13 November 2006

LOSS OF CONFIDENCE IN DNR AS CUTBACKS WORSEN

Enquiries by Murrumbidgee Irrigation and other groups in the Valley have confirmed that the allocation cuts announced last Friday by the Department of Natural Resources (DNR) were short of the mark.

The DNR announcement of November 10 stated that “There will also be a reduction in general security accounts equalling 5% of entitlement to 10% down from the 15% previously announced”. This announcement referred to the amount of water available prior to the end of February and did not suggest that the additional 3% post-February water was at risk. DNR also announced a reduction in high security allocations from 95% to 85%.

It has now been confirmed that the 3% available post-February may not be delivered and has been withdrawn from the Department's allocation announcement.

Based on this information Murrumbidgee Irrigation 's previously announced reductions in general security allocations from 24% to 18% must now be revised to 15%. High security remains at 85%. Prior to this latest information MI had commenced work to advise all customers of their revised accounts and work with them to ensure new targets were met. This work must now recommence on the basis of the information provided.

Managing Director of Murrumbidgee Irrigation Brett Tucker said that the information provided by the DNR was misleading and that the cuts will bite deeper in the Murrumbidgee .

“Only after MI and other Murrumbidgee Valley groups questioned the Department on these figures has it now become clear that the announced cuts are in fact higher than those announced. We do not believe that irrigators have been provided with all the facts”.

“We have acted swiftly and in good faith based on the information provided by DNR to advise our customers of the situation and to work with them towards solutions. The fact that the situation is far worse will have disastrous consequences for our customers and the Company”, said Mr Tucker.

“DNR cannot make it rain or produce more inflows however they have an obligation to pass on accurate and timely information so that informed decisions can be made. DNR must provide all Murrumbidgee customers with actual data on the status of water in the Valley so that we can have some confidence for business planning.”

“We call on Minister Macdonald to provide clarification on this issue and seek assurances that the information will be provided immediately.”