National Water Initiative
On 25 June 2004, COAG (Council of Australian Governments) approved the National Water Initiative (RTF). The agreement was endorsed by all states except Western Australia and Tasmania and will result in $500m being allocated to the Murray-Darling river system. It will also see 500GL of water released for environmental flows.
A National Water Commission (NWC) will be established to accredit state implementation plans, provide advice to COAG on national water issues and will undertake the 2005 National Competition Policy water reforms.
State and Territory governments will be responsible for water planning under the NWI. They will determine if a plan should be prepared for each region, what issues it should cover and its duration and review.
Water provided for environmental and other public benefit outcomes such as good quality drinking water and recreational water use will be given statutory recognition and the same degree of security as water for consumptive use.
The NWI covers both surface and groundwater for rural and urban use. Water access entitlements will be fully tradeable. Holders of entitlements will bear the risk of reductions in water allocations due to climate change, bushfires and drought. Users will bear the risk of reductions in entitlements until 2014 of improved scientific knowledge of water system capacity to sustain particular extraction levels. Governments will have to compensate users for changes in entitlements resulting from changes in government policy.
States and Territories will establish upper bound pricing for metropolitan systems by 2008 and pricing policies for recycled water and storm water will be developed by 2006.
In the southern Murray Darling basin, legislation will be established by June 2005 to place threshold limits to water trade out of irrigation areas of four per cent a year, with regular assessment of progress and regional impacts.
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In June 2004, the Living Murray Local Government Alliance released their report on the socio economic impact of increased flows in the Murray system. The alliance is made up of nine municipalities and concludes that if environmental flows are increased by 500 gigalitres, there will be severe impacts on some communities.
The Parliamentary Committee inquiring into future water supplies released a report in June 2004.
