Murrumbidgee Irrigation

Today's announcement by the Prime Minister of a $10 billion, 10 point plan to address Australia 's water issues has been welcomed by Murrumbidgee Irrigation (MI). Particularly welcomed is the national focus and investment in infrastructure by the Federal government.

As a private company MI has spent hundreds of millions of dollars in improving efficiency and sustainability of water resources in the MIA region, with plans to spend another $100 million in the near future. MI's existing programmes of Integrated Horticulture Supply, redevelopment of Barren Box, Doppler-meter implementation and MIA EnviroWise all seek to improve the water efficiencies in our region for sustainable agricultural and water resources.

Further detail of each of the 10 points is required before the full impacts of the Plan on our irrigators in the region can be realised. However there are some issues of immediate concern. Dick Thompson, Chairman of MI said “I believe the Federal government's initiative to invest heavily in irrigation infrastructure is a positive outcome. On behalf of our company and our customers, I will be seeking clarification on this National Plan and will raise our immediate concerns with the government.”

At this preliminary stage, MI's chief concerns include what is meant by ‘over-allocation' in the Murray-Darling Basin (MDB) and how this new initiative proposes to deal with it as well as the Prime Minister's comments in regard to exit fees.

“Over-allocation has become a term used by some to describe the NSW system because they don't understand it. This new Plan refers to resetting water sharing plans and the MDB cap on extractions to achieve ‘sustainable levels'. I urge the government not to throw out the very basis of our property rights in order to address over-allocation. This should be done through savings or purchasing water from willing sellers,” Mr Thompson said.

Of particular concern to irrigators in this region is the Prime Minister's comment in regard to termination or exit fees (fees to be paid by water users when water is permanently sold outside of the region to meet the costs left behind). The Prime Minister indicated that the States should insist on irrigation companies implementing the recommendations from a recent ACCC study.

“Irrigation corporations and State governments had already reached a fair and equitable agreement on how these fees should be set. We do not agree that the ACCC's recommendations have now become the ruling. Any move in this direction will have adverse and unfair impacts on irrigators,” Mr Thompson said.

Murrumbidgee Irrigation will now seek to play an active role in the further development and implementation of the Plan. We will work through our concerns and discuss opportunities offered by the Plan with the Prime Minister, Minister Turnbull and the NSW government,” concluded Mr Thompson.