CICL Update October 2018
Dear Members,
This newsletter provides Members with an update on key water issues affecting CICL and its Members’ businesses.
In this month's newsletter -
External issues
Clifford Ashby - CEO
Department of Industry Allocation announcements
02/10/2018
High Security 95%
General Security 7%
Member Benefit 10%
Additional Offer 6%
Waterways
http://www.colyirr.com.au
T. 1300 850 105
WaterMart
Open
Allocation trade
Internal and external trade is open
Inter-valley Trade
Trade into the Murrumbidgee is closed.
For up to date information on the IVT go to https://www.waternsw.com.au/customer-service/ordering-trading-and-pricing/trading/murrumbidgee.
Member breakfast
Friday 19 October 2018
8.30am - Coleambally Community Club
4.00pm - Yamma Hall
AGM’s
Thursday 25th October 2018
Coleambally Community Club.
CIMCL - 3pm
CICL - 4pm
Annual General Meetings
Our AGMs are approaching quickly. This year we have planned a different format which we hope you will find interesting. We are pleased to announce Steve Whan, CEO of National Irrigators’ Council (NIC), as our guest speaker at the General Meeting following CICL’s AGM.
Steve will provide members with an update on Commonwealth water issues and the work of NIC. Attending the AGM will provide members with an opportunity to listen to Steve’s insights into the complexities of water politics and to meet face- to-face our key advocate in Canberra.
The CIMCL AGM will commence on Thursday 25 October at 3.00pm at the Coleambally Community Club. The CICL AGM which will commence at 4.00pm and will be followed by the General Meeting. Thereafter, drinks and light refreshments will be provided.
Grant Latta Retirement
At the CICL AGM Grant Latta will retire as an independent director after 11 years’ service to CICL.
Grant’s retirement is a major milestone for CICL. Grant has been a passionate supporter of CICL and its members and travelled with us through the ups and downs of our modernisation journey, the millennium drought and the continuum of government driven water reform that has dominated our business since privatisation.
Grant’s intelligence, experience and company will be missed around our board table. CICL wishes Grant and his family good health and happiness in the next stage of their lives.
In honour of Grant’s contribution to CICL and the Coleambally region, CICL has established the Grant Latta Bonded Scholarship for students from our region. The scholarship will contribute $5,000 per year to a first year student increasing to $7,500 per year in the next years. The successful applicant will also have the opportunity for paid vacation work experience with CICL. This year, CICL is targeting engineering students, however, in future years other vocations may be sought. CICL is working closely with the Country Education Foundation on this project.
Applications close on Friday 30 November and more information is available at www.cef.org.au. Applicants can include Year 12 students or undergraduates who have commenced their engineering studies.
This Scholarship is part of CICL’s succession plan to meet our future workforce requirements.
New Independent Director - Mrs Sharon Smith
CICL is pleased to announce it has selected Sharon as an independent director to be endorsed at the AGM to fill the vacancy created by Grant’s retirement.
CICL utilised its industry contacts, including those of our two independent directors, to search for a new independent director over the last nine months. We were pleased with the quality and experience of the potential directors who expressed an interest in joining the CICL Board.
Sharon is a Chartered Accountant and Graduate of the Australian Institute of Company Directors. Sharon brings to CICL experience as both a director and Chief Executive Officer. Sharon is currently Deputy Chair of the National Apprentice Employment Network, director and Vice President of the Hunter Business Chamber and CEO of Hunter Valley Training Corporation. Sharon has over 20 years experience with both the government and private sector, primarily in the Hunter Valley and with the Hunter Water Corporation.
Sharon’s appointment will add to the skills base and diversity of our board.
CIMCL director nominations
Directors Steve Burgess and Iain Stewart, both of whom retire by rotation from the CIMCL board, were the only nominations for the two CIMCL director vacancies. I congratulate Steve and Iain on their reappointment and thank them for their contributions to the CIMCL board.
CIMCL and CICL Rules Changes
Members should have received their notice of meeting for the AGMs and will note that both CICL and CIMCL are proposing changes to their Rules for members’ consideration.
The proposed changes to CICL Rules are:
To be consistent with Australian Consumer Law, in particular national unfair contract terms.
To ensure compliance with the Privacy Act 1988 (Cth) and the Foreign Ownership of Water or Agricultural Land Act 2015 (Cth).
To update the Rules for consistent numbering, to remove redundant clauses, and for the inclusion of additional definitions to improve clearer interpretation of the Rules.
The key proposed changes to the CIMCL Rules are:
To make changes to ensure continued compliance with the Co-operatives National Law.
To comply with Australian Consumer Law
To update the Rules for consistent numbering, to remove redundant clauses, and for the inclusion of additional definitions to improve clearer interpretation of the Rules.
CIMCL is also proposing in a separate motion to reduce the Quorum at a General Meeting to 15 Active Members from 20 Active Members.
CICL and CIMCL are proposing their existing Rules are repealed upon registration of a new set of Rules as presented at their respective 2018 AGMs. Registration of new sets of Rules will provide significant administrative benefits as the administrative process for updating Rules is cumbersome and inefficient.
We will hold two information sessions to explain in detail the Rules changes and their rationale.
These meeting will be on Friday 19 October 2018 as follows:
8.30am at the Coleambally Community Club (breakfast provided).
4.00pm at the Yamma Hall (refreshments provided).
Copies of the new Rules including a marked-up version are on CICL’s website in the Customer section or are available by contacting Therese Chauncy on P: 02 6954 4003 or E: ea@colyirr.com.au
No swimming in channels
Irrigation channels are not a safe place to swim or play. As well as the known dangers like varying water depths, submerged objects and snakes, channels have automated structures that can trap and drown you and are remotely operated resulting in unpredictable flows.
Weather station changes
We are pleased CICL now has four weather stations which can be accessed on the OzForecast network http://ozforecast.com.au/ and via our website.
Operational issues
There is pressure on River operators and CICL to minimise delivery losses. CICL Water Operations staff will be contacting customers about updating their expected crop areas, planned irrigation start dates and use of bores to build a better understanding of surface water demands. As CICL has to order water seven days in advance from WaterNSW, this information will help CICL to limit over ordering (losses) and reducing the risk of under ordering.
Metolachlor users
Customers that are users of Metolachlor are reminded to abide by chemical label conditions. You are reminded that a general prohibition on drainage into the CICL network remains in force for past and present users of Metolachlor. If you have not registered as a Metolachlor user and have changed your cropping program to include using Metolachlor, please contact CICL on P: 02 6954 4003.
This is to ensure that contamination levels are below CICL EPA Licence condition limits.
WaterMart
The WaterMart temporary water trading platform is a secure, transparent, fast option for buying and selling temporary allocation with competitive transaction fees. The WaterMart Platform can be accessed at
https://www.colyirr.com.au/watermart/
The WaterMart Platform is open to any person or business that registers to use the platform for temporary trade of allocation in the Southern Connected Basin. There is a flat fee associated with trading on the WaterMart Platform with a copy of the temporary trade fees and charges available under the Standard Service Charges section of our website.
If you would like further information or would like to discuss how to register please contact Therese Chauncy on T. 02 6954 4003 or ea@colyirr.com.au
Staff changes
Kellie Pound joined the CICL finance team on 20 September in a part-time capacity as a Finance Officer/Bookkeeper. Kellie is a Chartered Accountant and has been a stay at home mum for the last few years whilst keeping her hand in accounting roles in the family farm business and some volunteer organisations. Kellie and her husband Tony have been farming in the area for a number of years. We are delighted to employ another well qualified local to join our staff. This appointment is part of our long term succession plan.
We were disappointed to receive Johann Pereira, Works Planning Engineer’s resignation in August. Johann has joined Murrumbidgee Council in Jerilderie. His position in Jerilderie is a promotion and also suits his family situation. We are currently recruiting for a new engineer.
External Issues
State Government fixed charge fee waiver
The NSW Government, as part of its drought support, announced it would waive fixed WaterNSW charges for some classes of water entitlement; up to $4,000 per licence holder. This waiver includes customers within irrigation corporations.
CICL is currently working with WaterNSW on the detail of how this waiver will apply to our customers. We hope to resolve the detailed administration in order to include the waiver in our September quarter invoices. Key points for our customers are:
CICL will apply the waiver automatically to its quarterly invoices.
The waiver applies to fixed Government charges on future invoices i.e. 2018/19 invoices.
It only applies to general security water entitlements i.e. high security entitlements including G Class (stock and tank fill) are not included.
It only applies to Government fixed charges. It does not apply to Government usage charges or CICL and CIMCL charges.
The maximum relief per farm account will be $4,000, however, this will be advised by the Government.
CICL welcomes this NSW Government initiative.
Regulations made under the Water Management Act (NSW)
The Department of Industry (the Department) is currently finalising details of the Regulations for NSW’s new water metering framework which will commence on 1 December 2018. The Regulations will apply to CICL’s off-take but not to individual customers within CICL for surface water.
The new standards will apply to groundwater licence and work approvals held by a number of our customers.
The draft Regulations proposed the following which are relevant to groundwater licence holders:
Meters and telemetry will be privately owned and all groundwater meters installed after 1 December 2018 will require a meter which meets the AS4747 standard and is equipped with telemetry.
The transitional date for existing meters where the infrastructure is >200mm in diameter to meet the new standards, including telemetry is December 2021.
Further information is available from the Department of Industry website https://www.industry.nsw.gov.au/water-reform/consultation
Murray Darling Basin Plan
The changes to the water recovery targets in the northern Basin become law on Thursday 20 September. The next big Basin Plan issues, in addition to completing the Water Resource Plans, are progressing the projects which are included in the Sustainable Diversion Adjustment Mechanism as well as efficiency projects.
It is widely acknowledged that that there is an enormous amount of work to progress the adjustment mechanism projects which are vital to minimising the impact of the Basin Plan on irrigators and communities. Some of the projects represent significant investments and changes to river operations which will directly impact some landholders. The recent draft Productivity Commission report on its Five Year Assessment of the Basin Plan recommended Governments extend the timeframe for these projects. CICL supports this recommendation.
Water availability updates
This year continues to be a challenging year for irrigators, with low inflows. The Department has responded to our request for the Department to continue to make fortnightly announcements in 2019. It has recently advised that it will make fortnightly announcements except for over Christmas.
The Department has increased the detail in its allocation updates, including details of the volumes of both held and planned environmental water.
CICL encourages our customers to become familiar with this information. CICL emails the announcement to customers on our email list; the information can also be accessed from our website.
Murrumbidgee Water Resource Plan
CICL expects the release of the draft Water Resource Plan and Water Sharing Plan will be delayed until the New Year.
Rural Financial Counsellor
Graham Christie is our local counsellor, he can be contacted on M: 0438 444 540 or E: gchristie@rfcsnsw-sr.com.au. The Rural Financial Counselling service is a free service funded by the Commonwealth and State Governments.
I look forward to meeting more of CICL’s and CIMCL’s members at the upcoming AGMs. This will be a great opportunity for members to thank Grant in person for his outstanding contribution to CICL and the wider Coleambally region.
I am also confident you will find Steve Whan an interesting and engaging speaker.
Clifford Ashby, CEO