Commenting on the Water for Victoria Discussion Paper, which the council is making a submission to, Cr O’Connor said it was the perfect opportunity to safeguard and increase production in dry times and under increasing financial pressure.

“The recent poor spring season and prolonged dry autumn has highlighted the industry’s vulnerability in what appears to be a changing climate,” he said.

“The fact that less than 40 per cent of the current entitlement for groundwater is being utilised does suggest the potential for increased production is being wasted.

“There is a lot of people missing out on the chance to sell their water right and a lot of people missing out on the opportunity to use some of that water.”

Cr O’Connor said the Dilwyn aquifer, which stretches across much of south-west Victoria and south-eastern South Australia, was a “hidden treasure”. “It would be an enormous missed opportunity if further study into its potential does not occur.”

“I believe a system of conservative allocation, along with an effective exchange regime and a use-it or lose-it system should be adopted so as the asset will be allocated and used efficiently,” he said.

Cr O’Connor said more study was needed. “I believe the Water For Victoria Discussion Paper should pursue the opportunities both with the current under-utilised agriculture water allocations and realising the potential of the Dilwyn aquifer,” he said.

“If a pilot program finds tapping the Dilwyn aquifer is technically feasible and financially viable… then the south-west would be very capable of increasing its output significantly.”

Cr O’Connor said $140 million had been pledged in Tasmania for new irrigation initiatives. “As a result, Tasmanian milk supply has grown by 25 per cent over the past five years and investment on-farm is growing rapidly,” he said.