ACCC Proposes Federal Takeover of Water Markets

[icyfroth]

The Australian Competition and Consumer Commission has proposed a possible federal takeover of the water markets in the Murray-Darling Basin, licensing of water brokers and new robust rules and oversight in order to ensure the $1.5bn water market operates fairly.

But the report, which delivers a scathing assessment of how the markets are operating, does not support a return to the old system that existed before the Murray Darling Basin plan, where water entitlements were tied to land.

It argues that a return to the old system, which has been advocated by some farmers, would result in the loss of significant benefits that come from water trading, including more efficient use of water and allowing farmers to manage their water needs, trade water and free up capital.

The ACCC was asked to review water markets after complaints by farmers, particularly among dairy farmers and southern irrigators, that large companies were buying up water rights for speculation and were manipulating the market.

“The rules and operational frameworks that manage the trade and delivery of water may not always reflect the physical realities of the river system, particularly in the southern basin,” the ACCC said.

For example, there is growing concern about the damage being done to the Murray river at the Barmah Choke, a narrow section of the river, because of the expansion of permanent plantings or almonds downstream and the associated purchases of water to irrigate them.

Entire Article Here 

About bloody time the government listened...or even took notice of the battle farmers were facing in access to water as against large corporations hoarding water to sell for profit.

[rogespeed]

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@icyfroth wrote:

The Australian Competition and Consumer Commission has proposed a possible federal takeover of the water markets in the Murray-Darling Basin, licensing of water brokers and new robust rules and oversight in order to ensure the $1.5bn water market operates fairly.

But the report, which delivers a scathing assessment of how the markets are operating, does not support a return to the old system that existed before the Murray Darling Basin plan, where water entitlements were tied to land.

It argues that a return to the old system, which has been advocated by some farmers, would result in the loss of significant benefits that come from water trading, including more efficient use of water and allowing farmers to manage their water needs, trade water and free up capital.

The ACCC was asked to review water markets after complaints by farmers, particularly among dairy farmers and southern irrigators, that large companies were buying up water rights for speculation and were manipulating the market.

“The rules and operational frameworks that manage the trade and delivery of water may not always reflect the physical realities of the river system, particularly in the southern basin,” the ACCC said.

For example, there is growing concern about the damage being done to the Murray river at the Barmah Choke, a narrow section of the river, because of the expansion of permanent plantings or almonds downstream and the associated purchases of water to irrigate them.

Entire Article Here 

About bloody time the government listened...or even took notice of the battle farmers were facing in access to water as against large corporations hoarding water to sell for profit.

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Ban speculative purchases - water is an citizen's owned resource , water rights are for Australian commercial enterprise use not for parasitic money grabbers

[chameleon54]

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@icyfroth wrote:

The Australian Competition and Consumer Commission has proposed a possible federal takeover of the water markets in the Murray-Darling Basin, licensing of water brokers and new robust rules and oversight in order to ensure the $1.5bn water market operates fairly.

But the report, which delivers a scathing assessment of how the markets are operating, does not support a return to the old system that existed before the Murray Darling Basin plan, where water entitlements were tied to land.

It argues that a return to the old system, which has been advocated by some farmers, would result in the loss of significant benefits that come from water trading, including more efficient use of water and allowing farmers to manage their water needs, trade water and free up capital.

The ACCC was asked to review water markets after complaints by farmers, particularly among dairy farmers and southern irrigators, that large companies were buying up water rights for speculation and were manipulating the market.

“The rules and operational frameworks that manage the trade and delivery of water may not always reflect the physical realities of the river system, particularly in the southern basin,” the ACCC said.

For example, there is growing concern about the damage being done to the Murray river at the Barmah Choke, a narrow section of the river, because of the expansion of permanent plantings or almonds downstream and the associated purchases of water to irrigate them.

Entire Article Here 

About bloody time the government listened...or even took notice of the battle farmers were facing in access to water as against large corporations hoarding water to sell for profit.

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I owned a water licence as an investment for many years ( leased to a turf farm ) and saw the changes to the management system from start to finish. Water licences where originally tied exclusively to a single piece of land. They where later freed up to allow water trading within very small local areas and later again freed up more to allow trading right across the system. Water above the Barmah choke can now be traded to irrigators below the choke causing enviromental damage and delivery problems for lower river licence holders.

The answers are pretty simple. Reverse the decision to allow the trade of water over the whole system and revert back to allowing water trades within localised regions. This will assist local irrigation towns and communities along the Murray Darling system to remain viable and discourage profiteering by investors.

And secondly, honour the agreement reached between states during Howards era to return enough water to the environment to at least keep it alive, don't release any further water licences and properly police the extraction under existing licences. Water theft is rampant, particularly in the upper Darling system and large irrigators have until very recently still been building very large channel systems / levy banks for illegal water catchment harvesting, supported by the idiots in the National Party..