1. 1 Irrigation Australia Conference 2014 MID2030 Modernisation Project’s OUTLET RATIONALISATION PROGRAM Ashley Oldham

2. 2 Introduction Southern Rural Water – Macalister Irrigation District Outlet Rationalisation Program Summary Why a Rationalisation Program - Benefits How the program works Case Studies On-farm changes post rationalisation Program Outcomes

3. 3 Southern Rural Water – Macalister Irrigation District

4. 4 Service approximately 10,000 customers – 1,100 in MID Secure water supplies Good rainfall (600mm/yr) Productive soils Strong dairy and beef industry Developing vegetable and cropping industries Economic contribution of $500+ million per annum to Victoria’s economy

5. 5 Summary of Rationalisation Program Program funded by customers that provides them the opportunity to modernise their outlets Customers eliminate low use outlets Elimination of other water delivery assets Calculate savings through Whole of Life cost analysis Positive Whole of Life cost –New modernised outlet(s) constructed at no cost to customer –Connection works conducted with excess savings Negative Whole of Life cost –Customer funds difference of outlet works –no connection works

6. 6 Why a Rationalisation Program In response to customer demand To reduce liabilities by reducing assets

7. 7 How the program works - process Customers submit application form The application is discussed with customer Whole of Life cost calculation Upon agreement Security Deposit paid Farm Consultant assesses rationalisation and produces report Approval is sought through a review panel Once approved - works are scheduled

8. 8 How the program works – Whole of Life Cost calculation Total Savings$100,000 Outlet Construction-$40,000 On-farm Connection Works-$25,000 SRW Asset Works-$15,000 NET SAVINGS$20,000

9. 9 How the program works - program features Customer participation is voluntary Assessment equity Program and assessment rules are clear Assessment includes independent farm irrigation advice: Support good practice irrigation Identifies on-farm works required and links to long term farm plans Funded asset abandonments, rationalisations and reconfigurations are compatible with proposed system upgrades

10. 10 What are the benefits of a Rationalisation Program? SRW Benefits Reduces future modernisation and maintenance costs Improved measurement accuracy Increases delivery efficiencies Encourages on-farm investment Facilitates regional economic growth

11. 11 What are the benefits of a Rationalisation Program? Customer Benefits Access to modernised meters now - a meter replacement program years away Increase production - higher and more consistent flow rates Improved lifestyle – flexibility of automated start and finish times

12. 12 Difference from Murray Darling Basin modernisation/rationalisation schemes Not in Murray Darling Basin – government funding not a priority Customers have had to largely fund program Not trying to reduce the size of the district Eliminate spur channels Not necessarily to the backbone

13. 13 Case Study 1 – Before Map

14. 14 Case Study 1 – After Map

15. 15 Case Study 2 – Before Map

16. 16 Case Study 2 – After Map

17. 17 On-farm changes post rationalisation

18. 18 On-farm changes post rationalisation

19. 19 Program outcomes Customer Consultation Face to face communication works best High Rationalisation Rate 14 Modernise - 18 Eliminated 2013 rationalisation rate of 56% 2014 rationalisation rate of 75% Farm Consultant Customers felt put at ease Further Customer Investment ~80% invested further on-farm Personally & funding application Positive Customer Survey Responses All would recommend the program to other customers

20. 20 END