аЯрЁБс>ўџ ACўџџџ@џџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџџьЅС5@ јП*bjbjЯ2Я2 (­X­X*џџџџџџˆV V V V V V V j .j U2Ndddddddджжжжжж$‡Rй!VњV ddњV V dd:V dV d"Вдˆ˜zЬV V zdB PЁDLњхШ>‚F"%0U`/"ЉРFи#4zj j V V V V и#V zЈdhЬJ<RВdddњњj j „ю$ j j ю Narromine Irrigation Board of Management 48 Warren Road, Narromine 2821 Phone 02 6889 1613 Fax 02 6889 2625  HYPERLINK mailto:nibm@crt.net.au nibm@crt.net.au ABN 13 427 088 600 Robert Sharpe 0428 891 239 Rod Brown 0427 891 592 Chairman: Office Manager M McKinney W J Goodridge Public submission to charge rules for irrigation infrastructure operators by Narromine Irrigation Board of Management 13 th July 2008 Narromine Irrigation Scheme is a small irrigation scheme located on the Macquarie River in the Central West of NSW. This irrigation scheme comprises 90 members and has an irrigation entitlement of 60,100 megalitres Narromine Irrigation Scheme understands the need for the water charge rules but feels there are more important issues regarding the principle of selling water from small irrigation schemes and districts. The ratio of members to total megalitres is usually low within a small irrigation district and hence removing water licences from small irrigation schemes can affect the viability of the scheme and remaining water licence holders. Narromine Irrigation Board is concerned trading of water from the Narromine irrigation scheme will slowly diminish its viability and long term productivity. An irrigation scheme which started with a relatively small allocation of water was to cover a given area and was designed around its original licence. To encourage the sell-off of water from a small irrigation scheme could reduce the efficiency of the remaining water pumped because the infrastructure being used is designed for much larger volumes. Once the dynamics of a scheme have been changed there will be major impacts on the remaining users and the local community and district as a whole. We understand the goals of the National water initiative but we feel that the sale of water from irrigation schemes will undermine their viability and believe it should be the decision of the membership whether permanent water should be sold off. Recent years have been particularly difficult within the irrigation industry with several years of drought and very small irrigation allocations if any, which has placed financial stress on many irrigation businesses. The sell-off of irrigation licences may seem attractive due to these difficult times but once the water has been sold from an irrigation scheme it is unlikely it would return. The National water initiative has proposed modernisation and infrastructure improvements for irrigation schemes and we feel that these programmes should be explained and time frames released so that individuals can revise their operations and potential directions for the future. The goals of the National water initiative to promote the economic efficient and sustainable use of water resources and water infrastructure assets may be reduced if the forced sale of water from irrigation schemes is pursued. Narromine Irrigation Board believes the objectives of the National water initiative should be met through the use of the temporary transfer water market as this would give Schemes time to try various charges and costings without the implications of permanent transfer. Schemes will need to retain a percentage of water licence to allow the transmission losses so that remaining water users will not be adversely affected, the amount or percentage retained is very important as too little will increase losses to remaining users and too much and would distort the water market and be unfair to those selling water out. The use of the temporary water transfer market would be much better in the short term to try to determine what these loss factors should be. Narromine Irrigation Board has concerns with the charge rules in regards to termination fees and some figures quoted eight times the access fee and some up to fifteen times the access fee, either way all these could be eroded substantially by periods of very high inflation which in turn would reduce the income base used to cover the annual fixed charges and asset replacement. These are some points that I hope the ЬЧаФд­ДД will consider when working on the tradeability of water and water charge rules. 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