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Part C - Agency Budget Statements (continued)
Department of the Environment and Heritage (continued)

Section 2 - Outcomes and Outputs Information Outcome 1 - Environment (continued)
Performance Information for Departmental Outputs - Output 1.7 Inland waters

• Sub Output:
• Effectiveness Statement
• Description
• Strategic Priorities
• Effectiveness in Delivering the Output
• Performance in Delivery of Departmental Outputs

SUB OUTPUT:

Rivers, groundwater and wetlands Tropical wetland ecology and conservation

EFFECTIVENESS STATEMENT

Australia's inland waterways are managed in an ecologically sustainable way and Australia's commitments to the Ramsar Convention are met.

DESCRIPTION

Australia is the driest permanently inhabited continent. The 2001 State of the Environment Report found that about 26% of Australia's surface water management areas are close to or have exceeded sustainable extraction limits. Many river systems in the Murray-Darling Basin and along the east coast of Australia are either overdeveloped or approaching full development status. This indicates that that aquatic ecosystems in these river systems are under substantial pressure from water extraction, and the current level of extraction may not be sustainable over the long term.

Of particular focus in recent years has been the health of the Murray Darling River. Rivers within the Murray-Darling Basin are amongst the most physically regulated in the world reflecting both the high variability in river flows and the considerable use of irrigation water within the Basin.

In contrast, the river systems and catchments of northern and western Australia have not been developed to the same extent, so the pressure on the aquatic ecosystems from water extraction in these areas is low. However, the river systems of northern and western Australia will likely be subjected to increased pressure as these untapped water resources are developed for agriculture.

There is increasing need to understand northern Australia's rivers with their high (but seasonal) flow so as to ensure that development and management of the river systems does not impact on their capacity to deliver both environmental and economic outcomes for Australia. For example the northern prawn fishery (one of Australia's largest fisheries) depends on reliable river flow to sustain prawn stocks.

The Australian Government is playing a leading role in ensuring the ecologically sustainable management of inland rivers through the National Water Initiative, the Living Murray Initiative, the NAP and the Trust's Rivercare programme.

The Government is leading the implementation of the National Water Initiative (NWI) which aims to refresh the 1994 water reform agenda and so increase the productivity and efficiency of water use, sustain rural and urban communities, and ensure the health of river and groundwater systems. The NWI will:

• improve the security of water access entitlements, including by clear assignment of risks of reductions in future water availability and by returning over allocated systems to sustainable allocation levels;
• ensure ecosystem health by implementing regimes to protect environmental assets at a whole-of-basin, aquifer or catchment scale;
• ensure water is put to best use by encouraging the expansion of water markets and trading across and between districts and states (where water systems are physically shared), involving clear rules for trading, robust water accounting arrangements and pricing based on full cost recovery principles; and
• encourage water conservation in cities, including better use of storm water and recycled water.

The implementation of the Living Murray first step decision will initially focus on achieving significant environmental benefits for six ecological assets (the icon sites) on the River Murray: Barmah-Millewa Forest; Gunbower and Koondrook-Perricoota Forests; Hattah Lakes; Chowilla Floodplain (including Lindsay-Wallpolla); the Murray Mouth, Coorong and Lower Lakes; and the River Murray channel. This will require effective management of up to 500 gigalitres of water, likely to be recovered over five years. The first step decision is supported through the Australian Government providing $200 million towards addressing water over allocation in the Murray Darling Basin.

The NAP and the Trust's Regional Component are the major vehicles for communities to invest in improving water quality and the environmental condition of river systems and wetlands. Regional Plans and investment strategies have been or are currently being developed by community organisations established to guide natural resource management, and projects are under way to protect, restore and manage waterways and wetlands.

The conservation of wetlands, especially tropical wetlands, and tropical rivers is a significant area of activity for the Department. The Government is investing significant funding in ensuring that Australia's Ramsar listed wetlands have management plans and arrangements that ensure the protection of the values for which they are known. The ERISS, cooperatively with other institutions, is heavily involved in advising on the management of the extensive wetlands in northern Australia.

STRATEGIC PRIORITIES

The Australian Government's medium term strategic priorities for Output 1.7 are to:

• Advance water reform towards sustainable management of Australia's rivers

The Australian, and state and territory governments are cooperatively pursuing the National Water Initiative. A Senior Officials Group chaired by the Department's Secretary is currently negotiating a proposed approach, with an Intergovernmental Agreement to be considered by the Council of Australian Governments (COAG) at their first meeting in 2004.

A separate agreement between the Australian Government and the Governments of New South Wales, Victoria, South Australia and the Australian Capital Territory to set out arrangements for investing the $500 million over five years to address water over allocation in the Murray-Darling Basin is also being negotiated. Governments will commence investing in addressing over allocation during the 2004-05 financial year.

• Ensuring the Murray River is a healthy working river

Following consideration of approaches to achieving a healthy working river in November 2003, the Murray-Darling Basin Ministerial Council agreed to an initial focus for the Living Murray Initiative on maximising environmental benefits for six significant ecological assets, with a ‘learning by doing' approach to achieving these benefits. The Murray-Darling Basin Commission, together with the Australian and relevant State and Territory government agencies, will pursue actions to achieve specific ecological objectives and outcomes for each of the significant assets. It is anticipated that achieving these outcomes will require the effective management of approximately 500 GL of water, with the volume used each year depending on a range of factors such as drought and flood events.

• Address priority river management issues across Australia

Regional organisations are currently developing Plans and Investment Strategies to guide investment to improve water quality and the environmental condition of river systems and wetlands. Ensuring these plans identify and address the major environmental issues relating to water systems and address the major water related issues of salinity, water quality, environmental flows and the protection of the environmental values of river systems and related wetland areas, will be major items of work for the forthcoming year.

• Conserve and protect Australia's wetlands

Wetlands are under threat on a global scale from a range of natural processes and human activities. The 2001 State of the Environment Report states that, nationwide, 80 important wetlands are already affected by salinity and this is predicted to rise to 130 by the year 2050. Many riparian habitats (especially wetlands) can contain endemic species and communities at risk. Drainage of floodplain wetlands to allow for agricultural development, and more recently urban settlement, has caused much damage. The building of levees to protect inappropriate development from flooding has often isolated the rivers from their floodplains. Irrigation development, and water-regulating structures (dams and weirs) also contribute to changes in flow regimes and water character (temperature) affecting aquatic ecology.

The conservation of wetlands, especially tropical wetlands, and tropical rivers is carried out in collaboration with partners in the National Centre for Tropical Wetland Research. The ERISS provides advice, based on research and monitoring, to users, managers and owners of tropical wetlands, especially those in northern Australia.

Research activities build on extensive community consultation and take into account national and international initiatives to ensure the conservation and wise use of wetlands. This means that the Australian Government provides information and advice to local people who have a vested interest in making wise use of their wetlands and also provide scientific leadership in national and international programmes.

EFFECTIVENESS IN DELIVERING THE OUTPUT

Rivers, groundwater and wetlands

Effectiveness Indicator: Australia's water systems are protected and managed sustainably

Graph 1.7.1 Percentage of Australian river systems with operational environmental flow allocations

While there has been increasing use of water, particularly for agriculture, there has simultaneously been an increasing level of management of water resources aimed at addressing the issues of over-allocation and ensuring ecosystem health by implementing regimes to protect environmental assets.

The 2001 State of the Environment Report notes that only 13% of Australian river systems had any operational environmental flow allocations in June 2000, but they will be established for most regulated rivers in the next five to ten years.

Tropical wetland ecology and conservation

Effectiveness Indicator: Australia's tropical wetlands are protected and managed sustainably

The Department of the Environment and Heritage, including the Environmental Research Institute of the Supervising Scientist, provides advice on the protection and management of Australia's tropical wetlands through scientific publications, presentations and participation in scientific forums.

PERFORMANCE IN DELIVERY OF DEPARTMENTAL OUTPUTS

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