4.1
The Our North, Our Future: White Paper on Developing Northern Australia (White Paper) argued that water is the single biggest driver for economic prosperity in Australia. Many of the north's major existing industries, including the food and beverage industry, agribusiness, power and energy, mining and tourism, depend on water and its proper management to succeed. As such, the development of Northern Australia depends on meeting demand for water.
4.2
The committee received a range of evidence related to water infrastructure in Northern Australia including current demands, the importance of infrastructure, and the need for further investment. This chapter considers this evidence, while the environmental effects of water infrastructure are discussed in chapter 10.
White Paper
4.3
The White Paper noted that up to 17 million hectares of land in Northern Australia have soils which are potentially suitable for agriculture, but there is only water sufficient to irrigate approximately one tenth of that area. The White Paper argued that building appropriate water infrastructure in optimal locations would be crucial to realising the full potential of Northern Australia.
4.4
The White Paper noted that Northern Australia receives an average of more than two million gigalitres of rainfall every year, which is more than 60 per cent of the national total. However, this rainfall is highly variable and seasonal, with most of the year's rain falling in the summer months. In the dry season, zero monthly rainfall totals are common.
4.5
In addition, approximately 65 per cent of the north's rainfall evaporates or is used by plants before it can recharge groundwater or flow through the north's many rivers. Approximately 15 per cent of the north's water finds its way into underground aquifers, with the remaining 20 per cent entering rivers. The White Paper noted that water evaporation rates in Northern Australia are high; for example, Australia's largest mainland permanent water body, Lake Argyle in northern Western Australia, loses about a quarter of its water every year to evaporation. The White Paper stated that such conditions present challenges for capturing and storing water, but the sheer volume of water in the north creates opportunities for growth if water storage and use can be managed efficiently.
4.6
The White Paper highlighted that both surface and ground water in Northern Australia serves a variety of functions, including cultural and spiritual use by First Nations communities. River flows and groundwater are vital for supporting natural environments as well as other productive uses. They provide opportunities to supply water to growing regional and urban communities and for new and existing industries. In some regions, river flows and suitable terrain combine to provide scope for dams. Sometimes conditions make off-stream storages, such as farm dams, the most effective way to provide secure water resources. In other cases, larger in-stream storages are more suitable.
4.7
The White Paper noted that predicting and meeting demand for new water users and uses is an important driver of water resource development. It stated that this requires improved information and analysis of water and soil resources.
4.8
The White Paper stated that the Australian Government would provide:
$200 million to build water infrastructure in the north and tied to developing secure and tradeable water rights as part of a new National Water Infrastructure Development Fund, starting with:
$15 million to determine available water and best locations for water infrastructure in the Mitchell River catchment (Queensland), West Kimberley (Western Australia) and the Darwin region (Northern Territory).
Up to $5 million each for detailed examinations of the economic feasibility of Nullinga Dam (Queensland) and Ord Stage 3 development (Western Australia/ Northern Territory).
Government investment
4.9
The Department of Industry, Science, Energy and Resources (DISER) noted that water resources are a major driver of economic activity, particularly for key northern industries such as agriculture, aquaculture, mining, energy and tourism.
4.10
The Department of Infrastructure, Regional Development and Cities (DIRDC) noted that the capture and use of 'more of the north's highly seasonal rainfall, which accounts for more than 60 per cent of Australia's total, is critical to the Northern Australia agenda'. The DIRDC further noted in its submission that 'currently, just two per cent of [the region's] rainfall is being used' for economic purposes. DIRDC argued that water is critical to the growth of key northern industries like agriculture, aquaculture, mining, energy and tourism'.
4.11
As such, a range of programs to facilitate and fund public investment in water infrastructure in Northern Australia have been established. The evidence received in relation to these programs is outlined below.
4.12
The National Water Initiative (NWI) agreed in 2004 by the Council of Australian Governments (COAG) is the national blueprint in this area. The NWI is a shared commitment by governments to increase the efficiency of Australia's water use, leading to greater certainty for investment and productivity, for rural and urban communities and for the environment.
National Water Infrastructure Development Fund
4.13
The National Water Infrastructure Development Fund (NWIDF) was announced as part of the White Paper launched on 18 June 2015, and the Agricultural Competitiveness White Paper, launched on 4 July 2015. Originally $500 million over 10 years, the NWIDF included a $200 million component for Northern Australia projects. Of this, projects worth up to $25 million were announced in the Northern Australia White Paper. The Australian Government established the NWIDF as a rolling 10-year program. An additional $2 billion in capital funding was announced as part of the 2020-21 Federal Budget, bringing the Australian Government's total funding commitment under the NWIDF to $3.5 billion.
4.14
The commitment to Northern Australian projects recognised that relative to southern water catchments, there was a lack of detailed water resource information available to inform water infrastructure planning and decision making by state and territory governments and the private sector.
4.15
DIRDC submitted that the purpose of the NWIDF is to enable state and territory governments, and their project partners, to make informed investment decisions for new or augmented water infrastructure that helps to secure the nation's water supplies and deliver strong economic benefits for Australia.
4.16
The NWIDF enables public and private investors to accelerate the construction of water infrastructure such as dams, weirs, pipelines, managed aquifer recharge and water recycling projects that will enhance water security, maintain the prosperity of agriculture and grow the resilience of rural and regional economies.
4.17
As part of the National Water Infrastructure Development Fund, $494.2 million has been committed for northern projects. Capital projects undertaken under the scheme and located in Northern Australia are listed in Table 4.1 below:
Table 4.1: National Water Infrastructure Development Fund: Capital projects as at 15 March 2021
|
|
|
|
|
Mareeba-Dimbulah Water Supply Scheme (QLD)
|
$11,634,000
|
Under construction, with expected completion listed as 'Early 2022'
|
|
Rookwood Weir (QLD)
|
$183,600,000
|
Under construction, with expected completion listed as 'Mid 2023'
|
|
Hughenden Irrigation Scheme (QLD)
|
$180,000,000
(includes $10,000,000 for a detailed business case)
|
In planning, with no expected completion date listed
|
|
Big Rocks Weir (QLD)
|
$30,000,000
|
In planning, with no expected completion date listed
|
Source: National Water Grid Authority, Status of the 22 National Water Infrastructure Development Fund (NWIDF) capital projects (as at 15 March 2021), https://www.nationalwatergrid.gov.au/sites/default/files/documents/NWIDF_Summary_Capital_Projects_March_2021.pdf (accessed 14 April 2021)
4.18
DISER also detailed a number of feasibility projects as follows:
$24 million for the Hells Gates Dam Scheme (Qld) including Big Rocks Weir for a business case;
$25.5 million for 16 feasibility studies and $15 million for the Northern Australia Water Resource Assessments;
$3.5 million for the Roper River Catchment (NT) water resource assessment of the development potential of the water and soil resources by CSIRO. CSIRO are providing an additional $2 million towards this project;
$6.5 million directly appropriated to Geoscience Australia for water modelling in the Great Artesian Basin over three years commencing in 2019/20 financial year;
$10 million to progress the QLD Lakeland Irrigation business case, including final engineering and scoping works;
$10 million to progress the Qld Urannah Dam business case and approvals; and
$2 million to study the NT Adelaide River off-stream water storage project business case.
Northern Australia Water Resource Assessment
4.19
The outcome of the $15 million CSIRO Northern Australia Water Resource Assessment (NAWRA), an initiative of the White Paper, was announced by the Australian Government on 30 August 2018.
4.20
The NAWRA provided a comprehensive assessment on the potential water resources of the Mitchell River catchment (Queensland), Fitzroy River catchment (Western Australia) and the Darwin region (Mary, Finniss, Adelaide and Wildman catchments, Northern Territory). The studies identified the best sites within these catchments for potential agricultural developments which will be profitable, productive and sustainable.
4.21
Significantly, for each catchment the NAWRA also assessed potential environmental, social and economic impacts and risks of water resources and irrigation developments. Key outcomes of the NAWRA study include:
understanding how diverse stakeholders, Indigenous people, investor and developer perspectives interact will be crucial in building and maintaining social license to operate for future agricultural developments; and
the Indigenous people consulted in the catchments studied generally preferred development based on flood harvesting or groundwater, with large instream dams the least preferred option. Indigenous people expressed a wish to be owners, partners and investors in future development, reflecting their status as the longest term residents with deep intergenerational ties to the catchments.
4.22
This scientific analysis delivered unprecedented water catchment data, providing investors with information to de-risk financial commitment to large-scale infrastructure and agricultural developments in the north.
4.23
CSIRO research also identified 387,000 additional hectares with the potential for agricultural crops such as sugar cane and cotton. The assessments also identified another 710,000 hectares of coastal land that could accommodate lined aquaculture ponds.
North Queensland Water Infrastructure Authority
4.24
The North Queensland Water Infrastructure Authority (NQWIA) was established in March 2019 to provide strategic planning and coordination of Commonwealth resources to implement the Hughenden Irrigation Scheme project and the Hells Gates Dam Scheme (including Big Rocks Weir) project. The NQWIA's scope includes major water infrastructure in regional Queensland including Rookwood Weir, and the Mareeba-Dimbulah Water Supply Scheme.
4.25
NQWIA also works collaboratively with stakeholders to progress feasibility and planning activities, including developing business cases, related to major water infrastructure initiatives eligible to receive Australian Government funding from the NWIDF.
Evidence received by the committee
4.26
The committee received a range of evidence in relation to the importance of water infrastructure in Northern Australia, particularly for agriculture, industry and local communities. For example, the Northern Territory Farmers Association (NT Farmers) submitted that 'good water management is critical to conservation outcomes, to commercial outcomes, and to cultural/social outcomes'.
4.27
Ms Sheriden Morris, Chair of the Cooperative Research Centre for Developing Northern Australia (CRCNA) noted that 'the north is a very difficult place to develop. If it were easy, it would have already been done'. Ms Morris noted however that the 'potential for development is huge', notably because of the soil and divertible water present in the north. Ms Morris stated:
Basically, there are about 16 million hectares of land suitable for development—soil suitable for development. About 45 per cent of the divertible water in Australia falls in Northern Australia, much of it unused. Unfortunately, most of it falls between November and April, in the wet season. We cover about 53 per cent of the landmass and we're only delivering about 10.7 per cent of Australia's GDP. So the potential for development is huge. We can see it. We have water. We have some soil. The capacity to be the breadbasket for Asia is probably an exaggeration, but we do have the capacity to build Australia's GDP.
4.28
Mr Luke Simpkins, Chief Executive Officer, Kimberley Pilbara Cattlemen's Association (KPCA), told the committee that 'the north of Australia has far more potential than is currently being developed'. Mr Simpkins stated:
There are great opportunities up here. Beyond stations, there are chances for greater development, such as irrigated agriculture on the Fitzroy River, and even down in the Pilbara there's the opportunity for water taken out of the ground for mining operations to be diverted towards irrigated agriculture down there as well. There are also opportunities in wastewater around Port Hedland.
4.29
Mr Ashley Manicaros, Chief Executive Officer of the Northern Territory Cattlemen's Association noted that in the 'prime grazing' areas of the Northern Territory, there is on average 600 millimetres of rain per year. More broadly across the Northern Territory, the rainfall can vary between 1.5 and 2 metres. Mr Manicaros noted that 'out of that 1.5 metres, roughly a metre of it just runs off and isn't stored and captured'. Mr Manicaros stated:
That's an incredible waste of a resource that is in demand. When you add water to the northern part of Australia, 70 per cent of the landmass becomes arable. So water storage to us is not a luxury. It is something that we see as a critical part of any infrastructure network that gets presented to Northern Australia moving forward from an industry point of view, whether it's agriculture or any other type of industry, and from a community point of view.
4.30
Mr Philip Hams from the Fitzroy Crossing Network similarly told the committee that:
We've had six million—I will say it again: six million—megalitres of water going over a barrage on the Fitzroy River since 21 December. All of that is now out in the Indian Ocean, and it's still crossing over. There is not one megalitre of that water that has been retained to create one job. I will say that again: we've had six million megalitres go over the weir or the barrage at Liveringa, four days out from the Indian Ocean, and there has not been one megalitre water retained to create a job. They've been pontificating for about the last hundred years about doing things. It's got to change.
4.31
Several submitters called for improved water storage capabilities which would assist in the management of drought conditions, to foster agriculture and provide water security for communities. Ms Patricia O'Callaghan, Chief Executive Officer, Townsville Enterprise Limited stated:
When we had the floods, something else that was quite heartbreaking for the region was to see millions of cubic meters just flow out into the Coral Sea when we've been reeling with drought for the past eight years. Looking at new dams and water storage capabilities as well as irrigation schemes is really important. That's why the Hells Gates Dam business case is so important. There is capital for infrastructure there of $30 million for the first weir of that dam to be realised. That will not just open up 5,000 hectares of agriculture but also provide water security for Charters Towers. So looking at those projects is really important.
4.32
Numerous submitters welcomed existing initiatives to fund the development and improvement of water infrastructure in Northern Australia. For example, Councillor Jane McNamara, Mayor of the Flinders Shire Council told the committee:
…the National Water Infrastructure Development Fund is very welcome, and we would love to think that more dams will be built in Northern Australia so that we can reach our potential. These don't need to be large dams; they need to be strategically placed so that there's a mosaic of farming. We do not want to replicate the Murray-Darling problems. We need to be very smart and strategic about the way this is developed.
4.33
Regional Development Australia Townsville and North West Queensland (RDATNWQ) noted that industries and communities 'critically need water infrastructure'. As such, the RDATNWQ:
…welcomed investment through the National Water Infrastructure Development Fund into feasibility studies for the development of new projects in our region. The establishment in Townsville of the North Queensland Water Infrastructure Authority (NQWIA) by the Australian Government is welcomed as a significant commitment to progressing key water projects.
4.34
Similarly Dr Allan Dale, Chair, Developing Northern Australia Conference; Chief Scientist, Cooperative Research Centre for Developing Northern Australia; and Professor of Tropical Regional Development, James Cook University, stated:
We see the national water infrastructure facility that's been in place to support the first range of water infrastructure feasibility studies as having been quite successful, out of the first range, but there's a lot more work needed to prioritise where that effort goes. We think the formation of the National Water Grid Authority will be a good step in that direction.
4.35
AgForce Queensland Farmers (AgForce), the peak rural group representing beef, sheep and wool, and grain producers in Queensland, favourably noted the Northern Water Resource Assessments conducted by CSIRO, particularly those conducted in the Mitchell River basin and on the Gulf Rivers in Queensland. It noted that 'these assessments have identified agricultural development opportunities worthy of further investigation and supported industry responses to state government planning policies for Cape York Peninsula'. AgForce argued that:
These catchment-level assessments should be continued for prospective regions across the north, including continued investments in understanding sustainable use of underground water from the Great Artesian Basin.
4.36
Regional Development Australia Pilbara (RDA Pilbara) also noted 'the excellent work undertaken by CSIRO to map the water resources in Northern Australia'. It noted however that there is a need to 'convert this knowledge into implementation projects and investment'.
4.37
Townsville Enterprise, in noting its receipt of $24 million from the National Water Infrastructure Fund for the development of a business case for the Hells Gate Dam Project, told the committee that 'the project will be an economic powerhouse for the region', with the potential to generate up to 4,000 full time equivalent (FTE) jobs post construction, 12,000 jobs during construction, and contributing $1.3 billion annually to north Queensland's gross regional product.
4.38
AgForce also noted the co-funding of the Rookwood Weir through the NWIDF, and stated that:
This funding commitment is a positive start and governments are encouraged to work more effectively together to ensure policy positioning on water infrastructure is aligned and to continue to see funds flow towards growing the north.
4.39
Ms Anne Marie Huey, owner and manager of Dampier Downs Station, told the committee that grants which are used to upgrade infrastructure, provided directly to businesses, can have a 'powerful impact'. Ms Huey explained that:
A few years ago, we got a grant to upgrade our water supply. So, instead of having to get into a diesel powered vehicle to drive out to a bore to start a petrol powered pump and pump water, we've actually upgraded them to all solar. So there's less carbon emitted from running the pumps, and we have to go out there a lot less often, so that's a big carbon saving right then and there. It's things like better infrastructure: if we can put in really well-placed fences, yards and water points, like I said, that just cuts our mustering hours. Up here it's all done with helicopters, which is obviously very expensive and means lots of avgas being burnt every day. The more that we can make that efficient, as well as having huge animal welfare implications it's all going towards reducing our carbon emissions as an industry and as a nation.
Opportunities in the agricultural sector
4.40
The committee received evidence in relation to opportunities in the agricultural sector arising out of improved water infrastructure.
4.41
AgForce submitted that 'primary production businesses and producers' livelihoods are built around access to water'. AgForce stated that 'environmentally sustainable water use planning is vital to the future production of food and fibre and realising the full economic potential of Northern Australia'. As such, 'agricultural water users must know that their access to water is secure, their share of the available water is certain and the future availability of water is understood'.
4.42
The Australian Fresh Produce Alliance (AFPA) noted that during peak harvest times its members collectively employ nearly 4,000 people across the Atherton Tablelands, Tully and the Burdekin in Queensland and more than 400 people in the Northern Territory. However, it noted that the unprecedented drought conditions of recent years have shown the importance of appropriate infrastructure to store and transport water. The AFPA argued that such investments would provide greater certainty and reliability of access to water, and would encourage private sector investment in the fresh produce industry (and broader agricultural development). This would in turn provide support for population growth in Northern Australia.
4.43
The AFPA submitted that fruit and vegetable production in Carnarvon, Western Australia, Katherine, Northern Territory, and Bowen, Queensland, may benefit from larger scale off-stream flood harvesting. The AFPA noted that:
These existing production areas rely on a combination of natural high rainfall, and water pumped from rivers and underground aquifers. The current drought has increased the pressure on underground aquifers - there is potential for large scale off stream flood harvesting to take pressure off underground aquifers in particular and potentially provide water for other users.
4.44
Mr Paul Burke, Chief Executive Officer, Northern Territory Farmers Association, told the committee that the organisation sees 'a lot of opportunity around the extraction of water'. Mr Burke noted that a lack of water in eastern states has had an impact on the cotton industry. Mr Burke explained:
The cotton industry works on selling into the forward markets, the futures markets. A lot of growers have sold out three and five years into those markets, and they now need to supply that product, which they have no water to grow in the eastern states. So they're looking north. So the opportunity around the cotton industry is now, it's real and it's present.
4.45
Mr Burke further noted that in industry trials, the cotton industry was able to return approximately $1,500 a hectare utilising 1.8 megalitres of water per hectare. Mr Burke explained that in comparison, the cotton industry in eastern states uses approximately eight megalitres per hectare. In addition:
Our cotton industry in Northern Australia is fundamental to developing a broader cropping industry. We need the higher-yielding cotton industry to assist us in developing land. Recently we conducted a feasibility study into the cotton industry and into a cotton gin to be built in north Australia. That was conducted by PricewaterhouseCoopers. It showed that a cotton gin would be viable within three years.
4.46
Mr Burke told the committee that the cotton industry in the Northern Territory would be expected to be around 30,000 hectares within the next ten years, contributing approximately $300 million to the Northern Territory economy. Mr Burke also estimated that each cotton gin would contribute 16 full-time jobs.
4.47
Mr Burke called for a bipartisan approach across all levels of government with long term policy settings as:
agricultural development takes a long time to reach fruition. If you invest today, you may not get a return for the next 10 or 12 years if you're lucky; it might be 20 years.
Expanded focus
4.48
In discussing the need for improved water infrastructure, witnesses noted that many of the existing policies and funding frameworks have focused on the agricultural sector. The committee heard calls for water infrastructure policy to acknowledge the value of water to other industries, and the importance of water security for remote and regional communities in Northern Australia.
4.49
The Town of Port Hedland (TPH) called for the NWIDF to expand its focus. It noted that the Fund focuses on economic priority areas related to agriculture citing that this is where the majority of water lies. However the TPH submitted that this focus ignores the value of water in the Pilbara as a driver of significant resource and energy investment in a key economic market for Australia. The TPH noted that though the White Paper includes a goal to develop the north's water resources, there is no focus on town water supply which is necessary to attract and retain a skilled workforce for economic development.
4.50
Similarly, the AFPA submitted that existing water storage and irrigation schemes may present opportunities for new investment to increase water storage capacities, and more efficient use which will benefit the entire community. It stated:
This new investment has the potential to benefit the entire community that relies on these water storages for water for residential, commercial, industrial and agricultural use. Examples of new investment includes pipelines for residential use, raising dam walls to increase storage capacity, and investments to improve the efficiency of water delivery (such as pipelines for agricultural use).
4.51
In noting the opportunities for the agricultural sector as a result of additional water infrastructure, Mr Burke, Northern Territory Farmers Association, stated that conversations regarding water infrastructure should be expanded. Mr Burke noted that the agricultural sector is not the sole beneficiary or user of water infrastructure, and that water harvesting also has the 'potential for security of water for townships…[and] security of water for large industries'.
4.52
Ms Marion Scrymgour, Chief Executive Officer, Northern Land Council, also noted that water security for communities is a significant issue. Ms Scrymgour stated:
Water security is a major concern for many of our communities. Two weeks ago the Northern Territory government began a water security review following an incident in September, where we saw a number of our communities in the Top End go without water for five days. In recent years, remote communities in the Northern Land Council jurisdiction have also faced a number of serious water quality issues, including contamination from PFAS, mining run-off and corroded water infrastructure.
4.53
Ms Scrymgour, also noted that the Northern Territory passed the Water Further Amendment Act 2019 and that it was 'encouraging to see bipartisan support…for this initiative, which is an important acknowledgment of water rights and will support economic development in communities where reserves are in place'. However, Ms Scrymgour noted that:
Work now needs to be done. We will work with those communities to have the capacity and assistance where they need to get full benefit from this opportunity, whether through establishing their own commercial activities, partnering with non-Aboriginal businesses and proponents, or doing water trading.
4.54
Witnesses also called for more scientific data to support the development of water infrastructure. For example, Mr Manicaros, Northern Territory Cattlemen's Association, highlighted that research is required regarding aquifers in the Northern Territory, and their potential for water extraction. Similarly, AgForce submitted that:
Water investment and agricultural development opportunities need to be guided by objective, scientific information from robust resource assessments and associated feasibility studies in order to reduce the risks for investors and the environment.
Northern Australia Infrastructure Facility
4.55
Other submitters called for the Northern Australia Infrastructure Facility (NAIF) to renew its focus on new investment for water infrastructure in the following areas:
large scale off stream flood harvesting in existing fresh produce and agricultural production areas;
expansion of existing water storage and irrigation schemes; and
new dams and pipelines which are integrated into regional economies and social infrastructure.
4.56
The Far North Queensland Regional Organisation of Councils (FNQROC) noted that infrastructure types such as roads and water are 'key economic enablers' in Northern Australia. The FNQROC stated that:
…the harnessing of significant water resources for agricultural development and population growth and the investment in roads which connect agricultural production to key ports and markets will help support economic development.
4.57
The FNQROC explained that in the majority, this infrastructure is not privately operated and that therefore the cost is unable to be fully recovered from users. As such, the FNQROC recommend that the NAIF should facilitate an element of grant funding that would support investment in economic enabling infrastructure where full direct cost recovery form users is not a viable alternative. It noted that his would complement existing funding sources including the NWIDF.
4.58
The AFPA noted that new investments in water infrastructure have the potential to be long term projects through the design, preparation, construction and commissioning phases. As such, the long timelines for new water infrastructure, particularly in times of broader economic uncertainty creates a reluctance for commercial investment. The AFPA recommended that:
The NAIF must consider equity investments in new water infrastructure which support economic and population growth in Northern Australia. Additional eligibility criteria may be required for equity investments in water infrastructure but that should not be a hindrance to establishing new water infrastructure investment.
4.59
Mr Patrick Green, Chairperson, Leedal; Fitzroy Crossing Network, called on the NAIF to assist in the negotiation of water rights. Mr Green stated:
In this particular region, we are having the discussion on water now, and we do have eight Aboriginal pastoral properties here. With the NAIF fund, I'd like to be able to see how that could assist the Aboriginal properties to take on capacity partners where they can help us do better and we participate in trying to negotiate water rights where we're not putting ourselves into strife. It came to Noonkanbah last year and now the directors are going to be charged with the problem of water. I'd like to think that we can participate meaningfully in how we have water allocations. So, whether that means ponding or whatever it is, I'd like the NAIF planners to be able to assist us in trying to utilise what is flowing out into the ocean.
First Nations water rights and economic engagement
4.60
First Nations peoples hold a significant portion of the landmass in Northern Australia, including much of the coastline. The Indigenous Reference Group to the Ministerial Forum on Northern Development notes that international conventions and the Australian judiciary are increasingly recognising that First Nations interests extend beyond cultural rights and rights of occupancy to rights over natural resources, intellectual property and a right to economic development.
4.61
However, the North Australian Indigenous Land and Sea Management Alliance submitted that '[w]eak physical infrastructure, ineffective regional institutions, harsh climate, long distances to markets' have created 'serious disadvantage' for 'remote and regional people seeking to improve their situations, and focus on the capabilities and creative aspirations of local peoples seeking to engage with regional and broader economies'.
4.62
The Cape York Land Council Aboriginal Corporation observed that:
Resource rights not attached to land tenure, such as water or fish, should be managed whereby a significant proportion of the total allowable take of the resource is held in a reserve for Aboriginal people. A portion of the reserve should then be allocated to Aboriginal corporations or business operators for their use directly or to be traded with third parties.
4.63
The Cape York Land Council Aboriginal Corporation highlights that this is already undertaken in the Cape York area, as the Cape York Aboriginal land holding corporations are entitled to most unallocated water in their river catchment and can choose to use the water for their own projects (or trade it with a third party) via the Cape York Water Resource Plan's Cape York Peninsula Heritage Area reserve. The submission stated that another example is the Commonwealth Government's management of the Torres Strait tropical rock lobster fishery, wherein 'a significant percentage of the total allowable catch of lobsters is reserved for Traditional Inhabitant fishers'.
4.64
Regarding the Northern Australia agenda, the Cape York Land Council Aboriginal Corporation submitted that 'allocation systems for resources that do not run with the land tenure, such as water or fish, should be reviewed to ensure that they are available for access by Aboriginal people'. The corporation further noted that this would be in line with the recent expansion of the statutory role of the Indigenous Land Corporation to become the Indigenous Land and Sea Corporation.
4.65
The Northern Territory Seafood Council submitted that it is currently working with the Northern Land Council's Sea Country Working Group to resolve access issues faced by First Nations communities in order to allow greater participation in the Northern Territory seafood industry, if so desired. However, the Northern Territory Seafood Council has been unable to obtain funding for its newly developed model in this area, which sought to 'work through the issues of access that benefit its members and the indigenous communities affected'.
4.66
The Indigenous Reference Group to the Ministerial Forum on Northern Development notes that Indigenous economic development on both land and sea is critical for Northern Australia's economic development, highlighting that:
Unless Indigenous interests in the Northern Australian economy are optimally activated, Northern Australia will at best never reach its social and economic potential and at worst, fail to develop socially and economically.
Impact of water capture
4.67
Several submitters noted the significant environmental implications arising from increased water storage and urged caution in relation to the construction of new water infrastructure. Improving water storage capabilities to assist in the management of drought conditions and to provide water security for communities was raised by Ms Sheridan Morris, CRCNA. Ms Morris advised that climate conditions in Northern Australia require more innovation in developing appropriate water storage methods. Ms Morris stated:
The other issue around infrastructure is around water and clever design. Big shallow dams don't work in the north because of the temperature and evaporation. There is cleverness coming into this arrangement with water storage: off-system storage, underground storage and the like. We need to really improve our thinking and bring it up from the 1950s into what contemporary opportunities are available for water use and water storage.
4.68
However, improving water storage must be done judiciously. Mr Burke, Northern Territory Farmers Association, noted that the organisation does not support large-scale dams on iconic rivers in the Northern Territory. Mr Burke stated:
We don't believe that they are necessary. We don't believe that they have the support of the broader community. We think that they would jeopardise our aspirational plans to develop a cotton industry…I don't think our Indigenous Australians in the Northern Territory would appreciate dams on iconic rivers either. What I would say is that I think there's huge opportunity for Australian water harvesting.
4.69
This was echoed by Mr Manicaros, Northern Territory Cattlemen's Association, who noted that water security and water storage can be achieved through innovative means, without needing to dam major rivers. Mr Manicaros stated:
The topography of the Northern Territory doesn't actually support the damming of major rivers, so the debate on that front about large-scale dams is kind of futile…The Northern Territory Cattlemen's Association supports water security and it supports water storage. That can take many types of innovative forms, including the recharging of aquifers and how you do that.
4.70
Though many witnesses called for increased water capture and storage and new water infrastructure, the committee also received evidence that 'many traditional owners are greatly concerned about water capture and its potential impacts on their country, culture and livelihood'. Ms Scrymgour, of the Northern Land Council, told the committee that:
Aboriginal people have been watching the droughts and what's been happening, but they're also seeing the impact of the droughts. Often people think that we live in the tropics up here and we get a lot of rainfall. What people aren't seeing is that that rainfall isn't replenishing the aquifers, which is what we should be seeing, and we're seeing a lot of our bores in remote communities running dry.
4.71
Overuse of water can also have an economic impact. The Northern Prawn Fishery Industry (NPFI), which is the representative body for Commonwealth statutory fishing rights holders operating in the Northern Prawn Fishery, submitted that, aside from environmental risks, the potential overuse of water in Northern Australia could impact 'the ongoing economic viability and profitability of NPF fishing businesses'. The NPFI submitted:
The Mitchell, Gilbert and Flinders river catchments are critical to the health and productivity of the NPF banana prawn fishery. Tropical ecosystems, estuarine and marine biodiversity, and fisheries productivity and economic performance, depend vitally on maintaining catchment flows as close as practical to historical seasonal and annual trends. As such, the potential for fisheries resources the marine environment to be negatively impacted by future development is extremely high.
4.72
While the committee notes the economic benefits that can arise from building new water infrastructure in order to increase agricultural production and prepare for future drought conditions, such improvements should not come at the expense of environmentally, socially and culturally significant water systems in Northern Australia. A balance must be struck between improving these systems and receiving the benefits of water security, while also respecting the environmental, social and cultural importance of these areas.