ehic fina 0 B 00 0 ci al y on sponsibi 2 . -Te I 0 Hol ncial Cut e r us r as per s 8, ig mr ta te m m, te D ati and No com year r i li , o re M. ty W n n V. ct pany - .R. : $ for Limit Mo C. H or en ts ’0 17 17 17 umphr s M ne El pl p o ol ta sb anni n e eye icy d for yr ur 16 f ( r 2) or is, y , ng, the w i Apr S A.H A. Em t as u ( he 3) p di L. er 1 a l Exc l re plo $’ . Pos 1 w a dire 2 Re 129 Le n 1 ct 0 0 hol m nua 09 20 yme ing u t- li 1 3 3 2 2 4 2 2 ad. 9 o ctor des ti e ot nth a on nt and per nd t , e ( unti 3 J.M. m r ) peri i co od control in ntinue l at T od McLeod, 11 ende 1 ot ed $’ 6 1,58 1,456 1 $ p 2 al i er ,2 ’ 0 D en mo 0 370 120 0 em 129 li 0 12 43 15 4 32 3 28 40 10 0 2 od ecmbr ng in 9 ded nt 0 0 pl 3 0 h oy 0 office t 9 he D e June es 30 . Pi etr act 2 Jun Tot at 20 iviti 0 1,70 $’0 1 na, t 09 he al ,2 12 8. e 47 14 e $’ p 13 13 47 91 37 59 31 12 34 25 37 26 1 208 : 2 s 200 dat e 9 5 m ,6 0 0 of iodr 1 0 onth 5 15 e 8 9 73 financial statements 2008/09 Murray Irrigation Limited notes to the financial statements for the 11 month period ended 30 June 2009
(c) Key management personnel equity The aggregate number of shares in the company held at balance date by key management personnel were: 11 month 12 month period period 2009 2008 $’000 $’000
Ordinary Shares Held 22,651 21,572
(d) Other transactions with key management personnel
During the period the company sold water for cropping and other activities to a number of Directors and other key management personnel or their related entities on commercial terms and conditions no more favourable than those which it is reasonable to expect would have been adopted if dealing with them at arm’s length in the same circumstances. The value of these transactions totalled $308,300 (2008: $289,000).
Aggregate amounts payable or receivable from Directors and other key management personnel or their related entities as at balance date:
Water Accounts Receivable 79 49 Accounts Payable Nil Nil
(e) Loans to key management personnel There are no loans to Directors or other key management personnel.
22 Remuneration of Auditors
During the year the auditor earned the following remuneration:
Audit of the financial report 31 30 Other assurance services 39 18 –––––––––––––––––––––––––– –––––––––––––––––––––––– Total audit and other assurance services 70 48
Taxations services 84 27 –––––––––––––––––––––––––– –––––––––––––––––––––––– Total remuneration 154 75 ======
74 62 C C ( ( Mu ( ( I a C N P 52 cus Th 42 T 32 D P C e Inc Ga Ga Ga nc t xpe ropo rof he on on or h e et $ e prec to rea ang 5 rray in in in I I I I I ( ( ( ( reas po re tr tr I I I I nc nc nc nc nc ndi com .2M it Cash me R e S o C o N nc nc nc nc )/ )/ )/ s se i i ra we o c e but but ed rea rea rea rea rea i f es los los los e) reas reas reas reas e m g ati ture / t i m m o n sr Irrig ti pa (de h s a C - /dec r re 208 se se se se se on. e ed ed s s s in on wit i c n xpendi Inf ny th e) e) e) e) of on on /( /( /( /( /( no cre t n atio wi as as /dec /dec /dec /dec o s t n e m hin ( and e de de de de de i t a i l rea is s Not low/( per se se dis dis l ale as no i t a m r o f n I ( c year cre cre cre cre cre $7. F i om n ts t nv se e) be the s n i posal posal n o ture rea rea rea rea amor at e o Lim f as as as as as 6M olved c n a in in rom f m drawn 1(c)ii ing Outflow r o f e) e) e) e) e) se se se se f o i Sou nvestmnts i va pro un tments ), ited ti o o in in in in in in in in in g n i r e p O lue i p a C Go sati for f f ase t der vi nher pr non- i defer other pr r cur pa defer pr i r ). ucturnfraestr nve ec fr si n a ver on ov im epay of whi ya n om on i t a t t ts he o ) for l a d ivables nto ent bles i i ar nment in c Riv red red si te s g n from a ch ur li e v n I for the ons p x E ments vestmnts Land nd ly abi expn i r tax re in er f o r P tax tax es ful i dou to nt liti n Land n e t s l ia li Operat t i and a liabi ase es he ase abi r i d th e g n i bil di btfu eimbur t area u t o t ture lities supply an it t v i t c A Wa ts li er l fi n ies: ties t e N d of debts ter ing Water at semnt an New se i t i s a C 30 and Ma Act ci al J h une na Manage South drainage ivities s w o l f n I wil gemnt s 209 ta te m Wales, be me of r t apar m o r f Plans e nt en ts c ig r ir ei A closing ved u from stralia t a r e p O i atio s for esti t hrough n the the . balances m water i ate n o De 1 s d 1 t to fe he at m red r (se Wa $2 o nth .0M ter Mai note peri Admi (20 ntenance = = = = 27 ––– = = = = od ––– = = 08 = = = = –– ). = = = = nistr ––– = = 16,85 10, 1 -5,27 -9,04 -1,893 = = = = en –– = = = = $ 1,789 1,745 5, 9,04 7,510 5,603 1 $ ––– pe = = = = 20 -502 -147 -251 6. = = ’ –– = = = = 195 68 54 m 0 ded ati ––– iodr = = = = 8 46 21 61 0 = = prr o g –– ont = = = = M ––– 9 0 9 = = = = on ) h . 30 Min Funds am Jun = = ister est – = = = = ––– = = = = -1 –– 12 = = e = = = = for ––– 10 im -5 = = = = pe –– 4 1 0, 4 7 7 $’ = = i 200 = = = = ––– 208 -3 -5 -2 al m ,9 ,4 ,59 ,8 ,9 ,0 ,9 = = = = ated iodr 1 93 7 2 –– 0 -9 = = t = = = = ––– onth his 83 7 1 43 61 23 7 54 28 36 34 49 04 63 = = = = –– = = 3 6 3 4 0 0 5 = = ––– 9 = = = = 75 financial statements 2008/09 Murray Irrigation Limited notes to the financial statements for the 11 month period ended 30 June 2009
27 Land & Water Management Plans
i) Details of income and expenditure on the Land & Water Management Plans are as follows: $’000 Berriquin Cadell Denimein Wakool Total 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 Income Government Agencies 3,606 9,920 412 4,870 331 2,683 269 3,240 4,618 20,713 Contribution from Working Group 37 000108 000145 0 Irrigator Contribution 1,722 1,656 253 229 103 127 283 362 2,361 2,374
5,365 11,576 665 5,099 542 2,810 552 3,602 7,124 23,087 Expenditure Capital Works 1,923 2,701 21 32 334 186 002,278 2,919 Expenses Incurred (a) 1,361 7,883 732 4,838 464 2,540 544 3,430 3,101 18,691
3,284 10,584 753 4,870 798 2,726 544 3,430 5,379 21,610 Net Funds Accumulated/ (Expended) 2,081 992 -88 229 -256 84 8 172 1,745 1,477
(a) Includes Farm Rebates, Monitoring, Education & Administration ii) Details of the Land and Water Management Plans Funds Held as Implementing Authority are as follows:
$’000 Berriquin Cadell Denimein Wakool Total 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 Opening Balance – 1 August 2008 (Note 16) 3,221 2,229 1,834 1,605 520 436 629 457 6,204 4,727 Add Net Funds Accumulated/(Expended) 2,081 992 -88 229 -256 84 8 172 1,745 1,477
Closing Balance - 30 June 2009 (Note 16) 5,302 3,221 1,746 1,834 264 520 637 629 7,949 6,204
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(b) Financial Instrument composition Murray Irrigation Limited’s financial assets and liabilities at the balance date are as follows:
FIXED INTEREST MATURING IN: Total Weighted 2009 Floating 1 Year Over 1 to More Non Carrying Average Interest or Less 5 Years than Interest Amount Effective Rate 5 Years Bearing Balance Interest Sheet Rate
$000 $000 $000 $000 $000 $000 % Financial Assets
Cash and Cash Equivalents 1,813 5,438 3 7,254 3.57% Water Debtors 1,345 6,640 7,985 9.00% Government Debtors 3,942 3,942 N/A Other Debtors 1,935 1,935 N/A Other available-for-sale assets 48,226 29,260 77,486 4.57% Other Financial Assets 400 2,186 2,586 N/A
50,439 6,783 29,260 0 14,706 101,188 Financial Liabilities
Trade and Other Payables 4,869 4,869 N/A
4,869 4,869
Net Financial Assets 50,439 6,783 29,260 0 9,837 96,319
* Refer comments at Note 28(a)
FIXED INTEREST MATURING IN: Total Weighted 2008 Floating 1 Year Over 1 to More Non Carrying Average Interest or Less 5 Years than Interest Amount Effective Rate 5 Years Bearing Balance Interest Sheet Rate
$000 $000 $000 $000 $000 $000 % Financial Assets
Cash and Cash equivalents 2,291 50,644 3 52,938 7.70% Water Debtors 2,549 7,879 10,428 10.00% Government Debtors 10,247 10,247 N/A Other Debtors 3,873 3,873 N/A Other available-for-sale assets 10,500 7,101 17,601 8.07% Other Financial Assets 400 1,101 1,501 N/A 13,191 53,193 7,101 23,103 96,588 Financial Liabilities
Trade and Other Payables 10,096 10,096 N/A
10,096 10,096
Net Financial Assets 13,191 53,193 7,101 13,007 86,492
* Refer comments at Note 28(a)
(c) Net Fair Values The aggregate net fair values of financial assets and financial liabilities, both recognised and unrecognised, at the balance date approximates the carrying value in the balance sheet.
78 a a T I ( c l f s ( L n 03 T I B o I T Un 92 ( Mu To e i C r r Us i nc lo umar epu edu n n nt f) e) d) co s apac xposu abil ote b iqu Othe Re Ca Ri i he he he yName ofsubidr re l suc w l e re re l er l igat re ma I rray ud dit L d v ac sh n rdanc s ta ci idit c s s i est co co co Cr e r st er e r C u S iq it pec pec ti h ei te at equi a ng ble ing c nag r ion r y es re re r and bank mpan mpan mpan ept vab u ac ic rest y b i i r ba av Irrig se of . sk t t d at di idi i s te t held to A is r e e s. ou he T re t i o o ailab anc la d e oun les t i d d us the c is f f i wit C he ty men nc k ts S cr is r as i atio r ts Holdi y' y y Ri wat ac n yr a ac pote trali t ate y b d n a t red i e i ta e h he s sho wi e also has ts s le k i r co h ma no c c dit sk a f i ndin equi t om da es e nves tment t n sk A i wou he t for s an unts ci is r s r t nt h te i r t r ximu s t ustral ian ngs te E r on Lim the i r has de li he isk pany . sk was ial k rep u r m ter banks xposure 28(b) ty g va sk sale i ld bt g n a r r A s o a r f rec e k P l effe isk r lo ited ece olowi at f m e ise ar s or monthly not av ty table n f t ng a inanci h balance An ts cre di exposure set ai iv a ct abo iv a at Ltd and t that Acou i lable h ter n be n of bl e the e bles ng fr analy Australi ve. o i e m ts t e om m c are mater al te s the a o r subsi th company subsidi at basi i mp mo n in T los date a sk nti e consi si nd cash t o vestmnts balance t shor to s s to ba any the ng vemnt s manage ialy an di of to long to liqu i la s y:ar th e y ar and der ed Stan nces the banks. company the the has main ter diff idity wil ter is date y ofincrpat Countr cash fi n m effect dard ity secur company car in er are th in in tain m low unpredict ent encounter an e interest isk r ying r the to the investm m equ ASB compa Australia on inve suf isk.r ci al a to the naged at m for m for iv alents o ficient amo profit this v if balan st folowing er rates s ny 103: a e ability ta te m plus sur nt th $ P set unt of ty par 486 of difficulty an ’s ’ ’ r 73 13 0 ce s o and e cash l 0 0 f d tw wil and floatin iquidity in of i i 0 0 debt t of Ma date m elve of f to fin eq lo en ts on fin d to impac fu i ter li finan e at uit anci ne a in nds it g i posi anci + + $ in pay s i ali fi Clas ofhre ored 1 1 ng 1 s and y acco i r the % Or nancial ty me of for al share sk ci of t in ts al its and dinar the al consol s cr car fi wi in t t ase rdance a t the he ate er xe ti de m e 1 E s 4 th ng $ dit fi acco r v m % q d arke ’ bts y me 7 1 86 and ument instr ts m xed alue 0 y u 1 i 3 3 0 : banks i i rate ng change idat obl deposit t anag as 0 1 y y nts. as rdanc with ts. the rate m sum am of igat ed and secur o em Thes investmnts as ount nth l acounts ions e oan the i secur s in ent w wel wi to ar i f ties. hen peri interest ail Wate i th of of max se asociated inve and l 1 209 s ties. as = = d ––– 0 a $ = = fi to od ( the $ P $ P ––– = F 1,1 4 = i r nancial credit ’ ’ = oth r stm ( ( im n –– the = have 0 0 l o o = 7 1 8 Man Equity holdng% ––– = met oati 1 0 0 = f The y = 3) 3) 6 en i or note –– = = 0 46 7,0 7,0 r ise 1 t $ ––– pe = = ) er ates ent 20 al f = ’ board –– = = m 0 ,0 ng ded ––– the iodr = = ageme not its cre di 0 manag = l w –– ont = = s max 0 it ––– 0 9 = = - due li 2 is ith are and s - - abil 8(b) r int 1 h e ben contract set 30 (note % m tu nt t im . financial made er it exposur fi ement onit r Ac out above. Jun um ies est n xed 1 208 = prepared – t = = w ––– ( E E 10 0 $ $ = = 4 or 2000 as q q ningear –– 12 ( ( = ’ ’ below 0 e = = hil 0 0 ––– wi 73 13 8 ual u r = = a). 0 pe s ate i i –– 7 7 6 $’ = po t t 200 = = 0 ––– 208 y y es e cash m ,0 ,0 ) ) ) th = = iodr –– 0 = I = = ––– . licy onth n 0 0 = = –– = : - = ––– 9 = = . 79 financial statements 2008/09 directors’ declaration
The Directors declare that the financial statements and notes set out on pages 57 to 79: (a) comply with Accounting Standards, the Corporations Act 2001 as amended and other mandatory professional reporting requirements; and (b) give a true and fair view of the company’s financial position as at 30 June 2009 and of its performance, as represented by the results of its operations and its cash flows, for the financial period ended on that date. In the Directors’ opinion: (a) the financial statements and notes are in accordance with the Corporations Act 2001 as amended; and (b) there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable. This declaration is made in accordance with a resolution of the Directors.
S.G. Ellis G.G. Ball Director Director Deniliquin Deniliquin 6 October 2009 6 October 2009
auditor’s independence declaration
As lead auditor of the audit of Murray Irrigation Limited for the 11 month period ended 30 June 2009 , I declare that, to the best of my knowledge and belief, there have been: (a) no contraventions of the auditor independence requirements in relation to the audit; (b) no contraventions of any applicable code of professional conduct in relation to the audit.
Hugh McKenzie-McHarg Partner Johnsons MME Albury 6 October 2009
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ing l e d 81 financial statements 2008/09 accuracy and independence
Our financial processes and the Our Quality Auditor SAI Global SKM on behalf of the NSW information in the annual financial Assurance Services conducted a Government. The annual landholder statements to shareholders on pages re-accreditation audit in February survey, which measures landholder 57 to 79 has been audited by 2007. contributions to the LWMPs are Johnsons MME. The expenditure audited by Dennis E Toohey and As part of our annual licensing of government Asset Renewal Associates on behalf of SKM. requirements we prepare an annual Program funding on capital works is Feedback from agency staff and Compliance Report. This is audited for physical and financial others is received in both written submitted and formally scrutinised validity by Sinclair Knight Merz form and through a public forum as by Department of Water and (SKM) on behalf of the NSW part of the LWMPs annual review. Energy (DWE), Department of Government. Our nationally Environment and Climate Change These external audits help to accredited water testing laboratory (DECC), Murray Darling Basin improve the quality of our systems provides information on stormwater Commission (MDBC) and NSW and the information we include in quality. The lab’s procedures and Department of Primary Industries this report. The external audits processes were audited in August (NSW DPI). Components of the Murray Irrigation is subject to, are 2006 and it has received re- Compliance Report relating to outlined in the table below. accreditation. Murray Irrigation is a Murray Land and Water Quality Assured Company under Management Plan (LWMP) the ISO Standard 9001:2000 and implementation have been audited also has Occupational Health and for financial and physical validity by Safety accreditation AS/NZS4801.
External Audits of Murray Irrigation
Area Auditor Date of Audits Quality Assurance SAI Global Assurance Services Annual integrated surveillance audit ISO Standard 9001:2000 3 yearly integrated accreditation OH&S AS/NZS4801
Government funded Asset Sinclair Knight Mertz (SKM) 2 monthly Renewal Program expenditure asset renewal audit
LWMP Annual Landholder Survey Dennis E. Toohey & Associates Annual
LWMP Implementation Sinclair Knight Merz (SKM) At least monthly
NSW Irrigation Corporation Water DECC and DWE Annual Management Works Licence NSW Environment Protection Licence
Water quality testing laboratory National Association of Testing 2 yearly national accreditation Authorities, Australia
Financial accounts Johnsons MME Annual
Business Plan Johnsons MME Annual
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r y r tc) o at r f f o r f 83 glossary abbreviations
ACCC ...... Australian Competition and Consumer Commission LPG ...... liquid petroleum gas AGM ...... Annual General Meeting LWMP ...... Land and Water Management Plan ANCID ...... Australian National Committee on Irrigation and m ...... meter Drainage MDBC ...... Murray Darling Basin Commission ARP ...... Asset Renewal Program MDBA ...... Murray Darling Basin Authority ATO ...... Australian Taxation Office mg/L ...... milligrams per litre AWA ...... Australian Water Association MIL ...... Murray Irrigation Limited CMA ...... Catchment Management Authority ML ...... megalitre CPI ...... consumer price index ML/d ...... megalitres per day CSIRO ...... Commonwealth Scientific and Industrial Research ML/ha ...... megalitres per hectare Organisation MDFRC ...... Murray Darling Freshwater Research Centre DAFF ...... Department of Agriculture, Fisheries and Forestry MWWG ...... NSW Murray Wetland Working Group DECCW ...... Department of Environment, Climate Change NATA ...... National Association of Testing Authorities and Water N/A ...... not available DEWHA ...... Department of Environment, Water, Heritage and the Arts NSW ...... New South Wales DII ...... Department of Industry and Investment NSW OW ...... New South Wales Office of Water DWE ...... Department of Water and Energy NVIRP ...... Northern Victorian Irrigation Renewal Project EC ...... Electrical Conductivity NWC ...... National Water Commission EGM ...... Extraordinary General Meeting NWI ...... National Water Initiative EIS ...... environmental impact statement OH&S ...... occupational health and safety EMS ...... Environment Management System O&M ...... operation and maintenance ESP ...... exchangeable sodium percentage QA ...... Quality Accreditation FBT ...... Fringe Benefit Tax QMS ...... Quality Management System FTE ...... Full Time Equivalent R&D ...... research and development GIS ...... Geographic Information System REPAG ...... Rice Environmental Policy Advisory Group GL ...... gigalitres RGA ...... Ricegrowers’ Association of Australia ha ...... hectares RTA ...... Road and Traffic Authority hrs ...... hours SCADA ...... supervisory control and data acquisition IAA ...... Irrigation Association of Australia SEE ...... statement of environmental effects IPART ...... Independent Pricing and Regulatory Tribunal SKM ...... Sinclair Knight Merz kg ...... kilograms SRI ...... Southern Riverina Irrigators kl ...... kilolitres t ...... tonnes km ...... kilometres t/yr ...... tonnes per year KPI ...... key performance indicator TFWB ...... Total Farm Water Balance kwh ...... kilowatt hours WTSSDS ...... Wakool Tullakool Sub Surface Drainage Scheme L ...... litres
84 company directory about this report
Murray Irrigation Limited Engineering Consultants KBR Murray Irrigation Limited 186 Greenhill Road (ABN 23 067 197 933) is a company Parkside Adelaide SA 5063 limited by shares, incorporated and domiciled in Australia. Its registered Solicitors office and principal place of business is: Glowreys 443 Charlotte Street The Riverina Law Firm PO Box 528 185 Cressy Street Deniliquin NSW 2710 Deniliquin NSW 2710 Telephone: (03) 5898 3300 Facsimile: (03) 5898 3301 Taxation Advisors www.murrayirrigation.com.au Ernst &Young 680 George Street Board of Directors Sydney NSW 2000 Stewart Ellis, Chairman Gordon Ball, Deputy Chairman Annual General Meeting Kel Baxter Will be held at 9.30am on Leigh Chappell Thursday 19 November 2009, Malcolm Holm at the Deniliquin RSL Club, Michael Hughes 72 End Street, Deniliquin Michael Humphris NSW 2710. Tony Read Further Information Mark Robertson For further information General Manager about Murray Irrigation go Anthony Couroupis to the company’s website at www.murrayirrigation.com.au. Company Secretary Information on the website includes: Anthony Couroupis I Annual Reports Matthew Watts I Compliance Reports I Environment/Sustainability Reports Auditors I Completed Research Reports Johnsons MME I Company Policies 520 Swift Street I Media Releases Albury NSW 2640 I Talking Water Bankers I Water Supply Murray Irrigation Limited Commonwealth Bank I Water Exchange. of Australia This Report 241 Cressy Street Deniliquin NSW 2710 Design & production: Paula McKindlay Graphic Design Printing: Specialty Press, Albury
Murray Irrigation ISBN 978-0-9802998-3-0 Copyright 2009 Limited