CICL Special Member Update July 2024
Dear Members,
Restoring our Rivers
450GL framework and approach
Introduction
This special Member Update includes information about the Commonwealth and State Governments’ recent announcements about their approach to recovering the 450GL of additional environmental water.
It also provides insights into the work Coleambally Irrigation Co-operative Limited (CICL) is doing with both Murrumbidgee Irrigation (MI) and Murray Irrigation (MIL) to identify ways to minimise the impact of further water recovery from “buybacks” on remaining irrigation farmers supplied by our businesses.
Commonwealth Government Announcement
The Water Minister, the Hon. Tanya Plibersek released the Restoring our Rivers - Trading Strategy on Thursday 4 July. This document outlines the Government’s approach to buybacks in 2024/2025.
Key points from this strategy are:
Southern Basin Purchase Program starting in July 2024
A purchase program opening the week of Monday 15 July will concentrate on the Southern Connected Basin, targeting 70GL (long term average annual extraction limit). The conversion limit for Murrumbidgee General Security is 0.591.
Catchments eligible to participate are the Murrumbidgee, NSW, Victorian and SA Murray and Victorian Ovens. (The Upper Murrumbidgee and Upper Murray are excluded).
The minimum tender volume is 10ML.
Water Entitlements held in the NSW and South Australian group schemes such as CICL are not eligible to participate in the first tender.
Victorian entitlement holders in the Goulburn, Broken or Loddon are also excluded.
There is no fixed volume to be recovered from each state, catchment, or entitlement type.
The tender documents, when released, will be available here
The reason the first open tender will aim to exclude water entitlements held in “group schemes” is to allow more time for governments to engage with “group scheme” operators including design and expenditure of the $300M Sustainable Communities Funding which will be delivered via the states.
Southern Basin Expression of Interest starting August/September 2024
The Government will commence an EOI from water entitlement holders in the southern Basin excluded from the first tender during August/September 2024 for potential purchase in mid-2025.
The results of this EOI will inform the program approval in 2025. An invitation to participate in a purchase program will be made once the EOI process has concluded.
Purchase of water entitlements which are currently leased may be considered.
Second Southern Basin Expression of Interest (EOI) Large portfolios of water August/September 2024
Another EOI will commence in August/September from single legal entities interested in selling a minimum of 20GL. This volume could be across catchments in the southern Basin.
Purchase of water entitlements which are leased will be in scope for this tender.
The trading strategy will then be reviewed by the Commonwealth and updated for 2025/2026.
NSW Government On-Farm program
The NSW Government has announced on-farm water savings projects are eligible for funding under the Resilient Rivers Water Infrastructure Program.
The application and assessment process is the same as for the larger infrastructure programs and can be quite complex. If you are looking for more information contact - winsw.programs@dpie.nsw.gov.au.
Irrigation Industry Response
The commencement of “buybacks” had been anticipated, with the release of the Commonwealth’s updated Regulatory Impact Statement and the ABARES analysis of the impact of buybacks, which can be accessed here.
Media releases from National Irrigators’ Council quickly followed here and NSWIC here.
The Murrumbidgee Council Mayor has also had an open letter to the Prime Minister titled “No Care for Rural Australia” published in the Daily Mail criticising the $300 million community compensation package.
CICL preparing for the impact of buybacks
Since the commencement of the Restoring our Rivers Act in December 2023, CICL has been discussing with both the Commonwealth and the NSW Government options for how to best minimise the impacts of further water recovery from “group schemes” and their irrigation dependent communities.
It has been made clear the Commonwealth government is going to recover more water for the environment over the next three years. This will include buybacks in the southern MDB impacting on CICL, our members and the wider Coleambally community.
Facing this reality, we believe it is essential we identify a pathway forward to minimise the harm on farmers and communities.
CICL has joined with both MI and MIL to apply for funding under the Resilient Rivers Program, for a feasibility study to explore what is required to bolster the efficiency and resilience of our irrigation networks.
The work aims to provide an evidence base that supports the long-term resilience of each of the IIOs and build a case for meaningful local investment by government.
The work completed (if funded) will identify the service cost impacts on CICL members of further water recovery in the southern Basin. We may also seek interest from members in an on-farm infrastructure program.
Completing a feasibility does not involve the transfer of any water entitlements to government.
If the application is successful, external consultants will be engaged and members will have an opportunity to provide input.
In working through this approach, central to CICL’s decision making is achieving two key principles.
Providing an enduring benefit to CICL and its members, to build financial resilience across generations.
CICL continuing to service its irrigators including provision of a member benefit.
The release of the Commonwealth’s Restoring our Rivers Trading Strategy highlights the importance of this work and the need for NSW and the Commonwealth to expedite their decision making and approval of the funding.
With Expressions of Interest for buybacks expected to start in coming months, getting this work under way is vital if governments are sincere about minimising the social and economic impacts of buybacks.
Julian Speed
CEO