Media Releases

Member for Rodney, Paul Weller has claimed the proposed draft Murray Darling Basin Plan would not allow the region to recover on the back of its devastating 12 year drought.

 

Following a recent Age report that stated house prices in communities throughout the Murray Darling Basin have fallen by more than four per cent, Mr Weller said the draft Plan “locks in the effects of the drought”.

 

“We should be pushing for the Federal Government to invest in engineering solutions for the environment that deliver the same environmental outcomes with less water,” Mr Weller said.

 

Nationals Senator for Victoria, Bridget McKenzie said the report into Murray Darling Basin house prices has revealed some dramatic local impacts that will be felt not only by farmers, but also the towns and industries that support them.

 

“Towns like Stanhope and Tongala need certainty in order to grow and prosper into the future – a certainty not provided by the draft Basin Plan, which fails to clearly explain how economic and social factors have been incorporated into its targets,” Senator McKenzie said.

 

“These are iconic food producing areas that have been built on the back of irrigated agriculture where water is wealth.  Now they are vulnerable communities facing an uncertain future,” she said.

 

Echoing this sentiment, Mr Weller stated the draft Basin Plan will continue to choke the dairy industry in the Murray Darling Basin region.

 

“The reduced water availability is expected to see a continued decline in milk production for the towns in this region from the already drought impacted production of 1.8 billion litres,” Mr Weller said.

 

“This figure indicates that the proposed draft Basin Plan will prolong the effects of the drought unless major changes are made to the way we manage environmental flows,” he said.

 

“We should be working towards maintaining environmental outcomes, using less water,” Mr Weller said.

The Victorian Ombudsman’s report on the handling of the Foodbowl Modernisation Project under the previous Labor government has confirmed the concern and suspicions of Northern Victorians, Member for Rodney Paul Weller said today.

In a damning report tabled in the Victorian Parliament last week, the Ombudsman revealed a culture of secrecy, inside deals, preferential treatment, incentive payments and serious conflicts of interest.

Mr Weller said the previous Brumby Labor government had some serious questions to answer.

“Perhaps of greatest concern is the Ombudsman’s finding that the previous government proceeded with the project without a business case,” he said.

“As we always suspected, the former government’s decision to invest $1 billion of Victorian taxpayers’ money for Stage 1 of the project was made in the absence of a business case approved by government and that is simply outrageous.”

Water Minister Peter Walsh said he believed the secret dealings uncovered by the Ombudsman were the tip of the iceberg.

"Since the start of this project, people have told me they suspected questionable deals and preferential treatment," Mr Walsh said.

"In Opposition the Coalition relayed these concerns to Mr Holding on many occasions, both privately and in Parliament, but he refused to act on them."

Mr Weller said the Coalition Government would now systematically work through the Ombudsman’s recommendations to address the failures highlighted.

"A full probity audit will be conducted and, in the short term, an interim CEO will be appointed to take charge of the project,” he said.

"We have also accepted the Ombudsman's recommendation to absorb NVIRP into GMW to make sure the project is delivered in a cost effective way.”

Mr Weller said the Victorian Coalition Government was committed to ensuring Stage 1 and 2 of the Food Bowl Project was delivered in the best interests of the irrigation industry and the communities that relied on it, so that there was a beneficial legacy from $2 billion of investment.

Member for Rodney Paul Weller has congratulated the Victorian Coalition Government for providing certainty to Goulburn-Murray irrigators and for securing the future prosperity of one of the State’s most important food producing regions.

In a notice of motion tabled in State Parliament this week, Mr Weller applauded the Coalition Government, and Water Minister Peter Walsh, for securing a sound new agreement for Stage 2 of the $1.2 billion Northern Victoria Irrigation Renewal Project (NVIRP2).

Mr Weller said the deal would return 204 gigalitres to the Murray River and deliver a world-class irrigation system for northern Victoria’s food producers.

“These water savings will make an important contribution from Victoria towards reaching the sustainable diversion limits under the Murray Darling Basin Plan,” he said.

“Under the new agreement, the amount of water to be returned to the environment has more than doubled from what was originally planned under the NVIRP2.”

Mr Weller said a key part of the new agreement included changed water sharing arrangements under which 102 gigalitres of the water savings would be sold to the Commonwealth for environmental use.

He said the Victorian irrigators’ contribution to the NVIRP would come from the proceeds of selling the second 102 gigalitres of water savings generated from the project.

“This is a much fairer deal than the one proposed under Labor’s stage two of NVIRP, in which 204GL of water savings were to be equally split between the Commonwealth and irrigators.

“That deal was unsustainable in that irrigators were expected to contribute $200 million to NVIRP stage one and two which would have forced them to repay the debt via a 25-40 per cent increase in their water bills.”

Member for Rodney Paul Weller has congratulated the Victorian Coalition Government for providing certainty to Goulburn-Murray irrigators and for securing the future prosperity of one of the State’s most important food producing regions.

In a notice of motion tabled in State Parliament this week, Mr Weller applauded the Coalition Government, and Water Minister Peter Walsh, for securing a sound new agreement for Stage 2 of the $1.2 billion Northern Victoria Irrigation Renewal Project (NVIRP2).

Mr Weller said the deal would return 204 gigalitres to the Murray River and deliver a world-class irrigation system for northern Victoria’s food producers.

“These water savings will make an important contribution from Victoria towards reaching the sustainable diversion limits under the Murray Darling Basin Plan,” he said.

“Under the new agreement, the amount of water to be returned to the environment has more than doubled from what was originally planned under the NVIRP2.”

Mr Weller said a key part of the new agreement included changed water sharing arrangements under which 102 gigalitres of the water savings would be sold to the Commonwealth for environmental use.

He said the Victorian irrigators’ contribution to the NVIRP would come from the proceeds of selling the second 102 gigalitres of water savings generated from the project.

“This is a much fairer deal than the one proposed under Labor’s stage two of NVIRP, in which 204GL of water savings were to be equally split between the Commonwealth and irrigators.

“That deal was unsustainable in that irrigators were expected to contribute $200 million to NVIRP stage one and two which would have forced them to repay the debt via a 25-40 per cent increase in their water bills.”

The Nationals Member for Rodney Paul Weller has criticised the Brumby Government over a lack of communication with irrigators affected by the Northern Victorian Irrigation Renewal Project (NVIRP).

In State Parliament yesterday, Mr Weller said the government was more interested in wasting money on misleading advertising campaigns about the project, than liaising with farmers.

He said Goulburn-Murray Water irrigators located on non-backbone channels were living in fear that they would not be connected to the reconfigured system.

“Irrigators are becoming increasingly worried about their future due to a lack of communication from NVIRP.

“I have had calls to my office from irrigators located between five, 10 and 15 kilometres from the backbone channels who have not yet been informed by NVIRP how and when they will be connected to the channel system.”

Mr Weller said some of Victoria’s most efficient irrigators were on non-backbone channels, yet they faced being shut down by the Brumby Government.

“If the government had any compassion and respect for these irrigators it would have insisted that NVIRP be out talking to these farmers well before now, discussing options and finding solutions to connect them to the system,” he said.

“Instead, the Brumby Government is wasting valuable resources by spending millions of dollars on misleading advertising.

“The advertisements running right across Victoria at the present time claim that 425 megalitres could be saved through the irrigation upgrades, when in fact last year the system only lost 350 megalitres.

“Using the government’s very own figures, last year the savings across the whole system would only have been 200,000 megalitres.

“Given that savings generated by reconfiguration and the upgrade of Shepparton District and Central Goulburn 1234 were committed well before NVIRP began, the actual savings generated by NVIRP in a year similar to last year would have been only 105,000 megalitres, not 425,000 megalitres.”

Mr Weller said the Brumby Government should be directing money towards working with irrigators on solutions to their channel connections rather than wasting it on dishonest advertising campaigns as it was presently doing.

The Nationals Member for Rodney Paul Weller has raised concerns over the massive rise in management and administration costs at Goulburn Murray Water over the past four years.

Annual reports for the company show management and administration costs have risen from $10,172,000 to $20,848,000 between the 2004/05 and 2008/09 financial years.

Mr Weller said the exorbitant rise was of great concern to irrigators and others looking to invest in irrigation farming in the GMW region.

“I have sought an explanation from the Water Minister as to how these costs could rise so significantly in just four years,” he said.

“CPI rises of 3.5% per year during that period would result in a rise to less than $12 million and these increases are way above and beyond that.”

Mr Weller said he had raised a Question on Notice in State Parliament today requesting an explanation from the Minister to assist irrigators and potential investors to understand the need for such steep rises.

“I have asked for a breakdown of these costs which include board costs, the cost of operating consultative committees, executive staff salaries and related costs, other administrative staff salaries and related costs and consultant’s fees,” he said.

“I have also sought an explanation as to the approximate increase in CPI over the four year period where the expenditure items have increased by more than 10 percent.

“Considering that there will be less water in the GMW region in future due to the Federal Government’s Water buyback and the State Government’s climate change predictions, irrigators have a right to know whether these costs will fall so the management and administration cost per mega-litre doesn’t blow out to levels that will deter further investment in the GMW region.”

The Nationals Member for Rodney Paul Weller has urged the Brumby Government to deliver projects in the Gannawarra Shire that will deliver at least 100 new permanent long-term jobs for the region.

In State Parliament last night Mr Weller said the shire had been hard hit by job losses as a result of the government’s decision to declare Gunbower Forest a national park and yesterday’s announcement by Murray Goulburn Co-operative that it was closing its cheese-making facility at Leitchville.

He said the Bracks and Brumby governments’ environment, water and drought policies had been disastrous for the Gannawarra Shire.

“When the government declared 80 per cent of the Gunbower Forest a national park, it took jobs in the timber and cattle industries away from the region.

“And because the Victorian Labor Government has failed to implement drought support for farmers which will hold the milk flow for northern Victoria at a level that can sustain all the milk factories, Murray Goulburn has been forced to close its Leitchville plant which could result in the loss of a further 80 jobs.”

Mr Weller said the government’s water policies had also taken their toll on the region.

“The dairy industry well knows that last year and the year before losses in the Goulburn Murray Water irrigation district were less than 400,000 megalitres, yet the government continues to insist that it can save 425,000 megalitres through Foodbowl Modernisation,” he said.

“The dairy industry has no confidence that the government can achieve these figures, and the dramatic drop in milk flow has proven that.”

Mr Weller said it was imperative that the Minister for Regional and Rural Development act to promptly return jobs to the Gannawarra area.

“If the Minister fails to act, the outcome for the communities of Gannawarra Shire could be quite disastrous,” he said.

“We all know when jobs are cut you can have flow-on effects that lead to further losses, then services leaving the area which lead to further losses and the downward spiral continues.

“I ask the Minister to instruct Regional Development Victoria to deliver projects that provide 100 full time permanent jobs in the Gannawarra Shire so we do not see communities decimated due to the government’s inaction.”

The Nationals Member for Rodney Paul Weller has blamed poor water policy by the Brumby Labor Government for the closure of Murray Goulburn’s cheese mill factory at Leitchville.

Murray Goulburn announced today that it has been forced to close the Leitchville site due to a severe decline in milk production in northern Victoria over the past eight years.

Approximately 80 staff will be affected by the closure.

Mr Weller said poor water policy by the Brumby Government had failed to give dairy farmers the confidence to invest in the future.

“The government has failed dismally to have policies in place to support agricultural industries in northern Victoria,” he said.

“In 2005, 147 workers at Tongala’s Nestle plant lost their jobs as a result of a major company restructure, last year more than 100 staff at HW Greenham & Sons lost their jobs due to the major reduction in cattle numbers across the region - and now this.

“Premier Brumby is doing nothing to give dairy farmers in northern Victoria the confidence to keep going.”

Mr Weller said milk production in northern Victoria had dropped from 3 billion litres in 2001/02 to a forecast 1.75 billion litres this year.

“That decrease amounts to a 40% drop in eight years,” he said.

“A decrease of that size has to have an impact and now we are seeing the flow-on effect in our manufacturing and agricultural support industries.”

Mr Weller said he had been advised by Murray Goulburn that staff at the Leitchville plant would be offered opportunities at other Murray Goulburn sites and would be assisted with retraining.

He said it was critical that the government play its part in supporting that process.

“The dairy industry crisis in northern Victoria is a direct reflection of the Brumby Government’s inaction during years of prolonged drought and water policies which are giving farmers no confidence to invest in the sector.

“The government has sat on its hands while the dairy industry in northern Victoria has shrunk so let’s hope it does all within its power to assist Murray Goulburn and all affected workers at Leitchville through this difficult time.”

The Nationals Member for Rodney Paul Weller has accused the Brumby Labor Government of a deceitful plan to buy water from northern Victoria to send to Melbourne.

Mr Weller said the recently released Northern Region Sustainable Water Strategy confirmed that the government intended to buy water from the Goulburn Murray Water irrigation district, to classify it as savings, and to pipe it to Melbourne via the north south pipeline.

He said the Brumby Labor Government had been caught red-handed lying to the Victorian public.

“Premier Brumby has repeatedly promised that Melbourne will not be permitted into the Goulburn Murray Water irrigation district to buy water but this report paints an entirely different picture.

“Page 117 of the report refers to a ‘greater range of options in rationalisation’ and states that ‘where channels are identified for closure and entitlement holders no longer wish to irrigate, they can choose to sell their water share or alternatively, can enter a commercial agreement to surrender their water shares, which will be counted towards NVIRP’s water savings’.

“Water obtained through this process is very clearly not savings and should not be counted as such under any circumstances.

“To do so is an act of treachery from a government which has promised that all water diverted through the pipeline to Melbourne will be sourced from savings only.”

Mr Weller said the government intended to split savings from Stage 1 of the Foodbowl Modernisation project in one third equal shares between Melbourne, the environment and irrigators.

He said that meant one third of any water purchased via the process outlined on page 117 of the Northern Region Sustainable Water Strategy would undoubtedly go to Melbourne.

“John Brumby has lied on two counts.

“Firstly that he could save 425 billion litres of water through Foodbowl Modernisation which he quite clearly can not.

“And secondly, that Melbourne would not be allowed to buy water from northern Victoria.

“The Premier can not be trusted by the Victorian public.”

The Nationals Member for Rodney Paul Weller has condemned Water Minister Tim Holding for continuing to mislead the Victorian public over the Foodbowl Modernisation Project.

In State Parliament yesterday Minister Holding told the Legislative Assembly that the Northern Victorian Irrigation Renewal Project was a “$2 billion project that can generate 425 billion litres of savings in an average year”.

Mr Weller said the claim was misleading and indisputable evidence existed to show that such savings were impossible to achieve.

“The government’s so-called $2 billion project only upgrades three quarters of the Goulburn Murray Irrigation District and the other quarter is upgraded by the Living Murray and Snowy Programs,” he said.

“When the losses in the whole of the GMID were only 350 billion litres last year, the government’s so-called $2 billion program would have been lucky to deliver 150 billion litres of water, which is a long way short of the 425 billion saving the Minister refers to.”

Mr Weller said the government’s savings predictions were based on flawed mathematics.

“Premier Brumby and Mr Holding are kidding themselves if they believe 425 billion litres of savings can be achieved in the GMID every year,” he said.

“It doesn’t matter how many times we highlight the flaws in the figures, the government simply continues to dismiss the truth.”