WATER TRADING BREAKTHROUGH WELCOMED

22 May 2006

An agreement on interstate water trade between NSW, Victoria and South Australia has been welcomed by Murrumbidgee Irrigation .

The agreement is based on a “tagged” system of trading whereby water permanently traded from one area or one state to another will retain the characteristics of the area of origin.

“Murrumbidgee Irrigation have pushed for tagged trading from the outset” said MI Chairman, Dick Thompson.

“Tagging is a far more fair and equitable system of trade as it eliminates third-party impacts. It's a better outcome for irrigators and the environment.

“We congratulate Minister Macdonald and the NSW Government, whom have championed tagging on the national stage”.

Mr Thompson also welcomed the fact that exit fees and other institutional arrangements would be opened to scrutiny by the ACCC, and that NSW and Victoria had agreed to conversion factors from general to high security.

“We have no problem allowing the ACCC to examine the basis for exit fees as we believe they are consistent with the principles of the National Water Initiative”.

“We also believe that the agreed conversion factors are reasonable”.

“This agreement is in line with what we have sought from governments on water trade and on that basis our Board have given the green light on the terms of external trade”.