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Media Release - Ministers Office

Sydney: 12 July 2005


AGREEMENT REACHED ON BARWON DARLING CAP

An agreement to implement the Murray Darling Basin Cap on the Barwon Darling River has been reached following a meeting in Sydney today.

Present at the meeting were: Craig Knowles – NSW Minister for Infrastructure, Planning and Natural Resources; John Anderson – Federal Member for Gwydir; Doug Miell – NSW Irrigators Council Chief Executive; Wayne O’Mally – Mayor of Bourke Shire Council and local grazier; David Boyd – CEO Clyde Agriculture; Bob Smith – Tandou Pty Ltd; Ian Sinclair – President of the Murray Darling Basin Commission; Wendy Craik – Chief Executive Officer of the MDBC; Mark Etheridge, Arthur Davies and Allan Whyte representing downstream interests.

Minister Knowles welcomed the agreement stating: “The proposal agreed today is a positive way forward for the communities along the Barwon Darling River and for the river itself.

“Significant steps have been made with the cooperation and goodwill of all involved.

“I praise all involved, especially the NSW Irrigators’ Council’s recent resolution on this issue.”

Doug Miell from NSWIC welcomed today’s Barwon Darling Cap Agreement:

“The principles agreed will provide long term security and certainty to all entitlement holders.

“Critical to concluding this agreement will be the successful negotiation of the elements of the Water Sharing Plan. This is the challenge that NSWIC will now positively engage.

Wayne O’Mally said: “I am confident that the Water Sharing Plan process will allow for critical input from the community and industry in Bourke to finalise outstanding issues.”

Allan Whyte said: “I welcome the agreement to implement the Cap and am confident the Water Sharing Plan can resolve remaining issues.”

The principles of the agreement include:

- Acceptance of a starting point of the Cap figure of 173GL based on 93/94 development and subject to adjustment by metering and model calibration.

- An initialisation volume of approximately 170GL in addition to year one allocations. This will be credited to active water users’ accounts to assist in the early years of transition.

- Carryover provisions which will allow water unused in any year, to be used in subsequent years.

- Introduction of trading rules to assist industry to adapt to the Cap.

- A phase-in of the Cap to give industry time to adjust.

- The current embargo on development to be progressively removed.

- A Water Sharing Plan to be developed which will not require any further reduction in the Cap.

- Low flows will be protected from extraction by interim rules on carryover.

Issues to be addressed in the Water Sharing Plan include:

- The final weighting in allocation and distribution of the Cap entitlement.

- The length of the adjustment period.

- Trading rules.

- End of system thresholds for extraction in dry years.

- CMAs will coordinate the development of the Water Sharing Plan with relevant stakeholders.

To mark the commencement of the rollout of the Cap, all entitlement holders will be notified of the Cap details.


 


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