admin /22 January, 2006
According to an editorial in The Australian Financial Review
(20/1/2006, p.86), agreement on how water trading will work in the
southern Murray-Darling Basin is already seven months overdue, and a
second deadline is likely to pass this month unless there is an
unexpected rapprochement between the two largest states.
NSW ignores peer pressure: Victoria, supported by South
Australia and the Commonwealth, believes water rights should be
tradeable across the border according to an exchange rate mechanism. In
principle, this would seem to be most consistent with the goal of
creating an efficient and transparent national market, which the
National Water Commission – established under the National Water
Initiative (NWI) – wants without delay. But NSW wants to retain its
system of differential rights for different users and to “tag†water
rights when they travel interstate so that they are dealt with under
“state of origin†rules.
“Unconscionable” irrigation methods: At the moment, some
three-quarters of water used nationally goes into irrigation, of which
two-thirds (or half the national total) goes into the lowest-value uses
– rice, cotton and dairy. And an unconscionable proportion – between 20
and 40 per cent – of irrigation water is lost to leakage and
evaporation from open channels. This is improving as upgrades are
slowly made to infrastructure.