Agriculture Reference
In-Depth Information
jurisdictions with respect to clarity or security 4 of water property rights, policy-makers
are working towards some national policy consistencies and water markets through the
National Water Initiative. 5
However, the creation of a healthy, competitive, working water market faces certain
challenges:
Allocations have generally been made on the basis of historical use, creating significant
over-allocation issues, which need to be addressed. Water management policies until
recently have tended to be reactive.
Over-allocation has resulted in detrimental impacts for downstream third parties,
including the environment.
Policy-makers have been tasked with changing the economic value of water to more
accurately reflect the environmental and social costs of water use, which has implications
for future land use. Given the time frames required to “save the river” and avoid larger
environmental costs in the future, governments need to create policies around water use
that will foster rapid structural change or adjustment. The challenge will be to do so in a
way that allows the structure of rural communities to adjust with a minimum of social,
economic and environmental casualties.
It is not intended to convey an impression that the River Murray is the sole focus of
Australian water policy, but it is one of the most important resources in Australia, and
collectively one of the most managed, albeit still requiring considerable policy alignment
between the different jurisdictions. The River Murray and its main tributaries, the
Murrumbidgee and the Darling, are collectively known as the Murray-Darling catchment,
or basin. In addition to the Australian Government, four state jurisdictions and one
territory government all have a direct interest in the basin, as it covers about one-seventh
of Australia's land mass. It is home to about 11 per cent of Australia's population and
provides in excess of 40 per cent of the nation's gross agricultural production. With
many jurisdictions having an interest, its management is complex.
Being a relatively dry continent, and sometimes referred to as the driest inhabited
continent, water resources are important for economic development in Australia. Many
water resources present management challenges because of climate variability, many
streams are ephemeral or episodic, and much of the groundwater is of poor quality.
However, many of the management problems and principles are common to all water
resources, and particularly the management environment of competing interest, and
consideration of the natural environment as a legitimate user of water resources.
4.
Some surface or river water is regarded as high security, whereas other property rights relate to
high flow water and are dependent upon prevailing seasonal conditions and or the storage level
of dams.
5.
An Intergovernmental Agreement signed on 25 June 2004 between the Australian Government
and most mainland states. Details on the NWI and the National Water Commission, which
administers the NWI, can be found at www.nwc.gov.au .
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