Chapter 1 - Introduction
Conduct of the inquiry
1.1
The Senate referred the inquiry on 21 October 2002. The terms of reference are:
-
current rural industry based water resource
usage;
-
options for optimising water resource usage for
sustainable agriculture;
-
other matters of relevance that the committee
may wish to inquire into and comment on that may arise during the course of the
inquiry, including the findings and recommendations from other inquiries
relevant to any of the issues in these terms of reference.
1.2
The Committee
advertised the inquiry in The Australian
and invited submissions from peak bodies. The Committee
received 78 submissions (see Appendix 1) and held 11 public hearings (see
Appendix 2). The Committee thanks submitters
and witnesses for their contribution. Submissions and transcripts of the Committees
hearings are available on the Parliaments internet site at www.aph.gov.au
1.3
During the inquiry period there has been significant
action on water reform, both by individual states, who are responsible for
detailed water planning, and through the Council of Australian Governments
(COAG). This culminated in an Intergovernmental Agreement on a National Water
Initiative, agreed by COAG on 25 June
2004.
1.4
These developments have advanced the water reform
agenda considerably from that referred to in submissions and Committee
evidence from 2003. The focus of interest is now the detailed implementation of
the Intergovernmental Agreement.
1.5
As well, the House of Representatives Standing
Committee on Agriculture, Fisheries and Forestry has recently issued a
comprehensive report on water reform questions as they stood just before the
Intergovernmental Agreement was signed.[1]
1.6
In light of this the Committee
prefers not to attempt another detailed report at this time, but rather to
focus on discussing some outstanding concerns and likely problems in
implementing the Intergovernmental Agreement.
1.7
The Committee advises
its continuing interest in the implementation of the Intergovernmental Agreement
on a National Water Initiative and related issues, and may wish to review
progress during the next parliament.
Summary background
1.8
Irrigated agriculture accounts for about three quarters
of total consumptive water use in Australia.
From 1983-84 to 1996-97 extractions for irrigation increased by 76 percent, a
much faster rate of increase than domestic and industrial use. This reflected
the continuing rapid expansion of the area of irrigated land, especially in New
South Wales and Queensland.[2] Initiatives that
would see expansion of irrigation are also evident in Northern
Australia.
1.9
At the same time there has been increasing concern
about the effects of these developments on the health of rivers and ecosystems.
According to the National Land
and Water Resources Audit 26 per cent of Australias
river systems are either overused or close to over use, including most of the
rivers in the Murray-Darling Basin.
Sixty nine per cent of total surface water extraction comes from these stressed
rivers.[3]
1.10
In this context COAG in 1994 agreed to a national water
reform framework with the aim of improving efficiency of water use and
improving environmental outcomes. Expert opinion seems to be that there has
been progress on some items of the agenda, but others have proved difficult,
and much more needs to be done.
1.11
The severe drought of 2002-03 brought renewed focus on water
issues. On 29 August 2003
COAG agreed to a National Water Initiative, including a commitment to spend
$500 million over 5 years on recovering environmental water for the
Murray-Darling. On 25 June 2004
COAG agreed to an Intergovernmental Agreement on a National Water Initiative,
with detailed arrangements for progressing the matters foreshadowed in 2003.
The Commonwealth and the Murray-Darling
Basin governments (except Queensland)
also agreed on detailed arrangements for spending the $500 million (in the Intergovernmental
Agreement on Addressing Water Overallocation and Achieving Environmental
Objectives in the Murray-Darling Basin).
Structure of the report
1.12
Chapter 2 gives background on rural water management
and describes the recent Intergovernmental Agreement on a National Water
Initiative, which is the focus of the discussion.
1.13
Chapter 3 discusses issues to do with water access
entitlements.
1.14
Chapter 4 discusses issues to do with water trading.
1.15
Chapter 5 discusses a number of other issues,
including:
-
ways of encouraging more efficient water use;
-
ways of recovering environmental water;
-
the need to account for water interception by
landuse changes.