A growing group of Murray Irrigation Limited shareholders is calling for an immediate pause to the company’s newly introduced pricing framework and water management strategy.
Hold tight - we’re checking permissions before loading more content
They argue that major changes affecting water costs and resource distribution have been implemented without sufficient transparency or consultation.
The concerns were aired at a shareholder-only meeting held at the Deniliquin RSL Club Tuesday last week, chaired by Bunnaloo irrigator Antony Vagg.
The gathering brought together irrigators, landholders, industry representatives and advisers on the eve of the new arrangements which took effect from July 1.
The meeting followed concerns first raised publicly in May through a letter to the Pastoral Times co-signed by multiple shareholders.
Organisers said the purpose of the meeting was to share information and facilitate a robust discussion about the future direction of the shareholder-owned irrigation company.
At the centre of the debate is a new fees and charges framework adopted by the MIL board in early May.
Under the revised model, fixed fees linked to delivery entitlements (DEs) have been removed and replaced with a greater reliance on variable water delivery charges based on actual usage.
Outlet fees have also been recalibrated to align with cost recovery measures, while annual indexation tied to CPI will apply.
MIL has stated the revised structure is expected to reduce or maintain average costs for around 80 per cent of customers.
The board has also acknowledged that the changes create a higher level of financial risk due to increased reliance on variable revenue, but argued those risks are manageable and necessary to address inequities in the existing fee system.
Many shareholders at last week’s meeting questioned both the rationale for the changes and the information provided to support them.
Consultant John McKinstry, who was engaged by landholders, presented analysis suggesting MIL had generated consistent positive cash flow over more than a decade, challenging claims that significant monetisation of water resources was required to ensure the company’s long-term financial sustainability.
A major point of contention was the treatment of efficiency water and the proposed removal of resource distributions.
Shareholders expressed concern that active irrigators could face reduced access to water while carrying higher operating costs under the new arrangements.
Several speakers argued the benefits generated through irrigation modernisation projects, funded by shareholders, were originally intended to flow back to irrigators through improved water availability and lower costs.
Attendees repeatedly raised concerns about access to information, with many expressing frustration at what they described as an inability to review detailed financial modelling, assumptions and distributional impacts underpinning the changes.
Trust emerged as a recurring theme throughout the meeting.
Several shareholders described engagement with the board and management as inadequate, with one irrigator characterising the process as “opaque and cloak-and-dagger”.
Others warned that poor communication was fuelling uncertainty and division within the irrigation community.
Younger irrigators were among the most vocal critics of the proposed changes. Blighty dairy farmer Christian Steenholdt described the reforms as a “breach of trust”, arguing they ran counter to the original objectives of irrigation modernisation.
“It’s putting an extra tax on water users that compounds negatively over time,” he said.
Participants also raised concerns about the longer-term implications for farm succession, investment confidence, regional employment and the future viability of irrigation-dependent communities across the southern Riverina.
Following the meeting, shareholders agreed to pursue a more formal review process and established an interim Concerned Shareholders Group committee to coordinate future action.
The group’s immediate priority is circulating a petition to all Murray Irrigation shareholders.
It seeks support for an immediate pause to the new fees and charges framework, full disclosure of the financial modelling and assumptions behind the reforms, and the establishment of a cooperative review process involving shareholders and the MIL board.
Shareholders are also proposing the creation of a joint review committee comprising shareholder representatives, MIL directors and an independent chair.
The committee would examine the company’s broader strategy over the next 12 months, including the Water Solutions Pilot, the treatment of efficiency water, governance processes, risk assessments and alternative policy options before transitional arrangements expire.
Concerned Shareholders Group spokesperson Marty Robertson said the objective was not confrontation but constructive engagement.
“This is about getting the facts on the table before decisions become locked in,” Mr Robertson said.
“Shareholders are not asking for conflict. We want to work cooperatively with the Murray Irrigation Board, but we believe the current fees and prices should be paused immediately while shareholders are given a proper opportunity to understand, test and respond to the proposed changes.”
MIL Board Chair Phil Snowden has rejected claims about a perceived lack of consultation and information on the new fee structure, saying the company had thorough interactions with shareholders before the new fee structure was approved.
"We have been through an extensive engagement process prior to deciding to implement this change.
“A temporary moratorium on the transfer and termination of DEs has been put in place until June 30, 2027.
“The board is committed to engaging with shareholders during this moratorium period to consider the management of DEs moving forward.”
Mr Snowden said there is a wealth of information on the structure online which can be accessed at any time.
Shareholders are also welcome to contact the company for further information.
“The company put together a detailed landing page, presentation, frequently asked questions and fact sheet outlining what this change means for the company and the customers,” Mr Snowden said.
“I encourage shareholders to view that information, which is all available on the company’s website."
For full details on the structure, and MIL’s consultation processes, go to https://www.murrayirrigation.com.au/fee-structure-review-2026.
At the bottom of the web page are links to a fact sheet, frequently asked questions page and the ‘Irrigation outlet fee review’ report.
To sign the Concerned Shareholders Group petition, go to www.milcsg.com.au.