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Feds to blame for job losses – Walsh

Posted on September 23, 2011

THE Sunraysia Modernisation Project is being touted as a possible way of ensuring there’s not a repeat of the job losses experienced at Lower Murray Water last week.

Lower Murray Water retrenched 12 staff last Thursday and lost another six staff through “natural attrition” as part of its push to reduce staffing levels by about 10 percent.

The retrenchments came a day before Lower Murray Water released its annual report which revealed losses before tax of almost $10million.

Outgoing chairman Michael Tilley stated in the report that wetter than normal conditions and lower water usage by both urban and rural customers were contributing factors to the organisation’s financial performance.

“Our financial result has been impacted by the very wet season resulting in low water usage revenue in both our urban and rural sectors,” Mr Tilley said.

“The board and management are heavily focussed on containing ongoing costs and have targeted non core programs and discretionary spending to help offset the reduction in revenue.”

While staff retrenchments and further cost cutting may help in the short term, there is little indication of a massive resurgence in irrigated horticulture in the region.

Record rains late last year and early this year were certainly contributing factors to the reduction in water usage, but the exodus from irrigated horticulture has also been a major factor.

Victorian Water Minister Peter Walsh this week laid some of the blame for Lower Murray Water’s financial woes at the feet of the Federal Government.

“One of the very unfortunate consequences of the Commonwealth being in the market buying so much water is the impacts we’re seeing in places like Sunraysia where the Commonwealth is buying water – people selling it because they’re forced into that particular
situation,” Mr Walsh said.

“That’s having a major impact on the future viability of water businesses here in northern Victoria, both Lower Murray Water and Goulburn Murray Water.”

Mr Walsh said the Sunraysia Modernisation Project’s new focus on not just water savings, but regional development could help bring people back onto the land and reduce the financial strain on companies like Lower Murray Water.

“One of the things that we’re very focussed on in Sunraysia is working with, in this case the Mildura Development Corporation and Lower Murray Water, and the Council, about getting a good business case up for the Sunraysia Modernisation Program,” he said.

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