Bills Digest No. 57 2002-03
Murray-Darling Basin Amendment Bill 2002
WARNING:
This Digest was prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments. This Digest
does not have any official legal status. Other sources should be
consulted to determine the subsequent official status of the
Bill.
CONTENTS
Passage History
Purpose
Background
Main Provisions
Concluding Comments
Endnotes
Attachment
Contact Officer & Copyright
Details
Passage History
Murray-Darling
Basin Amendment Bill 2002
Date Introduced:
19 September 2002
House: House of Representatives
Portfolio: Agriculture, Fisheries and
Forestry
Commencement:
The operational
elements of the Bill (Schedule 1) commence on
Proclamation
To amend the
Murray-Darling Basin Act 1993 to approve and give effect
to the Murray-Darling Basin Amending Agreement (the Amending
Agreement) between the Commonwealth, New South Wales, Victoria and
South Australia.
Background
The Amending Agreement makes new arrangements
for sharing water by the Snowy Mountains Scheme as a result of the
corporatisation of the Snowy Mountains Hydro-electric Authority
(SMHEA) and the release of water for environmental flows in the
Snowy River, the Snowy Montane Rivers(1) and the Murray
River. Among other things it implements the
Snowy Water Inquiry Outcomes Implementation Deed signed by the
Commonwealth, New South Wales and Victorian Governments on 3 June
2002.
In 1993, the Council of Australian Governments
agreed to corporatise SMHEA and in 1997 the Commonwealth, New South
Wales and Victorian Governments endorsed the Corporatisation
Principles for SMHEA and corporatisation legislation, based upon
these principles, was passed by all three Parliaments. The 1997
Bills Digest on this legislation outlines some background on
this.
The issue of the lack of flow of the Snowy River
as a result of the Snowy Mountains Scheme which diverted almost all
the Snowy River water above the confluence with the Mowamba River
came to the fore with the proposed Snowy Corporatisation. Once
SMHEA was corporatised there would be no more opportunity at the
political level to lobby for a significant increase in the flow of
the upper Snowy.
Under the Snowy Mountains Scheme the Snowy River
and its tributaries, the Guthega and the Eucumbene, were dammed and
diverted to the Murray River and the Murrumbidgee River, via the
Tumut River. 858 gigalitres (GL) of the Snowy's flow is pumped from
Lake Jindabyne and diverted from Lake Eucumbene through tunnels to
Island Bend and then across to Geehi Reservoir and to Murray 1 and
2 Power Stations before it enters the Murray. The Tantangara Dam
stores waters of the upper Murrumbidgee and the Goodaradigbee
Rivers and transfer these to Lake Eucumbeme from where water can be
diverted to the Tumut Pond Reservoir and then through Tumut 1,2 and
3 Power Stations to Blowering Reservoir on the Tumut River. 262 GL
of the Snowy's flow is transferred by tunnel from Lake Eucumbene to
the Tumut River, a tributary of the Murrumbidgee River. 287 GL of
the Murray's flow is diverted from the Tooma Reservoir (on a
tributary of the Murray) to the Tumut River. This results in an
average of 571 GL per annum being transferred to the Murray River
bringing its average annual catchment yield from the Snowy Scheme
to 1196 GL/annum. An average of 550 GL/annum is transferred to the
Murrumbidgee River bringing its average annual catchment yield from
the Snowy Scheme to 1190 GL/annum.(2)
The flow of the upper Snowy River below
Jindabyne Dam has been reduced to 9 GL per annum, less than 1% of
average natural flows (anf), and the inflow from the Mowamba River
downstream of the dam has been reduced to 22 GL per annum by the
diversion of 38 GL per annum to Jindabyne Dam by the Mowamba
Aqueduct(3). This diversion also has a significant
impact on the lower Snowy so that even after the input of flow from
significant tributaries, such as the Delegate River which
contributes 30% of the Snowy's anf, the mean annual flow at
Jarrahmond, some 30 km from the Snowy's mouth, is now 53% of the
average natural flow.(4)
There are a number of impacts on the Snowy River
below Jindabyne as a result of the greatly reduced flow in the
river which have been outlined in the past:
-
- Prior to the damming of the Snowy River strong seasonal flows
of the river occurred as a result of winter rainfall and spring
snowmelt. Average flow ranged from 200 megalitres (ML)/day at
Jindabyne in late summer/and autumn up to 2200 ML/day during the
spring thaw.(5) Flow regulation has also greatly reduced
frequency of large floods with most being these coming from
tributary derived floods
-
- The river channel has narrowed, especially in the River down to
Dalgety, due to pool infilling from lack of floods, vegetation
invasion, formation of benches, berms and tributary mouth bars. The
channel contour is now related to rare catastrophic flood events,
rather than regular floods, with severe erosion
resulting.(6) The riverbed in the Orbost Flood Plain has
risen by up to 2 meters due to sediment deposition since 1960
-
- The sedimentation of pools has adversely affected
macroinvertebrates and fish. The loss of habitat and substrate
along with reduced water movement, lowered oxygen content and
rising water temperature has resulted in poor diversity and
abundance of macroinvertebrates upon which fish feed. The higher
water temperatures and lower oxygen content of the river water has
also adversely affect native fish and trout. The loss of seasonal
flow variability which used to provide spawning signals to trout
and native galaxias has adversely affected the reproduction of
these species and the loss of summer floods has reduced upstream
migration of juvenile eels(7)
-
- The regulation of flow has allowed native and exotic vegetation
(including willows and blackberries) to invade the riparian zone
along much of the river's length and to establish on and stabilise
sandbanks in the riparian zone
-
- The reduced flow rate in the lower Snowy has contributed to
increased salinity of the river. There have been reduced
occurrences of platypus and native fish species due to this and
impacts from land use changes on the Orbost Flood
Plain.(8)
In 1995 a scoping study on Snowy River flow
regimes concluded that significant environmental improvements of
the Snowy between Jindabyne Dam and the Delegate River junction are
likely if larger releases of water (greater than 125% anf) were
made from the Jindabyne Dam and the Mowamba aqueduct.(9)
The study indicated that water releases should mimic daily or
weekly patterns of flows rather than a continuous release so that
native fish species are favoured, rather than exotic
fish.(10)
In 1996 the NSW Department of Land and Water
Conservation prepared a table of the potential effects of
additional flows into the Snowy on both the upper and lower Snowy
River and the Murray, Murrumbidgee and Tumut Rivers (See Attachment
1).
The 1996 Snowy Genoa Catchment Management
Committee Expert Panel Report recommended a number of actions to
alleviate the environmental problems caused by low river flow in
the Snowy River. These included a 200 megalitre (ML)/day minimum
flow from Jindabyne Dam, monthly releases to mimic natural seasonal
variability, and an annual flood of 12 000 ML/day between May and
September to re-establish river channels. The total volume of flows
recommended by the Panel, which varied from a high of 2400 ML/day
during October and a low of 190 ML/day during March, would equate
to approximately 28% anf.(11)
Prior to the proclamation of the Snowy
Corporatisation legislation, Victoria and NSW held a joint
independent public inquiry into environmental issues arising from
the current pattern of river flows caused by the Snowy Scheme.
The Hon Robert Webster, former NSW National
Party Minister, was appointed Commissioner of the Snowy Water
Inquiry and he submitted his final report on 23 October 1998. He
concluded:
that the following key factors must be taken
into account when determining a solution for the Snowy and
associated rivers and streams:
- Significant environmental gain for the river systems must be
achieved
-
- Significant reduction in water wastage in irrigation areas must
be addressed
-
- The cost impact on agriculture must be minimal because of its
significant economic contribution to the community (apart from the
opportunity cost of potential growth of industry)
-
- The impact on the hydro-electricity generator must be
manageable
-
- The capital cost on the Government must be reasonable in terms
of return benefits to the environment and the
community.(12)
Commissioner Webster nominated an option which
increased stream flow into the Snowy River to 15% of its average
natural flow, as his preferred option for implementation (Option D
in the Report). This had an estimated cost of $194 million.
In 1999 the incoming Victorian Labor Government
had a policy of returning 28% of the Snowy's original flow. The
Independent MLA, Mr Craig Ingram, Member for East Gippsland was one
of three Independents on whose vote the minority Victorian
Government depended, had strongly campaigned for the return of the
28% of Snowy flow. As a result negotiations between the New South
Wales Government and the new Victorian Government over the quantum
of the flow to be returned to the Snowy River began in late
1999.
Senator the Hon Nick Minchin, then Minister for
Industry, Science and Resources, stated that the next step
following the Snowy Water Inquiry was for the NSW and Victorian
Governments to reach a consensus position on environmental
flows.(13) The States would have to then gain the
Commonwealth Government's agreement to their proposed outcome
before it could be adopted. The proposition would then be taken to
the Murray-Darling Basin Ministerial Council so that the
implications for the Murray-Darling Basin (including those of South
Australia) could be taken into account.
On 20 December 1999, Senator the Hon Robert
Hill, Minister the Environment and Heritage, ordered an
Environmental Impact Statement (EIS) on the implementation of the
Snowy Mountain Hydro-Electric Authority corporatisation plan. The
draft EIS, carried out under the provisions of the Environment
Protection (Impact of Proposals) Act 1974, was released for a
public comment in June 2000.
During early 2000 the South Australian
Government consistently opposed any but minimal return of flows to
the Snowy. In a submission to the Snowy Corporatisation EIS, the
South Australian Government stated that any water savings by
irrigators must not be diverted from the Murray River to the Snowy.
The then South Australian Premier, the Hon John Olsen, warned that
SA would veto any agreement that would have a detrimental effect on
the Murray.(14)
Senator Hill, in releasing the assessment report
of the EIS on 12 November 2000, indicated that two associated
issues required further consideration: the incidental consequences
upon the long term health of the Murray of the diversion of up to
295 GL of water for environmental flows to the Snowy River, and
whether the proposed water licence designed to maximise the energy
output of the Snowy Hydro was sufficiently flexible to allow the
best water management decision in relation to both the economic and
ecological sustainability of the Murray.(15)
On 6 October 2000 the NSW and Victorian
Government announced that they had reached an agreement on
increased flows for the Snowy River. This agreement contained a
target flow rate of 21% anf to be returned to the Snowy over the
next 10 years with funding of $300 million ($150 m by each
Government) provided by NSW and Victoria. A proposed Commonwealth,
NSW and Victorian government enterprise would invest in capital
projects to save water by pipelines, engineering works, and
improved maintenance of the irrigation system. After 10 years the
remaining 7% to reach the 28% Snowy River flow target were expected
to be achieved through development of new infrastructure projects
involving the private sector. Snowy Hydro Ltd would build the
necessary outlets at dam walls to enable increased flows. The NSW
and Victorian Governments advised the Prime Minister of their
agreement and invited him to contribute to this proposal. They
recognised that the Commonwealth was still in the process of
completing its EIS process on the Snowy corporatisation.
Senator Minchin said he was very pleased the
proposed outcome acknowledged the wide range of stakeholder
interests involved and the need to balance competing environmental
needs in the Snowy River catchment and in the Murray-Darling Basin.
He highlighted the proposed use of new water savings measures to
provide increased environmental flows in both the Snowy River and
the River Murray. He welcomed the proposal for increased
environmental flows in the montane rivers, including the Upper
Murrumbidgee River. He said:
The Commonwealth's EIS has been necessary to
allay the concerns of irrigator and environmental interests
throughout the Murray-Darling Basin about the long term security of
water from the Snowy Mountains Scheme and to ensure that
stakeholder interests in the Murray-Darling Basin and South
Australia are fully protected.(16)
In response to the announcement of the Snowy
agreement, a spokesman for Premier Olsen said that South Australia
was now confident that no agreement would be ratified without an
assurance that the Murray would not suffer. He said:
Our subsequent argument is that a percentage of
the savings they're talking about making should be tunnelled down
the Murray.(17)
On 6 December 2000 Federal Cabinet agreed
in-principle to the proposed New South Wales and Victoria proposal
on environmental flows arising from the corporatisation of the
Snowy Hydro Scheme. It committed $75 million for water savings
works in the Murray Darling Basin to provide 70GL of environmental
flows to the Murray River. Senator Minchin said:
Under the Heads of Government Agreement reached
with New South Wales and Victoria, the three governments will
provide a total $375 million over the next ten years to implement
water efficiency projects and carry out riverine works which will
benefit the environmental condition of affected rivers .Most
importantly, the three Governments have committed that these
outcomes will have no adverse effects on irrigators in the
Murray-Darling Basin or South Australia's water rights and can help
to promote a water trading market. This outcome is vital to the
security of irrigators and other water users in the Basin and will
help to improve water quality for South
Australia.(18)
Senator Nick Bolkus, Shadow Minister for the
Environment, welcomed the Commonwealth decision to restore
environmental flows to the Snowy River. He said:
This represents a significant win for the
environment and the health of our major river systems. It is
encouraging to see that the Federal Government has finally accepted
that it is not a case of one river pitted against another. This
debate should never have been presented as a trade off between the
Snowy and the Murray, it is about long term strategic planning to
save our inland river systems and the communities which rely on
them.(19)
The Heads of Agreement listed the environmental
objectives as follows:
The environmental objectives for the Snowy River
and the Snowy upper montane rivers are to improve the habitat for a
diverse range of plant and animal species by a combination of:
-
- improving the temperature regime of river water
-
- achieving channel maintenance and flushing flows within
rivers
-
- restoring connectivity within rivers for migratory species and
for dispersion
-
- improving triggers for fish spawning, and
-
- improving the aesthetics of currently degraded riverine
environments.
These objectives are complemented by an
objective to maintain and improve environmental flows for the River
Murray.(20)
Clause 2.2 of this Agreement stated that:
The three Governments agree that flows in the
Snowy River below Jindabyne will not be increased and
dedicated environmental flows allocated to the River Murray will
not be implemented unless they are first offset
by water acquired through:
-
- primarily undertaking water saving, environmental improvement
and regional development projects in diversions from the River
Murray and in the Murrumbidgee and Goulburn-Murray river systems;
and
-
- if necessary, purchasing water entitlements and water rights
from holders in a manner which promotes the water trading
market.(21)
The issue of water purchasing for environmental
flows concerned the South Australian Government. In January 2001,
the Water resources Minister, Mark Brindal, stated that:
Now if they buy water, South Australia will
really go down to the wire on it. If they try and achieve it by
water sales there will be blood on the carpet.(22)
South Australia had other concerns about the
Heads of Agreement and delayed signing the document.
South Australian Premier, John Olsen, wrote to
the Prime Minister in August 2001. He expressed concerns that the
proposed Snowy Water Inquiry Outcomes Implementation Deed
would:
effectively prevent any significant actions by
the three Governments over the next 10 to 15 years to improve the
health of the Murray. Until the flow targets for the Snowy have
been achieved, this deed effectively precludes any significant
focus on improved environmental flows in the
Murray.(23)
The South Australian Government decided to agree
to the corporatisation of the SMHEA(24) after the
Murray-Darling Basin Ministerial Council agreed to a seven year
program on environmental flows in the Murray and to develop a
Community engagement strategy to consider substantially increased
environmental flows. The Council directed the Murray-Darling Basin
Commission:
to identify and address key issues such as
equity, property rights and water trade through the development of
a business case for the recovery of 350 GL, 750 GL and 1500 GL to
the River Murray.(25)
On 3 June 2002, representatives of the
Commonwealth, the New South Wales, South Australia and Victorian
Governments signed the Murray-Darling Basin Amending Agreement. On
the same day the Commonwealth, New South Wales and Victoria also
signed the Snowy Water Inquiry Outcomes Implementation Deed. South
Australia also signed the Intergovernmental Agreement, along with
New South Wales and Victoria, allowing it to join the Joint
Government Enterprise, when it chooses. On 28 June 2002 Snowy
Mountains Hydro-electric Authority was corporatised as Snowy Hydro
Limited and set in train the timetable for implementing
environmental flows to the Snowy River, the Snowy Montane Rivers
and to the River Murray.(26)
The New South Wales Premier, Bob Carr, and the
Victorian Premier, Steve Bracks, closed the Mowamba Aqueduct on 28
August 2002, starting the process of diverting water back to the
Snowy River.
Snowy River Alliance spokesperson, Jo Garland
was concerned that the money could run out before the 21% target
was reached. She said:
The States say they're not sure the $300 million
will fund the 212 GL and when the money runs out, that's it. If
they buy water they should buy high security water so it's
available every year.(27)
Australian Conservation Foundation President,
Peter Garrett said:
It's been a long time between drinks for the
Snowy and today we're paying back some of the water. I know much of
Australia's been in drought recently but the Snowy River has
effectively been in drought for the past 35
years.(28)
However, the Victorian Farmers Federation
President, Paul Weller said that water was being taken from the
Murray-Darling Basin to boost flows in the Snowy, resulting in less
for farms along the Murray River.(29)
Approval of
all Parliaments required
Similar legislation which incorporate the
Amending Agreement will also be introduced into the New South
Wales, South Australian and Victorian Parliaments and need to pass
all Parliaments before Schedule 1 of this legislation can be
proclaimed and the Amended Murray-Darling Basin Agreement come into
effect.
The Snowy Hydro Corporatisation means that the
Snowy Mountains Agreement is no longer in force as the functions of
the Snowy Mountains Hydro-electric Authority were transferred to
Snowy Hydro Ltd on 28 June 2002. Under the amended clause
132 of the Murray-Darling Basin Agreement, the
Murray-Darling Basin Commission will determine the allocation of
Snowy Scheme water, as set out in new Schedule G.
Reference is made, in new Schedule G (Effect of
the Snowy Scheme) to the
Snowy Water Licence that sets out the requirements for Snowy
Hydro Ltd in terms of water provision from the Snowy Scheme.
Under the Snowy Mountains Agreement, the
Murray-Darling Basin Commission had a minimum guaranteed quantity
of water (1062 GL per year) which could be called on if required in
dry periods. This figure has been placed in the Snowy Water Licence
as part of the "Required Annual Release" of the Snowy-Murray
Development.
Only the Snowy River environmental flows are
included in the actual calculations of the water in Schedule G
because they are water that will be lost to the Murray-Darling
Basin system (clauses 6-12 of Schedule G).
Water for environmental flows under this
Agreement is to be obtained from water savings and if that is not
possible from the purchase of water entitlements on the water
market.
Timetable for implementation of
environmental flows - Clause 7 of the Snowy Water Inquiry
Outcomes Implementation Deed outlines a timetable and the targets
for the increased flows that will go to the Snowy River, the Snowy
Montane Rivers and to the River Murray in four stages, as
follows.(30)
|
Stage of Implementation
|
Environmental Flows to Rivers - Target
at end of Stage
|
|
Stage One lasts for 12 months from the Snowy
Hydro Corporatisation Date.
|
Snowy River During that time
the flow of the Mowamba Aqueduct will be returned to the Snowy
River, up to a maximum of 38 GL per Water Year. (Note that this
happened on 28 August 2002 with the closure of the Mowamba
Aqueduct.)
|
|
Stage Two lasts from the first anniversary date
of corporatisation to the seventh anniversary.
|
Snowy River During this time
the Snowy River will receive a target average flow of 142 GL per
Water Year or 15% will be achieved.
|
|
Snowy Montane Rivers will
receive a target average flow equivalent to 100 Gigawatt hours
(GWh) per annum of foregone electricity generation.
-
- Murrumbidgee River will receive 27 GL/annum. or 30% of its
average natural flow (anf) at the end of the seven years.
-
- Goodradigbee River will receive 12 GL/annum or 78% anf at the
end of seven years.
-
- Snowy River Gungarlin will receive 6 GL/annum or 2.7% anf at
the end of seven years.
-
- Snowy River Perisher/Rams Flat will receive 25 GL/annum or 17%
anf at the end of seven years.
|
|
River Murray will receive a
target allocation of 70 GL per Water Year. Note that this will stay
at this level unless it is agreed to be increased after the tenth
anniversary of corporatisation. It should also be noted that the
increased environmental flows, terms of flow and reliability,
during this time is to be allocated between the Snowy River and the
River Murray on a 2 GL to 1 GL basis each Water Year until the
River Murray Annual Allocation is 70 GL per annum.(31)
(This is important to concerns that environmental flows to the
River Murray should proceed at the same time as the flows to the
Snowy River).
|
|
Stage Three lasts from the seventh anniversary
of corporatisation to the tenth anniversary.
|
Snowy River will receive a
target average annual flow of 212 GL per Water Year or 21% anf.
|
|
Snowy Montane Rivers will
receive up to volume equivalent 150GWh per annum of foregone
electricity generation. This will stay at this level after this
date.
-
- Murrumbidgee River will receive 27 GL/annum. or 30% of its
average natural flow (anf) at the end of the seven years.
-
- Goodradigbee River will receive 12 GL/annum or 78% anf at the
end of seven years.
-
- Geehi River will receive 20GL/annum or 19% anf at the end of
seven years.
-
- Snowy River Gungarlin will receive 29 GL/annum or 13% anf at
the end of seven years.
-
- Snowy River Perisher/Rams Flat will receive 30 GL/annum or 20%
anf at the end of seven years.
|
|
Stage Four lasts from the tenth
anniversary of corporatisation.
|
Snowy River The Snowy River may
receive increased flows up to 294 GL per annum (28% anf) in
accordance with clause 5 of Annexure One of the Deed. Specifically
that the States agree to share the cost of compensation payable to
the holder of the Snowy Water Licencee (Snowy Hydro Ltd) for Net
Foregone Revenue for such increased flows.
|
The Deed also refers to a "Joint Government
Enterprise" that will be established by the end of 2002 to fund
water savings and purchase water entitlements to achieve the above
targets and to commission the necessary environmental and riverine
works. Note that the $375 million over the ten years will be
supplied at the rate of $15 million per annum by both New South
Wales and Victoria and $7.5 million per annum by the
Commonwealth.
Table One, in clause 13 of Schedule
G, ensures that Victoria (and South Australia during
periods of special accounting) get their required share of Snowy
Scheme water irrespective of what New South Wales does. Existing
clause 122 of the Murray-Darling Basin Agreement states that where
the Murray-Darling Basin Commission feels that the water reserves
allocated to either New South Wales or Victoria will fall below 1
250 GL in the following May then it is required to declare a period
of special accounting between that state and South Australia.
During this period the aim is to ensure that South Australia gets
one third of the available water.
Clause 15 of Schedule G refers
to "Translation Factors" that are needed since water saving
projects will be located at varying distances downstream of the
Hume Dam and for accounting purposes they must be all converted to
equivalent water as in Hume Dam. This means that the further a
water saving project is downstream of the Hume Dam the less
relative amount of water will be translated back to the Hume Dam
and available for environmental flows in the River Murray.
One of the requirements of the Translation
Factors is that there will be no significant adverse impact on the
level of reliability on water entitlements to water diverted from
the River Murray System, the Murrumbidgee River System and the
Goulburn River System. It should be noted that some of the water
saving projects may only yield their savings in one year out of
three or four.
Reliability of water entitlements vary between
the three States of the Murray River. At present all of South
Australian and Victorian water licence holders have high security
entitlements. South Australia licence holders have always received
their full entitlements and Victorian entitlement holders have a
reliability whereby they expect to receive 100% of the full water
volume entitlements in 96% of the years. At present Victorian
entitlement holders are receiving 100% of the entitlements. However
in New South Wales, most of the water licences are General Security
licences, which receive 100% of their entitlements in 60% of the
years. In low water years they have received as little as 7% of
their entitlement and at present they are receiving 12% of their
entitlement. There are 200 GL of high security entitlements in New
South Wales with a reliability similar to that of South Australia.
These high security entitlement holders are all town water supplies
and those horticultural operators in the downstream areas.
Under clause 18 of Schedule G,
the water transferred for environmental flows will be subtracted
from the Cap(32) on Murray-Darling Basin allocation of
either New South Wales or Victoria, depending where the water came
from.
The Murray-Darling Basin Council is required,
under clause 20 of Schedule G, to develop a
Strategy for River Murray environmental flows by the end of the
second year of corporatisation.
A Contracting Government(33) is to
notify the Murray-Darling Basin Commission of any water savings or
water purchases for environmental flows under clause 24 of
Schedule G.
Main
Provisions
Schedule 1 - Amendments to the
Murray-Darling Basin Act 1993 relating to the impact of
the changes to the Snowy Scheme on the Murray-Darling Basin
Agreement
Items 1-3 Inserts new
definitions of the Murray-Darling Basin Agreement to take into
consideration the Amending Agreement and the Original Agreement
which replace the present Agreement.
Item 5 inserts a new
section 5A which states that the Amending Agreement is
approved.
Item 7 inserts Schedule
2 - Amending Agreement at the end of the
Murray-Darling Basin Act 1993 that specifically amends
clauses of the Murray-Darling Basin Agreement and adds a another
Schedule to that Agreement, Schedule G.
The following outlines the principal amendments
to Murray-Darling Basin Agreement (referred to here as the Original
Agreement).
Clause 2 inserts a definition
of "natural flow" so that an estimate can be made of the original
flow of a river at a particular point before the Snowy Scheme was
built. This is essential to estimating the inclusion of necessary
environmental flows for water accounting purposes.
Clause 3 amends clause 46 of
the Original Agreement so that the Murray-Darling Commission must
be informed by the relevant Government that is proposing any water
saving or water purchase for environmental flows or which affect
the reliability of supply of water for environmental flows.
Clauses 4-8 relate to water
accounting procedures included in new Schedule G.
They require that environmental flows to the Snowy River, the Snowy
Montane Rivers and the River Murray are included in the
calculations of water allocations between New South Wales and
Victoria.
Clause 9 deletes original
clause 107, which is superseded by the amended clause
106.
Clause 10 deletes original
clause 112 which is superseded by amended clause
103(1).
Clause 11 deletes original
subclause 122(3) which refers to the Murray-Darling Basin
Commission declaring a period of restriction for the purposes of
the Snowy Mountains Agreement. This is superseded by change to the
Snowy Scheme and the amended clause 132.
Clause 13 inserts new
clause 132 which provides that the Murray-Darling Basin
Commission will decide the allocation of water to New South Wales
and Victoria from the Snowy Scheme according to Schedule
G instead of a combination of the Agreement and the Snowy
Mountains Agreement.
Clause 14 inserts a
Schedule G which is the fundamental purpose of
this Agreement.
Schedule G Effect of Snowy
Scheme The clauses of this Schedule have been discussed
earlier.
Concluding
Comments
The diversion of waters from one river to
another can cause unintended and adverse consequences, as happened
when the Snowy Scheme was first built. It is possible that problems
in the Murray-Darling System may arise from the diversion back to
the Snowy River. This is why there are requirements placed in this
legislation to ensure that water quality and other environmental
benefits are not adversely affected by flow regime changes or that
the security of and seasonal availability of water entitlements in
the Murray-Darling System should not be adversely affected.
There are always environmental, economic and
social trade-offs in water allocation decision making and therefore
there is no one best solution. That is the reason that
environmental flows are to be apportioned on a two for one
gigalitre basis between the Snowy and the Murray Rivers so that the
needs of the Murray will be met at the same time as those of the
Snowy. Both river systems are in need of greater environmental
flows.
The flows being returned to the Snowy River are
targeted to reach 21% anf (212 GL per annum) in ten years time
under the Snowy Water Inquiry Outcomes Implementation Deed. However
it is uncertain if and when the Snowy River flow will reach the 28%
anf (294 GL per annum) that has been suggested as being required to
restore the river to full health because:
-
- the environmental flow strategy proposed for development by the
Murray-Darling Basin Ministerial Council in the Murray River may
place the emphasis on future additional water savings in the
Murray-Darling Basin for environmental flows to be earmarked for
the Murray to meet its needs (between 350 GL/annum and 1500
GL/annum) once the 212 GL per annum flow regime of the Snowy is
reached
-
- Snowy Hydro will have to be paid compensation by New South
Wales and Victoria for net revenue forgone because of the loss of
power generation capacity by the increased flows to the Snowy
River, and
-
- the water savings in the southern Murray-Darling Basin for the
extra 7% average natural flow will be undertaken by public/private
partnerships where the water savings are shared between the private
sector partners and the Government.
-
- This means all rivers within the Snowy Catchment Area including
the Upper Murrumbidgee River immediately below the Tantangara Dam
but excluding the Snowy River, the Mowamba River and Cobbon Creek.
- Murray-Darling Basin Commission Water Controlled by the
Snowy Scheme Figure.
- Department of Industry, Science and Resources 2000.
Corporatisation of the Snowy Mountains Hydro-electric Authority
- Draft Environmental Impact Statement, June 2000 Canberra.
- Ibid.
- Erskine, W, Lake, S, Brown, P, Pulsford, I, Banks, J,
Pendlebury, P, Nixon, J and Robertson, C 1996 Expert Panel
Environmental Flow Assessment of the Snowy River Below Jindabyne
Dam For the Snowy Genoa Catchment Management Committee,
February 1996.
- Ibid.
- Ibid.
- Ibid.
- New South Wales Department of Land and Water Conservation,
Snowy Mountains Hydro-electric Authority and the Victorian
Department of Conservation and Natural Resources 1995. Snowy
River Downstream of Lake Jindabyne - Environmental Flows Scoping
Study.
- Department of Industry, Science and Resources 2000.
Corporatisation of the Snowy Mountains Hydro-electric Authority
- Draft Environmental Impact Statement, June 2000 Canberra.
- Erskine, W, Lake, S, Brown, P, Pulsford, I, Banks, J,
Pendlebury, P, Nixon, J and Robertson, C 1996 Expert Panel
Environmental Flow Assessment of the Snowy River Below Jindabyne
Dam For the Snowy Genoa Catchment Management Committee,
February 1996.
- Webster RW 1998 Snowy Water Inquiry Final Report
Submitted to the Governments of New South Wales and Victoria 23
October 1998 Commissioner: The Hon Robert Webster.
- Minchin N 1999 Water and the Snowy Hydro-Electric
Scheme Media Release Senator the Hon Nick Minchin, Minister
for Industry, Science and Resources, 22 December 1999.
- Spencer M 2000 Snowy Vision Dunked in The Australian,
20 March 2000.
- Hill R 2000 Environmental Assessment Report of the Snowy
Scheme Press release for Senator the Hon Robert Hill, Minister
for the Environment and Heritage, 12 November 2000.
- Minchin N 2000 Snowy Water Inquiry Announcement welcomed by
Senator Minchin Media Release by Senator the Hon Nick Minchin
Minister for Industry, Science and Resources, 6 October 2000.
- Hodge, A 2000 Saving the Snowy: tears for a River
reborn in The Australian, 7 October 2000.
- Minchin N 2000 Snowy Corporatisation - Federal Government
to provide $75 Million fro the Environment Media Release of
Senator the Hon Nick Minchin, 6 December 2000.
- Bolkus N 2000 Labor Welcomes Historic Snowy Rescue
Package Media release Senator the Hon Nick Bolkus, Shadow
Minister for Environment, 6 December 2000.
- Heads of Agreement - The Agreed Outcome From the Snowy
River Inquiry 6 December 2000 Hansard of NSW Legislative
Council, 6 December 2000.
- Ibid.
- AAP 2001 SA water's not for sale, NSW, Vic, told, The
Canberra Times, 8 January 2001.
- Snowy Threat to Murray The Advertiser, 27 August 2001.
- Hockley, C 2002 More water - but we'll have to wait,
The Advertiser, 12 April 2002.
- Murray-Darling Basin Ministerial Council 2002 Corowa
Communique Council Meeting 31, 12 April 2002.
- Snowy Water Inquiry Outcomes Implementation Deed Dated
3 June 2002, between the Commonwealth of Australia, New South Wales
and Victoria.
- Paterson, I 2002 Water gates open into Snowy River The
Land, 29 August 2002.
- Water flows in Snowy again, The Canberra Times, 29
August 2002.
- Ibid.
- Commonwealth, New South Wales, Victoria 2002 Snowy Water
Inquiry Outcomes Implementation Deed 3 June 2002.
- Ibid subclause 16(1).
- In response to the issues raised by the 1995 Audit of Water Use
in the Murray-Darling Basin, the Murray-Darling Basin Ministerial
Council at its June 1995 meeting decided to introduce an interim
Cap on diversions of water from the Basin. In December 1996, this
was later confirmed as a permanent Cap effective from 1 July 1997.
- For the purposes of this clause the Contracting Governments
include The Commonwealth, New South Wales, South Australia and
Victoria.
|
JINDABYNE DAM TO DELEGATE RIVER
JUNCTION
|
|
Ecological Effects
|
|
|
River Channel
|
Limited, localised movement of fino gravel in
spring, considerable movement of sand. Substantial removal of fine
sediment & algae in both riffles &pools.
|
|
Water quality
|
Similar algae benefits to Scenarios 3b & 4
in summer & autumn & considerable benefits in spring.
Potential to reduce high turbidity/suspended sediment levels on
rising limb of freshes due to prior removal of some of this fine
material during winter and spring releases.
|
|
Riverine vegetation
|
Substantial changes likely to non-woody
vegetation on riffles & pools due to increased depth (0.5-1.0 m
increase) and velocities. Establishment of woody vegetation
curtailed, but mechanical assistance necessary for removal of most
existing plants. Increased depths in pools is likely to increase
open water areas
|
|
Micro-invertebrates
|
Significant improvement in species diversity and
numbers in all months in both pools and riffles, due increased
riffle depths, habitat area and removal of fine sediments.
|
|
Mammals (principally platypus and water rat)
|
Significant improvement to population
recruitment success, due to substantially increase invertebrate
populations in spring. More substantial improvement in maintenance
conditions in other months compared to Scenario 4, despite similar
flows, due to more substantial changes in riffle and pool habitat
caused by higher winter & spring flows.
|
|
Fish
|
Food, structural and hydrologic habitat
diversity and water quality improvements are likely to benefit fish
population maintenance and recruitment. Fish passage will be
improved over many natural obstructions through drownout and added
seasonal stimulus of higher flows.
|
|
Social Effects
|
|
Aesthetics
|
The size of flows in all months is likely to
satisfy most people's perceptions of the "Snowy River", however
despite reductions in encroaching vegetation, the channel size is
likely to remain smaller than pre-dam levels as coarse sediment
transport rates will remain highly impacted.
|
|
Canoeing/Rafting
|
Optimal conditions will often be met in winter
and spring and moderate improvements in summer and autumn, similar
to Scenarios 3b and 4.
|
|
River crossings
|
Many crossings are likely to be significantly
affected in all months, particularly winter & spring.
|
|
Fishing
|
Significant increases in numbers and perhaps
some increase in native species, because of improved habitat
conditions, food supply & fish passage.
|
|
Swimming
|
Improvement in summer and autumn conditions.
Winter and spring may be dangerous due to depth and velocity
factors.
|
|
DELEGATE RIVER JUNCTION TO
MARLO
|
|
Ecological Effects
|
|
|
Fish
Victorian authorities consider 1000 ML/day
at Jarrahmond will meet the low flow needs of native fish. This is
currently met 34% of the time in autumn and 76% of the time in
spring.
|
Target flow met 14%-24% more frequently in
autumn & spring respectively. 1000 ML/day met 100% of time in
spring.
|
|
Riverine Vegetation
|
The changes in the location of the salt wedges
are likely to be similar to those for Scenario 3a in the estuarine
area. However, measurable changes in freshwater aquatic and
terrestrial communities can be expected as a result of higher flow
levels and velocities.
|
|
Wetlands
|
Indirect effects of changes in the location of
the salt wedge are unlikely to impact on any of the estuarine
wetlands as they are downstream of the location of salt wedge
fluctuations incurred under any of these larger flow scenarios.
|
|
Social Effects
|
|
Boat access to Marlo
|
Some potential for minor changes, due to
different sedimentation regime, but probably unlikely.
|
|
Swimming
|
Potentially significant improvement along length
of river at all times of the year.
|
|
Canoeing and rafting
|
Potentially significant improvement along entire
reach at all times of the year and particularly in winter and
spring due to depth of flow and removal of vegetation on rapids.
Summer and autumn conditions are similar to those for Scenario 3b
and 4.
|
|
Fishing
|
Significant increases in numbers and perhaps
some increase in native species, because of improved habitat
conditions, food supply & fish passage.
|
|
Aesthetics
|
Some improvement in all months, with a
noticeable improvement during spring.
|
|
Economics Effects
|
|
Irrigation
|
The 22% increase in freshwater availability will
have a similar effect to Scenario 3a in the estuarine area.
|
|
TUMUT, MURRAY & MURRUMBIDGEE
RIVERS
|
|
Ecological Effects
|
|
|
Riverine Environment
|
-
- Potential for reduced channel erosion in the Tumut River.
-
- Improved aquatic and bank vegetation health due to reduced flow
heights.
-
- Reduced inversion of flow seasonally may improve ecosystem
functioning in the Tumut river.
-
- Salinity downstream of NSW irrigation area may be
worsened.
|
Source: Hugh Milner, New South Wales Department
of Land and Water Conservation
30 April 1996
Bill McCormack
28 October 2002
Bills Digest Service
Information and Research Services
This paper has been prepared for general distribution to
Senators and Members of the Australian Parliament. While great care
is taken to ensure that the paper is accurate and balanced, the
paper is written using information publicly available at the time
of production. The views expressed are those of the author and
should not be attributed to the Information and Research Services
(IRS). Advice on legislation or legal policy issues contained in
this paper is provided for use in parliamentary debate and for
related parliamentary purposes. This paper is not professional
legal opinion. Readers are reminded that the paper is not an
official parliamentary or Australian government document.
IRS staff are available to discuss the paper's
contents with Senators and Members and their staff but not with
members of the public.
ISSN 1328-8091
© Commonwealth of Australia 2002
Except to the extent of the uses permitted under the
Copyright Act 1968, no part of this publication may be
reproduced or transmitted in any form or by any means, including
information storage and retrieval systems, without the prior
written consent of the Parliamentary Library, other than by Members
of the Australian Parliament in the course of their official
duties.
Published by the Department of the Parliamentary Library,
2002.
Back to top