Murrumbidgee Irrigation

In response to today's Department of Natural Resources (DNR) announcement of the suspension of the Murrumbidgee Water Sharing Plan, Managing Director of Murrumbidgee Irrigation Brett Tucker announced the following position for Murrumbidgee Irrigation customers.

The Plan suspension will result in reductions in water allocations for both general security and high security users. This involves a 25% reduction in available water for general security users or in other words a reduction from 24% to 18% in announced allocation.

For high security this involves a 10% reduction in availability or a cut in announced allocation from 95% to 85% however high security users will be able to carry over any unused water to the 2007/08 season. The ability for high security users to carry over is an emergency provision in light of cutbacks and will be in place for one year only.

The driving force behind the cuts lie in reduced inflows and substantially higher than predicted river losses in Murrumbidgee leaving everyone involved in completely uncharted territory. This has resulted in an estimated shortfall in the Valley of 140,000ML.

Mr Tucker said “these cutbacks couldn't have come at a worst time for our customers particularly occurring mid-way through the season, however despite our best efforts to mitigate against these impacts, the water simply isn't there.

”On a more positive note the payback of the 2002/03 Snowy water advance has been deferred. In negotiations we have clarified the original agreement and confirmed that allocations to participants will not be reduced this year. These customers must begin to pay back the advance as further water becomes available – either at the end of this season or from some future season,“ advised Mr Tucker. “This should allow farmers with crop to be able to get something off this season and reassess their plans for 2007/08.” Importantly, these arrangements will not impact allocations for non-participants.

DNR also announced that water trading would recommence in New South Wales and Victoria today and customers of Murrumbidgee Irrigation will now return to temporary transfer rules as previously announced. The only exception will be those who participated in the 2002/03 Snowy borrow who will not be allowed to sell water until the borrow is cleared.

Mr Tucker advised that all Murrumbidgee Irrigation customers would receive a letter as soon as possible advising of these changes and implications for both them and the company. He urged customers to attend the upcoming Annual General Meeting on the 20 November to discuss the crisis being faced.

Murrumbidgee Irrigation again advises customers and interested parties seeking further information to either contact Mr Tucker directly, Corporate Affairs Manager Matt Linnegar or refer to their website www.mirrigation.com.au for the latest announcements.