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Presentation overview
• Drivers leading to a future with less water
• Management of water resources in the MDB
• Water for the Future initiatives assisting with the transition
– Water market reform
– Investments in more efficient delivery and use
– Environmental water purchase program
River Health
Warrego
Good
Moderate
Poor
Good
Moderate
Poor
Very Poor
Paroo
Border
Rivers
Condamine
Namoi
Ovens
Warrego
Gwydir
Darling
Lower Murray
Murray Central
Upper Murray
Wimmera
Avoca
Broken
Macquarie
Campaspe
Castlereagh
Kiewa
Lachlan
Loddon
Mitta Mitta
Murrumbidgee
Goulburn
Condamine
Very Poor
Border Rivers
Paroo
Gwydir
Castlereagh
Macquarie
Darling
Lachlan
Lower Murray
Murrumbidgee
Avoca
Murray Central
Upper Murray
Broken
Wimmera
Loddon
Kiewa
Campaspe
Ovens
Mitta Mitta
Goulburn
Namoi
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Average water availability (GL/y)
CSIRO (2008) Water Availability in the Murray-Darling Basin
Impact of climate change on average surface water availability
2,000
6,000
Historical climate
Median 2030 climate
1,500
4,500
1,000
3,000
500
1,500
0
0
Summary of CSIRO Sustainable Yields median climate change scenarios
Average annual
result
% Change in valley
Macquarie
Goulburn
Murrumbidgee
Border Rivers
Inflows
-7
-13
-9
-8
Diversions
-4
-6
-2
-2
End of system flows
-9
-18
-17
-12
• Trade enables irrigators to adjust to:
–
–
–
–
Seasonal conditions
Economic pressures
New business risks
New water application technologies
19
83
19 /84
84
19 /85
85
19 /86
86
19 /87
87
19 /88
88
19 /89
89
19 /90
90
19 /91
91
19 /92
92
19 /93
93
19 /94
94
19 /95
95
19 /96
96
19 /97
97
19 /98
98
19 /99
99
20 /00
00
20 /01
01
20 /02
02
20 /03
03
20 /04
04
20 /05
05
20 /06
06
20 /07
07
20 /08
08
20 /09
09
/1
0
Transfer Volume (GL)
1,200
1,100
1,000
900
800
Intrastate Temporary (GL)
Intrastate Permanent (GL)
Interstate Temporary (GL)
Interstate Permanent (GL)
700
Total Temporary (GL)
600
500
400
300
200
100
0
Water Year
Commitment to improved water trading arrangements
• Faster trade processing times
• National Water Market System
• Reforming trade barriers
• Water market, charge and trading rules
1. Sustainable Rural Water Use and Infrastructure ($5.8b)
2. Restoring the Balance in the Basin ($3.1 billion)
3. National Urban Water and Desalination Plan ($1 billion)
4. Water Smart Australia ($937 million)
5. Driving Reform in the Basin (DEWHA and ACCC) ($646 million)
6. Improving Water Information (BOM) ($447 million)
7. National Water Security Plan for Cities and Towns ($256 million)
8. National Rainwater and Greywater Initiatives ($250 million)
9. Raising National Water Standards (NWC) ($214 million)
10. Living Murray Initiative ($185 million)
11. Great Artesian Basin ($85 million)
12. Northern Australia Futures ($20 million)
SRWUIP
State Priority
Projects $3.7b
14 State Led
Projects
Vic $1.103b
Other Policy
Announcements
4 Commonwealthled Projects
NSW PIIOP $650m
SA $420M
SA PIP $110m
QLD $160m
SA and QLD Water
Purchase (RtB)
$430m
NSW $708m
ACT $85m
33 Components
IMPA $5m
Hot-spots $23m
On-Farm $300m
Strengthening Basin
Communities $200m
Projects
Status
SA Lower Lakes Integrated Pipelines project
Construction of pipelines now complete.
SA – Private Irrigation Infrastructure Program
Applications open until 8 April 2010
NSW- Private Irrigation Infrastructure Operators
Program
Applications closed on 27 November 2009;
being assessed
Northern Victoria Irrigation Renewal Project Stage
2
Business case received – currently undergoing
due diligence.
NSW – On farm modernisation
NSW developing business case. Pilot project
underway
Commonwealth On-Farm Irrigation Efficiency
Program
Round 1 applications currently under
assessment.
Strengthening Basin Communities
Successful applicants for Phase 1 Planning and
Water Savings Initiatives announced.
Queensland on-farm water use efficiency project
Business case received and assessment nearing
completion
Restoring the Balance in the Murray-Darling Basin (RtB)
Objective: to achieve a permanent re-balancing of the
system, by purchasing water entitlements from willing
sellers
•
$3.1 billion over 10 years
•
Environmental water recovery program focussed on
purchasing water for high priority environmental needs
Basin
Contracts
Contractsexchanged
exchangedasasatat30
31 January
September
2010 2009
(including the Toorale purchase)
Entitlement
Average Water Yield
GL
%
GL
%
5
7
<1
2
<1
NSW
441
549
72
69
246
317
62
60
Victoria
148
203
24
26
132
180
33
34
16
36
3
5
15
32
4
6
612
797
100
395
532
100
Queensland
South Australia
TOTAL
* Columns may not tally due to rounding
Lower Balonne
No purchases –
waiting for ROP
to be finalised
92% of expenditure
in high priority
catchments
Gwydir 18% of
total purchases
Macquarie 7%
of total
purchases
Southern
Connected
System 67% of
total purchases
(NSW 25.6%)
(Vic 34.7%)
(SA 6.9%)
• RtB has added depth to the water market – an additional
selling option!
• Use of sale proceeds- in descending order…..
–
–
–
–
Retire debt
Reinvest on-farm
Continue farming - invest off-farm
Exit farming
• Also smooths the transition to new water sharing
arrangements expected under Basin Plan
• Change is inevitable!
• The Water for the Future initiative is smoothing the path
by pursuing:
– Water market reforms
– Better infrastructure
– Purchasing environmental water