ࡱ> JLI!` #bjbj\\ 48>> 6668n,$o!::>>>  $O#h%!!>>g)!ZZZ0>> Z ZZ:J,> Oz6v ?!0o!RU&U&U&Z33!!vo! 66 West Corurgan Oaklands Rd, PO Box 156, Berrigan NSW 2712  HYPERLINK "http://www.corurgan com.au" www.corurgan.com.au email ;  HYPERLINK "mailto:info@corurgan.com.au" info@corurgan.com.au Ph HYPERLINK "http://www.corurgan.com.au"  03 5885 2392 Fax 03 58852660 Mobile 0419 156 429 ABN 92 793 193 219 SUBMISSION TO WATER MARKET RULES POSITION PAPER BY WEST CORURGAN PRIVATE IRRIGATION DISTRICT BOARD OF MANAGEMENT ON 15 AUGUST 2008 Introduction West Corurgan Private Irrigation Board of Management represents approx 250 landholder stakeholder families in the Southern Riverina area of NSW. In responding to the ԭ Water market Rules Issues Paper , this Board would like to take the opportunity to try and illustrate the difference there is between Private Irrigation Districts(PIDs) and in particular the major irrigation corporations. West Corurgan has real concerns regarding federal legislation that adopts a broad brush attitude with no provision for the anomalies to be considered. This submission is based specifically on our objection to transformation of water rights. Historic/Institutional Information regarding West Corurgan PID Whilst this information has previously been provided to the ԭ and other Governmental organisations this Board feels the need to reiterate the situation. After several years of lobbying state and federal politicians, in 1968, the then Minister for Water in NSW gave the West Corurgan Committee an entitlement to water (50,000 Acre Feet or 62,500 Megalitres ) from the Murray system and told them to build their own private irrigation scheme. That committee proceeded to gain expressions of interest from local farmers, subsequently had private contractors build the scheme (with no government funding) and then the Minister opened the scheme in 1969 . At the opening ceremony the Minister also confirmed the granting of an additional 10,000 acre feet (12,500 Megalitres) of entitlement once the Dartmouth Dam project was completed. Those entitlements were granted to the then West Corurgan Committee and not to any individual irrigators. That Committee finally made allocations to the stakeholders who paid for scheme construction . Those stakeholder allocations amount to 77% of the bulk entitlement with 23% being retained by the Board for its own re-allocation, sale or conveyance loss coverage. Since water trading has been in force, Corurgan has permanently added to its entitlements by 7.8% enforcing the belief in the future of the Corurgan community. In 1973 the Board was instrumental in assisting in writing and having the NSW Private irrigation Act passed through State Parliament. That act confirming the operational status of the scheme and provided legal autonomy to the Board. Water Access Licences from the NSW Govt were and are still issued to the West Corurgan Board of Management, not to any individual or group of persons. That Private Irrigation Act was incorporated into the NSW Water Management Act, 2000. n 1980, prior to a general adoption of any water transfer regulations, the Board had passed through State Parliament a regulation titled the West Corurgan Board of Management Water Rights By-Law 1980 . This regulation is still in force today . That legislation we believe recognised the role of the Board as being the sole licence holder and a the same time gave the individual the opportunity to relinquish his water allocation . The regulation stating that an individual who wishes to relinquish water permanently must surrender it back to the Board of Management(at a negotiated price) . The Board would then reallocate that surrendered water as it sees fit. This process has worked quite satisfactorily since the inception of that regulation. Comment The policy of transformation coupled with the requirement for individual listing of entitlements within group schemes etc is considered to be totally opposed to the concept of why PIDs are even in existence. The fact that the Federal Government would deem it necessary to negate established state law in respect of the licensing and regulation in regard to the surrender of water would in fact appear to be not only discriminatory but unconstitutional when considering the rights of the Boards of Management. The original granted water entitlements provided the cornerstone on which PID Boards of Management built their schemes, those entitlements are what gave the properties security, they enable a certain level of drought protection and helped establish a securer community base. The enforcement of a water transfer/transformation system seriously erodes a community structure. While PIDs are able to provide a level of flexibility to the individual so that he can add to or reduce his entitlement, those PIDs should not have their original constitutional rights decimated. The policy of transformation gives credence to a hypothetical situation whereby all individuals transform their entitlements and the PIDs have huge infrastructure systems with potentially no customers. Those customers who transformed their entitlements would have the ability to temporarily transfer their entitlements elsewhere. Termination fees and delivery entitlements do not secure the long term viability of the infrastructure provider. Futhermore,for every entitlement transformed away from a bulk license , the Government will then have to reissue and administer that individual license potentially increasing license fees to the greater community. Whilst it is acknowledged that the transformation proposal is deemed to be a voluntary proposal, it is this Boards belief that organisations such as the Australian Bankers Association are advising Govt that the system is essential , both from a trading perspective and individual entitlement register. It is pointed out that in Corurgans case, we will register a third party interest in an individuals entitlement with the proviso that the entitlement cannot be traded out of Corurgan. Local financial institutions have not expressed any problems with this scenario to date. If it is not possible to separate PIDs (and other smaller entities that have similar historic backgrounds) from the legislation, Government should be made aware of the need for specific regulations to permit flexibility to PIDs and other similarly constituted areas, for example, the need for entitlements that are being offered for sale be offered within the originating scheme as a first option and then to the Boards of Management of that scheme I trust that you will attempt to understand our viewpoint and recognize the historic values that have built the strong and viable community based around self help PIDs. Yours sincerely, Peter M Wallis Manager West Corurgan. 15th August 2008      FILENAME \p F:\Corurgan Documents\ԭ transformation.doc Page  PAGE 3 of  NUMPAGES 3 ;=>fghtu{|ҽfM4M1hh>0JB*CJOJQJaJmH phsH 1hha0JB*CJOJQJaJmH phsH 3jhhaCJOJQJUaJmH sH -jhhaCJOJQJUaJmH sH $hhXCJOJQJaJmH sH $hhaCJOJQJaJmH sH (hhaCJOJQJ^JaJmH sH +hha>*CJHOJQJ^JaJHmH sH .hha5>*CJHOJQJ^JaJHmH sH ;5 H I J K L M N O ^ _ $a$gdqX f%gdX$a$gda ##G H ֣}f}Lf}<haCJOJQJaJmH sH 3jhhaCJOJQJUaJmH sH -jhhaCJOJQJUaJmH sH $hhaCJOJQJaJmH sH $hhXCJOJQJaJmH sH 1hh>0JB*CJOJQJaJmH phsH 3jhh>CJOJQJUaJmH sH -jhh>CJOJQJUaJmH sH $hh>CJOJQJaJmH sH H I M O ] ^ S [ - h ннzrzj\TjLhN/mH sH h [%mH sH h ph[H5>*mH sH h[HmH sH hpmH sH hvmH sH h phv5>*mH sH hvhvmH sH hv5mH sH h*5mH sH hqXCJ(OJQJaJ(mH sH $hqXhqXCJ(OJQJaJ(mH sH h pCJ(OJQJaJ(mH sH hqXCJOJQJaJmH sH hYCJOJQJaJmH sH  - g h 23`gd pgd*3012     Bc(=` E J ļļļԖԼhpmH sH h #mH sH h ph [%5>*mH sH hVmH sH h [%mH sH hYNmH sH h[HmH sH hftmH sH hF%@mH sH hN/hN/6mH sH hN/mH sH h%mH sH 83   E F """"""""""" # # ##gd*`gd pJ ] >!A! 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