27 March 2008

BASIN REFORM AGREEMENT A STEP IN THE RIGHT DIRECTION

Murrumbidgee Irrigation (MI) today welcomed the COAG Murray-Darling Basin Reform Memorandum of Understanding as a positive first step by the Commonwealth and States toward better water management across the Basin.

MI Chairman Dick Thompson said that he was pleased with discussions held with the Commonwealth to date and the contribution of these talks in conjunction with the NSW Irrigators' Council, toward greater balance in the COAG Communiqué.

“Firstly we are pleased to see that yesterday's decision remains largely in line with the National Water Initiative and National Plan for Water Security and that the Commonwealth and States have not, as some so-called experts have suggested, thrown these initiatives out the window to start again. We congratulate the Commonwealth in agreeing to bring forward risk assignment provisions in the Water Act 2007 to 2014. This is an important move in ensuring irrigators rights cannot be further eroded in relation to new knowledge about sustainable extraction levels”, said Mr Thompson.

“In addition I believe that COAG made the right decision in relation to the States retaining existing shares under the Murray Darling Basin Agreement and that management of the Murrumbidgee and Goulburn systems should remain with NSW and Victoria respectively”.

Mr Thompson said MI will seek further clarification on a number of key issues including plans to allow South Australia to store additional water in upstream dams, the inclusion of externalities in water pricing and a ‘strengthened' role for the ACCC in water pricing.

“We have no issue with South Australia storing additional water for critical human needs as long as this does not affect the rights of other entitlement holders”, he said.

“In relation to pricing, we'd like to work with the Commonwealth in understanding what role they see the ACCC playing and that the Commonwealth carefully consider the inclusion of externalities because of the difficulties and inequities in applying them”.

“While there remains much to do, the most critical of tasks for the Commonwealth and States in the future is the establishment of a new ‘cap' on sustainable yields. These valley-based caps cannot be developed without a broad suite of information and advice. This must go beyond the hydrology work of CSIRO to consider social, environmental and economic impacts and involve those with much at stake, including irrigators”.

I look forward to working with Minister Wong and at a NSW level, Minister Rees in taking this important first step to the next stage”.

Ends

For further information regarding this media release, please contact Dick Thompson, Chairman Murrumbidgee Irrigation on 02 6962 0200.