MEDIA RELEASE The Hon John Anderson MP Deputy Prime Minister Minister for Transport and Regional Services Leader of The Nationals 29 August 2003 A100/2003

NATIONAL WATER INITIATIVE "The way that nations use their water resources in the 21st century will determine their future. Today, the driest inhabited continent on earth has taken a historic step towards using its water resources sustainably and profitably in the long term," the Deputy Prime Minister and Leader of the National Party, John Anderson, said today. The Council of Australian Governments (CoAG) today agreed on the scope of the National Water Initiative. The Governments intention has always been that the details would be finalised in partnership with water users in time for CoAGs first meeting in 2004. "In Australia, the average consumption of water per household is 250,000 litres per year. It is about 30 percent higher than the OECD average, even though we live on the worlds driest inhabited continent," Mr Anderson said. "When it is finalised, the National Water Initiative will affect every single Australian, whether they live in a minimalist apartment in the Sydney CBD, a suburb in a regional city, or a small community. Our lives depend on the use of staggering quantities of water, so it is critically important to every Australian who eats steak (50,000 litres of water per kilogram), drinks fruit juice (780 litres of water per litre of juice), or has butter (18,070 litres per kilogram) on their bread (1,010 litres per kilogram of wheat). It is equally important to every Australian who wears cotton clothes (5,300 litres per kilogram of cotton) or a pure new wool suit to work (685,000 litres per suit). "The agreement has established the principles that will underpin Australias use of water for many years to come, including the principle of investment certainty, which is the key to better, more productive and sustainable water use. It is as important as the decision in 1898 to add a section to the constitution about the use of the rivers; or the decision in 1949 to build the Snowy Mountains Scheme. "It means there will be new business opportunities in industries such as food processing, manufacturing, environmental technology and tourism. There will be thousands of new jobs in regional communities, which will help secure their future as vibrant places to live. "The National Water Initiative will transform the future of the Australian farm sector, for it will provide farmers and their bankers with the security they need to make investments in confidence. Farming is now a very expensive, high technology industry, and confusion and uncertainty about water rights have been crippling the sector. In the Murray-Darling Basin alone, the initiative could increase the value of farm production by billions of dollars a year. Mr Anderson paid tribute to the enormous contribution that was made to the initiative by the farm sector and farm organisations, state governments and oppositions, local communities and environmental scientists. "It was the National Party that first raised the issue of justice for water users in the 2001 election campaign. We have had a critical role in developing todays agreement. "I also want to thank the Minister for Agriculture, Fisheries and Forestry, Warren Truss, and the Minister for Environment and Heritage, Dr David Kemp, for their massive contribution to developing the agreement. They will have the responsibility of taking the details of the initiative forward on behalf of the Government," Mr Anderson said. Mr Anderson said that the Australian, state and territory governments would now put together the details of the initiative based on principles agreed today. "I want to emphasise that todays agreement is about the scope of the National Water Initiative. Weve come a long way, but there are still many details that need to be worked through in partnership with water users. I will be holding extensive discussions with farmers and their communities over the coming days," Mr Anderson said. The National Water Initiative will include: Firm pathways and open processes to return overallocated surface and groundwater systems to environment sustainability. The Australian Government will contribute $200 million towards a $500 million package to underpin the sustainability of the Murray-Darling Basin. Perpetual access entitlements for a share of the water available for use, rather than a fixed-term entitlements with no guarantee of renewal. A guarantee that governments will have to compensate users for changes in their entitlements resulting from changes in government policy. The development of an efficient water market structure with the widest possible geographical scope. Trading will not be restricted to catchment areas. The details of the trading system -- including the development of controls to prevent speculation -- have not been resolved today and will be put together in partnership with water users over the coming months. In the Murray-Darling Basin, the establishment of a basin-wide environmental water manager that can buy and sell water to deliver the environmental results that are needed. Water will also be provided for the environment through targeted public and private investment in infrastructure. Attachment: Key elements of the initiative Electronic media: Broadcast quality audio grabs of the DPM can be downloaded from http://www.ministers.dotars.gov.au/ja/audio/2003/water_reform.htm   Council of Australian Governments Communique attached Media Contacts Paul Chamberlin ( Minister Anderson's Office ) 02 6277 7680 / 0419 233 989 KEY ELEMENTS OF THE NATIONAL WATER INITIATIVE Nationally compatible water access entitlements Firm pathways and open processes to return overallocated surface and groundwater systems to environment sustainability. Access entitlements will then be perpetual and will be for a share of the water resource available for use. Governments will have to compensate users for changes in their entitlements resulting from changes in government policy. Water sharing plans will be based on bona fide science and transparent processes. They will be subject to review when necessary and there will be regular reports on progress. Nationally functioning water markets An efficient water market structure with the widest possible geographical scope. Trading will not be restricted to catchment areas. The details of the trading system -- including the development of controls to prevent speculation -- have not been resolved today and will be put together in partnership with water users over the coming months. Integrated management of environmental water New arrangements to manage water at a basin, aquifer or catchment scale to deliver agreed environmental results. In the Murray-Darling Basin, the establishment of a basin-wide environmental water manager that can buy and sell water to deliver the environmental results that are needed. Water will also be provided for the environment through targeted public and private investment in infrastructure. Measuring, monitoring and information A robust, transparent regulatory water accounting framework that protects the integrity of entitlements. Urban water reform Measures to reinforce the need for urban users to use water efficiently by promoting water reuse and recycling, more efficient technologies and a review of the effectiveness of pricing.   URL: http://www.ministers.dotars.gov.au/ja/releases/2003/august/a100_2003.htm