1 July 2008

2008/09 ALLOCATION ANNOUNCEMENTS AND CHANGES TO CARRY OVER

Murrumbidgee Irrigation (MI) welcomed changes to carry over rules in the Murrumbidgee Valley as part of today's NSW Department of Water and Energy (DWE) announcement on commencing allocations for NSW water users in the Murrumbidgee Valley for the 2008/09 water year. In brief this announcement included:-

* sufficient water available to meet the critical domestic needs of town water supply for the whole of 2008/09;
* sufficient water available to deliver all water carried over from 2007/08
* 0% for high security users
* 0% for general security users
* An increase in the Murrumbidgee Valley carryover limit to 30% commencing in 2008/09 and for 2009/10 (from 15% in 2007/08)
* An immediate embargo placed on the conversion of general to high security entitlements or vice versa. This will remain until the Department has reviewed conversion rates in consideration of long term forecasts of reduced water availability
* All water in accounts is tradable from 1 July 2008

"Murrumbidgee Irrigation has pushed for an increase in the carryover limit for some time", said MI Chairman Dick Thompson.

"Climactic conditions are impacting on the reliability of our customers' entitlements, particularly general security users and so we have actively pursued an increase in carryover as an opportunity for these customers to better manage risk in this area," he said.

MI also welcomed the embargo on further conversions until a review has been conducted. "From the outset we have held concerns over the potential for conversions to impact on third parties, particularly under present circumstances and have on numerous occasions made the Minister and the Department aware of these concerns," said Mr Thompson.

"The ability to convert from one type of security to another is provided for under the Water Sharing Plan, however the due diligence on the potential impacts from such conversions required review given record dry conditions. We made this clear to the Department, however a decision was made to allow conversions in 2007/08."

Since that decision, MI customers have converted over 90,000ML of general security entitlement and there has been significant interest in further conversions. "Beyond the two completed rounds, the embargo means this will not be possible for customers at least until a review has been conducted, however we have repeatedly advised customers that due to concerns over potential impacts, further conversions were not guaranteed", said Mr Thompson.

MI also worked closely with the Department to ensure there was sufficient water available to guarantee carryover from 2007/08 in the 2008/09 season.

Ends
For further information regarding this media release, please contact Matt Linnegar at Murrumbidgee Irrigation on 02 6962 0200.