National water plan
Background
The drought which now grips large parts of Australia is the most severe since records began. It has taken a drastic toll on the lives and livelihoods of many Australians.
The current trajectory of water use and management in Australia is not sustainable. In the Murray-Darling Basin - traditionally the breadbasket of the nation - the severity of the drought is magnified by the fact that water resources are significantly over-allocated. In a number of catchments, state and territory governments have issued more entitlements to water than can be supplied on a sustainable basis.
The CSIRO predicts that in coming decades, average inflows to the Murray-Darling Basin will decrease even further. There is emerging evidence of a steep reduction in rainfall, which will reduce inflows into storages. Forest regrowth following bushfire and the growth in farm dams, bores and reafforestation are all reducing river flows.
In the 1920's, 2,000 gigalitres of water was extracted from the Basin each year. Annual water use now often exceeds 10,000 gigalitres - a five-fold increase in water use.
While this increase in water use has underpinned massive agricultural development in the Basin, it has also been the cause of a marked decline in the Basin's environmental health. In 2001, an assessment for the Murray-Darling Basin Commission found that more than 95 per cent of the river length examined was in a degraded environmental condition. There has been a reduction in the areas of healthy wetland, native fish numbers have declined, salinity levels have risen and algal blooms have increased in frequency. Put simply, with more water being extracted, there is less water to flow through the system to maintain the Basin's natural balance and ecosystems.
Compounding these problems is the fact that different parts of the Murray-Darling Basin have been managed by four States with competing interests. To date, this piecemeal management has not been effective in sustainably and cooperatively managing the integrated water resources of the Murray-Darling Basin.
In recognition of these facts, the national water plan was released on 25 January 2007.
The national water plan
- Overview
- Programs under the national water plan
- Relationship with the Water Act 2007
- Relationship with the National Water Initiative
Overview
The national water plan is a $10 billion package designed to ensure rural water use is placed on a sustainable footing over the next decade. It will significantly improve water management across the nation with a special focus on the Murray-Darling Basin, where the bulk of Australia's agricultural water use takes place.
The ten key elements of the national water plan are:
- a nationwide investment in Australia's irrigation infrastructure to line and pipe major delivery channels;
- a nationwide program to improve on-farm irrigation technology and metering;
- the sharing or water savings on a 50:50 basis between irrigators and the Australian Government leading to greater water security and increased environmental flows;
- addressing once and for all water over-allocation in the Murray-Darling Basin;
- a new set of governance arrangements for the Murray-Darling Basin;
- a sustainable cap on surface and groundwater use in the Murray-Darling Basin;
- major engineering works at key sites in the Murray-Darling Basin such as the Barmah Choke and Menindee Lakes;
- expanding the role of the Bureau of Meteorology to provide the water data necessary for good decision making by governments and industry;
- a Taskforce to explore future land and water development in northern Australia; and
- completion of the restoration of the Great Artesian Basin.
Programs under the national water plan
Funding under the national water plan will be provided in five major areas.
1. Modernising irrigation
- $1.6 billion for on-farm investments in irrigation efficiency - see the On-Farm Irrigation Efficiency Program
- $70 million for a 'hotspots' assessment to identify where losses are occurring in irrigation infrastructure across Australia
- $603 million for more accurate metering and monitoring - see the Water Meter Test Facility Upgrading and Accreditation
In addition, $3.6 billion has been set aside for improving off-farm distribution efficiencies.
To ensure investments in the on-farm element of the modernising irrigation program are not undermined by state constraints, a number of eligibility requirements will apply. These include:
- the Commonwealth being able to hold water entitlements in the jurisdiction of investment and use water in that jurisdiction or any other jurisdiction;
- investments being able to be made directly with service providers rather than through State Governments, who would be consulted; and
- investments in irrigation water provider infrastructure to be on the basis that long-term financial operation is provided for, including maintenance and depreciation.
The Water Act 2007 provides for the metering of stock and domestic water use as part of the $617 million metering and monitoring program of the national water plan. However, stock and domestic bores will not require metering except in special circumstances where a groundwater system is under stress or where there are local disputes about water sharing.
2. Over-allocation
The Australian Government will be investing $3.1 billion over ten years to address over-allocation in the Murray-Darling Basin. Assistance will be provided to help relocate non-viable or inefficient irrigators, or help them exiting the industry. Where necessary, entitlements will be purchased on the market. The Commonwealth will not compulsorily acquire entitlements.
The extent of over-allocation in the Murray-Darling Basin will be informed by the CSIRO Sustainable Yields project. This work will also be used to help develop a new sustainable cap on extractions from the Murray-Darling Basin.
3. Reforming governance arrangements of the Murray-Darling Basin
Previous governance arrangements in the Murray-Darling Basin have proved unwieldy and incapable of producing results. Primarily this has been caused by the lack of integration in planning and management of Basin water resources across state and territory borders.
To address this issue, the Water Act 2007 establishes the Murray-Darling Basin Authority - an independent, Basin-wide institution that will be responsible for planning the Basin's water resources in the interests of the Basin as a whole.
4. Water Information
As water becomes more scarce and subject to greater demands, it is imperative that we can accurately measure and monitor its availability and use throughout the country. To this end, the Australian Government will invest $450 million in upgrading water information as part of the national water plan.
Under the Water Act 2007 the role of the Bureau of Meteorology is established enabling the Bureau to collect up-to-date, accurate and comprehensive information on water use and availability across Australia.
5. Northern Australia and the Great Artesian Basin
There has been much recent attention on the potential for water resource development in northern Australia. To ensure that any proposals are sustainable and based on the best available information, a Taskforce was established to examine the potential for further land and water development in Northern Australia.
The Australian Government will also commit to funding the third and final phase of the successful bore-capping and piping program in the Great Artesian Basin. The proposal will cost around $85 million over 10 years.
Relationship with the Water Act 2007
The Water Act 2007, passed by Parliament on 17 August 2007 (and due to commence early 2008), is a key mechanism through which elements of the national water plan will be implemented. The Water Act will:
- establish an independent expert-based Murray-Darling Basin Authority as part of the new governance arrangements;
- provide for regulation of the water market in the Murray-Darling Basin to help address the problem of over-allocation;
- establish a Commonwealth environmental water holder to achieve the best environmental outcomes possible from water holdings purchased on the market and through the irrigation efficiency programs of the national water plan; and
- increase the availability and quality of information on water at the national level through expanding the role of the Bureau of Meteorology.
Relationship with the National Water Initiative
The national water plan and the Water Act 2007 will accelerate implementation of the National Water Initiative , which was agreed by the Commonwealth and state and territory governments following the 25 June 2004 Council of Australian Governments meeting. The National Water Initiative remains Australia's blueprint for national water reform.
Contact for further information
For further information on the national water plan and the Water Act 2007 you can email WaterPlanEnquiries@environment.gov.au or call 1800 218 478 and leave a message with your name, contact details and the subject of your enquiry. An officer from the Department will respond to your enquiry as soon as possible.
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