I have received a contingency planning report on the water shortages in the Murray-Darling Basin.
The report reveals an unprecedented situation in the Murray-Darling Basin in relation to irrigation allocations unless significant rain falls in the next month.
Based on the need to provide a critical minimum supply of water to urban communities within the Basin, there is unlikely to be any water available for irrigation purposes at the commencement of the upcoming water year (1 July 2007).
The report states that:
"Unless there are very substantial inflows prior to mid-May 2007 there will be insufficient water available to allow any allocation at the commencement of the 2007- 2008 water year for irrigation, the environment or any purposes other than critical urban supplies."
If there are no allocations possible, it will have a potentially devastating impact on horticultural crops like grapes and stone fruits and other primary industries that rely on irrigation such as the dairy industry.
Some farmers will be entitled to draw on the system for their personal needs. All farmers in the MDB are eligible for Exceptional Circumstances payments Our experts are meeting to put in place contingency plans to ensure MDB communities have a critical minimum water supply and to examine other measures to assist irrigators.
If some states were to exercise their rights under the current Murray-Darling agreement, communities in those regions may not have access to critical water supplies.
I have written to the Premiers seeking their cooperation to ensure this does not happen and I expect no difficulty with this approach.
The Minister for the Environment and Water, the Hon Malcolm Turnbull MP will assist me in managing the Commonwealth's response.