ŠĻą”±į>ž’ ~|ž’’’€’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’’ģ„Įq` šæJ0bjbjqPqP 4J::J(’’’’’’¤’’’’’’’¦Ž#Ž#Ž#Ž#4Ā#,¦`p“ś#$$$$$$$ßoįoįoįoįoįoįo$rh|t†p’Ģ*$$Ģ*Ģ*p’’$$p¤,¤,¤,Ģ*Ž’$’$ßo¤,Ģ*ßo¤,¤,j«j¼’’So$ī# š‡ßóÉŽ#Z+Fgl2ßo0p0`p™lŗu +īudSoSou’gox$€%¤,¢&Ü~'N$$$ppŽ,$$$`pĢ*Ģ*Ģ*Ģ*¦¦¦d „¦¦¦ ¦¦¦’’’’’’’’’’  RB/36.45/2008 August 18, 2008 Water Branch Australian Competition and Consumer Commission GPO Box 520 MELBOURNE VIC 3001  HYPERLINK "mailto:water@accc.gov.au" \o "blocked::mailto:water@accc.gov.au" water@accc.gov.au Dear Sir Re: Public Submission to the Water Market Rules Position Paper Council would like to make a brief submission to the Australian Competition and Consumer Commission in relation to the Water Market Rules Position Paper. Council supports the need for on-going water reform however one would expect a common sense approach to build on the successes of the past and necessitate clear evidence of failure before considering reverting to prior arrangements. Council would also hope that the ĢĒŠÄŌ­““ does not penalise those efficient water organisations.   The ĢĒŠÄŌ­““ is advocating some fundamental changes to the governance arrangements in NSW and South Australia that have been successfully built up from first principles and years of learning from experience.  It would seem the ĢĒŠÄŌ­““ position is based on little more than the interpreted anecdotal evidence from a small number of submissions to the April 08 issues paper. There has been no qualitative or quantitative research into the benefits and costs of the existing arrangements – no modelling, no survey, no data collection which supports the advocated position.   Setting aside the risk of losing obvious benefits that have been derived from business efficiency reform (for Murrumbidgee Irrigation a 35% real reduction in costs has been achieved since privatisation in 1999), the ĢĒŠÄŌ­““ approach presents significant other risks to irrigators and regional economies including : increasing compliance and regulatory costs reduced accountability between service providers and customers decreased business and transaction efficiencies due to complexity failure to manage regional environmental issues the loss of potentially significant catalysts for regional development and growth the loss of the most logical partners for government in water recovery programs   Council is concerned at the trend towards a highly interventionist approach by the ĢĒŠÄŌ­““ to water charge regulation. On the strength of this current issues paper we are no less concerned about the approach of the ĢĒŠÄŌ­““ in relation to water market rules. Council is advocating a less interventionist approach. Council supports the submission of Murrumbidgee Irrigation to the ĢĒŠÄŌ­““ on this topic. I have attached an outline of some of the very important industries that survive in the Mrrumbidgee Irrigation Area and the Leeton Shire that rely on an efficient and reliable water supply. Yours faithfully Cr J Burns Mayor Leeton Shire Council Background Information on the Murrumbidgee Irrigation Area and the Leeton Shire to the Australian Competition and Consumer Commission on Water Market Rules Position Paper Leeton is located within the Murrumbidgee Irrigation Area, geographically located within the Riverina area of New South Wales created to control and divert the flow of local river and creek systems for the purpose of food production. The main river systems feeding and fed by the area are the Murrumbidgee and the Snowy Mountains Scheme. The system is still regarded as a major engineering achievement comprising an elaborate series of weirs, canals and holding ponds. Many of the towns within the area, including Leeton and Griffith, were purpose built and designed for the project and remain as thriving communities today. The two towns continue to show good growth over the longer term due to sustainable employment. The growth of inland centres is unusual for central New South Wales which displays the uniqueness of the MIA. The region has continued to grow because of its diversity in agriculture and industry with many varieties of cropping in the area including vegetables, grapes, citrus, rice, grains and other industries such as chickens, engineering, retail and many others. This diversity has contributed to the strong growth of the area with new industries emerging and the area experiencing some of the lowest unemployment rates in Australia. Leeton Leeton is the gateway to the Murrumbidgee Irrigation Area and forms the focus point of several major irrigated agriculture industries such as horticulture, rice, wine and beef feedlots in NSW and along the Murray-Darling system. Leeton is a major centre for the production and processing of agricultural and food products, as well as a major centre for research, training and education and has a vibrant and growing population of 12,000. Leeton forms the headquarters of the Australian rice industry and is home to one of the largest cattle feedlots in Australia. Between these two industries over 1150 people are employed injecting over $59 million in salaries into the Leeton economy. This wealth has resulted in Leeton defying NSW trends by having lower unemployment and higher growth over the longer term than many other rural centres. The Agricultural Industries This agricultural region relies heavily on irrigated agriculture as its lifeblood and was established as an irrigation scheme in 1912. This turned a “barren wasteland” into one of the most fertile and productive areas in Australia contributing over $2.5bn annually to the National economy. The major crops in the MIA being grapes and citrus, high security property crops. Towns such as Griffith, Leeton, Goolgowi and Hillston are absolutely dependant upon agriculture and without it there would be job losses in the thousands forcing people to flee these towns in search of other employment. Wine and Grape Industry The wine and grape industry is the largest industry in this area with growth expected to continue due to the success of many of the local family owned wineries such as Casella Wines, DeBortoli Wines, Warburn Estate, Westend Estate, McWilliams and many more including Orlando’s. These wineries have contributed greatly to the growth of the region with direct employment alone contributing well over $200m per year to the local economy and this does not take into consideration associated industries such as transport etc. Citrus Industry The citrus industry in this area has recently experienced a major decline due to cheap overseas imports that had made it virtually impossible for local growers to compete and this alone caused many farmers to move away from citrus. The industry has undertaken some immense work over the past few years to help build the industry back to a strong level that has allowed them to compete on the world market. Juice Processing Plants The region has 5 major juice processing plants producing all types of juices including carrot, apple and citrus, who are reliant on local produce. Feedlots and Livestock There are major cattle feedlots in the MIA area based at Yanco (Rockdale) and Tabbita (Australian Meat Holdings) as well as other smaller feedlots which either have abattoir facilities on site or rely on off-site abattoirs. Poultry Production Bartter Enterprises (Steggles) are the Australia’s second largest poultry producer, employing over 4500 people with 1500 of those employed locally at the Griffith site. The family owned and operated company is a major employer in this area as well as being one of the major grain buyers in the area for chicken feed. Rice The region is home to rice in Australia with it producing over 95% of the rice grown in the nation and employs over 1,800 people both in Australia and overseas. The rice industry has already been severely depleted due to the continuing drought and loss of water allocations after planting has recorded its lowest harvest for 33 years this year with less than 20,000 tonnes. The industry has continually researched ways to improve its efficiency with water and growing techniques which over the years have attributed to water savings of over 25%, just through better preparation of the land. Other water reduction strategies include shorter-season varieties, computer modelling and electro-magnetic surveying to ensure only the exact amount of water is applied, and efficient supply and drainage systems on the farm. The industry has been successful in reducing water use in terms of mega litres per hectare by 30% over the past ten years and increasing rice yield in tonnes per mega litre by 60% in the same period. Companies such as SunRice have also moved into value adding of rice to enable them to market to new consumers both here and overseas which has seen an increase in demand for their products. Cherries/Nuts While the cherry, almond and walnut industries are relatively new to this area they are starting to make an impact and beginning to flourish with many new orchards being established. Orchards are also being established for walnuts including some 800ha of walnut plantings in the Leeton area this year. Once the walnut orchards are nearing production a shelling factory is to be established in the area. Farm Supply Businesses There are many farm supply businesses in the area that provide everything from fertilisers to fencing for most farmers in this area and they will be directly impacted through a major reduction in their turnover. The importance of agriculture is usually underestimated because the value of industries servicing agriculture or those industries processing or marketing agricultural products are rarely included in the value calculation. Vegetables With the diversification of farming in this area being so broad there are numerous different vegetables grown in the area such as broccoli, capsicum, carrots, gherkins (McDonald Restaurants), lettuce, onion, potato, pumpkin, rockmelon, and watermelon. Other Plantings Include prunes, peaches, apricots, almonds, apples and olives. Agricultural Training and Research Centre Located within the Leeton Shire is the Murrumbidgee Rural Studies Centre, formerly the Murrumbidgee College of Agriculture. This is a unique facility and provides opportunities for further uses. Currently from this site a range of rural courses are provided both in house and externally throughout NSW. Also a range of agricultural research is conducted from this location. 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