Media Releases

The Editor
Northern Times

30.03.10



Dear Sir,

I would like to take this opportunity to congratulate Ian Franzini and his family on their service to the Kerang community over the past one hundred years.

Ian is the fourth generation of the family to have operated their used car and mechanical service business and to have achieved this rare milestone is a tribute to the family and its commitment to operating a successful and community oriented business.

The celebrations this Saturday are well deserved and I wish Ian all the very best for many more successful years of operation in Kerang and district.



Yours sincerely,



PETER WALSH MLA

John Brumby’s failure to undertake a proper economic analysis of the Food Bowl Modernisation Project has drawn scathing criticism from the country’s top water experts and economists.
Shadow Minister for Country Water Resources and Deputy Leader of The Nationals Peter Walsh said the Food Bowl Modernisation Project should have been evaluated and designed to benefit northern Victorian food producers instead of Melbourne.
“Experts say the Brumby Government’s plan was based on ‘spurious’ claims, is a ‘scandalous waste of billions of dollars’ and are calling the Food Bowl Modernisation Project ‘the northern dog’,” Mr Walsh said.
“They have backed the Auditor-General’s finding that there was a ‘lack of rigour’ in estimating costs, benefits and risks.
“John Brumby rushed this project though without a proper economic analysis because after failing to plan for Melbourne’s water needs he thought water savings were a quick fix.”
Mr Walsh said the criticisms made in The Sunday Age backed the Coalition’s belief that the government had dramatically over estimated the water savings available through the project.
The Coalition’s analysis of the business case for Stage 1 of the Food Bowl Modernisation Project also showed the government grossly exaggerated the economic benefits of the Food Bowl Modernisation Project.
“The government employed consultants to undertake an assessment of the economic impacts of the project, but skewed the figures in its business case by counting the benefits twice,” Mr Walsh said.
“The business case estimates the economic benefits of the project to be about $1005 million, but the true figure is $381 million.
“It is also clear that the document was written after the project and the north-south pipeline were already underway and figures and tables were changed after it was first compiled.
“There are numerous references in the business case to progress made after the project was announced in June 2007.
“One table detailing the overview of the program’s schedule and the government’s expectations of water savings was changed in May 2009.”
Mr Walsh said the Coalition had always supported the concept of upgrading irrigation infrastructure but John Brumby was spending billions of taxpayers’ dollars with no clear idea of its benefits, costs or risks.

What the experts said about the Brumby Government’s water plan:
“The government’s claim that it is creating ‘new’ water is spurious in the extreme. When water is purportedly ‘lost’ in the irrigation district, it does not go to Mars. It is not lost at all, it has just gone somewhere else.”
Prof. Lin Crase, La Trobe University

“The business case just does not provide the information to make a proper evaluation. We have to accept the benefits and costs of the project on trust.”
Prof. Quentin Grafton, director of ANUs’s Centre for Water Economics, Environment and Policy

“The amount that is being paid by the taxpayer to get water for Melbourne is very high and in that sense this does not stack up.”
Prof. John Quiggin, University of Queensland economist

“When the desalination plant becomes operational, there will be zero economic gains from the Sugarloaf pipeline.”
Dr Glyn Wittwer, Director of Melbourne and Monash universities’ Uniwater initiative.

“The benefits to the environment would need to be seriously questioned. Some of the water that was ‘leaking’ was actually returning to the system and ending up further down the river. As for the cost-benefit analysis, the results are very suspicious.”
Prof. Donna Brennan, economist, ANU visiting fellow.

‘I’ve looked at the veracity of the Food Bowl Project’s claims to achieve real water savings … and I can’t see that there will be any significant real savings.’
Oliver Gyles, irrigator, worked as a senior economist with the Victorian government for 14 years.

Business case references to dates after the Food Bowl Modernisation Project was announced:
‘In order to achieve water savings in the 2008-09 year, expenditure of approximately $113 million was committed towards Early Works which was undertaken during Winter 2008. p.30
‘Key stakeholders were provided with an overview of the Steering Committee recommendations in late September 2007.’ p.112
‘Submissions on the Draft Report were received up until 23 October 2007’ p112
‘NVIRP submitted on 30 April 2009 its inaugural Corporate Plan, for consideration of the Minister for Water and the Treasurer.’ p.166
‘This section outlines the key next steps for NVIRP in preparation for commencing the 2009 program’ p.168

The Brumby Government should implement new carryover rules for irrigators in the Goulburn, Murray and Campaspe systems now.
Shadow Minister for Country Water Resources and Deputy Leader of The Nationals Peter Walsh said new rules, set to come into force in June, would ensure irrigators could take water they were losing under this year’s rules into next season.
“Many irrigators made the decision late last season to buy expensive temporary water so they could carry forward the maximum amount of water due to concerns about the outlook for the 2009-10 season,” Mr Walsh said.
“They now stand to lose any water allocated above 50 per cent because the season has improved.”
Mr Walsh said with carryover rules set to change on June 30 to allow irrigators to carry over all unused water into the next season, the Brumby Government could ease the burden on irrigators by bringing in the new rules early.
“Irrigators have been struggling with the high cost of temporary water and low commodity prices for some time,” Mr Walsh said.
“It is unjust that those who manage their affairs wisely should lose significant amounts of money because they made prudent planning decisions.
“The Brumby Government should bring the new rules into force now so those who saved or bought water are not disadvantaged.”
Mr Walsh said most irrigators had made decisions based on a predicted allocation of less than 50 per cent.
“Those losing water over the 50 per cent allocation threshold should be able to carry water forward so they don’t have to enter the market at the end of the year to buy carryover water for 2011.
“I call on John Brumby to implement those rules now so that these irrigators are not further disadvantaged,” Mr Walsh said.

The decision taken by Campaspe irrigators to close their system is another regrettable step in the winding down of irrigation in northern Victoria, according to Shadow Minister for Country Water Resources and Deputy Leader of The Nationals Peter Walsh.
Mr Walsh said after years of poor allocations, 70 per cent of irrigators voted to decommission the system at a meeting in Rochester last night.
“This is a distressing day for the region, but I respect the decision taken by those who have endured years of drought and hardship,” Mr Walsh said.
“The Campaspe system has been impacted upon by drought and poor government water policy.
“The closure of the system underlines the utter folly of Labor’s decision to augment Melbourne’s water supplies with water from northern Victoria.
“The Brumby Government is looting water from northern Victoria for Melbourne at a time when farming families are being forced to leave the land due to a lack of water.”
Mr Walsh warned the government against claiming water savings from closing the Campaspe system and adding them to the ‘savings’ it purported to have made through the Food Bowl Modernisation Project.
“These savings cannot be claimed as real and taken to Melbourne because the system hasn’t run for the best part of five years,” Mr Walsh said.
“The Brumby Government based modelling for future inflows into Melbourne’s catchments on the average of the last three years being the norm in the future.
“By the same logic, there are no savings to be made from closure of the Campaspe system. You can’t save something from nothing,” Mr Walsh said.
The Nationals Member for Rodney Paul Weller said his greatest concern was for the future of those involved.
“The loss of this water is going to have long-term economic implications for Rochester in particular, which relies heavily on agricultural industries,” Mr Weller said.
“It’s vital that the government assists Campaspe irrigators wishing to connect to the Goulburn system so there’s no disruption to their business.
“The government must reduce any red tape and streamline the process so irrigators can continue with the important task of food production,” Mr Weller said.

Shadow Minister for Country Water Resources and Deputy Leader of The Nationals Peter Walsh has criticised Member for Gippsland East Craig Ingram for supporting a plan to have Victorians drink purified sewerage water.
Mr Walsh said Mr Ingram had suggested to the Brumby Government that adding recycled sewerage to potable water supplies was a ‘credible and viable option’.
“During Parliament this week, Mr Ingram made it clear that he does not support any additional storages in Gippsland to supply the urban and food production needs of East Gippsland,” Mr Walsh said.
“He would prefer instead to add recycled water to the drinking supplies of Bairnsdale, Paynesville and Metung.”
Mr Walsh said Mr Ingram had articulated his views on adding recycled sewerage to potable water supplies in his dissenting report to the Environment and Natural Resources Committee’s Inquiry into Melbourne’s future water supply.
In the report, Mr Ingram stated:
‘The committee should have supported a much stronger position on purified recycled water.’
In criticising the majority report for failing to recommend recycled water be added to drinking supplies Mr Ingram said:
‘In my view the committee has not shown appropriate leadership on this issue.’
“It would appear Mr Ingram is peddling one view among his Labor mates in Parliament and another in his electorate,” Mr Walsh said.
“The voters of Gippsland East might have something to say if they knew their local member was advocating a plan to add recycled sewerage water to local drinking supplies.”
Mr Walsh said the Victorian Liberal Nationals Coalition supported stormwater harvesting and the use of recycled water but only for non-drinking purposes.

Member for Swan Hill, Peter Walsh, today called on the Brumby Government to immediately halt the roll-out of the much maligned ‘smart meters’.
“Just five months after the Energy Minister, Peter Batchelor, boasted of the benefits of the Brumby Government’s smart meters, such as its time of use pricing, he is now acknowledging that this is another government project that simply doesn’t work,” Mr Walsh said.
“Victorians are once again being asked to put their hands in their pockets and pay for another project that is beset with delays, massive cost blow outs and, as we now know, limited functionality.
“This project’s costs have blown out from $800 million to $2.25 million, is at least 12 months late and now we are finding out that the benefits that are supposed to come from the meters are not going to eventuate.
“While it continues to force consumers to pay for smart meters that they don’t want, won’t get until some unspecified time in the future and that don’t do what they are supposed to, the Brumby Government is burying its head in the sand,” he said.
“The government is in a policy panic and is refusing to acknowledge the community anger over the bungled project that has been dubbed the Myki of metering.
“It is essential that this whole project be put on hold until all concerns about its implementation are resolved.
“I urge members of the community to continue to support the Coalition’s concerns and sign the petition circulating in the electorate or available from my office,” Mr Walsh said.

Member for Swan Hill, Peter Walsh, is encouraging all business people and employers to attend the Fair Work Act seminar to be held in Swan Hill on Tuesday March 30.
“There are a number of new minimum standards that every employer must be aware of and this seminar will explain very clearly the legal obligations that employers must comply with,” Mr Walsh said.
“This is an excellent opportunity for business people and employers to be brought up to date with the latest changes to the Act and other important issues such as the complex matter of Superannuation.
“It is not often that we have the opportunity to be addressed in Swan Hill by those directly involved with these matters and it is important that we take advantage of this when provided,” he said.
The free seminar will be held at the Best Western Resort commencing at 9.30am and will run for about 2½ hours.

Member for Swan Hill, Peter Walsh, encourages not-for-profit community groups that offer early childhood services throughout the Electorate to apply for funding through the Foundation of Rural & Regional Renewal (FRRR) Rural Early Childhood Program 2010 (REACH) Grants program.

The grants are to assist early childhood services in small rural communities.

“The REACH program is sponsored by Vincent Fairfax Family Foundation (VFFF) which targets rural communities with a population of 10,000 or less people,” Mr Walsh said.

As part of the 2010 grants program $450,000 has been made available for projects within rural Victoria. Grants will be made available in amounts up from $1,000 to $20,000 to not-for-profit organisations with an Australian Business Number (ABN).

The following projects can be funded under this program:

• Interior & exterior refurbishment;
• Educational resources;
• Training & professional development;
• Heating and cooling;
• Water (tanks, irrigation, drinking supply);
• Indoor equipment;
• Information technology;
• Outdoor equipment; and
• Community gardens.

Application forms and guidelines are available at www.frrr.org.au or from Mr Walsh’s office. Applications must be submitted by post to FRRR PO Box 41, BENDIGO 3552 by 14 May.

Grant enquiries can be made by calling 1800 170 020 or email: info@frrr.org.au

Member for Swan Hill, Peter Walsh, yesterday attacked the Brumby Government in Parliament over the lack of available police officers in rural Victoria.

“The issue of community safety and concerns about a lack of police services are not limited to Melbourne and large regional cities,” Mr Walsh said.

“Pyramid Hill is a one-man police station which not had an officer since late last year and the community is still unaware of when that position will be filled,” he said.

“A recent incident in the community highlighted the residents concerns about a lack of a police presence in the town.

“An unknown, intoxicated and possibly drug affected man entered the Pyramid Hotel. When he was refused service and asked to leave he went on a rampage abusing staff and patrons in the dining room of the hotel.

“In the process he smashed a glass door and showered diners and their families with glass.

“The hotel management, fearing for the safety of patrons and staff rang the emergency 000 number only to be informed that there were no police available in the area to assist.

“As a result, for the rest of the night the hotel management were left fearing the return of the individual and the possibility of a number of potentially disastrous scenarios if that was to happen.

“Through no fault of his own, and despite operating a very well managed and family orientated establishment in a small community and now paying an exorbitant liquor licensing fee so that these sorts of issues can be addressed, this publican and the community of Pyramid Hill have been left to ‘hang out to dry’ due to a lack of adequate police numbers in the region.

“Instead of hiding behind a veneer of political spin it is time the Brumby Government addressed the issues of police staffing in country Victoria and ensured that there are enough police to meet the emergency needs of country residents,” Mr Walsh said.

The Victorian Parliament has rejected a second water order that would have allowed the Brumby Government to break key promises to communities and the environment.

The Victorian Liberal Nationals Coalition late last night moved a further motion in State Parliament’s Upper House to disallow parts of the Brumby Government’s second order which outlined water sharing arrangements for savings made through the Food Bowl Modernisation Project.

Shadow Minister for Country Water Resources and Deputy Leader of The Nationals Peter Walsh said the Brumby Government had failed to uphold its end of the bargain.

"John Brumby is treating food producers, regional communities and the environment with contempt," Mr Walsh said.

"The Brumby Government is already looting 20 billion litres of environmental water from the Goulburn River system.

"This water order would have put in place the legal mechanism for the government to take water from northern Victoria without fulfilling the commitments it gave food producers and the environment."

Mr Walsh said under the Brumby Government’s original plan, all savings from Stage 2 of the Food Bowl Modernisation Project were supposed to be shared equally between food producers and the environment.

"According to Labor’s water order, savings will be shared

‘based on future negotiations with the Commonwealth’," Mr Walsh said. 

"The government wants a legal loophole out of the few commitments it gave food producers and the environment in return for raiding northern Victoria’s water."

Mr Walsh said it was a well-documented fact that Melbourne was not in immediate need of water from the pipeline.

"Labor’s arrogant approach to the north-south pipeline shows just how out of touch John Brumby has become with Victorians," Mr Walsh said.

"We will not stand by while the Brumby Government gazettes an order that enables it to break more commitments to those who are already suffering from a lack of water."