1 March 2007

EXTRA WATER WELCOMED BY MI AND FARMERS

NSW Minister for Natural Resources Ian Macdonald announced this morning an increase in high security allocations for users in the Murrumbidgee Valley. Murrumbidgee Irrigation (MI) has for some time been in negotiation with the NSW Government to find additional water to deliver essential supplies for the region.

Managing Director for Murrumbidgee Irrigation, Brett Tucker, has welcomed the Minister's announcement.

“We've been liaising with State Government for some time regarding the critical risks from inadequate water supplies over the remainder of the growing season. Additionally we've been working closely with the Department of Natural Resources (DNR) to identify potential solutions. The Minister's decision reflects those solutions discussed and confirms that the NSW Government has listened to our predicament, and done something about it.”

Mr Tucker pointed out that customers with high security water within MI have already been offered an enhancement from 85% to 90% if required for use on farm. Today's announcement locks in the 90% availability for high security customers and will allow MI to deliver some essential supplies after March, including water for towns, industry and permanent plantings.

MI reminds customers that the majority of the system will remain closed from the end of March until next season, unless seasonal conditions significantly improve. MI is currently working on the details of how the system will be operated post March, including proposed essential access arrangements. Early next week we will again write to all customers advising of these specific arrangements.

Mr Tucker said that MI remains committed to working with customers and the NSW Government to achieve the best possible outcomes given the circumstances. It has been a very difficult season for the Murrumbidgee Irrigation Area and although today's announcement has provided some relief, storage levels for this region still remain at critical levels.

As part of MI's commitment to keeping customers informed immediately information is available, MI urge all shareholders to join the free Quick Access fax or email contact list as well as to check their website daily at www.mirrigation.com.au .

The State Government also announced today streamlining of the application process for the $20 million Extraordinary Assistance Program. Applications close Friday, March 9 2007. Further information can be obtained from the Rural Assistance Authority on 1800 678 593 or www.raa.nsw.gov.au.