Irrigators call for Wentworth Group of Concerned Scientists chair to resign

Wentworth Group of Concerned Scientists chairman Robert Purves’ position is being labelled “untenable” over his Duxton Water shares.

Robert Purves has been called on to resign, or sell shares in Duxton Water, after revelations that he has been buying up shares since 2018, while as Wentworth Group chairman he has been calling on the Federal Government to buy more irrigators’ water for the environment.

Irrigators have called on the multi-millionaire chairman of the Wentworth Group of Concerned Scientists to resign or sell his six million shares in one of the Murray Darling Basin’s largest water market speculators.

The call follows revelations that Robert Purves has been scooping up shares in Duxton Water since 2018, while as Wentworth Group chairman he has been calling on the Federal Government to buy more irrigators’ water for the environment.

NSW Nationals Senator Perin Davey said “here’s a bloke, who through the Wentworth Group is advocating for more water recovery for the environment, which has consequences for the water market in pushing up prices,” Senator Perin said. “Then he could benefit from constraints on the water market.”

National Irrigators Council chairman Jeremy Morton said Mr Purves’ position was “untenable”, given he was a Duxton shareholder who could benefit from the policies the Wentworth Group is advocating.

Victorian Farmers Federation water council chairman Andrew Lehy said Mr Purves should “resign or sell his Duxton Water shares”, given the potential conflict.

Not only does Mr Purves stand to gain from the adoption of the Wentworth Group policies, his Purves Environmental Fund makes regular donations to the Group — $200,000 in 2020 and $347,000 in 2019, or close to half its annual budget. They also share the same office suite in Macquarie St, Sydney.

Mr Purves appears to have been profiting from Duxton’s water trade since May 2018, when he first bought 3.13 million Duxton shares for about $1.15 each, which pay regular dividends.

Since then the Purves Group of companies — Endurance, Defender, Elata, Inari, Omura and others — have each been buying small parcels of Duxton Water shares.

ASX documents show as of June 17 this year the Purves Group had acquired almost 6.05 million Duxton Water shares, now worth $1.395 each or a total of $8.44m, which represents a 5.05 per cent stake in the Basin speculator.

In responding to questions on his Duxton investment and role as Wentworth chairman Mr Purves said: “my family has been in agriculture for four generations and own properties in southern NSW — we know water is an important part of agriculture”.

“We’ve got a diversified portfolio in agriculture, including water holdings such as Duxton and proudly hold irrigation licences directly growing fodder for our sheep and cattle,” he said.

The Weekly Times is not suggesting Mr Purves has acted improperly.

To date the Federal Government has recovered about 2107 gigalitres under the Murray Darling Basin Plan, mostly from irrigation communities.

But the Wentworth Group has repeatedly called for the Government to re-enter the water market to deliver an additional 450GL for the environment, rather than putting all its funds into trying to recover water it saved by boosting the efficiency of irrigation infrastructure and management.

On December 6, 2019, Mr Purves and other members of the Wentworth Group wrote a letter to the Federal Water for the Environment Special Account Review, stating: “recovering water (for the environment) through (irrigation) infrastructure upgrades is between two and seven times more expensive than water purchase”.

The Wentworth Group called on the Federal Government to instead “lift the (existing) 1500 GL cap on (federal irrigator) buybacks to allow for strategic water purchase towards the 450 GL target”.

Meanwhile Duxton chairman Ed Peter has stated water prices are simply going to keep on rising.

Mr Peter told investors at a Zoom briefing in June that the shortfall in water would continue across the basin, given the Government had already bought out 31 per cent of irrigators high security and 27 per cent of their general security entitlements and permanent plantings were booming: “We’ve got ‘Economics 101’ supply and demand imbalances that are
so perfect you couldn’t make a better story (for investors).”

The Weekly Times is not suggesting Mr Peter has acted improperly.

• Mr Purves is a founding member of the Wentworth Group of Concerned Scientists and a director of the Climate Council of Australia, World Wide Fund for Nature Australia, Environmental Custodian Ltd, Bradham Investments, Bray Holdings, Carwoola Pastoral and numerous other property and investment companies.

THE WEEKLY TIMES’ VIEW: END THE ‘CONFLICT’

Irrigators are right to demand Robert Purves either sell his six million Duxton Water shares or quit as chair of the Wentworth Group of Concerned Scientists.

The wealthy philanthropist cannot be at the forefront of advocating the Federal Government buy more water out of irrigation communities, while holding shares in a speculator that makes money out of rising water prices.

The Federal Government has already stripped 30 per cent of the consumptive water from Southern Murray Darling Basin communities for the environment, of which 1228 gigalitres was taken through buyouts.

These communities cannot afford to lose another 450GL in further buyouts, as the Wentworth Group demands.

Less water in the consumptive pool means higher water prices, even when there’s just a whiff of drought in the seasonal outlook.

Sadly Mr Purves seems oblivious to the potential conflict, simply stating his Duxton Water shares are part of his “diversified portfolio in agriculture”.

But that $8.4 million stake in Duxton was not casually bought overnight. It was put together over three years, through 69 trades that were parcelled up with 10 of Mr Purves’ firms.

It’s worth noting the Wentworth Group have been vocal critics of what it calls the lack of transparency in the Northern Basin, whacking the NSW Government around the ears on its failure to detail compliance and enforcement arrangements.

Well transparency should cut both ways, something Mr Purves should know.

There’s nothing stopping this multi-millionaire philanthropist putting an end to concerns about his potential conflict by selling his Duxton shares.

How about it Mr Purves?

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