Chairman and Managing Director’s report

ChairmanChairman

Rob Skinner, Managing Director, and Cheryl Batagol, Chairman

The long-term challenge of creating a sustainable water future has been at the forefront for us in 2007/08.

Against a backdrop of continued drought, debate on climate change and low storage levels, we’ve been advancing two key projects in response – reconnection of Tarago Reservoir and the Sugarloaf Pipeline.

Through this and other major projects, our capital works program has expanded fourfold from last year to reach $1 billion in 2008/09 on behalf of the Victorian Government.

The size of this challenge – or rather, how we meet it – mandates an innovative approach.

We’ve established an alliance model for our major projects, which binds Melbourne Water and our delivery partners to share responsibility for design, budgets and timelines. It’s early days but already this approach has given us more flexibility in how we resource our projects as well as access to more know-how.

Input from the private sector led us to forge four more alliances, each lasting five years, to work towards a sustainable water future. These alliances cover our major business areas: sewage treatment, drainage, water supply, and waterways and stormwater quality.

Young people are among the most passionate sustainability champions out there. We spoke to thousands of students this year through our education programs, explaining the water cycle and giving them a personal stake in the health of their local rivers and creeks.

As the caretaker of waterways, we rolled out tree planting, weed removal and flood protection services into more parts of the urban and rural fringe. We’ve worked closely with these communities to work out what needs to be done in our new areas of responsibility, and starting from 2008/09, these programs will be supported by the waterways and drainage charge.

As a business, we’ve made clear commitments to improving the inherent sustainability of our day-to-day operations. This includes cutting net greenhouse gases to zero by 2018, a target we’ve started work on by bringing the first of six ‘mini-hydro’ plants online. These plants generate clean power from water moving around the system, and once all six are operational, they’ll provide enough energy equivalent to that used by 5000 homes.

Of everything we do, sending our people home from work safely is the most important. This responsibility automatically becomes greater in the face of an expanding capital works program, and the year was marred by what we regard as an unacceptable safety performance.

A major incident at Brooklyn left one of our employees seriously injured, requiring months of recuperation and leaving a significant impact on his family. Though not as serious, there were several other incidents involving contractors.

We’ve since developed a 65-point health and safety improvement plan, and are refocusing our business to make 2008/09 above all, a safer year.

Finally, we must acknowledge the efforts of our team at Melbourne Water. Your intelligence, passion and sheer hard work is at the core of this journey towards a sustainable water future – and something of which we can all be proud.

In accordance with the FMA 1994, we are pleased to present the Report of Operations for Melbourne Water for the year ending 30 June 2008.

30 September 2008

Cheryl Batagol
Chairman

Rob Skinner
Managing Director