Monday, 11th January 2010

Trade exemption

Geoff Adams

Some irrigators who wish to sell water to the Federal Government will be able to circumvent the four per cent district trading cap under an exemption plan announced by the Northern Victoria Irrigation Region Project.

The project has issued a map outlining areas that will be exempted from the cap due to the distance from the irrigation backbone channels, soil type, drainage, salinity and other environmental factors.

The exemption plan came out on the eve of the start of the Federal Government's latest $270 million buy-back offer to Murray-Darling Basin irrigators.

The first round offer closes on January 29.

VFF wanted more consultation before the process got under way and more consideration for communities hit by any large-scale water depletion.

Some irrigators are also concerned that the identification of less attractive areas for future irrigation will have a negative effect on the value of their properties.

NVIRP said the map was indicative only and urged irrigators interested in selling water to contact them to discuss their property and the criteria for exemption.

A series of public landholder meetings across the region, beginning next week, is being promoted this week.

Areas more than 2 km from the backbone have been exempted.

NVIRP chief executive Murray Smith said the release of the criteria would give irrigators more options and make their eligibility clearer.

The zones complement the Northern Victoria Irrigation Renewal Project's modernisation program.

Mr Smith said the four per cent trade limit was helping communities adjust over time if large volumes of water were being permanently traded out of their area, and as such was broadly supported.

The exempt zones reflected factors such as long-term irrigation suitability, trends in land use change, high upgrade costs and distance from the modernised backbone channel network.

``Landowners in the yellow zones are under no obligation to sell water and should base their decisions on careful consideration of their irrigation needs and their long-term farming plans,'' Mr Smith said.

Those situated in the green zone are still eligible to apply for the Commonwealth water tender but the sales would be processed under the four per cent limit rules.

Landowners now have multiple opportunities to sell their water but the various options are major considerations in making sure irrigation remains affordable for those who wish to stay in the agricultural industries.

At the 12 district meetings to be held next week, the method undertaken to establish the criteria will be explained and irrigators' questions will be answered.

``We are mindful of the importance of any irrigators' decision to sell water, whether to the Commonwealth, as a trade within their area, or by taking advantage of on-farm efficiency grants,'' Mr Smith said.

He said the map gave a broad indication of exempted areas but landholders should seek contact with NVIRP to clarify the status of their properties.

Mr Smith said information on the zones was being mailed to customers in Goulburn-Murray Water irrigation areas this week.

More, including map, on page 2.

editor@countrynews.com.au

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