Australian Water Summit13 March 2006 - Sydney: Australian Water Summit 13 March 2006 - Sydney Ken Matthews Chairman and CEO National Water Commission


Outline: About the NWI What’s happened since signature of the NWI? How does the NWI work? Where is the current focus? Seven doubtful claims about water management in Australia Work priorities for the NWC in 2006 Outline


What is the NWI trying to do?: A new journey with no precedent What is the NWI trying to do? Reform 200 years of practice Consolidate in one document the whole of water reform Find a national approach among many different players Integrate production and environment Integrate science and economics Deal with both urban and rural issues Keep water at the front of national public policy


It’s not simple…: It’s not simple… Water is political. There are strong community views. Everyone has an opinion. There can be big winners and losers. Success relies on Commonwealth / State cooperation. Aspects of: water science; water planning; water markets; and water policy are immature. Private sector participation is just beginning. There are no silver bullets.


Grounds for Optimism: Considerable goodwill towards reform and the NWI The NWI remains the agreed national blueprint Tasmania and WA have come on board State / Territory work plans well developed Ministerial Council work plan in place Prime Ministerial priority (one of five) Grounds for Optimism


What’s happened since signature of the NWI?: What’s happened since signature of the NWI? Jun 2004 Mar Aug 2004 Oct 2004 Dec 2004 Feb 2005 Apr 2005 Jun 2005 Aug 2005 Dec 2005 Oct 2005 Feb 2006 NWI signed at COAG 9 Oct – Federal Election 10 Mar – NWC Commissioners announced 2 Jun – Tasmania signs NWI NWI workplan endorsed by Natural Resources Ministers WA commits to sign NWI


How does the NWI work?: How does the NWI work? NWI drafted NWI signed NWC accredits Plans NWI Parties prepare Implementation Plans NWC established NCP signatories prepare NCP submissions NWC assesses progress against NCP commitments NWC reports to Australian Government Parties implement NWI commitments NWC reports to COAG NWC assesses parties’ implementation


How are NWI commitments being delivered?: State-specific commitments Commitments applicable to some parties (eg Southern MDB States) Commitments requiring a national approach (eg compatible water registries) Obligations on NWC (eg to monitor impacts of interstate trade) How are NWI commitments being delivered? States and Territories Groups of relevant states NRM Ministerial Council NWC


The National Water Initiative (NWI): Water Planning Water Regulation Water Markets The National Water Initiative (NWI)


Water Management Instruments: Water Planning Water Regulation Water Markets Government Investments Water Management Instruments


NWI Progress: Significant effort is being made, especially in water planning and pricing reforms Some water trading is occurring despite incomplete trading arrangements in most states It remains critical to improve water planning as the foundation for confidence in water management Good and growing scientific understanding Genuine engagement with those affected Plenty yet to do under the NWI, eg: Water accounting Water interception Risk assignment for changes in water allocation Urban water reforms NWI Progress


RNWS Strategic Investment Areas: Implementing the National Water Initiative Water accounting Emerging water markets Water planning and management RNWS Strategic Investment Areas


RNWS Strategic Investment Areas: 2. Improving Integrated Water Management across Australia Irrigation and other rural water Water-dependent ecosystems Integrated urban water management RNWS Strategic Investment Areas


RNWS Strategic Investment Areas: 3. Improving Knowledge and Understanding of Australia’s water resources Groundwater Northern rivers National assessment of water resources RNWS Strategic Investment Areas


Seven Doubtful Claims about Water Management in Australia: That recycled sewage will never be acceptable for potable use in Australia That additional urban water supplies should not be bought from irrigators That water for the environment should be bought on the market only as a last resort That urban water use restrictions introduced during the drought should continue indefinitely That any water not taken for consumptive use is necessarily doing good to the environment That water quality and pricing should be uniform across all urban water users including industrial users That water and sewerage are natural monopolies and should therefore be provided by governments Seven Doubtful Claims about Water Management in Australia Propositions for discussion only. These ideas merit thorough public debate.


Private Sector Involvement: Infrastructure is a very live current policy issue Need to build water into the infrastructure debate No intrinsic reason why water should be a governments-only domain NWI investment security → increased investment Private Sector Involvement


Work Priorities for the NWC in 2006: Establish nationally compatible water accounting systems Clarify water access entitlements Develop effective water markets across Australia Sponsor a clear shared understanding across Australia of sustainable water management Further enhance the irrigation industry’s efficiency and sustainability Develop nationally consistent approaches to urban water resource planning that Provide for effective community engagement Include robust assessment of options to expand water supplies Encourage recycling and reuse of water, including community understanding Work Priorities for the NWC in 2006


Slide18: www.nwc.gov.au