A Comprehensive and Balanced National Water Reform Plan

On 25 January 2007, the Prime Minister announced a 10 year, $10 billion plan National Plan for Water Security. Victoria shares the Commonwealth’s desire to undertake a reform process which will lead swiftly to healthy rivers and the sustainable use of water resources in the Basin.

However, Victoria believes that the Commonwealth’s objective can be more efficiently and effectively delivered through an approach which overhauls the Basin’s outdated governance and investment structures, as well as protects farmers’ existing entitlements, regional communities and the environment.

Victoria proposes a comprehensive and balanced plan that has four key elements:

• Protecting the environment through environmental water entitlements;
• National markets in water entitlements for regional development, and which provide certainty on ownership and market rules to protect Victorian irrigators;
• Reform of Murray Darling Basin governance structures to increase the effectiveness of the Commonwealth’s role; and
• Supporting reform efforts through incentive payments, structural adjustment and maintenance of existing investment.

The combination of the above elements is essential to effective water management in the Basin and to achieving the reforms envisaged under the National Water Initiative. In the absence of assurances that a new model would encompass each of these elements, it would be a dereliction of duty to communities, farmers, businesses and the environment for the Victorian Government to refer its powers over water management in the Basin to the Commonwealth.

A Comprehensive and Balanced National Water Reform Plan is intended to act as a catalyst for Governments to finalise a water reform plan to address the key water management issues in the Murray Darling Basin. Agreement to the plan should not be rushed, should be subject to internal government scrutiny, and should be based on thorough consultation with stakeholders.

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