Chair Update - 29 May 2025

Murray Irrigation held a Board meeting today, Thursday 29 May 2025. 

Today's Board meeting was the culmination of detailed workshops to investigate and undertake due diligence on budget, strategy and the proposed Water Fund, the latter which was explored with shareholders in September last year. These workshops provided Directors the opportunity to ask questions and request further information, to be confident that the decisions they made during the meeting are in the best interest of the business and shareholders. I would like to commend Directors, Management and external consultants for their level of work and commitment to prepare for these important decisions. There have been many extra committee meetings and workshops to get to where we are today.
 
Strategic planning process
 
Since my last Chair Update in March, Directors have continued to work closely with Management to refine the company’s strategic direction. The Board will provide further information on this document during the July Shareholder meetings, including an explanation of planned key initiatives for achieving the identified outcomes.
 
'Water Solutions' - A new water business
 
In line with the revised strategy, Murray Irrigation’s Board of Directors has approved the development of a pilot ‘Water Solutions’ business. The purpose of Murray Irrigation Water Solutions is to retain productive water in the footprint. Shareholders who attended the September 2024 meetings were supportive of Murray Irrigation “exploring new water market-based initiatives to retain irrigation water within its footprint”. This support was subject to Murray Irrigation undertaking due diligence and a pilot.
 
Water Solutions will be an extension of Murray Irrigation’s existing water investments and sales capability. It will support the retention of water for irrigation within our footprint. It will also provide sellers of Water Entitlements with an alternative buyer.
 
The Water Solutions pilot is expected to begin operating in the coming months. Further information will be made available to shareholders in the coming weeks, and during the July shareholder meetings. 

2026 Budget
 
The Board has approved the 2026 Budget.
 
Fees and prices
 
As committed to during the 2023 business review, customer fees and prices increases have been capped at CPI only (2.4%) for the 2025/26 financial year, excluding government pass through costs. 

Fees and prices will be issued in June in line with legislated notice requirements. 

On 14 May, the NSW Independent Pricing and Regulatory Tribunal (IPART) released an Information Paper relating to its review of WaterNSW prices for bulk water supply in regional and rural NSW. Under the draft decision, prices for WaterNSW Rural Valleys customers would increase by 1.9% plus inflation from 1 July 2025, and then by inflation only on 1 July 2026 and 1 July 2027.
 
This draft decision from IPART took a range of factors into account, including all feedback received from stakeholders at public hearings and through submissions to its Issues Paper. I thank MIL staff, Directors and customers for taking the time to complete submissions to this review. Collectively, we have all made a difference in the outcome of this decision. Further information on the IPART Information Paper can be found here.
 
Resource Management Strategy
 
As announced earlier today, the Murray Irrigation Board has approved the annual Resource Management Strategy. For further information you can read today’s announcement here.
 
July Shareholder Meetings 
 
Planning for the shareholder meetings to be held in July is underway. Based on shareholder feedback last year, these will be held in small group sessions of up to 20 people across the footprint. A schedule of dates and locations will be developed and communicated with shareholders over the coming weeks. All shareholders will have an opportunity to RSVP to their chosen meeting. I encourage shareholders to take the opportunity to attend a meeting at their convenience. 

Wakool Shareholder Barbecue

The next Board meeting will be held on 26 June at Wakool. After this, the Board will be hosting an informal barbecue from 1pm at the Wakool Services Club. I encourage shareholders to attend. A reminder for this event will be shared via Talking Water and text message closer to the event. 

I look forward to providing you with another update after the next Board meeting in June. If shareholders have any questions, please contact the Company Secretary on:

T. 1300 138 265
E. companysecretary@murrayirrigation.com.au
 
Phil Snowden
Murray Irrigation Chair
M: 0427 839 217

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