undertaken by Commonwealth agencies are contributing towards the improved information necessary to support effective and efficient markets. These initiatives include: the Murray-Darling Basin Water Markets Product Information website, Authority’s which sets out information about different types of water access rights across the Basin; and the Bureau of water market reports, which report on volumes Meteorology’s weekly and prices for trades of water allocations and entitlements on issue across Australia. RECOMMENDATION 15 The Panel recommends that section 106(2) of the Act be amended to allow trade revenue to be used for other environmental activities in addition to water acquisitions to maximise environmental outcomes from the use of Commonwealth environmental water, with the following safeguards: (a) only revenue generated from the trade of Commonwealth environmental water allocations (not Commonwealth environmental water entitlements) may be used for environmental activities other than acquisitions (b) any disposal of water and use of proceeds for non-water acquisition purposes must reasonably be expected to improve environmental outcomes from the use of Commonwealth environmental water (c) trading activity should not impact on the achievement of sustainable diversion limits in the long-term (d) trade revenue cannot be used to fund operational expenses of the Commonwealth Environmental Water Holder such as holding and delivery fees and charges. Government response: Agreed The Australian Government will amend the Act to enable greater flexibility for allocation trade revenue from Commonwealth environmental water holdings to be used to invest in a wider range of measures than currently permitted, to maximise environmental outcomes from Commonwealth environmental water use. For example, the greater flexibility would allow allocation trade revenue to be used by the Commonwealth Environmental Water Holder to invest in regulators, fishways and carp exclusion screens that support the delivery of water to off-channel wetlands. By selling a small volume of allocations in one year to fund the construction of such works at a wetland inlet, it could improve the effectiveness of larger volumes of environmental water delivered over several years, thereby improving environmental outcomes. The Government agrees with the safeguards outlined by the Panel as necessary for any amended provision to ensure that the sale of water and how proceeds are used improves environmental outcomes, consistent with the Act and the Basin Plan.
undertaken by Commonwealth agencies are contributing towards the improved information necessary to support effective and efficient markets. These initiatives include: the Murray-Darling Basin Authority’s Water Markets Product Information website, which sets out information about different types of water access rights across the Basin; and the Bureau of Meteorology’s weekly water market reports, which report on volumes and prices for trades of water allocations and entitlements on issue across Australia. RECOMMENDATION 15 The Panel recommends that section 106(2) of the Act be amended to allow trade revenue to be used for other environmental activities in addition to water acquisitions to maximise environmental outcomes from the use of Commonwealth environmental water, with the following safeguards: (a) only revenue generated from the trade of Commonwealth environmental water allocations (not Commonwealth environmental water entitlements) may be used for environmental activities other than acquisitions (b) any disposal of water and use of proceeds for non-water acquisition purposes must reasonably be expected to improve environmental outcomes from the use of Commonwealth environmental water (c) trading activity should not impact on the achievement of sustainable diversion limits in the long-term (d) trade revenue cannot be used to fund operational expenses of the Commonwealth Environmental Water Holder such as holding and delivery fees and charges. Government response: Agreed The Australian Government will amend the Act to enable greater flexibility for allocation trade revenue from Commonwealth environmental water holdings to be used to invest in a wider range of measures than currently permitted, to maximise environmental outcomes from Commonwealth environmental water use. For example, the greater flexibility would allow allocation trade revenue to be used by the Commonwealth Environmental Water Holder to invest in regulators, fishways and carp exclusion screens that support the delivery of water to off-channel wetlands. By selling a small volume of allocations in one year to fund the construction of such works at a wetland inlet, it could improve the effectiveness of larger volumes of environmental water delivered over several years, thereby improving environmental outcomes. The Government agrees with the safeguards outlined by the Panel as necessary for any amended provision to ensure that the sale of water and how proceeds are used improves environmental outcomes, consistent with the Act and the Basin Plan.
government-response-water-act-review.docx